To authorize the Secretary of the Army to participate in ecosystem restoration of the San Francisco Bay estuary, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``San Francisco Bay Estuary Ecosystem 
Restoration Act of 2002''.

SEC. 2. SAN FRANCISCO BAY ESTUARY ECOSYSTEM RESTORATION.

    (a) In General.--The Secretary of the Army, acting through the 
Chief of Engineers, may participate in critical restoration projects in 
the area of the San Francisco Bay estuary, California, and adjacent 
waters, including all watersheds that drain directly into San Francisco 
Bay.
    (b) Project Selection.--
            (1) In general.--The Secretary may identify critical 
        restoration projects in the area described in subsection (a) 
        based on--
                    (A) recommendations of the Army Corps of Engineers 
                under the San Pablo Bay watershed restoration program, 
                including recommendations based on analyses conducted 
                by Federal or non-Federal interests before the date of 
                enactment of this Act;
                    (B) recommendations of the California Department of 
                Fish and Game consistent with the waterfowl habitat 
                objectives of the Central Valley Habitat Joint Venture 
                Implementation Plan; or
                    (C) other studies to determine the feasibility of 
                carrying out the critical restoration projects.
            (2) Criteria and procedures for review and approval.--
                    (A) In general.--The Secretary may develop criteria 
                and procedures for prioritizing projects identified 
                under paragraph (1).
                    (B) Consistency with san pablo bay watershed 
                restoration program.--The criteria and procedures 
                developed under subparagraph (A) shall be consistent, 
                to the maximum extent practicable, with the criteria 
                and procedures for evaluating projects established 
                under the San Pablo Bay watershed restoration program 
                and outlined in the San Pablo Bay Watershed Restoration 
                Framework Program Final Report, prepared for the Army 
                Corps of Engineers and the State of California Coastal 
                Conservancy, dated November 2000.
                    (C) Consistency with central valley habitat joint 
                venture implementation plan.--The criteria and 
                procedures developed under subparagraph (A) shall also 
                be consistent, to the maximum extent practicable, with 
                the objectives and criteria for evaluating projects 
                established under the Central Valley Habitat Joint 
                Venture Implementation Plan prepared under the North 
                American Waterfowl Management Plan, dated February 
                1990. Such projects may include the beneficial reuse of 
                dredged material to restore exterior and interior 
                levees, the installation of fish screens, and habitat 
                enhancement critical to the management of seasonal and 
                permanent waterfowl habitats on the Grizzly Island 
                Wildlife Area in the Suisun Marsh.
                    (D) Use of existing studies and plans.--In carrying 
                out subparagraph (A), the Secretary shall use, to the 
                maximum extent practicable, studies and plans in 
                existence on the date of enactment of this Act to 
                identify project needs and priorities.
            (3) Local participation.--In prioritizing projects for 
        implementation under this section, the Secretary shall consult 
        with, and consider the priorities of, public and private 
        entities that are active in watershed planning and ecosystem 
        restoration in San Francisco Bay estuary watersheds, including 
        nonprofit organizations, watershed planning councils, and 
        resource conservation districts.
    (c) Implementation.--The Secretary may carry out projects 
identified under subsection (a) after entering into an agreement with 
an appropriate non-Federal interest in accordance with section 221 of 
the Flood Control Act of 1970 (42 U.S.C. 1962d-5b) and this section.
    (d) Non-Federal Interest.--Notwithstanding the requirements of 
section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b), a 
nonprofit entity may serve, with the consent of the affected local 
government, as a non-Federal sponsor for a project undertaken pursuant 
to this section.
    (e) Cost Sharing.--
            (1) In general.--Before carrying out any project under this 
        section, the Secretary shall enter into a binding agreement 
        with the non-Federal interest that shall require the non-
        Federal interest--
                    (A) to pay 35 percent of the total cost of the 
                project;
                    (B) to provide any lands, easements, rights-of-way, 
                dredged material disposal areas, and relocations 
                necessary to carry out the project; and
                    (C) to pay 100 percent of the operation, 
                maintenance, repair, replacement, and rehabilitation 
                costs associated with the project.
            (2) Non-federal share.--
                    (A) In general.--The non-Federal share of the costs 
                of the project may be provided in cash or in the form 
                of services, materials, supplies, or other in-kind 
                contributions.
                    (B) Credit.--The Secretary shall credit the non-
                Federal interest--
                            (i) for the value of any lands, easements, 
                        rights-of-way, dredged material disposal areas, 
                        or relocations provided for carrying out the 
                        project;
                            (ii) funds received from the CALFED Bay-
                        Delta Program; and
                            (iii) the cost of the design and 
                        construction work carried out by the non-
                        Federal interest before the date of execution 
                        of a cooperation agreement for the project if 
                        the Secretary determines that the work is 
                        integral to the project.
    (f) Preservation of Existing Suisun Marsh Habitat Types.--
Consistent with habitat objectives of the Central Valley Habitat Joint 
Venture Implementation Plan under the North American Waterfowl 
Management Plan, funds appropriated to carry out this section shall not 
be used to convert more than 10 percent of existing Suisun Marsh 
seasonal and permanent wetland habitat types to tidal or other wetland 
types.
    (g) Definition.--For purposes of this section, the term ``critical 
restoration project'' means a project (including a project under the 
CALFED Bay-Delta program) that will produce immediate and substantial 
ecosystem restoration, preservation, and protection benefits.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000, of which up to 
$20,000,000 shall be made available to critical restoration projects 
carried out under this section in the San Pablo Bay watershed and up to 
$10,000,000 shall made available to critical restoration projects 
carried out under this section on the Grizzly Island Wildlife Area in 
the Suisun Marsh. Not more than $10,000,000 may be used to carry out 
any single critical restoration project.

Summary: San Francisco Bay Estuary Ecosystem Restoration Act of 2002 - Authorizes the Secretary of the Army, acting through the Chief of Engineers, to participate in critical restoration projects in the area of the San Francisco Bay estuary, California, and adjacent waters, including all watersheds that drain directly into San Francisco Bay. Outlines project selection and cost-sharing requirements.Earmarks specified project funds for critical restoration projects: (1) in the San Pablo Bay watershed; and (2) on the Grizzly Island Wildlife Area in the Suisun Marsh.