(C) clear instructions for appropriate re-
sponses to drought, including water conserva-
tion, water reuse, and detection and elimination 
of water leaks; 
(D) information on State and local laws 
applicable to drought; and 
(E) opportunities for assistance to re-
source-dependent businesses and industries in 
times of drought; and 
(8) establish operating procedures for the Coun-
cil. 
(b) CONSULTATION.—In carrying out this section, 
the Council shall consult with groups affected by drought 
emergencies, including groups that represent—
(1) agricultural production, wildlife, and fishery 
interests; 
(2) forestry and fire management interests; 
(3) the credit community; 
(4) rural and urban water associations; 
(5) environmental interests; 
(6) engineering and construction interests; 
(7) the portion of the science community that 
is concerned with drought and climatology;
(8) resource-dependent businesses and other 
private entities, including recreation and tourism-
based industries; and 
(9) watershed groups. 
(c) REPORTS TO CONGRESS.—
(1) ANNUAL REPORT.—
(A) IN GENERAL.—Not later than 1 year 
after the date of the first meeting of the Coun-
cil, and annually thereafter, the Council shall 
submit to Congress a report on the activities 
carried out under this title. 
(B) INCLUSIONS.—
(i) IN GENERAL.—The annual report 
shall include a summary of drought pre-
paredness plans completed under title III. 
(ii) INITIAL REPORT.—The initial re-
port submitted under subparagraph (A) 
shall include any recommendations of the 
Council under paragraph (2) or (3) of sub-
section (a). 
(2) FINAL REPORT.—Not later than 7 years 
after the date of enactment of this Act, the Council 
shall submit to Congress a report that rec-
ommends—
(A) amendments to this Act; and
(B) whether the Council should continue. 
SEC. 103. POWERS OF THE COUNCIL. 
(a) HEARINGS.—The Council may hold hearings, 
meet and act at any time and place, take any testimony 
and receive any evidence that the Council considers advis-
able to carry out this title. 
(b) INFORMATION FROM FEDERAL AGENCIES.—
(1) IN GENERAL.—The Council may obtain di-
rectly from any Federal agency any information that 
the Council considers necessary to carry out this 
title. 
(2) PROVISION OF INFORMATION.—
(A) IN GENERAL.—Except as provided in 
subparagraph (B), on request of the Secretary 
or the non-Federal co-chair of the Council, the 
head of a Federal agency may provide informa-
tion to the Council. 
(B) LIMITATION.—The head of a Federal 
agency shall not provide any information to the 
Council that the Federal agency head deter-
mines the disclosure of which may cause harm 
to national security interests. 
(c) POSTAL SERVICES.—The Council may use the 
United States mail in the same manner and under the
same conditions as other agencies of the Federal Govern-
ment. 
(d) GIFTS.—The Council may accept, use, and dis-
pose of gifts or donations of services or property. 
(e) FEDERAL FACILITIES.—If the Council proposes 
the use of a Federal facility for the purposes of carrying 
out this title, the Council shall solicit and consider the 
input of the Federal agency with jurisdiction over the fa-
cility. 
SEC. 104. COUNCIL PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—
(1) NON-FEDERAL EMPLOYEES.—A member of 
the Council who is not an officer or employee of the 
Federal Government shall serve without compensa-
tion. 
(2) FEDERAL EMPLOYEES.—A member of the 
Council who is an officer or employee of the United 
States shall serve without compensation in addition 
to the compensation received for services of the 
member as an officer or employee of the Federal 
Government. 
(b) TRAVEL EXPENSES.—A member of the Council 
shall be allowed travel expenses at rates authorized for an 
employee of an agency under subchapter I of chapter 57 
of title 5, United States Code, while away from the home
or regular place of business of the member in the perform-
ance of the duties of the Council. 
SEC. 105. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this title $2,000,000 for each of fiscal years 2003 through 
2010. 
SEC. 106. TERMINATION OF COUNCIL. 
The Council shall terminate 8 years after the date 
of enactment of this Act. 
TITLE II—NATIONAL OFFICE OF 
DROUGHT PREPAREDNESS 
SEC. 201. ESTABLISHMENT. 
The Secretary shall establish an office to be known 
as the ‘‘National Office of Drought Preparedness’’ to pro-
vide assistance to the Council in carrying out this title. 
The Office shall be under the jurisdiction of the Under 
Secretary. 
SEC. 202. DIRECTOR OF THE OFFICE. 
(a) APPOINTMENT.—
(1) IN GENERAL.—The Under Secretary shall 
appoint a Director of the Office under sections 3371 
through 3375 of title 5, United States Code. 
(2) QUALIFICATIONS.—The Director of the Of-
fice shall be a person who has experience in—
(A) public administration; and
(B) drought mitigation or drought man-
agement. 
(b) POWERS.—The Director of the Office may hire 
such other additional personnel or contract for services 
with other entities as necessary to carry out the duties 
of the Office. 
SEC. 203. DETAIL OF GOVERNMENT EMPLOYEES. 
(a) IN GENERAL.—Except for the requirements of 
section 204, an employee of the Federal Government may 
be detailed to the Office without reimbursement, unless 
the Secretary, on the recommendation of the Director of 
the Office, determines that reimbursement is appropriate. 
(b) CIVIL SERVICE STATUS.—The detail of an em-
ployee shall be without interruption or loss of civil service 
status or privilege. 
SEC. 204. OFFICE PERSONNEL REQUIREMENT. 
(a) IN GENERAL.—The Office shall have at least 5 
full-time staff, including the personnel detailed to the Of-
fice under subsection (b). 
(b) DETAILEES.—There shall be detailed to the Of-
fice, on a nonreimbursable basis—
(1) by the Director of the Federal Emergency 
Management Agency, 1 employee of that agency 
with expertise in emergency planning;
(2) by the Secretary of Commerce, 1 employee 
of that department with experience in drought moni-
toring; 
(3) by the Secretary of the Interior, 1 employee 
of the Bureau of Reclamation with experience in 
water planning; and 
(4) by the Secretary of the Army, 1 employee 
of the Army Corps of Engineers with experience in 
water planning. 
TITLE III—DROUGHT 
PREPAREDNESS PLANS 
SEC. 301. DROUGHT ASSISTANCE FUND. 
(a) ESTABLISHMENT.—There is established within 
the Department of Agriculture a fund to be known as the 
‘‘Drought Assistance Fund’’. 
(b) PURPOSE.—The Fund shall be used to pay the 
costs of—
(1) providing technical and financial assistance 
(including grants and cooperative assistance) to 
States, Indian tribes, local governments, watershed 
groups, and critical service providers for the develop-
ment and implementation of drought preparedness 
plans under title III; 
(2) providing to States, Indian tribes, local gov-
ernments, watershed groups, and critical service pro-
viders the Federal share, as determined by the Sec-
retary, in consultation with the other members of 
the Council, of the cost of mitigating the overall risk 
and impacts of droughts; 
(3) assisting States, Indian tribes, local govern-
ments, watershed groups, and critical service pro-
viders in the development of mitigation measures to 
address environmental, economic, and human health 
and safety issues relating to drought; 
(4) expanding the technology transfer of 
drought and water conservation strategies and inno-
vative water supply techniques; 
(5) developing postdrought evaluations and rec-
ommendations; and 
(6) supplementing, if necessary, the costs of im-
plementing actions under section 102(a)(4). 
(c) GUIDELINES.—
(1) IN GENERAL.—The Secretary, in consulta-
tion with the non-Federal co-chair of the Council 
and with the concurrence of the Council, shall de-
velop and promulgate guidelines to implement this 
section. 
(2) REQUIREMENTS.—The guidelines shall ad-
dress the following:
(A) Ensure the distribution of amounts 
from the Fund within a reasonable period of 
time. 
(B) Take into consideration regional dif-
ferences. 
(C) Take into consideration all impacts of 
drought in a balanced manner. 
(D) Prohibit the use of amounts from the 
Fund for Federal salaries that are not directly 
related to the provision of drought assistance. 
(E) Require that distribution of amounts 
from the Fund granted to States, local govern-
ments, watershed groups, and critical service 
providers to meet the requirements of sub-
section (b)(1) be coordinated with and managed 
by the State in which such local government or 
critical service provider is located, consistent 
with the drought preparedness priorities and 
relevant water management plans within the 
State. 
(F) Require that distribution of amounts 
from the Fund granted to Indian tribes to meet 
the requirements of subsection (b)(1) be used to 
implement plans that are, to the extent prac-
ticable, in coordination with each State in which
lands of the Indian tribe are located and con-
sistent with existing drought preparedness and 
water management plans of such States. 
(G) Require that a State, Indian tribe, 
local government, watershed group, or critical 
service provider that receives Federal funds 
under paragraph (2) or (3) of subsection (b) 
cover not less than 25 percent of the overall 
cost incurred in carrying out the project for 
which the Federal funds are provided. This cost 
sharing requirement may be satisfied using 
non-Federal grants or cash donations made by 
non-Federal third parties. 
(d) SPECIAL REQUIREMENT FOR INTERSTATE WA-
TERSHEDS.—
(1) DEVELOPMENT
OF
DROUGHT
PREPARED-
NESS PLANS.—In order to receive funds under sub-
section (b)(1) to develop drought preparedness plans 
for interstate watersheds, the guidelines shall also 
require the relevant States, Indian tribes, or both, in 
which the watershed is located, to coordinate in the 
development of the drought preparedness plan. The 
development of such plans shall—
(A) be consistent with the relevant States’ 
and Tribal water laws, policies, and agreements;
(B) be consistent and coordinated with any 
existing interstate stream compacts; 
(C) include the participation of any rel-
evant watershed groups located in the relevant 
States, Indian tribes, or both; and 
(D) recognize that implementation of the 
interstate drought preparedness plan will in-
volve further coordination among the relevant 
States, Indian tribes, or both, except that each 
State and Indian tribe has sole jurisdiction over 
implementation of that portion of the watershed 
that exists within their boundaries. 
(2) IMPLEMENTATION OF DROUGHT PREPARED-
NESS PLANS.—In order to receive funds under sub-
section (b)(1) to implement drought preparedness 
plans for interstate watersheds, the guidelines shall 
also require, to the extent practicable, the relevant 
States, Indian tribes, or both, in which the water-
shed is located, to coordinate in the implementation 
of the drought preparedness plan, recognizing the 
sovereignty of the States and Indian tribes. Imple-
mentation of interstate drought preparedness plans 
under subsection (b)(1) shall—
(A) be contingent upon the existence of a 
drought preparedness plan, but not require the
distribution of funds to all States and Indian 
tribes in which the watershed is located; 
(B) consider the level of impact within the 
watershed on each of the relevant States, In-
dian tribes, or both; and 
(C) not impede on State water rights es-
tablished as of the date of enactment of this 
Act. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Fund such sums 
as are necessary to carry out subsection (b). 
SEC. 302. DROUGHT PREPAREDNESS PLANS. 
(a) IN GENERAL.—The Secretary of the Interior and 
the Secretary of the Army shall—
(1) with the concurrence of the Council, jointly 
develop guidelines for administering a national pro-
gram to provide technical and financial assistance to 
States, Indian tribes, local governments, watershed 
groups, and critical service providers for the develop-
ment, maintenance, and implementation of drought 
preparedness plans; and 
(2) promulgate the guidelines developed under 
paragraph (1). 
(b) REQUIREMENTS.—To build on the experience and 
avoid duplication of efforts of Federal, State, local, tribal,
and regional drought plans in existence on the date of en-
actment of this Act, the guidelines may recognize and in-
corporate those plans. 
SEC. 303. FEDERAL PLANS. 
(a) IN GENERAL.—The Secretary, the Secretary of 
the Interior, the Secretary of the Army, and other appro-
priate Federal agency heads shall develop and implement 
Federal drought preparedness plans for agencies under 
the jurisdiction of the appropriate Federal agency head. 
(b) REQUIREMENTS.—The Federal plans—
(1) shall be integrated with each other; 
(2) may be included as components of other 
Federal planning requirements; 
(3) shall be integrated with drought prepared-
ness plans of State, tribal, and local governments 
that are affected by Federal projects and programs; 
and 
(4) shall be completed not later than 2 years 
after the date of enactment of this Act. 
SEC. 304. STATE AND TRIBAL PLANS. 
States and Indian tribes may develop and implement 
State and tribal drought preparedness plans that—
(1) address monitoring of resource conditions 
that are related to drought;
(2) identify areas that are at a high risk for 
drought; 
(3) describes mitigation strategies to address 
and reduce the vulnerability of an area to drought; 
and 
(4) are integrated with State, tribal, and local 
water plans in existence on the date of enactment of 
this Act. 
SEC. 305. REGIONAL AND LOCAL PLANS. 
Local governments, watershed groups, and regional 
water providers may develop and implement drought pre-
paredness plans that—
(1) address monitoring of resource conditions 
that are related to drought; 
(2) identify areas that are at a high risk for 
drought; 
(3) describe mitigation strategies to address 
and reduce the vulnerability of an area to drought; 
and 
(4) are integrated with corresponding State 
plans. 
SEC. 306. PLAN ELEMENTS. 
The drought preparedness plans developed under this 
title—
(1) shall be consistent with Federal and State 
laws, contracts, and policies; 
(2) shall allow each State to continue to man-
age water and wildlife in the State; 
(3) shall address the health, safety, and eco-
nomic interests of those persons directly affected by 
drought; 
(4) shall address the economic impact on re-
source-dependent businesses and industries, includ-
ing regional tourism; 
(5) may include—
(A) provisions for water management 
strategies to be used during various drought or 
water shortage thresholds, consistent with State 
water law; 
(B) provisions to address key issues relat-
ing to drought (including public health, safety, 
economic factors, and environmental issues such 
as water quality, water quantity, protection of 
threatened and endangered species, and fire 
management); 
(C) provisions that allow for public partici-
pation in the development, adoption, and imple-
mentation of drought plans;
(D) provisions for periodic drought exer-
cises, revisions, and updates; 
(E) a hydrologic characterization study to 
determine how water is being used during times 
of normal water supply availability to anticipate 
the types of drought mitigation actions that 
would most effectively improve water manage-
ment during a drought; 
(F) drought triggers; 
(G) specific implementation actions for 
droughts; 
(H) a water shortage allocation plan, con-
sistent with State water law; and 
(I) comprehensive insurance and financial 
strategies to manage the risks and financial im-
pacts of droughts; and 
(6) shall take into consideration—
(A) the financial impact of the plan on the 
ability of the utilities to ensure rate stability 
and revenue stream; and 
(B) economic impacts from water short-
ages.
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