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539), commonly known as the ‘‘Flood Control Act of 
1928’’. 
SEC. 5104. J. PERCY PRIEST DAM AND RESERVOIR, OHIO 
RIVER BASIN, TENNESSEE. 
The Secretary shall plan, design and construct up-
grades to the existing trail system at the J. Percy Priest 
Dam and Reservoir, Ohio River Basin, Tennessee, author-
ized by section 4 of the Act entitled ‘‘An Act authorizing 
the construction of certain public works on rivers and har-
bors for flood control, and for other purposes’’, approved 
June 28, 1938 (52 Stat. 1217), including design and con-
struction of support facilities for public health and safety 
associated with trail development. In carrying out such im-
provements, the Secretary is authorized to use funds made 
available by the State of Tennessee from any Federal or 
State source, or both. 
SEC. 5105. MEMPHIS, TENNESSEE. 
The Secretary shall review the aquatic ecosystem res-
toration component of the Memphis Riverfront Develop-
ment Master Plan, Memphis, Tennessee, prepared by the 
non-Federal interest and, if the Secretary determines that 
the component meets the evaluation and design standards 
of the Corps of Engineers and that the component is fea-
sible, may carry out the component at a total Federal cost 
not to exceed $5,000,000.
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SEC. 5106. TOWN CREEK, LENOIR CITY, TENNESSEE. 
The Secretary shall design and construct the project 
for flood damage reduction designated as Alternative 4 in 
the Town Creek, Lenoir City, Loudon City, Tennessee, 
feasibility report of the Nashville district engineer, dated 
November 2000, under the authority of section 205 of the 
Flood Control Act of 1948 (33 U.S.C. 701s), notwith-
standing section 1 of the Flood Control Act of June 22, 
1936 (33 U.S.C. 701a; 49 Stat. 1570). The non-Federal 
share of the cost of the project shall be subject to section 
103(a) of the Water Resources Development Act of 1986 
(33 U.S.C. 2213(a)). 
SEC. 5107. EAST TENNESSEE. 
(a) DEFINITION OF EAST TENNESSEE.—In this sec-
tion, the term ‘‘East Tennessee’’ means the counties of 
Blount, Knox, Loudon, McMinn, Monroe, and Sevier, Ten-
nessee. 
(b) ESTABLISHMENT OF PROGRAM.—The Secretary 
may establish a program to provide environmental assist-
ance to non-Federal interests in East Tennessee. 
(c) FORM OF ASSISTANCE.—Assistance under this 
section may be in the form of design and construction as-
sistance for water-related environmental infrastructure 
and resource protection and development projects in East 
Tennessee, including projects for wastewater treatment
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and related facilities, water supply and related facilities, 
and surface water resource protection and development. 
(d) OWNERSHIP REQUIREMENT.—The Secretary may 
provide assistance for a project under this section only if 
the project is publicly owned. 
(e) PARTNERSHIP AGREEMENTS.—
(1) IN GENERAL.—Before providing assistance 
under this section, the Secretary shall enter into a 
partnership agreement with a non-Federal interest 
to provide for design and construction of the project 
to be carried out with the assistance. 
(2) REQUIREMENTS.—Each partnership agree-
ment entered into under this subsection shall provide 
for the following: 
(A) PLAN.—Development by the Secretary, 
in consultation with appropriate Federal and 
State officials, of a facilities or resource protec-
tion and development plan, including appro-
priate engineering plans and specifications. 
(B) LEGAL
AND
INSTITUTIONAL
STRUC-
TURES.—Establishment of such legal and insti-
tutional structures as are necessary to ensure 
the effective long-term operation of the project 
by the non-Federal interest. 
(3) COST SHARING.—
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(A) IN GENERAL.—The Federal share of 
the project costs under each partnership agree-
ment entered into under this subsection shall be 
75 percent. The Federal share may be in the 
form of grants or reimbursements of project 
costs. 
(B) CREDIT FOR WORK.—The non-Federal 
interests shall receive credit for the reasonable 
cost of design work on a project completed by 
the non-Federal interest before entering into a 
partnership agreement with the Secretary for 
such project. 
(C) CREDIT FOR INTEREST.—In case of a 
delay in the funding of the non-Federal share 
of a project that is the subject of an agreement 
under this section, the non-Federal interest 
shall receive credit for reasonable interest in-
curred in providing the non-Federal share of 
the project’s costs. 
(D) LAND, EASEMENTS, AND RIGHTS-OF-
WAY CREDIT.—The non-Federal interest shall 
receive credit for land, easements, rights-of-
way, and relocations toward the non-Federal 
share of project costs (including all reasonable 
costs associated with obtaining permits nec-
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essary for the construction, operation, and 
maintenance of the project on publicly owned or 
controlled land), but not to exceed 25 percent 
of total project costs. 
(E) OPERATION AND MAINTENANCE.—The 
non-Federal share of operation and mainte-
nance costs for projects constructed with assist-
ance provided under this section shall be 100 
percent. 
(f) APPLICABILITY OF OTHER FEDERAL AND STATE 
LAWS.—Nothing in this section waives, limits, or other-
wise affects the applicability of any provision of Federal 
or State law that would otherwise apply to a project to 
be carried out with assistance provided under this section. 
(g) NONPROFIT ENTITIES.—Notwithstanding section 
221(b) of the Flood Control Act of 1970 (42 U.S.C. 
1962d–5b(b), for any project undertaken under this sec-
tion, a non-Federal interest may include a nonprofit entity 
with the consent of the affected local government. 
(h) CORPS OF ENGINEERS EXPENSES.—Ten percent 
of the amounts appropriated to carry out this section may 
be used by the Corps of Engineers district offices to ad-
minister projects under this section at 100 percent Fed-
eral expense.