[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1195 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1195

    To amend the Federal Water Pollution Control Act to further the 
            protection of wetlands, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 1 (legislative day, June 30), 1993

  Mrs. Boxer introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Water Pollution Control Act to further the 
            protection of wetlands, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Wetlands Reform 
Act of 1993''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
     TITLE I--AMENDMENTS TO THE FEDERAL WATER POLLUTION CONTROL ACT

Sec. 101. Statement of policy.
Sec. 102. Expansion of scope of permit program.
Sec. 103. Definition of fill material.
Sec. 104. Permit review by resource agencies.
Sec. 105. Clarification of general permit program.
Sec. 106. Reports on effects of permit program on wetlands.
Sec. 107. Expedited permit review.
Sec. 108. Avoidance and minimization of adverse effects.
Sec. 109. Exemptions for agriculture and other activities.
Sec. 110. Citizen suits amendments.
     TITLE II--IMPROVED WETLANDS PERMITTING; REVISIONS TO WETLANDS 
                         DELINEATION PROCEDURES

Sec. 201. Improvement of administration of wetlands permitting.
Sec. 202. Revisions to Federal wetlands delineation procedures.
                TITLE III--WETLANDS RESTORATION PROGRAM

Sec. 301. Wetlands restoration pilot program.
Sec. 302. Sense of Congress concerning wetlands reserve program.
           TITLE IV--TAX INCENTIVES FOR WETLANDS CONSERVATION

Sec. 401. Wetlands stewardship trusts.
Sec. 402. Tax treatment of donations of wetlands.
Sec. 403. Exclusion from gross income for amounts received from 
                            compatible uses of wetlands.

     TITLE I--AMENDMENTS TO THE FEDERAL WATER POLLUTION CONTROL ACT

SEC. 101. STATEMENT OF POLICY.

    Section 101(a) of the Federal Water Pollution Control Act (33 
U.S.C. 1251(a)) is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(8) it is the national policy to preserve the quantity 
        and quality of the wetlands of the United States and to restore 
        those wetlands that have been degraded.''.

SEC. 102. EXPANSION OF SCOPE OF PERMIT PROGRAM.

    (a) Prohibition of Activities.--Subsection (a) of section 301 of 
the Federal Water Pollution Control Act (33 U.S.C. 1311(a)) is amended 
to read as follows:
    ``(a) Except as in compliance with this section and sections 302, 
306, 307, 318, 402, and 404, the discharge of any pollutant or other 
alteration of navigable waters by any person shall be unlawful.''.
    (b) Certification.--The first sentence of section 401(a) of such 
Act (33 U.S.C. 1341(a)) is amended to read as follows: ``Any applicant 
for a Federal license or permit to conduct any activity, including the 
construction or operation of a facility, that may result in any 
discharge into or other alteration of navigable waters, shall provide 
the licensing or permitting agency a certification from the State where 
the activity occurs or will occur, or, if appropriate, from the 
interstate water pollution control agency having jurisdiction over 
navigable waters where the activity occurs or will occur, that the 
activity will comply with the applicable provisions of sections 301, 
302, 303, 306, and 307 and will allow for the protection, achievement, 
and maintenance of designated uses included in applicable water quality 
standards.''.
    (c) Issuance of Permits.--The first sentence of section 404(a) of 
such Act (33 U.S.C. 1344(a)) is amended by inserting before the period 
at the end the following: ``, or for any other alteration of navigable 
waters''.
    (d) Definition of Other Alteration.--Section 502 of such Act (33 
U.S.C. 1362) is amended by adding at the end the following new 
paragraph:
    ``(21) The term `other alteration' means the draining, dredging, 
excavation, channelization, flooding, clearing of vegetation, driving 
of a piling or placement of other obstruction, diversion of waters, or 
other activity in navigable waters that impairs the flow, reach, or 
circulation of surface waters, or that results in a more than minimal 
change in the hydrologic regime, bottom contour, or configuration of 
the waters, or in the type, distribution, or diversity of vegetation, 
fish, and wildlife that depend on the waters.''.

SEC. 103. DEFINITION OF FILL MATERIAL.

    Section 404(d) of the Federal Water Pollution Control Act (33 
U.S.C. 1344(d)) is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) As used in this section, the term `fill material' means any 
pollutant that has the effect of replacing a portion of navigable 
waters or changing the bottom elevation or configuration of a water 
body.''.

SEC. 104. PERMIT REVIEW BY RESOURCE AGENCIES.

    (a) Review by Secretary of the Interior and Secretary of 
Commerce.--Section 404(m) of the Federal Water Pollution Control Act 
(33 U.S.C. 1344(m)) is amended--
            (1) by striking ``Service that'' and inserting ``Service, 
        and the Secretary of Commerce, acting through the Assistant 
        Administrator of the National Marine Fisheries Service, that''; 
        and
            (2) by striking ``Service, shall'' and inserting ``Service, 
        and the Secretary of Commerce, acting through the Assistant 
        Administrator of the National Marine Fisheries Service, 
        shall''.
    (b) Response in Writing.--Section 404(m) of such Act (33 U.S.C. 
1344(m)) is amended by adding at the end the following new sentence: 
``The Secretary shall adopt the recommendations made in the comments or 
respond in writing to the Secretary of the Interior or the Secretary of 
Commerce, as appropriate, describing the reasons of the Secretary for 
not adopting the recommendations and explaining how the determination 
of the Secretary is consistent with the goals and purposes of this Act 
and the guidelines developed under subsection (b)(1).''.

SEC. 105. CLARIFICATION OF GENERAL PERMIT PROGRAM.

    Paragraph (1) of section 404(e) of the Federal Water Pollution 
Control Act (33 U.S.C. 1344(e)(1)) is amended to read as follows:
    ``(1)(A)(i) In carrying out the functions of the Secretary under 
this section relating to the discharge of dredged or fill material or 
other alteration of navigable waters, the Secretary may, after notice 
and opportunity for public hearing, and with the concurrence of the 
Administrator, issue general permits on a State, multi-State, or 
nationwide basis for any narrowly defined category of activities 
involving discharges of dredged or fill material or any other 
alteration of navigable waters if the Secretary determines that the 
activities in the category--
            ``(I) are similar in nature;
            ``(II) will cause only minimal adverse environmental 
        effects when performed separately; and
            ``(III) will have only minimal cumulative adverse effect on 
        the environment.
    ``(ii) Any general permit issued under this subsection shall--
            ``(I) be consistent with the goals and purposes of this 
        Act;
            ``(II) be based on the guidelines described in subsection 
        (b)(1);
            ``(III) set forth the requirements and standards that shall 
        apply to any activity authorized by the general permit; and
            ``(IV) include adequate measures to enable the Secretary to 
        be apprised of, and to monitor activities conducted pursuant 
        to, the general permit.
    ``(B) Before any activity is authorized under a general permit 
issued under this subsection for which predischarge notification is 
required pursuant to regulations, the Secretary shall give notice and 
opportunity to comment, for a 30-day period beginning on the date of 
the notice, to--
            ``(i) the Administrator;
            ``(ii) the Secretary of the Interior;
            ``(iii) the Secretary of Commerce;
            ``(iv) the appropriate officials of State agencies 
        responsible for water quality, fish, and wildlife resources 
        that may be affected by the activity; and
            ``(v) the public.
    ``(C) No activity shall be authorized under a general permit issued 
under this subsection within a State that has denied or revoked water 
quality certification pursuant to section 401 for the activities under 
the general permit.
    ``(D) Each general permit issued under this subsection shall be 
reviewed by the Secretary biennially. In conducting the review, the 
Secretary shall take into account the information contained in reports 
required by subsection (u), and shall, after notice and hearing, revise 
or revoke the permit as necessary to avoid or minimize cumulative 
adverse effects on navigable waters.''.

SEC. 106. REPORTS ON EFFECTS OF PERMIT PROGRAM ON WETLANDS.

    Section 404 of the Federal Water Pollution Control Act (33 U.S.C. 
1344) is amended by adding at the end the following new subsection:
    ``(u) Reports on Permit Program.--
            ``(1) Effects of permitted activities.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator, the Secretary of the Interior, 
                and those States that have a permit program approved 
                under subsection (h)(2), shall report biennially to 
                Congress on the effects on navigable waters of 
                activities conducted under permits issued under this 
                section, including general permits. The reports shall 
                contain estimates of the acreage and functions of 
                navigable waters affected by each general permit, in 
                order to determine whether the individual and 
                cumulative adverse environmental effects of activities 
                authorized by each general permit are minimal.
                    ``(B) Monitoring.--For purposes of preparing 
                reports under this subsection, the Secretary, the 
                Administrator, and the Secretary of the Interior shall 
                jointly monitor the achievement of the policy stated in 
                section 101(a)(8) under permits issued under this 
                section.
                    ``(C) Content of reports.--The reports submitted to 
                Congress under this subsection shall include 
                consideration of relevant information contained in 
                individual and general permit applications, compliance 
                monitoring records and maps, and any other relevant 
                information.
            ``(2) Effects of compensatory mitigation.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator, the Secretary of the Interior, 
                and those States that have a permit program approved 
                under subsection (h)(2), shall report biennially to 
                Congress on the effects on navigable waters of 
                compensatory mitigation required under permits issued 
                under this section, including general permits.
                    ``(B) Contents of reports.--The reports shall 
                contain--
                            ``(i) estimates of the number of permits 
                        for which compensatory mitigation is required; 
                        and
                            ``(ii) a description of--
                                    ``(I) the type and extent of 
                                compensatory mitigation projects 
                                required;
                                    ``(II) the degree of compliance 
                                with the compensatory mitigation 
                                requirements;
                                    ``(III) the extent to which the 
                                compensatory mitigation requirements 
                                have been successful in restoring the 
                                intended range of functions and values 
                                to navigable waters; and
                                    ``(IV) the extent to which 
                                monitoring and enforcement of 
                                compensatory mitigation requirements 
                                have been conducted by the agencies 
                                responsible for the monitoring and 
                                enforcement.''.

SEC. 107. EXPEDITED PERMIT REVIEW.

    Subsection (q) of section 404 of the Federal Water Pollution 
Control Act (33 U.S.C. 1344(q)) is amended to read as follows:
    ``(q) Reduction in Paperwork and Delays.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this paragraph, the Secretary shall enter into 
        an agreement with the Administrator, the Secretaries of 
        Agriculture, Commerce, and the Interior, and the heads of other 
        appropriate Federal agencies to minimize, to the maximum extent 
        practicable, duplication, needless paperwork, and delays in the 
        issuance of permits under this section.
            ``(2) Fast track for minor permits.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this paragraph, the Secretary 
                shall establish in each district office a special team, 
                to be known as the `Fast Track team', to expedite the 
                review and processing of minor permits. Each team shall 
                consist of not more than 25 percent of all personnel 
                assigned to review permit applications under this 
                section, and shall not be assigned to review or process 
                any permits other than minor permits, unless final 
                decisions have been reached with respect to all minor 
                permits by not later than 60 days after the notice of 
                application for the permits is published pursuant to 
                subsection (a).
                    ``(B) Review.--The District Engineer in each 
                district office shall review the operations of the Fast 
                Track team in the office every 180 days. If final 
                decisions on a significant percentage of minor permits 
                have not been reached by not later than 60 days after 
                the notice of application for the permits is published 
                pursuant to subsection (a), additional personnel shall 
                be assigned to the Fast Track team.
                    ``(C) Definition of minor permit.--As used in this 
                subsection, the term `minor permit'--
                            ``(i) means a permit for an activity that--
                                    ``(I) would disturb not more than 1 
                                acre of wetlands;
                                    ``(II) is not part of a larger 
                                common plan or proposal that would 
                                disturb acreage in addition to that 
                                specified in subclause (I); and
                                    ``(III) is being performed by an 
                                individual or a private business that 
                                employs not more than 10 people; and
                            ``(ii) does not include a permit--
                                    ``(I) with respect to which the 
                                Secretary is required to issue an 
                                environmental impact statement under 
                                the National Environmental Policy Act 
                                of 1969 (42 U.S.C. 4321 et seq.);
                                    ``(II) that involves an activity 
                                that may affect any species that is 
                                listed as an endangered species or 
                                threatened species under the Endangered 
                                Species Act of 1973 (16 U.S.C. 1531 et 
                                seq.), or the habitat of the species; 
                                or
                                    ``(III) with respect to which the 
                                Secretary, the Administrator, or a 
                                Federal agency referred to in paragraph 
                                (1) requests that the permit 
                                application receive additional 
                                review.''.

SEC. 108. AVOIDANCE AND MINIMIZATION OF ADVERSE EFFECTS.

    Section 404 of the Federal Water Pollution Control Act (33 U.S.C. 
1344) (as amended by section 106) is further amended by adding at the 
end the following new subsection:
    ``(v) Minimization of Adverse Environmental Impacts.--No individual 
or general permit shall be issued for an activity pursuant to this 
section if there is a practicable alternative to the proposed activity 
that would have less adverse environmental impact on navigable 
waters.''.

SEC. 109. EXEMPTIONS FOR AGRICULTURE AND OTHER ACTIVITIES.

    Subsection (f) of section 404 of the Federal Water Pollution 
Control Act (33 U.S.C. 1344(f)) is amended to read as follows:
    ``(f) Exemptions for Agriculture and Other Activities.--
            ``(1) In general.--
                    ``(A) General rule.--Except as provided in 
                paragraph (2), the discharge of dredged or fill 
                material into or any other alteration of navigable 
                waters described in subparagraph (B) is not prohibited 
                by, or otherwise subject to, regulation under this 
                section or section 301(a) or 402 (except for effluent 
                standards or prohibitions under section 307).
                    ``(B) Activities.--The discharge of dredged or fill 
                material into or any other alteration of navigable 
                waters referred to in subparagraph (A) is a discharge 
                or other alteration--
                            ``(i) from a normal farming, silviculture, 
                        or ranching activity, including plowing, 
                        seeding, cultivating, minor drainage, 
                        harvesting for the production of food, fiber, 
                        and forest products, or an upland soil or water 
                        conservation practice;
                            ``(ii) for the purpose of the maintenance, 
                        including the emergency reconstruction of a 
                        recently damaged part, of a then currently 
                        serviceable structure, including a dike, dam, 
                        levee, groin, riprap, breakwater, causeway, 
                        bridge abutment or approach, or a 
                        transportation structure, to the then current 
                        or most recent configuration;
                            ``(iii) for the purpose of the construction 
                        or maintenance of a farm or stock pond or 
                        irrigation ditch, or the maintenance of a 
                        drainage ditch;
                            ``(iv) for the purpose of the construction 
                        of a temporary sedimentation basin on a 
                        construction site that does not involve the 
                        placement of fill material into navigable 
                        waters;
                            ``(v) for the purpose of the construction 
                        or maintenance of a farm road or forest road, 
                        or a temporary road for moving mining 
                        equipment, if the road is constructed and 
                        maintained, in accordance with best management 
                        practices, to ensure that--
                                    ``(I) the flow and circulation 
                                patterns and chemical and biological 
                                characteristics of navigable waters are 
                                not impaired;
                                    ``(II) the reach of navigable 
                                waters is not reduced; and
                                    ``(III) any adverse effect on the 
                                aquatic environment will otherwise be 
                                minimized; or
                            ``(vi) resulting from any activity with 
                        respect to which a State has an approved 
                        program under section 208(b)(4) that meets the 
                        requirements of subparagraphs (B) and (C) of 
                        such section.
            ``(2) Exception for new uses.--Any discharge of dredged or 
        fill material into, or other alteration of, navigable waters 
        incidental to any activity having as the purpose of the 
        activity the bringing of an area of navigable waters into a use 
        to which the area was not previously subject, if the flow or 
        circulation of navigable waters may be impaired or the reach of 
        the waters may be reduced, shall be required to have a permit 
        under this section.
            ``(3) Other activities.--An activity that does not result 
        in the discharge of dredged or fill material into, or any other 
        alteration of, navigable waters shall not be prohibited or 
        otherwise subject to regulation under this section.
            ``(4) Navigable waters.--
                    ``(A) In general.--For purposes of this section, 
                the following shall not be considered to be navigable 
                waters:
                            ``(i) Nontidal drainage and irrigation 
                        ditches excavated in uplands.
                            ``(ii) Artificially irrigated areas that 
                        would revert to uplands if the irrigation 
                        ceased.
                            ``(iii) Artificial lakes or ponds created 
                        by excavating or diking uplands to collect and 
                        retain water, and that are used exclusively for 
                        stock watering, irrigation, or rice growing.
                            ``(iv) Artificial reflecting or swimming 
                        pools or other small ornamental water bodies 
                        created by excavating or diking uplands to 
                        retain water for primarily aesthetic reasons.
                            ``(v) Waterfilled depressions created in 
                        uplands incidental to construction activity and 
                        pits excavated in uplands for the purpose of 
                        obtaining fill, sand, or gravel, unless and 
                        until the construction or excavation operation 
                        is abandoned and the resulting water body meets 
                        the definition of waters of the United States.
                    ``(B) Burden of demonstration.--Subparagraph (A) 
                shall not apply to a particular water body unless the 
                person desiring to conduct an activity in the water 
                body is able to demonstrate that the water body 
                qualifies under subparagraph (A) for exemption from 
                regulation under this section.
            ``(5) Continuing farming activities.--Except as provided in 
        paragraph (2), normal plowing, seeding, cultivating, minor 
        drainage for crop production, or harvesting shall not be 
        prohibited or otherwise subject to regulation under this 
        section in waters of the United States that have been 
        maintained as cropland for at least 1 growing season in the 5-
        year period prior to the plowing, seeding, cultivating, minor 
        drainage, or harvesting.''.

SEC. 110. CITIZEN SUITS AMENDMENTS.

    Section 505 of the Federal Water Pollution Control Act (33 U.S.C. 
1365) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(B) of the first sentence, by 
                inserting after ``Administrator'' the following: ``, 
                the Secretary of the Army,'';
                    (B) in paragraph (2) of the first sentence, and in 
                the second sentence, by inserting after 
                ``Administrator'' each place it appears the following: 
                ``or the Secretary of the Army''; and
                    (C) in the second sentence, by striking ``section 
                309(d)'' and inserting ``sections 309(d) and 404(s)'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``and 
                        (iii)'' and inserting the following: ``(iii) to 
                        the Secretary of the Army (if the alleged 
                        violation is under section 404), and (iv)''; 
                        and
                            (ii) in subparagraph (B), by inserting 
                        after ``if the Administrator'' the following: 
                        ``, Secretary of the Army,''; and
                    (B) in paragraph (2), by inserting after ``to the 
                Administrator'' the following: ``or the Secretary of 
                the Army'';
            (3) in subsection (c)--
                    (A) in paragraph (2), by inserting after ``the 
                Administrator'' the following: ``(and the Secretary of 
                the Army, if the alleged violation is under section 
                404)''; and
                    (B) in paragraph (3), by inserting after ``Attorney 
                General'' both places it appears the following: ``, the 
                Secretary of the Army (if the alleged violation is 
                under section 404),'';
            (4) in subsection (e), by inserting after ``Administrator'' 
        the following: ``, the Secretary of the Army,'';
            (5) in subsection (f), by striking ``or (7)'' and inserting 
        the following: ``(7) a permit or condition of a permit issued 
        under section 404, that has been, or is, in effect under this 
        Act (including a requirement applicable by reason of section 
        313); or (8)''; and
            (6) in subsection (h), by inserting after ``Administrator'' 
        both places it appears the following: ``or the Secretary of the 
        Army'';

     TITLE II--IMPROVED WETLANDS PERMITTING; REVISIONS TO WETLANDS 
                         DELINEATION PROCEDURES

SEC. 201. IMPROVEMENT OF ADMINISTRATION OF WETLANDS PERMITTING.

    (a) Needs Analysis.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress an analysis of the needs of the 
        Army Corps of Engineers and the Environmental Protection Agency 
        for additional personnel, administrative resources, and funding 
        to improve the implementation of section 404 of the Federal 
        Water Pollution Control Act (33 U.S.C. 1344).
            (2) Contents.--The analysis submitted under this subsection 
        shall--
                    (A) give particular emphasis to the needs of the 
                Army Corps of Engineers and the Environmental 
                Protection Agency with respect to improving and 
                expediting wetlands delineation and wetlands permitting 
                generally;
                    (B) include recommendations regarding additional 
                appropriations necessary for the improvement and 
                expedition referred to in subparagraph (A); and
                    (C) identify the Army Corps of Engineers district 
                offices and Environmental Protection Agency regional 
                offices that have the greatest need for the additional 
                appropriations referred to in subparagraph (C).
    (b) Use of Funds for Wetlands and Education.--Section 404 of the 
Federal Water Pollution Control Act (33 U.S.C. 1344) (as amended by 
section 108) is further amended by adding at the end the following new 
subsection:
    ``(w) Use of Funds for Wetlands and Education.--
            ``(1) In general.--For each fiscal year beginning after the 
        date of enactment of this subsection, of amounts made available 
        to carry out this section--
                    ``(A) to the Army Corps of Engineers, the Secretary 
                shall use such amounts as are necessary to carry out 
                the program for training and certification of 
                individuals as wetlands delineators authorized by 
                section 307(e) of the Water Resources Development Act 
                of 1990 (33 U.S.C. 2317(e));
                    ``(B) to the Army Corps of Engineers or the 
                Environmental Protection Agency, the Secretary or the 
                Administrator, respectively, shall use such amounts as 
                are necessary to improve such education and outreach 
                programs of the Army Corps of Engineers or the 
                Environmental Protection Agency as are in existence on 
                the date of the use of the funds, with respect to the 
                requirements of this section; and
                    ``(C) to the Secretary, the Secretary shall use, in 
                accordance with paragraph (2), such amounts as are 
                necessary, but not to exceed $5,000,000, to assist 
                landowners who lack the financial capacity to perform 
                the wetlands delineations necessary to apply for 
                permits under this section.
            ``(2) Wetlands delineations assistance.--The Secretary may 
        provide the assistance described in paragraph (1)(C) by 
        providing technical assistance or by performing delineations. 
        Not later than 180 days after the date of enactment of this 
        subsection, the Secretary shall issue regulations specifying 
        which landowners are eligible for the assistance.''.
    (c) Funding for Expediting and Completing Wetlands Mapping.--
            (1) Completion of mapping.--For each fiscal year beginning 
        after the date of enactment of this Act, of amounts 
        appropriated for programs of the United States Fish and 
        Wildlife Service, the Director of the United States Fish and 
        Wildlife Service shall use--
                    (A) such amounts as are necessary to complete the 
                wetland mapping program of the Service, in existence on 
                the date of enactment of this Act, by not later than 1 
                year after the date of enactment of this Act;
                    (B) such amounts (in addition to amounts used 
                pursuant to subparagraphs (A) and (C)) as are necessary 
                to conduct mapping under the program referred to in 
                subparagraph (A) in areas where there is the potential 
                for delineating particularly large areas of wetlands; 
                and
                    (C) such amounts as are necessary (in addition to 
                amounts used pursuant to subparagraphs (A) and (B)) to 
                delineate wetlands under the program referred to in 
                subparagraph (A) in watersheds and ecosystems for which 
                the need for delineation is particularly acute, 
                including where wetlands are particularly difficult to 
                identify or where pressure for the development of 
                wetlands is intense, by as soon as practicable after 
                the date of enactment of this Act.
            (2) Updating maps.--The Director of the United States Fish 
        and Wildlife Service shall update each map prepared under the 
        wetlands mapping program referred to in paragraph (1)(A) at 
        least once--
                    (A) in the 15-year period beginning on the date of 
                the completion of the map; and
                    (B) in each 15-year period thereafter.

SEC. 202. REVISIONS TO FEDERAL WETLANDS DELINEATION PROCEDURES.

    Beginning on the day after the date of enactment of this Act, no 
revision to or clarification of any Federal manual for identifying and 
delineating jurisdictional wetlands shall be adopted, and no guidance 
or regulation related to the definition, delineation, or identification 
of wetlands shall be issued, until the National Academy of Sciences has 
completed the study of wetlands authorized under the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1993 (Public Law 102-389). All revisions 
made after the date of completion of the study to any Federal manual 
for the identification and delineation of wetlands shall take into 
consideration the scientific and technical recommendations of the 
National Academy of Sciences.

                TITLE III--WETLANDS RESTORATION PROGRAM

SEC. 301. WETLANDS RESTORATION PILOT PROGRAM.

    (a) In General.--The Secretary of the Army, in cooperation with the 
Administrator of the Environmental Protection Agency, the Director of 
the United States Fish and Wildlife Service, and appropriate officials 
of State and local government entities, shall establish, with 
opportunity for public notice and comment, a pilot program of wetlands 
restoration.
    (b) Purposes.--The purposes of the pilot program established under 
subsection (a) are--
            (1) to identify areas where the restoration of significant 
        wetland acreage and functions, including fish and wildlife 
        habitat, water quality protection, and natural hydrologic 
        functions, could contribute substantially to preserving the 
        quantity and quality of the wetlands of the United States;
            (2) to test methods and techniques for wetlands restoration 
        in the areas described in paragraph (1), and in areas 
        previously identified as suitable for restoration; and
            (3) to develop a means of evaluating the success over the 
        long term of the wetlands restoration efforts described in 
        paragraph (2).

SEC. 302. SENSE OF CONGRESS CONCERNING WETLANDS RESERVE PROGRAM.

    It is the sense of Congress that the wetlands reserve program 
authorized by subchapter C of chapter 1 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3837 et seq.) is an effective 
wetlands conservation and restoration program that has the potential to 
benefit agriculturalists, rural communities, and the wetlands resource 
base of the United States. Further, it is the sense of Congress that 
the wetlands reserve program should be fully funded to achieve the 
acreage enrollment goals of the program, and should be actively 
promoted by the Department of Agriculture to achieve full subscription.

           TITLE IV--TAX INCENTIVES FOR WETLANDS CONSERVATION

SEC. 401. WETLANDS STEWARDSHIP TRUSTS.

    (a) Designation.--The Secretary of the Interior shall designate a 
nonprofit organization to be a Wetlands Stewardship Trust for purposes 
of this section if the organization--
            (1) includes among the primary purposes of the organization 
        the acquisition of private interests in wetlands, former 
        wetlands, and associated real property for the purpose of 
        restoring or preserving the property; and
            (2) meets such other requirements as may be established in 
        regulations issued under subsection (c).
    (b) Application.--A nonprofit organization seeking to be designated 
a Wetlands Stewardship Trust for purposes of this section may submit to 
the Secretary of the Interior an application for the designation, in 
accordance with procedures established in regulations issued under 
subsection (c).
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of the Interior, acting through 
the Director of the United States Fish and Wildlife Service, in 
consultation with the Secretary of the Army, acting through the Army 
Corps of Engineers, and the Administrator of the Environmental 
Protection Agency shall issue regulations establishing requirements for 
being designated a Wetlands Stewardship Trust under this section.

SEC. 402. TAX TREATMENT OF DONATIONS OF WETLANDS.

    (a) Tax Treatment.--Subsection (e) of section 170 of the Internal 
Revenue Code of 1986 (relating to charitable, etc., contributions and 
gifts) is amended by adding at the end the following new paragraph:
            ``(6) Special rules for contributions of wetlands.--
                    ``(A) In general.--In the case of a charitable 
                contribution by a taxpayer of wetlands (or any interest 
                in wetlands) to a Wetlands Stewardship Trust or to a 
                governmental unit referred to in subsection (c)(1) for 
                the purpose of preserving the property in its natural 
                state:
                            ``(i) 50 percent limitation to apply to 
                        individuals.--Such a contribution by an 
                        individual shall be treated for purposes of 
                        this section as described in subsection 
                        (b)(1)(A).
                            ``(ii) 20-year carryforward.--Subsection 
                        (d)(1) shall be applied by substituting `20 
                        years' for `5 years' each place it appears and 
                        with appropriate adjustments in the application 
                        of subparagraphs (A)(ii) and (B)(ii) of such 
                        subsection.
                            ``(iii) Extension of period for 
                        exchanges.--If the contribution is made as part 
                        of an exchange to which section 1031 applies, 
                        paragraph (3) of section 1031(a) shall be 
                        treated as met if the property to be received 
                        in the exchange is received by the taxpayer not 
                        later than the date which is 3 years after the 
                        date on which the taxpayer transfers the 
                        property relinquished in the exchange.
                    ``(B) Property must be protected in perpetuity.--A 
                contribution shall not be treated as for the purpose 
                referred to in subparagraph (A) unless the purpose is 
                protected in perpetuity.
                    ``(C) Certain property ineligible.--Subparagraph 
                (A) shall not apply to any contribution of property 
                if--
                            ``(i) the property is required (as of the 
                        date of the contribution) to be preserved in 
                        perpetuity in its natural state other than by 
                        reason of the terms of contribution; or
                            ``(ii) the property is required to be 
                        restored or preserved as compensatory 
                        mitigation as a condition of a permit issued 
                        under section 404 of the Federal Water 
                        Pollution Control Act (33 U.S.C. 1344).
                    ``(D) Unused deduction carryover allowed on 
                taxpayer's last return.--In the case of an individual, 
                if--
                            ``(i) the taxpayer dies before the close of 
                        the last taxable year for which a deduction for 
                        a contribution to which subparagraph (A) 
                        applies could have been allowed under 
                        subsection (d)(1), and
                            ``(ii) any portion of the deduction for the 
                        contribution has not been allowed for any 
                        taxable year before the taxable year in which 
                        the death occurs,
                the portion shall be allowed as a deduction under 
                subsection (a) for the taxable year in which the death 
                occurs without regard to subsection (b), or the unused 
                portion may be used against the estate taxes of the 
                taxpayer.
                    ``(E) Definitions.--As used in this paragraph:
                            ``(i) Wetlands.--The term `wetlands' means 
                        any area that is inundated or saturated by 
                        surface or ground water at a frequency and 
                        duration sufficient to support, and which under 
                        normal circumstances does support, a prevalence 
                        of vegetation typically adapted for life in 
                        saturated soil conditions.
                            ``(ii) Wetlands stewardship trust.--The 
                        term `Wetlands Stewardship Trust' means any 
                        entity designated by the Secretary of the 
                        Interior under section 401 of the Wetlands 
                        Reform Act of 1993.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions and gifts made after the date of enactment of this Act 
in taxable years ending after the date.

SEC. 403. EXCLUSION FROM GROSS INCOME FOR AMOUNTS RECEIVED FROM 
              COMPATIBLE USES OF WETLANDS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended--
            (1) by redesignating section 137 as section 138; and
            (2) by inserting after section 136 the following new 
        section:

``SEC. 137. INCOME FROM COMPATIBLE USES OF WETLANDS.

    ``(a) General Rule.--Gross income shall not include any amount 
received by the owner of wetlands for allowing any person to use the 
wetlands in a compatible use.
    ``(b) Definitions.--As used in this section:
            ``(1) Compatible use.--The term `compatible use' has the 
        meaning given the term in the regulations prescribed under the 
        following sentence. The Secretary of the Interior, acting 
        through the Director of the United States Fish and Wildlife 
        Service, shall prescribe regulations identifying those 
        activities which constitute compatible uses for purposes of 
        this section, including any pertinent restrictions on the 
        activities. The activities may include fishing, hunting, and 
        occasional and prudent managed haying, if deemed appropriate by 
        the Secretary of the Interior, but shall not include any 
        activity which degrades the functions or values of wetlands.
            ``(2) Wetlands.--The term `wetlands' has the meaning given 
        the term by section 170(e)(6)(E)(i).''.
    (b) Clerical Amendment.--The table of sections for such part III is 
amended by striking the last item and inserting the following new 
items:

                              ``Sec. 137. Income from compatible uses 
                                        of wetlands.
                              ``Sec. 138. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after the date of enactment of this Act in 
taxable years ending after the date.

                                 <all>

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