SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Corps of Engineers 
Reform Act of 2000''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definition of Secretary.
                       TITLE I--PROJECT PLANNING

Sec. 101. Independent review.
Sec. 102. Stakeholder involvement.
Sec. 103. Monitoring.
Sec. 104. Recommendations.
Sec. 105. Principles and guidelines.
Sec. 106. Environmental Advisory Board.
                          TITLE II--MITIGATION

Sec. 201. Full mitigation.
Sec. 202. Concurrent mitigation.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) The Army Corps of Engineers is the primary Federal 
        agency responsible for developing and managing the Nation's 
        harbors, waterways, shorelines, and water resources.
            (2) Scarce Federal resources require more efficient use of 
        Corps of Engineers funding and greater oversight of Corps of 
        Engineers analyses.
            (3) Demand for recreation, clean water, and healthy 
        wildlife habitat must be reflected in the Corps of Engineers 
        project planning process.
            (4) The social and environmental impacts of dams, levees, 
        shoreline stabilization structures, and other projects must be 
        adequately mitigated.
            (5) Affected interests must play a larger role in Corps of 
        Engineers project development.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To ensure that the Nation's water resources investments 
        are economically justified and enhance the environment.
            (2) To provide independent review of Corps of Engineers 
        feasibility studies.
            (3) To ensure that mitigation for Corps of Engineers 
        projects is successful and cost-effective.
            (4) To enhance the involvement of affected interests in 
        Corps of Engineers feasibility studies.
            (5) To revise Corps of Engineers planning principles to 
        meet the economic and environmental needs of riverside and 
        coastal communities.

SEC. 3. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of the 
Army.

                       TITLE I--PROJECT PLANNING

SEC. 101. INDEPENDENT REVIEW.

    Title IX of the Water Resources Development Act of 1986 (100 Stat. 
4183 et seq.) is amended by adding at the end the following:

``SEC. 952. INDEPENDENT REVIEW.

    ``(a) Projects Subject to Independent Review.--The Secretary shall 
ensure that feasibility reports for the following water resources 
projects are subject to review by an independent panel of experts 
established under this section:
            ``(1) Projects with an estimated total cost of more than 
        $25,000,000, including mitigation costs.
            ``(2) Projects that are controversial, as described in 
        subsection (f).
    ``(b) Office of Independent Review.--
            ``(1) Establishment.--There is established in the Corps of 
        Engineers an Office of Independent Review (in this section 
        referred to as the `Office').
            ``(2) Director.--
                    ``(A) Appointment.--The head of the Office shall be 
                the Director of the Office of Independent Review (in 
                this section referred to as the `Director'), who shall 
                be appointed by the Secretary for a term of 3 years.
                    ``(B) Qualifications.--The Secretary shall select 
                the Director from among individuals who are 
                distinguished scholars.
                    ``(C) Terms.--An individual may not serve for more 
                than 1 term as the Director.
            ``(3) Duties.--The Director shall establish a panel of 
        experts to review each project subject to review under 
        subsection (a).
    ``(c) Establishment of Panels.--
            ``(1) Membership.--A panel of experts established by the 
        Director for a project shall be composed of not less than 5 and 
        not more than 9 independent experts who represent a balance of 
        areas of expertise, including biologists, engineers, and 
        economists.
            ``(2) Limitation on appointments.--The Director shall not 
        appoint an individual to serve on a panel of experts for a 
        project if the individual has a financial or close professional 
        association with any organization or group with a strong 
        financial or organizational interest in the project.
            ``(3) Consultation.--The Director shall consult with the 
        National Academy of Sciences in developing lists of individuals 
        to serve on panels of experts under this section.
            ``(4) Compensation.--An individual serving on a panel of 
        experts under this section shall be compensated at a rate of 
        pay to be determined by the Secretary.
            ``(5) Travel expenses.--An individual serving on a panel of 
        experts under this section shall receive travel expenses, 
        including per diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code.
    ``(d) Duties of Panels.--A panel of experts established for a 
project under this section shall--
            ``(1) review the feasibility report prepared for the 
        project after the identification of a preferred alternative;
            ``(2) receive written and oral comments of a technical 
        nature concerning the project from the public; and
            ``(3) submit to the Secretary a report containing the 
        panel's economic, engineering, and environmental analyses of 
        the project, including the panel's conclusions on the 
        feasibility report, with particular emphasis on areas of public 
        controversy.
    ``(e) Duration of Project Reviews.--A panel of experts shall 
complete its review of a project under this section not later than 180 
days after the date of establishment of the panel.
    ``(f) Controversial Projects.--For purposes of subsection (a), a 
project shall be considered to be a controversial project if--
            ``(1) the Secretary determines that the project is subject 
        to a substantial degree of public controversy;
            ``(2) the affected State objects to the project; or
            ``(3) pursuant to the Fish and Wildlife Coordination Act 
        (16 U.S.C. 661 et seq.), the United States Fish and Wildlife 
        Service determines that the project is likely to have a 
        significant adverse effect on fish and wildlife after taking 
        into account any proposed mitigation plan.
    ``(g) Recommendations of Panel.--After receiving a report on a 
project from a panel of experts under this section, the Secretary 
shall--
            ``(1) consider any recommendations contained in the report;
            ``(2) make the report available for public review; and
            ``(3) include a copy of the report in any report 
        transmitted to Congress concerning the project.
    ``(h) Costs.--The cost of conducting a review of a project under 
this section shall not exceed $250,000 and shall be considered as part 
of the total cost of the project. The Secretary may waive the $250,000 
limitation in the preceding sentence for good cause.''.

SEC. 102. STAKEHOLDER INVOLVEMENT.

    (a) In General.--Section 905 of the Water Resources Development Act 
of 1986 (33 U.S.C. 2282) is amended by adding at the end the following:
    ``(e) Stakeholder Advisory Group.--
            ``(1) In general.--The Secretary shall establish a 
        stakeholder advisory group to assist the Secretary with the 
        development of each feasibility study under subsection (a) and 
        to enhance public participation in the feasibility study.
            ``(2) Membership.--The membership of the advisory group 
        shall include balanced representation of social, economic, and 
        environmental interest groups.
            ``(3) Applicability of Federal Advisory Committee Act.--The 
        Federal Advisory Committee Act (15 U.S.C. App.) shall apply to 
        the advisory group.''.

SEC. 103. MONITORING.

    Title IX of the Water Resources Development Act of 1986 (100 Stat. 
4183 et seq.) is further amended by adding at the end the following:

``SEC. 953. MONITORING.

    ``The Secretary shall monitor the economic and environmental 
results (including the results of mitigation) of each water resources 
project with an estimated total cost of more than $25,000,000, for a 
period of not less than 15 years, and shall provide annual reports to 
Congress on the performance of the project. The cost of such monitoring 
shall be a Federal expense.''.

SEC. 104. RECOMMENDATIONS.

    Title IX of the Water Resources Development Act of 1986 (100 Stat. 
4183 et seq.) is further amended by adding at the end the following:

``SEC. 954. RECOMMENDATIONS.

    ``The Secretary shall not recommend an initial recommended plan for 
a proposed project until all project costs, including mitigation costs, 
have been calculated.''.

SEC. 105. PRINCIPLES AND GUIDELINES.

    Section 209 of the Flood Control Act of 1970 (42 U.S.C. 1962-2) is 
amended to read as follows:

``SEC. 209. CONGRESSIONAL STATEMENT OF OBJECTIVES.

    ``(a) In General.--It is the intent of Congress that economic 
development and environmental protection and restoration be co-equal 
goals of water resources planning and development.
    ``(b) Revision of Principles and Guidelines.--The Secretary shall 
revise the principles and guidelines for flood control projects--
            ``(1) to incorporate--
                    ``(A) a national ecological restoration account;
                    ``(B) a national economic development account; and
                    ``(C) an optimum trade-off plan to maximize the 
                benefits of the accounts;
            ``(2) to incorporate new techniques in risk and uncertainty 
        analysis;
            ``(3) to eliminate biases and disincentives for 
        nonstructural flood damage reduction projects;
            ``(4) to incorporate new analytical techniques; and
            ``(5) to encourage, to the maximum extent practicable, the 
        restoration of aquatic ecosystems.
    ``(c) Update of Guidance.--The Secretary shall update the Guidance 
for Conducting Civil Works Planning Studies (ER 1105-2-100) to comply 
with this section.''.

SEC. 106. ENVIRONMENTAL ADVISORY BOARD.

    Section 905(b) of the Water Resources Development Act of 1986 (33 
U.S.C. 2282(b)) is amended--
            (1) by striking ``(b) Before initiating'' and inserting the 
        following:
    ``(b) Reconnaissance Studies.--
            ``(1) In general.--Before initiating'';
            (2) by adding at the end the following:
            ``(2) Review by environmental advisory board.--The 
        Environmental Advisory Board of the Corps of Engineers shall 
        review all reconnaissance studies performed under this 
        subsection to assess whether a proposed project is likely to 
        have environmental impacts that cannot be successfully or cost-
        effectively mitigated and shall make recommendations to the 
        Secretary based on the review. The Secretary shall consider the 
        recommendations of the Environmental Advisory Board on a 
        project before recommending that a feasibility study be 
        conducted for the project based on a reconnaissance report.''; 
        and
            (3) by aligning the remainder of the text of paragraph (1) 
        (as designated by paragraph (1) of this subsection) with 
        paragraph (2) (as added by paragraph (2) of this subsection).

                          TITLE II--MITIGATION

SEC. 201. FULL MITIGATION.

    Section 906(d) of the Water Resources Development Act of 1986 (33 
U.S.C. 2283(a)) is amended--
            (1) by striking ``(d) After the date'' and inserting the 
        following:
    ``(d) Mitigation Plans as Part of Project Proposals.--
            ``(1) In general.--After the date'';
            (2) in the first sentence of paragraph (1) (as so 
        designated) by inserting ``fully'' before ``mitigate'';
            (3) by adding at the end the following:
            ``(2) Standards for mitigation.--To mitigate losses to fish 
        and wildlife resulting from a water resources project, the 
        Secretary shall meet the highest standards typically required 
        of private parties under related Federal programs and shall, at 
        a minimum, acquire and restore an acre of habitat to replace 
        each acre of habitat negatively impacted by the project. If the 
        project negatively impact resources other than aquatic and 
        terrestrial habitat, the Secretary shall take steps to ensure 
        that impacted resources, such as fish killed by vessels, are 
        replaced on at least a one-to-one basis.
            ``(3) Design of mitigation projects.--The Secretary shall 
        design mitigation projects to reflect contemporary 
        understanding of the importance of spatial distribution of 
        habitat and the natural hydrology of aquatic ecosystems, and 
        shall fully mitigate the adverse hydrologic impacts of 
        projects.
            ``(4) Recommendation of projects.--The Secretary shall not 
        recommend a water resources project alternative or choose a 
        project alternative in any final record of decision, 
        environmental impact statement, or environmental assessment 
        completed after the date of enactment of this paragraph unless 
        the Secretary determines that the mitigation plan for the 
        alternative will cost-effectively and successfully mitigate the 
        adverse impacts of the project on aquatic resources and fish 
        and wildlife.
            ``(5) Completion of mitigation before construction of new 
        projects.--The Secretary shall complete all planned mitigation 
        in a particular watershed before constructing any new water 
        resources project in that watershed.''; and
            (4) by aligning the remainder of the text of paragraph (1) 
        (as designated by paragraph (1) of this subsection) with 
        paragraphs (2) through (5) (as added by paragraph (3) of this 
        subsection).

SEC. 202. CONCURRENT MITIGATION.

    Section 906(a)(1) of the Water Resources Development Act of 1986 
(33 U.S.C. 2283(a)(1)) is amended by adding at the end the following: 
``To ensure concurrent mitigation, the Secretary shall complete 50 
percent of required mitigation before beginning project construction, 
and shall use a proportionate amount of project construction funding to 
complete the required mitigation.''.
Output: Establishes in the Army Corps of Engineers an Office of Independent Review to review the projects covered under this title. Defines as controversial projects those which: (1) are subject to a substantial degree of public controversy; (2) the affected State objects to; or (3) the U.S. Fish and Wildlife Service determines are likely to have a significant adverse effect on fish and wildlife after taking into account any proposed mitigation plan. Limits to $250,000 the cost of a review, authorizing the Secretary to waive such limit for good cause shown.
(Sec. 102) Directs the Secretary to establish a stakeholder advisory group to assist the Secretary with the development of each feasibility study under this title and to enhance public participation in such study.
(Sec. 103) Directs the Secretary to monitor the economic and environmental results of each project having an estimated total cost of more than $25 million and to report annually to Congress on such project's performance.
(Sec. 104) Prohibits the Secretary from recommending a plan for a proposed project until all project costs, including mitigation, have been calculated.
(Sec. 105) Directs the Secretary to revise the principles and guidelines for flood control projects to: (1) incorporate a national ecological restoration account, a national economic development account, and an optimum trade-off plan to maximize account benefits; (2) incorporate new techniques in risk and uncertainty analysis; (3) eliminate biases and disincentives for nonstructural flood damage projects; (4) incorporate new analytical techniques; and (5) encourage the restoration of aquatic ecosystems.
(Sec. 106) Requires the Corp's Environmental Advisory Board to review all water resource reconnaissance studies to assess whether a proposed project is likely to have environmental impacts that cannot be successfully mitigated and to make recommendations to the Secretary based on such review.
Title II: Mitigation
 - Requires the submission of a plan which will fully mitigate (currently, only mitigate) fish and wildlife losses created by a project before the Secretary may propose the authorization of such project to Congress. Directs the Secretary, in such mitigation, to meet the highest standards typically required of private parties under related Federal programs and to acquire and restore at least an acre of habitat to replace each acre negatively impacted by the project. Prohibits the Secretary from recommending a project alternative unless the Secretary determines that the mitigation plan for the alternative project will cost-effectively and successfully mitigate all adverse impacts of such project on aquatic resources and fish and wildlife. Requires the Secretary to complete all planned mitigation in a particular watershed before constructing any new project in that watershed.
(Sec. 202) Requires the Secretary, to ensure concurrent mitigation, to complete 50 percent of all required project mitigation before beginning project construction and to use a proportionate amount of project funding to complete such mitigation.