I
105TH CONGRESS
1ST SESSION
H. R. 2762
To amend the Federal Water Pollution Control Act to improve the protection
of the Nation’s wetlands and watersheds, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 29, 1997
Mr. GILCHREST introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To amend the Federal Water Pollution Control Act to im-
prove the protection of the Nation’s wetlands and water-
sheds, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES; DEFINITIONS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Wetlands and Watershed Management Act of 1997’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Fed-
eral Water Pollution Control Act (33 U.S.C. 1251 et seq.).
(c) DEFINITIONS.—In this Act, the following defini-
tions apply:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Army, acting through the Chief
of Engineers.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Wetlands perform a number of valuable
functions needed to restore and maintain the chemi-
cal, physical, and biological integrity of the Nation’s
waters, including—
(A) reducing pollutants (including nutri-
ents, sediment, and toxics) from nonpoint and
point sources;
(B) storing, conveying, and purifying flood
and storm waters;
(C) reducing both bank erosion and wave
and storm damage to adjacent lands and trap-
ping sediment from upland sources;
(D) providing habitat and food sources for
a broad range of commercial and recreational
fish, shellfish, and migratory wildlife species
(including waterfowl and threatened and endan-
gered species); and
(E) providing a broad range of recreational
values for canoeing, boating, birding, nature
study and observation, and hunting and fishing,
as appropriate.
(2) Original wetlands in the contiguous United
States have been reduced by an estimated 50 per-
cent and continue to disappear at a rate of 100,000
to 150,000 acres a year. Many of these original wet-
lands have also been altered or partially degraded,
reducing their ecological value.
(3) Wetlands are highly sensitive to changes in
water regimes and are, therefore, susceptible to deg-
radation by fills, drainage, excavation, water extrac-
tions, and other activities within their watersheds
which affect the quantity, quality, and flow of sur-
face and ground waters. Protection and management
of wetlands, therefore, should be integrated with
management of water systems on a watershed basis.
A watershed protection and management perspective
is also needed to understand and reverse the grad-
ual, continued destruction of wetlands that occurs
due to cumulative impacts.
(4) Wetlands constitute an estimated 5 percent
of the Nation’s surface area. Because much of this
land is in private ownership, wetlands protection and
management strategies must take into consideration
private property rights and the need for economic
development and growth. This can be best accom-
plished in the context of a cooperative and coordi-
nated Federal, State, and local strategy for data
gathering, planning, management, and restoration
with an emphasis on advance planning of wetlands
in watershed contexts.
(b) PURPOSES.—The purposes of this Act are—
(1) to help create a coordinated national wet-
land management effort with efficient use of scarce
Federal, State, and local financial and manpower re-
sources to protect wetland functions and values and
reduce natural hazard losses;
(2) to help reverse the trend of wetland loss in
a fair, efficient, and cost-effective manner;
(3) to reduce inconsistencies and duplication in
Federal, State, and local wetland management ef-
forts and encourage integrated permitting at the
Federal, State, and local levels;
(10) to restore and create wetlands in order to
increase the quality and quantity of the wetland re-
sources and by so doing to restore and maintain the
quality and quantity of the waters of the United
States; and
(11) to provide mechanisms for State, Federal,
and local coordination to better protect wetland re-
sources.
SEC. 3. DEFINITIONS.
(a) NAVIGABLE
WATERS.—Section 502(7) (33
U.S.C. 1362(7)) is amended by inserting ‘‘and wetlands’’
before the period.
(b) PRIOR CONVERTED CROPLAND.—Section 502(7)
(33 U.S.C. 1362(7)) is further amended by adding at the
end the following: ‘‘Areas certified by the Secretary of Ag-
riculture, in consultation with the Administrator, as prior
converted cropland are not navigable waters unless crop-
ping has ceased and the area meets the definition of wet-
land.’’.
(c) WETLANDS.—Section 502 (33 U.S.C. 1362) is
amended by adding at the end the following:
‘‘(21) The term ‘wetlands’ means areas that are inun-
dated or saturated by surface water or ground water at
a frequency and duration sufficient to support, and that
under normal circumstances do support, a prevalence of
vegetation typically adapted to life in saturated soil condi-
tions.’’.
(d) OTHER ALTERATION.—Section 502 (33 U.S.C.
1362) is further amended by adding at the end the follow-
ing:
‘‘(22) The term ‘other alteration’ means any activity
affecting navigable waters which changes the flow, reach,
circulation, hydrologic regime, bottom contour, or configu-
ration of such waters or which changes the type, distribu-
tion, or diversity of vegetation, fish, or wildlife that are
present in such waters. The term includes draining, dredg-
ing, excavation, channelization, flooding, clearing of vege-
tation, driving of pilings or placement of other obstruc-
tions, and diversion or withdrawal of water.’’.
SEC. 4. DELINEATION.
Section 404 (33 U.S.C. 1344) is amended by adding
at the end the following:
‘‘(u) WETLANDS DELINEATIONS MANUAL.—
‘‘(1) USE OF WETLANDS DELINEATIONS MAN-
UAL.—The Secretary, the Administrator, and the
Secretaries of the Interior, Commerce, and Agri-
culture shall use the Corps of Engineers Wetlands
Delineation Manual (1987) in carrying out this sec-
tion unless a new manual has been prepared and
formally adopted by the Secretary and the Adminis-
trator with input from the Secretaries of the Inte-
rior, Commerce, and Agriculture and the heads of
other relevant departments and agencies and after
field testing, hearings, and public comment.
‘‘(2) CONTENTS OF NEW MANUAL.—Any new
manual adopted pursuant to this section shall spe-
cifically consider the recommendations of the 1995
report of the National Academy of Sciences concern-
ing the characteristics and boundaries of wetlands.
‘‘(3) TRAINING ON USE OF MANUAL.—The Sec-
retary shall develop materials and conduct training
courses for consultants, State and local govern-
ments, and landowners explaining the use of the
Corps of Engineers Wetlands Delineation Manual
(1987), including any subsequent revisions, in the
delineation of wetland areas.
‘‘(4) DEVELOPMENT OF SUPPLEMENTAL TECH-
NICAL CRITERIA AND PROCEDURES.—The Secretary
and the Administrator, in cooperation with the
States and the Secretaries of the Interior and Agri-
culture, may develop supplemental technical criteria
and procedures pertaining to wetland hydrology,
soils, and vegetation for identification of regional
wetland types.’’.
SEC. 5. EXPANSION OF SCOPE OF PERMIT PROGRAM.
(a) PROHIBITION OF ACTIVITIES.—Section 301(a)
(33 U.S.C. 1311(a)) is amended by inserting after ‘‘the
discharge of any pollutant’’ the following: ‘‘or other alter-
ation of navigable waters’’.
(b) CERTIFICATION.—The first sentence of section
401(a)(1) (33 U.S.C. 1341(a)(1)) is amended to read as
follows: ‘‘Any applicant for a Federal license or permit to
conduct any activity including, but not limited to, the con-
struction or operation of facilities, which may result in any
discharge into, or other alteration of, navigable waters
shall provide the licensing or permitting agency a certifi-
cation from the State where the discharge or other alter-
ation originates or will originate (or, if appropriate, from
the interstate water pollution control agency having juris-
diction over the navigable waters where the discharge or
other alteration originates or will originate) that the dis-
charge or other alteration will comply with the applicable
provisions of sections 301, 302, 303, 306, and 307 of this
Act and will allow for the protection, achievement, and
maintenance of designated uses included in applicable
water quality standards.’’.
(c) ISSUANCE
OF PERMITS.—Section 404(d) (33
U.S.C. 1344(d)) is amended to read as follows:
‘‘(d) DEFINITIONS.—In this section, the following
definitions apply:
‘‘(1) DISCHARGE
OF
DREDGED
MATERIAL.—
The term ‘discharge of dredged material’ means any
addition of dredged material into navigable waters
and includes, without limitation, any addition (in-
cluding redeposit) of dredged material (including ex-
cavated material) into such waters which is inciden-
tal 
to 
any 
activity 
(including 
mechanized
landclearing, ditching, channelization, or other exca-
vation) that has or would have the effect of destroy-
ing or degrading any area of such waters, including
wetlands.’’.
‘‘(2) SECRETARY.—The term ‘Secretary’ means
the Secretary of the Army, acting through the Chief
of Engineers.’’.
SEC. 6. PERMITS FOR DISCHARGE OF DREDGED OR FILL
MATERIAL.
(a) PERMIT MONITORING AND TRACKING.—Section
404 (33 U.S.C. 1344), as amended by section 4 of this
Act, is further amended by adding at the end the follow-
ing:
‘‘(v) PERMIT MONITORING
AND TRACKING PRO-
GRAM.—
‘‘(1) ESTABLISHMENT.—The Secretary and the
Administrator shall establish and implement a per-
mit monitoring and tracking program on a water-
shed basis to monitor the cumulative impact of indi-
vidual and general permits issued under this section.
‘‘(2) PURPOSE.—The purpose of the program
shall be to determine the impact of permitted activi-
ties under this section on the functions of directly
and indirectly impacted wetlands and other waters
(including protection of water quality, flood storage,
and fish and wildlife habitat) and to determine
whether such activities are consistent with the na-
tional goal of achieving no net loss of the functions
and acres of wetlands.
‘‘(3) REPORTS.—Not later than 2 years after
the date of the enactment of this subsection, and bi-
ennially thereafter, the Secretary and the Adminis-
trator shall transmit to Congress a report on the re-
sults of the program established under this sub-
section.
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this subsection $1,000,000 for each of fiscal years
1999 and 2000.’’.
(b) REVOCATION OR MODIFICATION OF GENERAL
PERMITS.—Section 404(e)(2) (33 U.S.C. 1344(e)(2)) is
amended—
(1) by striking ‘‘may be revoked’’ and inserting
‘‘shall be revoked’’;
(2) by striking ‘‘environment or’’ and inserting
‘‘environment,’’; and
(3) by striking the period at the end and insert-
ing ‘‘, or a State or regional entity has failed to ade-
quately monitor or control the individual and cumu-
lative adverse effects of activities authorized by
State programmatic general permits.’’.
(c) PROGRAMMATIC GENERAL PERMITS.—Section
404(e) is amended by adding at the end the following:
‘‘(3) PROGRAMMATIC GENERAL PERMITS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary, after providing notice
and an opportunity for public comment, may
issue programmatic general permits on a State-
wide basis for the purpose of avoiding unneces-
sary duplication of regulations by Federal,
State, and regional regulatory programs. A pro-
grammatic general permit issued under this
paragraph must comply with the requirements
of paragraph (2).
‘‘(B) REQUIREMENTS.—
‘‘(i) IN
GENERAL.—The Secretary
may issue a programmatic general permit
based on a State regulatory program if the
general permit includes adequate safe-
guards to ensure that the State program
will have no more than minimal individual
and cumulative impacts on the environ-
ment and will provide at least the same de-
gree of protection for the environment, in-
cluding all navigable waters, and for Fed-
eral interests, as is provided by this section
and by the Federal permitting program
pursuant to subsection (a).
‘‘(ii) 
SAFEGUARDS.—Safeguards
under clause (i) shall include provisions
whereby the Secretary and the Adminis-
trator, in coordination with the Secretaries
of the Interior and Commerce, as appro-
priate, shall have an opportunity to—
‘‘(I) review a permit application
submitted to the State regulatory
agency which, if approved, could re-
sult in more than minimal individual
or cumulative adverse impacts on the
environment;
‘‘(II) attempt to resolve any re-
lated environmental concern and pro-
tect Federal interests at issue; and
‘‘(III) if such concern is not ade-
quately addressed by the State agen-
cy, require the processing of an indi-
vidual Federal permit under this sec-
tion for the specific proposed activity.
‘‘(iii) PROTECTION OF FEDERAL IN-
TERESTS.—In carrying out this subpara-
graph, the Secretary and the Adminis-
trator, in coordination with the Secretaries
of the Interior and Commerce, as appro-
priate, shall protect all Federal interests,
including national security, navigation,
flood 
control, 
Federal 
endangered 
or
threatened species, Federal interests under
the Wild and Scenic Rivers Act, special
aquatic sites of national importance, and
other interests of overriding national im-
portance.
‘‘(C) CONSISTENCY WITH GUIDELINES.—A
programmatic general permit shall not be is-
sued under this paragraph unless the State reg-
ulatory program is no less protective than and
contains comparable procedural opportunities to
those provided under guidelines promulgated to
implement subsection (b)(1).’’.
(d) GRANDFATHER
OF EXISTING GENERAL PER-
MITS.—Section 404(e) is further amended by adding at
the end the following:
‘‘(4) GRANDFATHER
OF
EXISTING
GENERAL
PERMITS.—General permits in effect on the day be-
fore the date of the enactment of this paragraph
shall remain in effect according to the terms of the
permit until the expiration date contained in the
permit unless otherwise modified or revoked by the
Secretary or held invalid by a court.’’.
(e) ACTIVITIES NOT REQUIRING A PERMIT.—Section
404(f) (33 U.S.C. 1344(f)) is amended by striking the
subsection designation and all that follows through para-
graph (1) and inserting the following:
‘‘(f) ACTIVITIES NOT REQUIRING A PERMIT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), activities are exempt from the require-
ments of this section and are not prohibited by or
otherwise subject to regulation under this section or
section 301 or 402 of this Act (except effluent
standards or prohibitions under section 307 of this
Act) if such activities—
‘‘(A) 
result 
from 
normal 
farming,
silviculture, and ranching activities and prac-
tices, such as plowing, seeding, cultivating,
haying, grazing, minor drainage in connection
with such activities, harvesting for the produc-
tion of food, fiber, and forest products, or up-
land soil and water conservation practices;
‘‘(B) are for the purpose of routine or
emergency maintenance of currently serviceable
structures such as dikes, dams, levees, groins,
riprap, breakwaters, causeways, bridge abut-
ments or approaches, and transportation struc-
tures;
‘‘(C) are for the purpose of construction or
maintenance of farm or stock ponds or irriga-
tion ditches or the maintenance of drainage
ditches and tile lines (including resloping of
drainage ditches for the exclusive purpose of
controlling bank erosion);
‘‘(D) are for the purpose of construction of
temporary sedimentation basins on a construc-
tion site which does not include placement of
fill material into the navigable waters;
‘‘(E) are for the purpose of construction or
maintenance of farm roads, forest roads, or
temporary roads for moving mining equipment
in accordance with best management practices
to assure that flow and circulation patterns and
chemical and biological characteristics of the
navigable waters are not impaired, that the
reach of the waters is not reduced, and that any
adverse effect on the aquatic environment will
be otherwise minimized; or
‘‘(F) are agricultural activities performed
on farmed wetlands, such as haying, grazing,
harrowing, discing, maintenance of irrigation
water retention basins, or maintenance of exist-
ing drainage tile systems.
SEC. 7. COMPENSATORY MITIGATION.
Section 404 (33 U.S.C. 1344), as amended by section
6 of this Act, is further amended by adding at the end
the following:
‘‘(w) GENERAL REQUIREMENTS.—
‘‘(1) MITIGATION SEQUENCE REQUIREMENTS.—
Any application for a permit submitted under this
section shall be reviewed to ensure that mitigation
measures are taken in the following order:
‘‘(A) Measures to avoid any adverse effects
on wetlands caused by the proposed activities.
‘‘(B) Measures to minimize any adverse ef-
fects that cannot be avoided.
‘‘(C) Measures to compensate for adverse
impacts on wetland functions, values, and acre-
age.
‘‘(2) STANDARDS.—The Secretary, in consulta-
tion with the Administrator, shall ensure that com-
pensatory mitigation by a permitee—
‘‘(A) is a specific, enforceable condition of
the permit for which it is required;
‘‘(B) will meet defined success criteria; and
‘‘(C) is monitored to ensure compliance
with the conditions of the permit and to deter-
mine the effectiveness of the mitigation in com-
pensating for the adverse effects for which the
mitigation is required.
‘‘(3) COMPENSATORY MITIGATION DEFINED.—
In this subsection, the term ‘compensatory mitiga-
tion’ means the restoration, creation, enhancement,
and, in exceptional circumstances, preservation of
wetlands or other aquatic resources and associated
upland habitat for the purpose of compensating for
unavoidable adverse impacts which remain after all
appropriate and practicable steps have been taken to
avoid and minimize such impacts. In carrying out
this subsection, preference shall be given to in-kind
restoration on the same waterbody and within the
same local watershed where practicable and environ-
mentally preferable.
‘‘(4) REGULATIONS.—Not later than 90 days
after the date of the enactment of this subsection,
the Secretary, after providing notice and opportunity
for comment, shall issue proposed rules defining the
exceptional circumstances in which preservation of
wetlands is permissible as a mitigation option for a
permittee under this section. The definition of excep-
tional circumstances shall be limited to cir-
cumstances in which the parcel to be preserved is
facing a discrete, identifiable threat to its continued
existence as a wetland.
SEC. 8. ESTABLISHMENT AND USE OF MITIGATION BANKS.
Section 404 (33 U.S.C. 1344), as amended by section
7 of this Act, is further amended by adding at the end
the following:
‘‘(x) ESTABLISHMENT
AND USE
OF MITIGATION
BANKS.—
‘‘(1) IN GENERAL.—Not later than 1 year after
the date of the enactment of this subsection, and
after providing notice and an opportunity for public
review and comment, the Secretary and the Admin-
istrator shall issue regulations for the establishment,
use, maintenance, and oversight of mitigation banks.
The regulations shall be developed in consultation
with the Secretary of the Interior (acting through
the Director of the United States Fish and Wildlife
Service) and the Secretary of Commerce (acting
through the Administrator of the National Oceanic
and Atmospheric Administration).
‘‘(2) REQUIREMENTS
FOR
BANK
ESTABLISH-
MENT.—
‘‘(A) SUBMISSION OF PLANS.—In order to
be eligible to operate a mitigation bank, an ap-
plicant shall submit to the Secretary and the
Administrator for approval detailed plans for
establishment of the bank, including bank
goals, bank size, type of wetlands to be re-
stored, created, or enhanced, methods for deter-
mining debits and credits, performance stand-
ards for determining bank success, ownership of
bank lands, description of baseline conditions
and geographical extent of bank lands, financial
assurances, contingency and remedial actions
and responsibilities in case of bank failure, re-
porting protocols and provisions for long term
management, monitoring, and maintenance.
‘‘(B) PUBLIC
REVIEW
AND
COMMENT.—
The Secretary and the Administrator shall
make a plan submitted under subparagraph (A)
available for public review. The public shall
have a minimum of 30 days to review and com-
ment on the plan before the authorization of a
mitigation banking instrument.
‘‘(C) AGENCY COORDINATION IN DEVELOP-
MENT OF BANKING INSTRUMENT.—In making a
decision to approve an application to establish
and operate a mitigation bank, the Secretary
and the Administrator shall consult with the
Secretaries of the Interior, Commerce, and Ag-
riculture, as appropriate. The Secretary and the
Administrator shall also coordinate with the ap-
propriate State, local, and tribal resource agen-
cies and the potential bank sponsors in develop-
ing a legally binding banking instrument.
‘‘(D) APPROVAL OF MITIGATION BANKING
INSTRUMENT.—Upon approval of the proposed
mitigation bank plans required under subpara-
graph (A) by the Secretary and the Adminis-
trator, in consultation with the Secretaries of
the Interior, Commerce, and Agriculture, as ap-
propriate, such plans shall be recognized as the
legally binding mitigation banking instrument.
Approval of a banking instrument by the Sec-
retary and the Administrator shall be required
prior to bank development.
‘‘(E) 
GRANDFATHERING
OF
EXISTING
MITIGATION BANKS.—Mitigation banks in oper-
ation on the day before the date of the enact-
ment of this subsection shall submit to the Sec-
retary and the Administrator, within 180 days
of such date of enactment, mitigation bank
plans in accordance with the requirements of
subparagraph (A), unless a similar plan or in-
strument was developed in accordance with
interagency guidance on wetlands mitigation
banking in consultation with the Secretary.
‘‘(3) USE OF MITIGATION BANKS.—
‘‘(A) WATERSHED MANAGEMENT.—Mitiga-
tion banks shall be planned and developed to
address specific resource needs of a particular
watershed and shall be planned in conjunction
with comprehensive watershed management
plans developed in accordance with section 321,
where applicable.
‘‘(B) MITIGATION
SEQUENCING.—In ac-
cordance with the requirements of this section,
all practical and appropriate steps shall be
taken to sequentially avoid and minimize im-
pacts to wetlands and other aquatic resources
prior to authorization to use a mitigation bank.
‘‘(C) 
IN-KIND
COMPENSATION
RE-
QUIRED.—In the interest of achieving func-
tional replacement, in-kind compensation of
wetlands or aquatic resources shall be required,
except where out-of-kind mitigation is deter-
mined to be environmentally preferable.
‘‘(D) GEOGRAPHIC TRANSPORT OF MITIGA-
TION BANK CREDITS.—In order for the pur-
chase of credits from a mitigation bank to fulfill
mitigation requirements associated with a per-
mit issued under this section, the mitigation
bank must be located in the same hydrologic
cataloguing unit (as established on maps pub-
lished by the U.S. Geological Survey) as the
project or impact site.
‘‘(4) CREDIT WITHDRAWAL.—
‘‘(A) TOTAL NUMBER OF CREDITS.—The
total number of credits to be contained in a sin-
gle mitigation bank shall be agreed upon and
outlined within the banking instrument and
may not be increased over the life of the bank.
‘‘(B) DEBITING.—Where adequate finan-
cial assurances exist and bank success is highly
likely, and when all signatories to the banking
instrument agree, debiting of up to 20 percent
of the total number of projected credits within
the bank may be allowed to occur at one time
to provide initial capital for the restoration, cre-
ation, or enhancement project if—
‘‘(i) appropriate measurements of suc-
cess are agreed upon by the signatories of
the bank instrument;
‘‘(ii) no additional credits may be sold
prior to successful establishment of the ini-
tial credits; and
‘‘(iii) signatories to the bank instru-
ment are allowed to conduct periodic on-
site inspections of bank performance.
‘‘(5) MONITORING, MAINTENANCE, AND REME-
DIATION
PROVISIONS.—The bank instrument shall
also include provisions for—
‘‘(A) the types of monitoring, the fre-
quency and duration of monitoring, and re-
quirements for reporting on bank progress to
the instrument signatories;
‘‘(B) any regular maintenance which may
be required to maintain hydrologic, soil, and
hydrophytic vegetation criteria; and
‘‘(C) procedures for identifying and imple-
menting remedial measures at a bank in case of
bank failure.
‘‘(6) FINANCIAL ASSURANCES.—
‘‘(A) RESPONSIBILITIES
OF
BANK
SPON-
SOR.—The bank sponsor shall be responsible
for meeting all funding requirements reflecting
realistic cost estimates for monitoring, mainte-
nance, 
contingency, 
and 
remedial 
actions
throughout the operational life of the bank. The
bank sponsor shall also be responsible for pro-
viding adequate funding for any long-term
maintenance beyond the operational life of the
bank which are identified in the banking instru-
ment.
‘‘(B) FORM OF FINANCIAL ASSURANCES.—
Financial assurances may be in the form of per-
formance bonds, irrevocable trusts, escrow ac-
counts, casualty insurance, letters of credit, or
other sources approved within the bank instru-
ment.
‘‘(C) PHASING OUT OF FINANCIAL ASSUR-
ANCES.—Financial assurances may be phased
out or reduced once bank maturity or self suffi-
ciency has been established, as outlined in the
bank instrument.
‘‘(7) METHODS
FOR
DETERMINING
DEBITS,
CREDITS, AND FEE STRUCTURES.—
‘‘(A) METHODS FOR DETERMINING DEBITS
AND CREDITS.—Banking instruments shall in-
clude consistent and scientifically sound meth-
ods for determining debits and credits.
‘‘(B) 
METHODS
FOR
DETERMINING
FEES.—Each bank shall base fee charges for
participation in a mitigation bank that reflect
the full costs of replacing lost wetlands func-
tions and acreage, including the costs of land
acquisition, wetlands establishment, manage-
ment measures, long-term maintenance, mon-
itoring and protection, potential remediation of
project failure, and other relevant factors.
‘‘(8) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply:
‘‘(A) COMPENSATORY
MITIGATION.—The
term ‘compensatory mitigation’ means the res-
toration, creation, enhancement, and, in excep-
tional circumstances, preservation of wetlands
or other aquatic resources and associated up-
land habitat for the purpose of compensating
for unavoidable adverse impacts which remain
after all appropriate and practicable steps have
been taken to avoid and minimize such impacts.
‘‘(B) CREDIT.—The term ‘credit’ means a
unit of measure representing the attainment of
function at a mitigation bank. The measure of
function is typically indexed to the number and
quality of acres restored, created, or enhanced.
‘‘(C) DEBIT.—The term ‘debit’ means a
unit of measure representing the loss of wetland
or aquatic resource function at an impact or
project site.
‘‘(D) MITIGATION BANK.—The term ‘miti-
gation bank’ means a site where wetlands or
other aquatic resources have been restored, cre-
ated, 
enhanced, 
or, 
in 
exceptional 
cir-
cumstances, preserved by 1 or more public or
private parties expressly for the purpose of pro-
viding compensatory mitigation credits to offset
authorized impacts to similar resources.
‘‘(E) 
MITIGATION
BANKING
INSTRU-
MENT.—The term ‘mitigation banking instru-
ment’ means a legally binding agreement be-
tween a bank sponsor, the Secretary, the Ad-
ministrator, and the heads of other appropriate
Federal, State, tribal, and local resource agen-
cies outlining the objectives and administration
of the bank, including detailed physical and
legal characteristics of the bank and how the
bank will be established and operated.
‘‘(F) 
MITIGATION
SEQUENCING.—The
term ‘mitigation sequencing’ means sequentially
avoiding impacts, minimizing impacts, and com-
pensating for unavoidable impacts made to nav-
igable waters, including wetlands.’’.
SEC. 9. COMPREHENSIVE WATERSHED PLANNING AND
MANAGEMENT.
(a) STATEMENT OF CONGRESSIONAL POLICY.—Sec-
tion 101 (33 U.S.C. 1251) is amended by adding at the
end the following:
‘‘(h) WATER QUALITY.—It is the policy of Congress
to encourage the development and implementation of com-
prehensive watershed management to maintain and en-
hance water quality, to protect and conserve wetland re-
sources, and to further the purposes of this Act by—
‘‘(1) increasing public participation in selecting
measures to maintain and enhance water quality;
‘‘(2) coordinating the water quality programs of
this Act with other programs to restore and protect
natural resources;
‘‘(3) identifying for specific watersheds long-
term social, economic, and natural resource objec-
tives consistent with the goals of this Act and the
water quality necessary to support those objectives;
and
‘‘(4) provide assistance to States that formulate
and implement comprehensive management plans to
improve water quality and protect natural re-
sources.’’.
(b) WETLANDS
AND WATERSHED MANAGEMENT
PLANS.—Title III (33 U.S.C. 1311 et seq.) is amended
by adding at the end the following:
‘‘SEC. 321. WETLANDS AND WATERSHED MANAGEMENT
PLANS.
‘‘(a) MANAGEMENT ENTITY.—An approved manage-
ment entity of a State shall determine the management
entity responsible for developing and implementing a plan
for each wetlands and watershed management unit des-
ignated under this section. The management entity may
be an agency of State government, a local government
agency, a substate or interstate regional planning organi-
zation, a conservation district or other natural resource
management district, or other public entity that has ade-
quate powers and resources to carry out the responsibil-
ities authorized by this section in a comprehensive man-
ner.
‘‘(b) APPROVAL.—Each designation of a wetlands
and watershed management unit and a corresponding
management entity under this subsection shall be submit-
ted to the Administrator and the Secretary of the Army,
acting through the Chief of Engineers (referred to in this
section as the ‘Secretary’), for approval. If the Adminis-
trator and the Secretary disapprove a designation, the Ad-
ministrator and the Secretary shall notify the manage-
ment entity in writing of the reasons for the disapproval.
A revised designation may be submitted to meet the objec-
tions of the Administrator and the Secretary.
‘‘(c) PUBLIC PARTICIPATION.—Approved manage-
ment entities shall opportunities for public participation
in the development of wetlands and watershed manage-
ment plans under this section including procedures for
public notice and comment and establishment of scientific
and citizens advisory committees.
‘‘(d) APPROVAL OF PLANS.—
‘‘(1) SUBMISSION OF PLAN.—The Governor of a
State may submit to the Administrator for approval
by the Administrator and the Secretary a com-
prehensive wetlands and watershed management
plan developed pursuant to this section.
‘‘(2) DECISION ON PLAN.—The Administrator
and the Secretary shall, in consultation with the
Secretaries of the Interior, Agriculture, and Com-
merce, and after providing notice and an opportunity
for public comment, approve or disapprove a com-
prehensive wetlands and watershed management
plan.
‘‘(3) PLAN
REQUIREMENTS.—A wetlands and
watershed management plan shall include—
‘‘(A) the designation of an administering
agency which shall be responsible for making
reports to the Secretary and the Administrator
every 2 years on implementation of the plan
and on the losses and gains in functions and
acres of wetlands within the watershed plan
area;
‘‘(B) inventory, mapping, and characteriza-
tion of—
‘‘(i) the boundary of the plan area;
and
‘‘(ii) all wetlands and waters of the
United States within the plan area as well
as other areas proposed for protection
under the plan, including characterization
of weather effects and other physical fac-
tors affecting the plan area;
‘‘(C) proposed wetlands restoration sites
with a description of the intended functions of
the sites upon completion and the time required
for completion;
‘‘(D) primary land uses within the bound-
aries of the plan;
‘‘(E) presence of endangered species, cul-
tural and historic resources, wetlands and other
natural resource areas of special State, re-
gional, or national concern;
‘‘(F) current infrastructure such as major
roads and bridges and sewage treatment facili-
ties;
‘‘(G) a description of the regulatory poli-
cies and standards applicable to all wetlands
and waters within the plan areas and all activi-
ties which may affect these wetlands and waters
that will assure, at a minimum, no net loss of
the functions and acres of wetlands within the
plan area;
‘‘(H) demonstration that the administering
agency has the legal authority, financial re-
sources, and scientific monitoring capability to
carry out the proposed plan;
‘‘(I) provisions that the management entity
will report to the Administrator, the Secretary,
and the public not later than 2 years after the
date of implementation of the plan, and every
2 years thereafter, on the implementation of the
plan and on the losses and gains in functions
and acres of wetlands within the wetlands and
watershed management unit.
‘‘(e) PLANNING, IMPLEMENTATION, AND MONITOR-
ING SCHEDULE.—Each wetlands and watershed manage-
ment plan submitted and approved under subsection (b)
shall include a planning, implementation, and monitoring
schedule for a period of at least 10 years. The implementa-
tion schedule shall include all appropriate milestones for
meeting the management objectives established under the
plan.
‘‘(f) INCENTIVES FOR WETLANDS AND WATERSHED
MANAGEMENT PLANNING.—
‘‘(1) GRANTS.—Subject to the requirements of
this section, the Administrator is authorized to make
grants to approved management entities which shall
be eligible to receive funding for the following activi-
ties in the development of a wetlands and watershed
management plan:
‘‘(A) An inventory and mapping of—
‘‘(i) all navigable waters within the
proposed wetlands and watershed manage-
ment unit; and
‘‘(ii) potential wetlands restoration
sites.
‘‘(B) An assessment of the functions and
relative value of wetlands within the wetlands
and watershed management unit.
‘‘(C) The identification of potential mitiga-
tion banks.
‘‘(D) The development and implementation
of measures to integrate wetlands planning and
management with broader water resource and
land use planning and management, including
floodplain 
management, 
water 
supply,
stormwater management, and the control of
point and nonpoint source pollution.
‘‘(E) The development and implementation
of management strategies for preserving and re-
storing wetlands on a watershed basis.
‘‘(F) The consideration of, and coordina-
tion with, water resource and land use planning
efforts in adjacent States within the region or
basin in which the wetlands and watershed
management unit is located.
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to carry out
this section $10,000,000 for each of fiscal years
1999 through 2003.
‘‘(3) EXPEDITED PERMIT REVIEW.—At the re-
quest of an approved management entity, a decision
under section 404(a) with respect to a completed ap-
plication for a permit for the discharge of dredged
or fill material into navigable waters within a des-
ignated wetlands and watershed unit shall be made
in accordance with expedited permit processing pro-
cedures if the application is in compliance with an
approved wetlands and watershed management plan.
Such procedures shall be established by the Sec-
retary and the Administrator after providing notice
and an opportunity for public comment.
‘‘(4) TECHNICAL ASSISTANCE.—At the request
of an approved management entity, the Secretaries
of the Interior, Commerce, and Agriculture, shall, to
the extent practicable, provide the management en-
tity with technical assistance in carrying out wet-
lands and watershed management planning activities
under this section.
‘‘(g) RESEARCH PROGRAM.—The Secretary, in co-
operation with the Administrator, the Secretaries of the
Interior and Commerce, and the heads of other appro-
priate Federal, State, and local government entities, shall
carry out a research program on wetlands and watershed
management. The research program shall include—
‘‘(1) study of the functions, values, and man-
agement needs of altered, artificial, and managed
wetlands systems;
‘‘(2) study and development of techniques and
methods for determining and analyzing the functions
and values of different types of wetlands;
‘‘(3) study and development of techniques for
managing and restoring wetlands within a watershed
context;
‘‘(4) study and development of techniques for
better coordinating and integrating wetlands protec-
tion, floodplain management, stormwater manage-
ment, point and nonpoint source pollution controls,
and water supply planning on a watershed basis;
‘‘(5) development of criteria for identifying wet-
lands restoration sites on a watershed basis; and
‘‘(6) recommendation of procedures and ecologi-
cal criteria for wetlands restoration.’’.
SEC. 10. GRANTS TO FACILITATE IMPLEMENTATION OF
SECTION 404.
(a) IN GENERAL.—Subject to the requirements of
this section, the Administrator may make grants to States
for activities that implement section 404 of the Federal
Water Pollution Control Act through—
(1) State assumption of permitting pursuant to
subsections (g) and (h) of section 404 of such Act;
(2) permitting through a programmatic general
permit pursuant to section 404(e) of such Act; and
(3) other monitoring, management, protection,
and enforcement activities.
(b) ASSURANCES.—In order to be eligible to receive
a grant under this section, a State shall provide assur-
ances satisfactory to the Administrator that amounts re-
ceived by the State in grants under this section will be
used to carry out the activities listed in subsection (a) con-
sistent with the overall goals of section 404 of the Federal
Water Pollution Control Act and the standards and proce-
dures of subsections (g) and (h) of such section 404.
(c) MAXIMUM AMOUNT.—No State may receive more
than $300,000 in grants under this section in any fiscal
year.
(d) FEDERAL SHARE.—The Federal share of the cost
of activities carried out using amounts made available in
grants under this section shall not exceed 75 percent.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$25,000,000 for each of fiscal years 1999 through 2003.
SEC. 11. STATE, LOCAL, AND LANDOWNER TECHNICAL AS-
SISTANCE AND COOPERATIVE TRAINING.
(a) STATE AND LOCAL TECHNICAL ASSISTANCE.—
Upon request, the Administrator or the Secretary, as ap-
propriate, shall provide technical assistance to State and
local governments in the development and implementation
of State permitting programs under subsections (e) and
(h) of section 404 of the Federal Water Pollution Control
Act and wetlands and watershed management plans under
section 321 of such Act.
(b) COOPERATIVE TRAINING.—The Administrator
and the Secretary shall conduct training courses for States
and local governments involving wetland delineation, utili-
zation of wetlands in nonpoint pollution control, wetland
and stream restoration, wetland planning, wetland evalua-
tion, mitigation banking, and other subjects deemed ap-
propriate by the Administrator or the Secretary.
(c) PRIVATE
LANDOWNER
TECHNICAL
ASSIST-
ANCE.—The Administrator and the Secretary, in coopera-
tion with appropriate State and Federal agencies, shall de-
velop and provide to private landowners guidebooks, pam-
phlets, or other materials and technical assistance to help
the landowners in identifying and evaluating wetlands, de-
veloping integrated wetland management plans for their
lands consistent with the goals of this Act and the Federal
Water Pollution Control Act, and restoring wetlands.
SEC. 12. CITIZEN SUITS.
Section 505 (33 U.S.C. 1365) is amended by striking
the section heading and all that follows through subsection
(a) and inserting the following:
‘‘SEC. 505. CITIZEN SUITS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b) of this section and section 309(g)(6), any citizen may
commence a civil action on his own behalf—
‘‘(1) against any person, including the United
States and any other governmental instrumentality
or agency to the extent permitted by the eleventh
amendment to the Constitution, who is alleged to be
in violation of—
‘‘(A) an effluent standard or limitation
under this Act;
‘‘(B) the terms and conditions included in
a general permit, a mitigation banking instru-
ment, or other mitigation requirement; or
‘‘(C) an order issued by the Secretary or
the Administrator (or both) or a State with re-
spect to such standard or limitation; and
‘‘(2) against the Secretary or the Administrator
where there is alleged a failure of the Secretary or
the Administrator to perform any act or duty under
this Act which is not discretionary with the Sec-
retary or the Administrator.
The district courts shall have jurisdiction, without regard
to the amount in controversy or the citizenship of the par-
ties, to enforce such an effluent standard or limitation,
general permit term, mitigation requirement, or such an
order, or to order the Secretary or the Administrator to
perform such act or duty, as the case may be, and to apply
any appropriate civil penalties under section 309(d).’’.
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