assistance to non-Federal interests in the Chesa-
peake Bay watershed.
(2) FORM.—The assistance shall be in the form
of design and construction assistance for water-relat-
ed environmental infrastructure and resource protec-
tion and development projects affecting the Chesa-
peake Bay estuary, including projects for sediment
and erosion control, protection of eroding shorelines,
protection of essential public works, wastewater
treatment and related facilities, water supply and re-
lated facilities, and beneficial uses of dredged mate-
rial, and other related projects that may enhance the
living resources of the estuary.
(b) PUBLIC OWNERSHIP REQUIREMENT.—The Sec-
retary may provide assistance for a project under this sec-
tion only if the project is publicly owned, and will be pub-
licly operated and maintained.
(c) LOCAL COOPERATION AGREEMENT.—
(1) IN GENERAL.—Before providing assistance
under this section, the Secretary shall enter into a
local cooperation agreement with a non-Federal in-
terest to provide for design and construction of the
project to be carried out with the assistance.
(2) REQUIREMENTS.—Each local cooperation
agreement entered into under this subsection shall
provide for the following:
(A) PLAN.—Development by the Secretary,
in consultation with appropriate Federal, State,
and local officials, of a facilities or resource
protection and development plan, including ap-
propriate engineering plans and specifications
and an estimate of expected resource benefits.
(B) LEGAL
AND
INSTITUTIONAL
STRUC-
TURES.—Establishment of such legal and insti-
tutional structures as are necessary to ensure
the effective long-term operation and mainte-
nance of the project by the non-Federal inter-
est.
(d) COST SHARING.—
(1) FEDERAL SHARE.—Except as provided in
paragraph (2)(B), the Federal share of the total
project costs of each local cooperation agreement en-
tered into under this section shall be 75 percent.
(2) NON-FEDERAL SHARE.—
(A) 
VALUE
OF
LANDS, 
EASEMENTS,
RIGHTS-OF-WAY, AND RELOCATIONS.—In deter-
mining the non-Federal contribution toward
carrying out a local cooperation agreement en-
tered into under this section, the Secretary
shall provide credit to a non-Federal interest
for the value of lands, easements, rights-of-way,
and relocations provided by the non-Federal in-
terest, except that the amount of credit pro-
vided for a project under this paragraph may
not exceed 25 percent of total project costs.
(B) 
OPERATION
AND
MAINTENANCE
COSTS.—The non-Federal share of the costs of
operation and maintenance of carrying out the
agreement under this section shall be 100 per-
cent.
(e) APPLICABILITY OF OTHER FEDERAL AND STATE
LAWS AND AGREEMENTS.—
(1) IN
GENERAL.—Nothing in this section
waives, limits, or otherwise affects the applicability
of any provision of Federal or State law that would
otherwise apply to a project carried out with assist-
ance provided under this section.
(2) COOPERATION.—In carrying out this sec-
tion, the Secretary shall cooperate fully with the
heads of appropriate Federal agencies, including—
(A) the Administrator of the Environ-
mental Protection Agency;
(B) the Secretary of Commerce, acting
through the Administrator of the National Oce-
anic and Atmospheric Administration;
(C) the Secretary of the Interior, acting
through the Director of the United States Fish
and Wildlife Service; and
(D) the heads of such other Federal agen-
cies and departments and agencies of a State or
political subdivision of a State as the Secretary
determines to be appropriate.
(f) DEMONSTRATION PROJECT.—The Secretary shall
establish at least one project under this section in each
of the States of Maryland, Virginia, and Pennsylvania. A
project established under this section shall be carried out
using such measures as are necessary to protect environ-
mental, historic, and cultural resources.
(g) REPORT.—Not later than December 31, 1998,
the Secretary shall transmit to Congress a report on the
results of the program carried out under this section, to-
gether with a recommendation concerning whether or not
the program should be implemented on a national basis.
(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 1996, 1997, and
1998, to remain available until expended.
Æ