shall, after providing for notice and 1 or 
more public hearings, adopt and submit to 
the Administrator for approval a watershed 
implementation plan for the portion of 
each of the 92 tidal water segments that is 
subject to the jurisdiction of the Chesa-
peake Bay State that together comprise 
the Chesapeake Bay. 
‘‘(ii) TARGETS.—The watershed im-
plementation plan shall establish reduction 
targets, key actions, and schedules for re-
ducing, to levels that will attain water 
quality standards, the loads of nitrogen, 
phosphorus, and sediment, including pollu-
tion from— 
‘‘(I) agricultural runoff; 
‘‘(II) point sources, including 
point source stormwater discharges; 
‘‘(III) nonpoint source stormwa-
ter runoff; and 
‘‘(IV) septic systems and other 
onsite sewage disposal systems. 
‘‘(iii) POLLUTION LIMITATIONS.— 
‘‘(I) IN
GENERAL.—The tribu-
tary pollution limitations shall be the 
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nitrogen, phosphorous, and sediment 
cap loads identified in the tributary 
cap load agreement numbered EPA 
903–R–03–007, 
dated 
December 
2003, and entitled ‘Setting and Allo-
cating the Chesapeake Bay Basin Nu-
trient and Sediment Loads: The Col-
laborative Process, Technical Tools 
and Innovative Approaches’, or a 
Chesapeake Bay TMDL established 
by the Administrator. 
‘‘(II) 
STRINGENCY.—A 
water-
shed implementation plan shall be de-
signed to attain, at a minimum, the 
pollution limitations described in sub-
clause (I). 
‘‘(iv) PLAN
REQUIREMENTS.—Each 
watershed implementation plan shall— 
‘‘(I) include State-adopted man-
agement measures, including rules or 
regulations, permits, consent decrees, 
and other enforceable or otherwise 
binding measures, to require and 
achieve 
reductions 
from 
pollution 
sources; 
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‘‘(II) include programs to achieve 
voluntary reductions from pollution 
sources, including funding commit-
ments necessary to implement those 
programs; 
‘‘(III) include any additional re-
quirements or actions that the Chesa-
peake Bay State determines to be nec-
essary to attain the pollution limita-
tions by the deadline established in 
this paragraph; 
‘‘(IV) provide for enforcement 
mechanisms, 
including 
a 
penalty 
structure for failures, such as fees or 
forfeiture of State funds, including 
Federal funds distributed or otherwise 
awarded by the State to the extent 
the State is authorized to exercise 
independent discretion in amounts of 
such distributions or awards, for use 
if a permittee, local government, or 
any other party fails to adhere to as-
signed pollutant limitations, imple-
mentation schedules, or permit terms; 
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‘‘(V) include a schedule for im-
plementation divided into 2-year peri-
ods, along with computer modeling to 
demonstrate the projected reductions 
in nitrogen, phosphorus, and sediment 
loads associated with each 2-year pe-
riod; 
‘‘(VI) include the stipulation of 
alternate actions as contingencies; 
‘‘(VII) account for how the 
Chesapeake Bay State will address 
additional 
loadings 
from 
growth 
through offsets or other actions; and 
‘‘(VIII) 
provide 
assurances 
that— 
‘‘(aa) if compared to an esti-
mated 2008 baseline, the initial 
plan shall be designed to achieve, 
not later than May 31, 2017, at 
least 60 percent of the nitrogen, 
phosphorous, and sediment limi-
tations 
described 
in 
clause 
(iii)(I); 
‘‘(bb) 
the 
management 
measures required to achieve a 
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50-percent reduction of nitrogen, 
phosphorous, and sediment limi-
tations shall be in effect upon 
submission of the plan; 
‘‘(cc) the Chesapeake Bay 
State will have adequate per-
sonnel, funding, and authority 
under State (and, as appropriate, 
local) law to carry out the imple-
mentation plan and is not prohib-
ited by any provision of Federal 
or State law from carrying out 
the implementation plan; and 
‘‘(dd) in a case in which a 
Chesapeake Bay State has relied 
on a local government for the im-
plementation of any plan provi-
sion, the Chesapeake Bay State 
has the responsibility for ensur-
ing adequate implementation of 
the provision. 
‘‘(B) IMPLEMENTATION.— 
‘‘(i) IN GENERAL.—In implementing a 
watershed 
implementation 
plan, 
each 
Chesapeake Bay State shall follow a strat-
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egy developed by the Administrator for the 
implementation of adaptive management 
principles to ensure full implementation of 
all plan elements by not later than May 
12, 2025, including— 
‘‘(I) biennial evaluations of State 
actions; 
‘‘(II) progress made toward im-
plementation; 
‘‘(III) determinations of nec-
essary modifications to future actions 
in order to achieve objectives; and 
‘‘(IV) appropriate provisions to 
adapt to climate changes. 
‘‘(ii) DEADLINE.—Not later than May 
12, 2025, each Chesapeake Bay State 
shall— 
‘‘(I) fully implement the water-
shed implementation plan of the 
State; and 
‘‘(II) have in place all the mecha-
nisms outlined in the plan that are 
necessary to attain the applicable pol-
lutant limitations for nitrogen, phos-
phorus, and sediment. 
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‘‘(C) PROGRESS REPORTS.—Not later than 
May 12, 2014, and biennially thereafter, each 
Chesapeake Bay State shall submit to the Ad-
ministrator a progress report that, with respect 
to the 2-year period covered by the report— 
‘‘(i) includes a listing of all manage-
ment measures that were to be imple-
mented in accordance with the approved 
watershed implementation plan of the 
Chesapeake Bay State, including a descrip-
tion of the extent to which those measures 
have been fully implemented; 
‘‘(ii) includes a listing of all the man-
agement measures described in clause (i) 
that the Chesapeake Bay State has failed 
to fully implement in accordance with the 
approved watershed implementation plan 
of the Chesapeake Bay State; 
‘‘(iii) includes monitored and collected 
water quality data; 
‘‘(iv) includes Chesapeake Bay Pro-
gram computer modeling data that detail 
the nitrogen, phosphorus, and sediment 
load reductions projected to be achieved as 
a result of the implementation of the man-
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agement measures and mechanisms carried 
out by the Chesapeake Bay State; 
‘‘(v) includes, for the subsequent 2- 
year period, implementation goals and 
Chesapeake Bay Program computer mod-
eling data detailing the projected pollution 
reductions to be achieved if the Chesa-
peake Bay State fully implements the sub-
sequent round of management measures; 
‘‘(vi) identifies compliance informa-
tion, including violations, actions taken by 
the Chesapeake Bay State to address the 
violations, and dates, if any, on which com-
pliance was achieved; and 
‘‘(vii) specifies any revisions to the 
watershed implementation plan submitted 
under this paragraph that the Chesapeake 
Bay State determines are necessary to at-
tain the applicable pollutant limitations for 
nitrogen, phosphorus, and sediment. 
‘‘(2) ISSUANCE OF PERMITS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this Act (including any exclu-
sion or exception contained in a definition 
under section 502), for the purpose of achieving 
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the nitrogen, phosphorus, and sediment reduc-
tions required under a watershed implementa-
tion plan, a Chesapeake Bay State may issue a 
permit in accordance with section 402 for any 
pollution source the Chesapeake Bay State de-
termines to be necessary. 
‘‘(B) ENFORCEMENT.—The Administrator 
shall enforce any permits issued in accordance 
with the watershed implementation plan in the 
same manner as other permits issued under 
section 402 are enforced. 
‘‘(3) REDUCTION OF POLLUTION FROM IMPER-
VIOUS SURFACES.— 
‘‘(A) IN GENERAL.—Not later than Janu-
ary 1, 2013, each unit of local government 
within the Chesapeake Bay watershed that dis-
charges stormwater through a storm sewer sys-
tem, regardless of storm sewer system owner-
ship and without regard to the size of the popu-
lation, shall obtain and comply with a permit 
under section 402(p). 
‘‘(B) REQUIREMENTS.—A permit under 
section 402(p) for a unit of local government 
within the Chesapeake Bay watershed shall in-
clude requirements to ensure that a project to 
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develop land within the jurisdiction of such unit 
of local government that affects land that is 
more than 1 acre in size and that is less than 
5 percent covered by impervious surfaces prior 
to the project is carried out in a manner that 
not less than the volume of the 95th percentile 
precipitation event shall infiltrate, evapotranspi-
rate from, or be harvested and used on such 
site after the project is completed. 
‘‘(4) PHOSPHATE BAN.— 
‘‘(A) 
PHOSPHORUS
IN
CLEANING 
AGENTS.—Each Chesapeake Bay State shall 
provide to the Administrator, not later than 3 
years after the date of enactment of the Chesa-
peake Clean Water and Ecosystem Restoration 
Act of 2009, assurances that within the juris-
diction, except as provided in subparagraph 
(B), a person may not use, sell, manufacture, 
or distribute for use or sale any cleaning agent 
that contains more than 0.0 percent phosphorus 
by weight, expressed as elemental phosphorus, 
except for a quantity not exceeding 0.5 percent 
phosphorus that is incidental to the manufac-
ture of the cleaning agent. 
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‘‘(B) PROHIBITED QUANTITIES OF PHOS-
PHORUS.—Each Chesapeake Bay State shall 
provide to the Administrator, not later than 3 
years after the date of enactment of the Chesa-
peake Clean Water and Ecosystem Restoration 
Act of 2009, assurances that within the juris-
diction a person may use, sell, manufacture, or 
distribute for use or sale a cleaning agent that 
contains greater than 0.0 percent phosphorus 
by weight, but does not exceed 8.7 percent 
phosphorus by weight, if the cleaning agent is 
a substance that the Administrator, by regula-
tion, excludes from the limitation under sub-
paragraph (A), based on a finding that compli-
ance with that subparagraph would— 
‘‘(i) create a significant hardship on 
the users of the cleaning agent; or 
‘‘(ii) be unreasonable because of the 
lack of an adequate substitute cleaning 
agent. 
‘‘(j) ACTION BY ADMINISTRATOR.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date of enactment of the Chesapeake Clean 
Water and Ecosystem Restoration Act of 2009, the 
Administrator shall establish minimum criteria that 
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any proposed watershed implementation plan must 
meet before the Administrator may approve such a 
plan. 
‘‘(2) COMPLETENESS FINDING.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the date on which the Administrator 
receives a new or revised proposed watershed 
implementation plan from a Chesapeake Bay 
State, the Administrator shall determine wheth-
er the minimum criteria for the plan established 
under paragraph (1) have been met. 
‘‘(B) EFFECT
OF
FINDING
OF
INCOM-
PLETENESS.—If the Administrator determines 
under subparagraph (A) that all or any portion 
of a submitted watershed implementation plan 
does not meet the minimum criteria established 
under paragraph (1), the Chesapeake Bay State 
submitting the plan shall be treated as not hav-
ing made the submission. 
‘‘(3) APPROVAL AND DISAPPROVAL.— 
‘‘(A) DEADLINE.—Not later than 90 days 
after determining that a watershed implementa-
tion plan meets minimum criteria in accordance 
with paragraph (2)(A), the Administrator shall 
approve or disapprove the plan. 
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‘‘(B) FULL AND PARTIAL APPROVAL AND 
DISAPPROVAL.—In carrying out this paragraph, 
the Administrator— 
‘‘(i) shall approve a watershed imple-
mentation plan if the plan meets all appli-
cable requirements under this section; and 
‘‘(ii) may approve the plan in part 
and disapprove the plan in part if only a 
portion of the plan meets those require-
ments. 
‘‘(C) CONDITIONAL APPROVAL.—The Ad-
ministrator— 
‘‘(i) may conditionally approve a re-
vised watershed implementation plan based 
on a commitment of the Chesapeake Bay 
State submitting the plan to adopt specific 
enforceable management measures by not 
later than 1 year after the date of approval 
of the plan revision; but 
‘‘(ii) shall treat a conditional approval 
as a disapproval under this paragraph if 
the Chesapeake Bay State fails to comply 
with the commitment of the Chesapeake 
Bay State. 
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correct a previously missed 2-year commitment made 
in a watershed implementation plan, the Adminis-
trator shall, after issuing a notice to the State and 
providing a 90-day period in which the failure may 
be corrected— 
‘‘(A) notwithstanding the requirements of 
sections 601(a) and 603(g) of this Act, reserve 
up to 75 percent of a Chesapeake Bay State’s 
capitalization grant for a State water pollution 
control revolving fund to be available for 
projects and activities authorized under section 
603(c) of this Act that are selected by the Ad-
ministrator, after a notice to the State, to be 
carried out within such State; 
‘‘(B) withhold all funds otherwise available 
to the Chesapeake Bay State under this Act 
other than those funds authorized under title 
VI of this Act; 
‘‘(C) develop and administer a watershed 
implementation plan for that Chesapeake Bay 
State until such time as the Chesapeake Bay 
State has remedied the plan, reports, or 
achievements to the satisfaction of the Adminis-
trator; 
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‘‘(D) require that all permits issued under 
section 402 for new or expanding discharges of 
nitrogen, phosphorus, or sediment acquire off-
sets that exceed by 100 percent an amount that 
would otherwise be required, taking into ac-
count attenuation, equivalency, and uncertainty; 
and 
‘‘(E) for the purposes of developing and 
implementing a watershed implementation plan 
under subparagraph (C)— 
‘‘(i) notwithstanding any other provi-
sion of this Act (including any exclusion or 
exception contained in a definition under 
section 502), promulgate such regulations 
or issue such permits as the Administrator 
determines to be necessary to control pollu-
tion sufficient to meet the water quality 
goals defined in the watershed implementa-
tion plan; and 
‘‘(ii) enforce any permits issued in ac-
cordance with the watershed implementa-
tion plan in the same manner as other per-
mits issued under section 402 are en-
forced. 
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‘‘(6) NITROGEN
AND
PHOSPHORUS
TRADING 
PROGRAM.— 
‘‘(A) ESTABLISHMENT.—Not later than 
May 12, 2012, the Administrator, in coopera-
tion with each Chesapeake Bay State, shall es-
tablish an interstate nitrogen and phosphorus 
trading program for the Chesapeake Bay for 
the generation, trading, and use of nitrogen and 
phosphorus credits to facilitate the attainment 
and maintenance of the Chesapeake Bay-wide 
TMDL for nitrogen and phosphorus. 
‘‘(B) TRADING SYSTEM.—The trading pro-
gram established under this subsection shall, at 
a minimum— 
‘‘(i) define and standardize nitrogen 
and phosphorus credits and establish pro-
cedures or standards for ensuring equiva-
lent water quality benefits for all credits; 
‘‘(ii) establish procedures or standards 
for certifying, verifying, and enforcing ni-
trogen and phosphorus credits to ensure 
that credit-generating practices from both 
point sources and nonpoint sources are 
achieving actual reductions in nitrogen and 
phosphorus; 
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‘‘(iii) establish procedures or stand-
ards for generating, quantifying, trading, 
and applying credits to meet regulatory re-
quirements and allow for trading to occur 
between and across point source or 
nonpoint dischargers; 
‘‘(iv) establish baseline requirements 
that a credit seller must meet before be-
coming eligible to generate saleable credits; 
‘‘(v) establish points-of-regulation at 
the sub-State level to facilitate trading and 
promote water quality goals under which— 
‘‘(I) States may designate point 
sources as points-of-regulation, but 
not nonpoint dischargers; 
‘‘(II) States shall aggregate mul-
tiple nonpoint dischargers to serve as 
points-of-regulation; and 
‘‘(III) the Administrator shall es-
tablish guidelines or standards to en-
sure that points-of-regulation shall be 
generally consistent across States; 
‘‘(vi) ensure that credits are used in 
accordance with permit requirements under 
the national pollutant discharge elimi-
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nation system established under section 
402 and trade requirements have been ade-
quately incorporated into the permits; 
‘‘(vii) ensure that private contracts 
between credit buyers and credit sellers 
contain adequate provisions to ensure en-
forceability under applicable law; 
‘‘(viii) establish procedures or stand-
ards for providing public transparency on 
nutrient trading activity; 
‘‘(ix) ensure that, if the local receiving 
water is impaired for the nutrient being 
traded but a TMDL has not yet been im-
plemented for the impairment— 
‘‘(I) trades are required to result 
in progress toward or the attainment 
of water quality standards in the local 
receiving water; and 
‘‘(II) dischargers in the water-
shed may not rely on credits produced 
outside of the watershed; 
‘‘(x) require that the application of 
credits to meet regulatory requirements 
under this section not cause or contribute 
to exceedances of water quality standards, 
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total maximum daily loads, or wasteload or 
load allocations for affected receiving wa-
ters, including avoidance of localized im-
pacts; 
‘‘(xi) except as part of a consent 
agreement, prohibit the purchase of credits 
from any entity that is in significant non-
compliance with an enforceable permit 
issued under section 402; 
‘‘(xii) consider and incorporate, to the 
maximum extent practicable, elements of 
State trading programs in existence as of 
the date of enactment of the Chesapeake 
Clean Water and Ecosystem Restoration 
Act of 2009; and 
‘‘(xiii) allow for, as appropriate, the 
aggregation and banking of credits by 
third parties. 
‘‘(C) 
FACILITATION
OF
TRADING.—In 
order to attract market participants and facili-
tate the cost-effective achievement of water 
quality goals, the Administrator shall ensure 
that the trading program established under this 
paragraph— 
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‘‘(i) includes measures to mitigate 
credit buyer risk; 
‘‘(ii) makes use of the best available 
science in order to minimize uncertainty 
and related transaction costs to traders, 
including the Administrator, in consulta-
tion with the Secretary of Agriculture, sup-
porting research and other activities that 
increase the scientific understanding of 
nonpoint nutrient pollutant loading and 
the ability of various structural and non-
structural alternatives to reduce the loads; 
‘‘(iii) eliminates unnecessary or dupli-
cative administrative processes; and 
‘‘(iv) incorporates a permitting ap-
proach under the national pollutant dis-
charge 
elimination 
system 
established 
under section 402 that creates a general 
approval for trading avoiding the need to 
reopen or reissue permits to incorporate in-
dividual trades. 
‘‘(7) AUTHORITY
RELATING
TO
DEVELOP-
MENT.—The Administrator shall— 
‘‘(A) establish and issue, for any project 
affecting land that is more than 1 acre in size 
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and that is less than 5 percent covered by im-
pervious surfaces prior to such project that pro-
poses to increase the overall percentage of im-
pervious surfaces, guidance relating to site 
planning, design, construction, and maintenance 
strategies to ensure that not less than the vol-
ume of the 95th percentile precipitation event 
shall infiltrate, evapotranspirate from, or be 
harvested and used on such site after the 
project is completed; and 
‘‘(B) establish and issue model ordinances 
and guidelines with respect to the construction 
of low-impact development infrastructure and 
nonstructural low-impact development tech-
niques for use by States, local governments, 
and private entities. 
‘‘(8) 
ASSISTANCE
WITH
RESPECT
TO 
STORMWATER DISCHARGES.— 
‘‘(A) GRANT
PROGRAM.—The Adminis-
trator may provide grants to any local govern-
ment within the Chesapeake Bay watershed 
that adopts the guidance, ordinances, and 
guidelines issued under paragraph (7). 
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‘‘(B) USE OF FUNDS.—A grant provided 
under subparagraph (A) may be used by a local 
government to pay costs associated with— 
‘‘(i) developing, implementing, and en-
forcing the guidance, ordinances, and 
guidelines issued under paragraph (7); and 
‘‘(ii) implementing a project that is 
designed, constructed, and maintained to 
meet the relative performance standard de-
scribed in subsection (i)(3)(B). 
‘‘(9) CONSUMER
AND
COMMERCIAL
PRODUCT 
REPORT.—Not later than 3 years after the date of 
enactment of the Chesapeake Clean Water and Eco-
system Restoration Act of 2009, the Administrator, 
in consultation with the Chesapeake Executive Coun-
cil, shall— 
‘‘(A) review consumer and commercial 
products, the use of which may affect the water 
quality of the Chesapeake Bay watershed or as-
sociated tributaries, to determine whether fur-
ther product nutrient content restrictions are 
necessary to restore or maintain water quality 
in the Chesapeake Bay watershed and those 
tributaries; and 
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‘‘(B) submit to the Committees on Appro-
priations, Environment and Public Works, and 
Commerce, Science, and Transportation of the 
Senate and the Committees on Appropriations, 
Natural Resources, Energy and Commerce, and 
Transportation and Infrastructure of the House 
of Representatives a report detailing the find-
ings of the review under subparagraph (A). 
‘‘(k) PROHIBITION
ON INTRODUCTION
OF ASIAN 
OYSTERS.—Not later than 2 years after the date of enact-
ment of the Chesapeake Clean Water and Ecosystem Res-
toration Act of 2009, the Administrator shall promulgate 
regulations— 
‘‘(1) to designate the Asian oyster as a ‘biologi-
cal pollutant’ in the Chesapeake Bay and tidal wa-
ters pursuant to section 502; 
‘‘(2) to prohibit the issuance of permits under 
sections 402 and 404 for the discharge of the Asian 
oyster into the Chesapeake Bay and tidal waters; 
and 
‘‘(3) to specify conditions under which scientific 
research on Asian oysters may be conducted within 
the Chesapeake Bay and tidal waters. 
‘‘(l) EFFECT ON OTHER REQUIREMENTS.— 
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‘‘(1) IN GENERAL.—Nothing in this section re-
moves or otherwise affects any other obligation for 
a point source to comply with other applicable re-
quirements under this Act. 
‘‘(2) VIOLATIONS BY STATES.—The failure of a 
State to submit a watershed implementation plan or 
biennial report, or to correct a previously missed 2- 
year commitment made in a watershed implementa-
tion plan, by the applicable deadline established 
under this section shall— 
‘‘(A) constitute a violation of this Act; and 
‘‘(B) subject the State to— 
‘‘(i) enforcement action by the Admin-
istrator; and 
‘‘(ii) civil actions commenced pursuant 
to section 505. 
‘‘(3) FAILURE OF ADMINISTRATOR TO ACT.— 
The failure of the Administrator to act under this 
section shall subject the Administrator to civil ac-
tions commenced pursuant to section 505. 
‘‘(m) EVALUATION BY THE INSPECTOR GENERAL.— 
The Inspector General of the Environmental Protection 
Agency shall evaluate the implementation of this section 
on a periodic basis of not less than once every 3 years. 
‘‘(n) AUTHORIZATION OF APPROPRIATIONS.— 
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‘‘(1) 
IMPLEMENTATION
AND
MONITORING 
GRANTS.— 
‘‘(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—In addition to amounts authorized to 
be appropriated or otherwise made available to 
carry out this section, there are authorized to 
be appropriated to the Administrator— 
‘‘(i) to provide implementation grants 
under subsection (e)(3)(A), $80,000,000 
for each of fiscal years 2010 through 
2015, to remain available until expended; 
‘‘(ii) to carry out a freshwater moni-
toring program under subsection (e)(3)(B), 
$5,000,000 for each of fiscal years 2010 
through 2015; and 
‘‘(iii) to carry out a Chesapeake Bay 
and tidal water monitoring program under 
subsection (e)(3)(B), $5,000,000 for each 
of fiscal years 2010 through 2015. 
‘‘(B) COST SHARING.—The Federal share 
of the cost of a program carried out using 
funds from a grant provided— 
‘‘(i) under subparagraph (A)(i) shall 
not exceed 50 percent; and 
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