[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2351 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2351

 To amend the Endangered Species Act of 1973 to ensure the recovery of 
our Nation's declining biological diversity; to reaffirm and strengthen 
    this Nation's commitment to protect wildlife; to safeguard our 
children's economic and ecological future; and to provide assurances to 
 local governments, communities, and individuals in their planning and 
                     economic development efforts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 1997

 Mr. Miller of California (for himself, Mr. Vento, Mr. Olver, Mr. Farr 
 of California, Ms. Jackson-Lee of Texas, Mr. Hinchey, Mr. Blumenauer, 
  Mr. Sanders, Mr. Lewis of Georgia, Mr. McDermott, Mrs. Morella, Ms. 
       Pelosi, Mrs. Maloney of New York, Mr. Shays, Mr. Frank of 
Massachusetts, Mr. Waxman, Mr. Stark, Mr. Markey, Ms. Christian-Green, 
Mr. Yates, Mrs. Lowey, Mr. Dicks, Mr. Delahunt, Mr. Lantos, Ms. Rivers, 
 Mr. Gejdenson, Mr. Serrano, Mr. Skaggs, Mr. Sherman, Ms. Kilpatrick, 
Mr. Berman, Mr. Faleomavaega, Ms. Furse, Mr. Thompson, Mr. Bonior, Ms. 
   DeGette, Mr. Neal of Massachusetts, Mr. Barrett of Wisconsin, Mr. 
Dellums, Mrs. Meek of Florida, Mr. Wexler, Ms. Slaughter, Mr. Moran of 
 Virginia, Mr. Adam Smith of Washington, Mr. Cardin, Mr. Tierney, Mr. 
McNulty, Mr. Hastings of Florida, Mr. Meehan, Mr. McGovern, Ms. Waters, 
Mr. Engel, Ms. Carson, and Mr. Pallone) introduced the following bill; 
 which was referred to the Committee on Resources, and in addition to 
   the Committee on Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Endangered Species Act of 1973 to ensure the recovery of 
our Nation's declining biological diversity; to reaffirm and strengthen 
    this Nation's commitment to protect wildlife; to safeguard our 
children's economic and ecological future; and to provide assurances to 
 local governments, communities, and individuals in their planning and 
                     economic development efforts.

    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; AMENDMENT REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Endangered Species 
Recovery Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; amendment references.
Sec. 2. Findings
         TITLE I--AMENDMENTS TO ENDANGERED SPECIES ACT OF 1973

Sec. 101. Definitions.
Sec. 102. Designation of critical habitat and survival habitat.
Sec. 103. Schedule for listing determinations.
Sec. 104. Contents of listing petitions.
Sec. 105. Recovery planning.
Sec. 106. Cooperative agreements.
Sec. 107. Interagency cooperation.
Sec. 108. Permits and conservation plans.
Sec. 109. Citizen suits.
Sec. 110. Natural resource damage liability.
                        TITLE II--TAX INCENTIVES

Sec. 201. Endangered species conservation agreements.
Sec. 202. Deferral of estate taxes for real property subject to 
                            endangered species conservation agreement.
Sec. 203. Additional deduction for certain State and local real 
                            property taxes imposed with respect to 
                            property subject to an endangered species 
                            conservation agreement.
Sec. 204. Credit for costs of compliance with endangered species 
                            conservation agreement.
               TITLE III--AUTHORIZATION OF APPROPRIATIONS

Sec. 301. Authorization of appropriations.
    (c) Amendment of Endangered Species Act of 1973.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.).

SEC. 2. FINDINGS

    The Congress finds and declares the following:
            (1) The American public recognizes the importance of 
        protecting the natural environmental legacy of this Nation.
            (2) It is only through the protection of all species of 
        plants and animals and the ecosystems upon which they depend 
        that we will conserve a world for our children with the 
        spiritual, medicinal, agricultural, and economic benefits that 
        plants and animals offer. Moreover, we have a moral 
        responsibility not to drive other species to extinction.
            (3) We are rapidly proceeding in a manner that will deny a 
        world of abundant, varied species to future generations.
            (4) Although the Endangered Species Act of 1973 has 
        prevented the extinction of many animal, plant, and fish 
        species, many of these species have not fully recovered and the 
        Act must ensure their long-term survival and recovery.
            (5) Federal agencies and others should act to protect 
        declining species before they need the full application of the 
        Endangered Species Act of 1973.
            (6) All members of the public have a right to be involved 
        in the decisions made to protect biodiversity.
            (7) To avoid extinction in the wild, habitats must be 
        conserved by using the best available science.
            (8) Only by taking actions that implement the existing 
        recovery goal of the Endangered Species Act of 1973 can we 
        ensure that species will eventually be removed from the lists 
        of endangered species and threatened species.
            (9) We can provide assurances for communities, local 
        governments, and private landowners that will enable them to 
        move forward with planning and economic development efforts 
        while still protecting species.

         TITLE I--AMENDMENTS TO ENDANGERED SPECIES ACT OF 1973

SEC. 101. DEFINITIONS.

    Section 3 (16 U.S.C. 1532) is amended--
            (1) by amending paragraph (5) to read as follows:
    ``(5) The term `critical habitat' for a threatened or endangered 
species includes--
            ``(A) the specific areas within the geographic area 
        occupied by the species, at the time it is listed in accordance 
        with the provisions of section 4 of this Act, on which are 
        found those physical or biological features (i) essential to 
        the conservation of the species, and (ii) which may require 
        special management considerations or protections; and
            ``(B) specific areas outside the geographical area occupied 
        by the species at the time it is listed in accordance with the 
        provisions of section 4 of the Act, upon a determination by the 
        Secretary that such areas are essential for the conservation of 
        the species.'';
            (2) by amending paragraph (16) to read as follows:
    ``(16) The term `species' includes any subspecies of fish or 
wildlife or plants, any distinct population segment of any species of 
vertebrate fish or wildlife which interbreeds when mature, and the last 
remaining distinct population segment in the United States of any plant 
or invertebrate species.''; and
            (3) by adding at the end the following new paragraphs:
    ``(22) The term `candidate species' means any species--
            ``(A) that is not the subject of a proposed rule under 
        section 4(a)(1);
            ``(B) that the Secretary is considering for listing as an 
        endangered species or threatened species; and
            ``(C) for which--
                    ``(i) the Secretary has sufficient information to 
                support a proposed rule for that listing; or
                    ``(ii) the Secretary has information indicating 
                that proposing that listing may be appropriate, but for 
                which further information is required to support such a 
                proposed rule.
    ``(23)(A) The term `cumulative impacts' means those direct impacts 
and indirect impacts on a species or its habitat that result from the 
incremental impact of the proposed action when added to other past, 
present, and reasonably foreseeable future actions, regardless of what 
person undertakes such other actions.
    ``(B) For purposes of subparagraph (A)--
            ``(i) the term `impacts' includes--
                    ``(I) the loss of individual members of the 
                species;
                    ``(II) diminishment of the species' habitat, both 
                qualitatively and quantitatively;
                    ``(III) disruption of normal behavioral patterns, 
                including but not limited to breeding, feeding, or 
                sheltering; and
                    ``(IV) impairment of the species' ability to 
                withstand random fluctuations in environmental 
                conditions;
            ``(ii) the term `direct impacts' means impacts that are 
        caused by the proposed action and that occur at the same time 
        and place as the proposed action; and
            ``(iii) the term `indirect impacts' means impacts that are 
        caused by the proposed action and that occur later in time 
        than, or farther removed in distance from, the proposed action, 
        but that are still reasonably foreseeable.
    ``(24) The term `jeopardize the continued existence of' means to 
engage in an action that reasonably would be expected, directly, 
indirectly or cumulatively, to reduce appreciably the likelihood of 
recovery in the wild of any foreign or domestic species included in a 
list published under section 4(c).
    ``(25) The term `minimize'--
            ``(A) subject to subparagraph (B), means to avoid to the 
        extent possible, in designing and engaging in an activity, 
        adverse impacts to a threatened species or endangered species 
        in the course of the activity; and
            ``(B) for an activity for which it is determined, after 
        consideration of a reasonable range of alternatives, that 
        avoidance of adverse impacts to the species is impossible, to 
        design and implement the activity in a manner that results in 
        the lowest possible individual and cumulative adverse impacts 
        on the species.
    ``(26) The term `mitigate' means to redress adverse impacts to a 
threatened species or endangered species in connection with an action, 
by replacing the number of plants and animals in the wild, and the 
value to the species of the habitat, that were lost as a result of the 
adverse impacts.
    ``(27) The term `recovery' means that the threats to a species, as 
analyzed under section 4(a), have been eliminated, the species has 
achieved long-term viability, and the protective measures under this 
Act are no longer needed.
    ``(28) The term `interim habitat' includes the habitat necessary to 
support either current populations of a species or populations which 
are necessary to ensure survival, whichever is larger.''.

SEC. 102. DESIGNATION OF CRITICAL HABITAT AND SURVIVAL HABITAT.

    Section 4 (16 U.S.C. 1531) is amended--
            (1) in subsection (a), by amending paragraph (3) to read as 
        follows:
    ``(3) The Secretary, by regulation promulgated in accordance with 
subsection (b)--
            ``(A) subject to subparagraph (C), shall, concurrently with 
        making a determination under paragraph (1) that a species is an 
        endangered species or threatened species, designate interim 
        habitat of the species;
            ``(B) subject to subparagraph (C), shall concurrently with 
        adoption of the final recovery plan for a species under 
        subsection (f), designate critical habitat of the species;
            ``(C) in the case of a highly migratory marine species, 
        shall designate interim habitat and critical habitat for the 
        species to the maximum extent biologically determinable; and
            ``(D) shall, from time to time thereafter as appropriate, 
        revise such designations, if the Secretary determines that such 
        revision would expedite or assist the recovery of the 
        species.''; and
            (2) in subsection (b), by amending paragraph (2) to read as 
        follows:
    ``(2)(A) The Secretary shall designate critical habitat, and make 
revisions thereto, under subsection (a)(3) on the basis of the best 
scientific data available and after taking into consideration the 
economic impact, and any other relevant impact, of specifying any 
particular area as critical habitat. Interim habitat designated at the 
time of listing shall be revised and finalized as critical habitat 
concurrently with the adoption of the final recovery plan. The 
Secretary may exclude any area from critical habitat on the basis that 
the benefits of such exclusion outweigh the benefits of specifying such 
area as part of the critical habitat, only if the Secretary determines, 
based on the best scientific and commercial data available, that the 
failure to designate such area as critical habitat will not impair the 
species' recovery.
    ``(B) The Secretary shall designate interim habitat of a species 
based only on biological factors, giving special consideration to 
habitat that is currently occupied by the species.''.

SEC. 103. SCHEDULE FOR LISTING DETERMINATIONS.

    Section 4(b)(3)(C) (16 U.S.C. 1533(b)(3)(C)) is amended by adding 
at the end the following:
    ``(iv) The Secretary shall, by not later than 1 year after the date 
of enactment of the Endangered Species Recovery Act of 1997, cause to 
be published in the Federal Register either a proposal to list or a not 
warranted finding under subparagraph (B)(i) for each species for which 
a finding under subparagraph (B)(iii) was made before that date of 
enactment.
    ``(v) The Secretary shall, not later than 4 years after the date on 
which a finding under subparagraph (B)(iii) is published for a species 
for which a finding under subparagraph (B)(iii) was made after the date 
of enactment of the Endangered Species Recovery Act of 1997, or a date 
on which such a species is otherwise designated by the Secretary as a 
candidate species, cause to be published in the Federal Register--
            ``(I) a proposal to list the species under subparagraph 
        (B)(ii); or
            ``(II) a not warranted finding under subparagraph 
        (B)(i).''.

SEC. 104. CONTENTS OF LISTING PETITIONS.

    Section 4(b)(3) (16 U.S.C. 1533(b)(3)) is amended by adding at the 
end the following:
    ``(E) A petition referred to in subparagraph (A) shall, to the 
maximum extent practicable, contain the following information:
            ``(i) The current known and historic ranges of the species.
            ``(ii) The most recent population estimates and trends, if 
        available.
            ``(iii) The reason that the petitioned action is warranted, 
        including known or perceived threats to the species.
            ``(iv) A bibliography of scientific literature on the 
        species, if any, in support of the petition.
            ``(v) Any other information that the petitioner feels is 
        appropriate.''.

SEC. 105. RECOVERY PLANNING.

    Section 4(f) (16 U.S.C. 1533(f)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by striking ``develop and implement 
                        plans'' and inserting ``within 18 months after 
                        the date of the adding of a species to a list 
                        under subsection (c), develop a draft plan, and 
                        within 30 months after that date, develop and 
                        begin implementation of a final plan''; and
                            (ii) by inserting ``each'' before 
                        ``endangered'';
                            (iii) by striking ``, unless he finds that 
                        such plan will not promote the conservation of 
                        the species''; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
            ``(B) include in each plan specific provisions, including 
        provisions required under subparagraph (C), that provide for 
        the conservation in the recovery plan area of all species 
        listed as endangered species or threatened species, candidate 
        species, and species proposed for listing;
            ``(C) incorporate in each recovery plan for a species--
                    ``(i) a description of such site-specific 
                management actions, noting those of the highest 
                priority and greatest recovery potential, as may be 
                necessary to achieve the plan's goal for the recovery 
                of the species;
                    ``(ii) objective, measurable criteria, including 
                habitat needs and population levels, that, when met, 
                would result in a determination, in accordance with the 
                provisions of this section, that the species be removed 
                from the list;
                    ``(iii) estimates of the time required and the cost 
                to carry out those measures needed to achieve the 
                plan's goal and to achieve intermediate steps toward 
                that goal;
                    ``(iv) a general description of types of actions 
                likely to violate the taking prohibition of section 9 
                or the jeopardy prohibition of section 7; and
                    ``(v) a list of Federal agencies, States, tribes, 
                and local government entities significantly affected by 
                the goals or management actions set forth in the 
                recovery plan, that should complete a recovery 
                implementation plan pursuant to paragraph (5)(A); and
            ``(D) for the purposes of determining the criteria under 
        subparagraph (C)(ii), select, in consultation with the National 
        Academy of Sciences, independent scientists who--
                    ``(i) through publication of peer-reviewed 
                scientific literature, have demonstrated relevant 
                scientific expertise in that species or similar 
                species; and
                    ``(ii) do not have, nor represent anyone with, a 
                significant economic interest in the recovery plan.''; 
                and
            (2) by amending paragraph (5) to read as follows:
    ``(5)(A) Each Federal agency significantly affected by the goals or 
management actions set forth in a final recovery plan shall develop and 
implement a plan (in this paragraph referred to as a `recovery 
implementation plan'), after providing public notice and an opportunity 
for public review and comment on the recovery implementation plan.
    ``(B) Each recovery implementation plan shall--
            ``(i) identify the agency's affirmative conservation duties 
        and management responsibilities which will contribute to the 
        achievement of recovery goals identified in the final recovery 
        plan;
            ``(ii) set forth specific agency actions, timetables, and 
        funding required to achieve and monitor progress of these 
        recovery goals or management responsibilities; and
            ``(iii) identify any lands or waters under the agency's 
        jurisdiction or ownership that currently provide or may provide 
        suitable habitat for the species, identify any actions needed 
        to acquire additional suitable habitat under section 5(a), and 
        describe management actions the agency will take on lands or 
        waters within its jurisdiction or ownership to contribute 
        toward recovery of the species.
    ``(C) Consistent with section 6, the Secretary shall cooperate to 
the maximum extent practicable with States, tribes, and local 
government entities that are significantly affected by a final recovery 
plan, to develop State cooperative plans to achieve the goals and 
implement the management actions identified in the recovery plan.''.

SEC. 106. COOPERATIVE AGREEMENTS.

    Section 6 (16 U.S.C. 1535) is amended by adding at the end of each 
of subsections (c) and (d) the following:
    ``(3) In this subsection, the term `State' includes, in addition to 
the entities described in section 3(17), any Indian tribe.''.

SEC. 107. INTERAGENCY COOPERATION.

    (a) Federal Agency Actions and Consultations.--Section 7(a) (16 
U.S.C. 1536(a)) is amended--
            (1) in paragraph (1) in the second sentence--
                    (A) by striking ``All other Federal agencies'' and 
                inserting ``Each other Federal agency''; and
                    (B) by inserting before the period the following: 
                ``, including recovery actions identified in recovery 
                implementation plans of the agency'';
            (2) in paragraph (2) in the first sentence by inserting 
        after ``to be critical,'' the following: ``in such a way as to 
        diminish the value of that habitat for the recovery of the 
        species,''; and
            (3) by adding at the end the following:
    ``(5)(A) Any Federal agency may consult with the Secretary 
regarding any action that may affect any candidate species or species 
proposed for listing under section 4(c).
    ``(B) If consultation under this paragraph is completed before the 
listing of the species--
            ``(i) no additional consultation is required solely as a 
        consequence of the subsequent listing of that species, if the 
        Secretary determines that there have been no significant 
        changes in the agency proposal and there is no significant new 
        information that was not considered in the original 
        consultation; and
            ``(ii) the Secretary shall reinitiate consultation under 
        paragraph (2) if the Secretary determines that there has been a 
        significant change in the agency proposal or that there is 
        significant new information that was not considered in the 
        original consultation.
    ``(C) A Federal agency shall notify the Secretary of any 
significant change in, or significant new information regarding, any 
action regarding which the agency consulted with the Secretary under 
this paragraph.
    ``(6) The head of each Federal agency shall monitor the status and 
trends of endangered species, threatened species, and candidate species 
that occur on lands or in waters under the administration of the 
agency.''.
    (b) Opinion of Secretary.--Section 7(b) (16 U.S.C. 1536(b)) is 
amended--
            (1) by amending paragraph (3) to read as follows:
    ``(3)(A) Promptly after conclusion of consultation under paragraph 
(2), (3), or (5) of subsection (a), the Secretary shall provide to the 
Federal agency and the applicant, if any, a written statement setting 
forth the Secretary's opinion, and a summary of the information on 
which the opinion is based, detailing how the agency action affects the 
species or its critical habitat, including the amount of habitat and 
the number of members of the species that will be taken, and 
conservation actions to minimize and mitigate the impacts of any 
incidental taking that may result from the action. If jeopardy or 
adverse modification is found, the Secretary shall suggest those 
reasonable and prudent alternatives that the Secretary believes would 
not violate subsection (a)(2), and can be taken by the Federal agency 
or applicant in implementing the agency action.'';
            (2) by adding at the end the following:
    ``(5) The Secretary shall, upon receipt of a request to initiate 
consultation under paragraph (2), (3), or (5) of subsection (a), 
promptly publish a notice in the Federal Register announcing that the 
consultation has been initiated and briefly describing the proposed 
agency action. The Secretary shall make available upon request any 
information in the Secretary's possession or control concerning the 
consultation or the opinion prepared pursuant to this subsection with 
respect to the consultation.
    ``(6)(A) The Secretary shall, in preparing an opinion pursuant to 
this subsection, invite independent scientists with expertise on 
species that may be affected by the proposed agency action to provide 
input into the consultation or opinion.
    ``(B) For purposes of this paragraph, an independent scientist is 
an individual described in section 4(f)(1)(D).
    ``(7) Not later than 30 days after the date the Secretary provides 
a written statement under paragraph (3) to the Federal agency and the 
applicant for a permit, if any, the Secretary shall publish in the 
Federal Register the Secretary's findings and reasons for making any 
determination under this subsection.''; and
            (3) in paragraph (4)--
                    (A) in subparagraph (B), by striking ``will not 
                violate such subsection'' and inserting ``will not 
                interfere with the timely achievement of recovery 
                goals'' each time it occurs;
                    (B) in clause (ii), by inserting ``and mitigate'' 
                after ``minimize'';
                    (C) in clause (iii), by striking ``and'' after the 
                comma at the end;
                    (D) in clause (iv), by striking the period at the 
                end and inserting ``, and''; and
                    (E) by adding at the end the following:
            ``(v) directs the Federal agency to assess and report to 
        the Secretary two years after the date of issuance of the 
        written statement and every two years thereafter for as long as 
        any incidental take continues, the amount of incidental take 
        that has occurred as a direct impact, indirect impact, or 
        cumulative impact.
If an assessment under clause (v) indicates that the amount of 
incidental take authorized under the written statement has been 
exceeded, the Federal agency shall immediately reinitiate consultation 
with the Secretary pursuant to section 7(a)(2).''.
    (c) Biological Assessment.--Section 7(c)(1) (16 U.S.C. 1536(c)(1)) 
is amended by striking ``Such assessment may be undertaken'' and 
inserting ``Such assessment shall be made available to the public, and 
may be undertaken''.
    (d) Foreign Species.--Section 7 (16 U.S.C. 1536) is amended by 
adding at the end the following:
    ``(q) Foreign Species.--This section shall apply to any agency 
action with respect to any endangered species, threatened species, 
species proposed to be added to a list under section 4(c), or candidate 
species carried out in whole or in part, in the United States, in a 
foreign country, or on the high seas.''.
    (e) Streamlining and Consolidating Interagency Cooperation.--
Section 7 (16 U.S.C. 1536) is further amended by adding at the end the 
following:
    ``(r) Regulations To Ensure Timely Conclusion of Consultations.--
            ``(1) In general.--Within 1 year after the date of the 
        enactment of the Endangered Species Recovery Act of 1997, the 
        Secretary shall, in cooperation with the States, promulgate 
        regulations that will ensure timely conclusion of consultations 
        under this section.
            ``(2) Content.--Regulations under this subsection shall 
        provide, among other matters, that--
                    ``(A) consultations and conferences under this 
                section between the Secretary and a Federal agency 
                shall, to the extent practicable and if approved by the 
                Secretary, encompass a number of similar or related 
                agency actions to be undertaken within a particular 
                geographical range or ecosystem; and
                    ``(B) the Secretary shall, to the extent 
                practicable, consolidate requests for consultations or 
                conferences from various Federal agencies whose 
                proposed actions may affect endangered species, 
                threatened species, or candidate species that are 
                dependent on the same ecosystem.
            ``(3) Ecosystem defined.--For purposes of this subsection, 
        the term `ecosystem' means a dynamic complex of organisms and 
        biological communities, and their associated nonliving 
        environment, interacting together as an ecological unit.''.

SEC. 108. PERMITS AND CONSERVATION PLANS.

    Section 10(a) (16 U.S.C. 1539(a)) is amended to read as follows:
    ``(a) Permits.--
            ``(1) In general.--The Secretary may permit under the terms 
        and conditions provided for in this section--
                    ``(A) any act otherwise prohibited by section 9 for 
                scientific purposes or to enhance the propagation or 
                survival of the affected species, or its conservation 
                in the wild, including, but not limited to, acts 
                necessary for the conservation, establishment, and 
                maintenance of experimental populations pursuant to 
                subsection (j); or
                    ``(B) any taking otherwise prohibited by section 
                9(a)(1) if such taking is incidental to, and not the 
                purpose of the carrying out of an otherwise lawful 
                activity.
        The Secretary shall limit the duration of a permit under this 
        paragraph as necessary to ensure that changes in circumstances 
        that could occur in the period and that would jeopardize the 
        continued existence of the species are reasonably foreseeable.
            ``(2) Conservation plan.--(A) No permit may be issued by 
        the Secretary authorizing any taking referred to in paragraph 
        (1)(B) unless the applicant therefor submits to the Secretary a 
        conservation plan in accordance with this paragraph that is 
        based on the best scientific and commercial information 
        available.
            ``(B) A conservation plan under this paragraph shall 
        specify the following:
                    ``(i) A description of the specific activities 
                sought to be authorized by the permit.
                    ``(ii) A description and analysis of a reasonable 
                range of alternative actions to the taking of each 
                species covered by the plan.
                    ``(iii) The individual and cumulative impacts that 
                may reasonably be anticipated to result from the 
                permitted activities covered by the plan, including the 
                impacts of modification or destruction of habitat of 
                species authorized to be taken under the permit.
                    ``(iv) Objective, measurable biological goals to be 
                achieved for each species covered by the plan.
                    ``(v) The conservation measures the applicant will 
                implement to minimize and mitigate the impacts 
                specified under clause (iii), including--
                            ``(I) the specific conservation measures 
                        for achieving the biological goals of the plan; 
                        and
                            ``(II) any additional requirements or 
                        restrictions or other adaptive management 
                        provisions that are necessary to respond to all 
                        reasonably foreseeable changes in circumstances 
                        that would jeopardize the continued existence 
                        of any species covered by the plan, including 
                        but not limited to new scientific information 
                        and changing environmental conditions, 
                        including natural disasters.
                    ``(vi) The reasonably anticipated costs of the 
                measures specified under clause (v).
                    ``(vii) Measures the applicant will take to monitor 
                the effectiveness of the plan's conservation measures 
                in achieving the plan's biological goals and impacts on 
                recovery of each species.
                    ``(viii) Funding that will be available to the 
                applicant, throughout the term of the plan, to 
                implement the plan, including but not limited to the 
                conservation measures specified in the plan.
                    ``(ix) Such other matters as the Secretary 
                determines to be necessary or appropriate for purposes 
                of the plan.
            ``(C) The Secretary shall not issue a permit under 
        paragraph (1)(B) for the taking of any species unless the 
        Secretary finds that the conservation plan submitted for the 
        permit meets all of the requirements of this paragraph and 
        finds, after opportunity for public comment with respect to a 
        permit application and the related conservation plan, that--
                    ``(i) the taking will be incidental;
                    ``(ii) the applicant will minimize and mitigate the 
                individual impacts and cumulative impacts of such 
                taking;
                    ``(iii) the activities authorized by the permit and 
                conservation plan are consistent with the recovery of 
                the species and will result in no net loss of the value 
                to the species of the habitat occupied by the species;
                    ``(iv) the applicant has, in accordance with 
                paragraph (8), filed a performance bond or other 
                evidence of financial security to ensure adequate 
                funding for each element of the conservation plan; and
                    ``(v) the permit contains such terms and conditions 
                as are necessary or appropriate to carry out the 
                purposes of this paragraph and ensure implementation of 
                the conservation plan by the applicant, including but 
                not limited to, such reporting and monitoring 
                requirements as are necessary for determining whether 
                such terms and conditions are being complied with.
            ``(D)(i) Each permit shall require the permittee to provide 
        to the Secretary, one year after the date of issuance of the 
        permit, and at least every year thereafter during the term of 
        the permit, a complete report on the biological status of the 
species in the affected area, the impacts of the habitat conservation 
plan and the permitted action upon the species, and whether the 
biological goals of the plan are being met.
            ``(ii) The Secretary shall make reports required under this 
        subparagraph available to the public.
            ``(E)(i) If necessary to ensure that the permitted action 
        does not jeopardize the continued existence of any species 
        affected by the permitted action, the Secretary shall require a 
        permittee to implement conservation measures in addition to 
        those specified in the plan.
            ``(ii) The Secretary shall pay the costs of any additional 
        conservation measures required under this subparagraph that are 
        in excess of the reasonably anticipated costs specified in the 
        plan.
            ``(3) Review by secretary.--
                    ``(A) The Secretary shall, every three years after 
                the date of approval of a permit application and 
                conservation plan under this section, review and report 
                on the progress of implementation of the terms and 
                conditions of the permit and plan and make 
                recommendations on actions necessary to ensure that 
                they do not jeopardize the continued existence of any 
                species, that progress is being made toward achieving 
                the biological goals of the plan, and that the 
                requirements of this section and the goals and policies 
                of the Act are carried out.
                    ``(B) The Secretary shall annually--
                            ``(i) prepare and make publicly available a 
                        report on the status of all permits reviewed 
                        pursuant to this paragraph; and
                            ``(ii) publish in the Federal Register a 
                        notice of the availability of that report.
            ``(4) Permit revocation.--The Secretary shall revoke a 
        permit issued under this section and issue an order suspending 
        activities allowed under the permit that may be reasonably 
        expected to cause a take of any species covered by the permit, 
        if--
                    ``(A) the permittee is not in compliance with the 
                terms and conditions of the permit, the requirements of 
                this Act, and the regulations implementing this Act, 
                including any failure by a permittee to substantially 
                comply with the conservation plan required for a permit 
                issued under paragraph (1)(B); or
                    ``(B) the level of take authorized by the permit 
                has been exceeded.
            ``(5) Actions by secretary upon failure by permittee.--(A) 
        If a permittee defaults on any obligation of the permittee 
        under a conservation plan or a permit issued under paragraph 
        (1)(B) or a conservation plan required for that permit, the 
        Secretary shall undertake actions to conserve each species 
        covered by the plan and permit.
            ``(B) For actions required under subparagraph (A) with 
        respect to a default by a permittee, the Secretary may use--
                    ``(i) the proceeds of the performance bond or other 
                financial security under paragraph (8) provided by the 
                permittee; and
                    ``(ii) amounts in the Habitat Conservation Fund 
                under paragraph (9).
            ``(6) Low effect, small scale plans.--(A) The Secretary 
        shall develop and implement a streamlined application and 
        approval procedure for a permit under paragraph (1)(B) and 
        related conservation plan that the Secretary determines to be a 
        low effect, small scale plan.
            ``(B) A permit and related conservation plan may be treated 
        as a low effect, small scale permit and plan if they meet all 
        of the following criteria:
                    ``(i) The permitted action is expected to be of 
                less than 5 years' duration.
                    ``(ii) The conservation plan is applicable to fewer 
                than 5 acres.
                    ``(iii) The affected acreage is not adjacent to 
                other lands that have been the subject of a permit 
                issued under this section within the preceding five 
                years to the same person, or as part of the same 
                project.
                    ``(iv) The permitted action is not part of a single 
                larger project that will have additional impacts on the 
                endangered species or threatened species.
                    ``(v) The Secretary determines the plan will have a 
                negligible cumulative impact and individual impact on 
                the recovery of the endangered species or threatened 
                species.
                    ``(vi) The permitted action is not related to other 
                actions that will have additional impacts on the 
                endangered or threatened species. For purposes of this 
                clause, actions shall be considered related if they--
                            ``(I) automatically trigger other actions 
                        which may affect endangered species or 
                        threatened species;
                            ``(II) cannot or will not proceed unless 
                        other actions are taken previously or 
                        simultaneously; or
                            ``(III) are interdependent on parts of a 
                        larger action and depend on the larger action 
                        for their justification.
            ``(C)(i) The Secretary shall monitor the implementation and 
        results of low effect, small scale permits and conservation 
        plans to ensure that they do not jeopardize the continued 
        existence of any endangered species or threatened species.
            ``(ii) If the Secretary determines that additional 
        requirements or restrictions are required to ensure that 
        actions authorized by a low effect, small scale conservation 
        plan do not jeopardize the continued existence of any species 
        determined to be an endangered species or threatened species 
        after the plan was approved, the Secretary shall require 
        appropriate modifications to the plan to establish those 
        requirements or restrictions.
            ``(iii) The Secretary shall pay all costs of implementing 
        additional requirements or restrictions required under clause 
        (ii).
            ``(D) The permittee for which a low effect, small scale 
        permit and conservation plan is approved under this paragraph 
        shall not be required to provide a performance bond or other 
        financial security under paragraph (8).
            ``(7) Monitoring.--The Secretary shall monitor the 
        implementation and results of all conservation plans approved 
        under this subsection to ensure they do not jeopardize the 
        continued existence of any endangered species or threatened 
        species.
            ``(8) Performance bonds.--(A) After the approval of an 
        incidental take permit under paragraph (1)(B) and associated 
        conservation plan in accordance with this subsection, but 
        before such permit is issued, the applicant shall--
                    ``(i) file with the Secretary a performance bond 
                payable to the United States, and conditional upon 
                faithful performance of all the requirements of the 
                permit; or
                    ``(ii) deposit other forms of financial security, 
                payable to the United States, in a form and manner 
                approved by the Secretary, and conditional upon such 
                faithful performance, having a cash or market value, as 
                applicable, equal to or greater than the amount of a 
                performance bond otherwise required under clause (i).
            ``(B) The amount of the bond or deposit of other financial 
        security required for each permit--
                    ``(i) shall be determined by the Secretary;
                    ``(ii) shall be based upon the mitigation 
                requirements needed to meet the biological goals of the 
                conservation plan; and
                    ``(iii) shall be sufficient to ensure the 
                completion of all conservation measures to be 
                implemented by the permittee under the conservation 
                plan, as such costs and measures are specified in the 
                plan.
            ``(C) In the case of a bond or deposit of other financial 
        security required for a large-scale conservation plan (as that 
        term is defined in paragraph (11)), or a conservation plan for 
        which the reasonably foreseeable costs may be prohibitive, the 
        Secretary may authorize the use of--
                    ``(i) phased bonds or deposits, by which the 
                permittee may divide the area or actions covered by the 
                conservation plan into discrete sections and execute a 
                separate bond or deposit for each section before 
                undertaking any action on that section; or
                    ``(ii) adjusted bonds or deposits, through which 
                the amount of the bond or deposits required and the 
                terms of acceptance of the bond or deposit shall be 
                adjusted by the Secretary from time to time as the 
                extent of actions that affect endangered species or 
                threatened species increases or decreases.
            ``(D) The bond or deposits shall be executed by the 
        permittee and a corporate surety or depository, respectively.
            ``(E)(i) The permittee may file a request with the 
        Secretary for the release of all or any part of a performance 
        bond or deposit of any other financial security required under 
        this paragraph. Within 30 days after any application for 
        release has been filed with the Secretary, the Secretary shall 
        file notice of such application in the Federal Register and 
        provide opportunity for public comment before making a decision 
        under clause (ii).
            ``(ii) Upon receipt of the request, the Secretary shall 
        within 30 days conduct a review of the implementation of the 
        conservation plan to determine whether the requirements of the 
        plan have been fully implemented, the plan has achieved its 
        biological goals, and no further action is needed to ensure 
        that the permitted action is not jeopardizing the existence of 
        the species covered by the plan.
            ``(iii) The Secretary shall notify the permittee in writing 
        of the decision of the Secretary to release or not to release 
        all or part of the bond or deposit, within 90 days after the 
        filing of the request. If the Secretary does not release any 
        portion of the bond or deposit, the Secretary shall notify the 
        permittee in writing, stating the reasons the portion was not 
        released and recommending corrective actions necessary to 
        secure that release.
            ``(9) Habitat conservation plan fund.--(A) There is 
        established in the Treasury a separate account to be known as 
        the `Habitat Conservation Plan Fund' (in this paragraph 
        referred to as the `fund'). The fund shall consist of--
                    ``(i) donations to the fund;
                    ``(ii) appropriations to the fund;
                    ``(iii) amounts received by the United States as 
                fees charged for permits under this section;
                    ``(iv) amounts received by the United States as 
                natural resource damages under section 12; and
                    ``(v) the proceeds of performance bonds and other 
                deposits of financial security under paragraph (8).
            ``(B) Amounts in the fund shall be available to the 
        Secretary until expended, without further appropriation, for--
                    ``(i) cost of additional conservation measures 
                required under paragraph (2)(E) and additional 
                requirements and restrictions required under paragraph 
                (6) for recovery of a species;
                    ``(ii) actions by the Secretary to conserve species 
                under paragraph (5);
                    ``(iii) permitting costs with respect to which fees 
                are deposited in the fund under subparagraph (A)(iii) 
                of this paragraph; and
                    ``(iv) restoration or replacement of natural 
                resources with respect to which natural resource 
                damages are deposited in the fund under subparagraph 
                (A)(iv) of this paragraph.
            ``(10) Multiple landowner, multispecies planning.--(A) The 
        Secretary shall encourage the development of multiple 
        landowner, multispecies conservation plans, that--
                    ``(i) make a significant contribution to the 
                recovery of an endangered species or threatened 
                species;
                    ``(ii) rely on the best available scientific 
                information;
                    ``(iii) rely, to the maximum extent practicable, on 
                ecosystem planning; and
                    ``(iv) maintain the well-being of other species 
                located within the planning area.
            ``(B)(i) To encourage the development of such plans, the 
        Secretary shall cooperate to the maximum extent practicable 
        with States and local governments to streamline permitting 
        processes across jurisdictions.
            ``(ii) Such cooperation shall include, but not be limited 
        to, issuing permits under paragraph (1)(B) to a State, local 
        government, or group of local governments for large-scale 
        habitat conservation plans that involve more than 1 landowner.
            ``(C) A permit under subparagraph (B)(ii) may authorize the 
        State, local government, or group of local governments to issue 
        incidental take certificates to landowners that authorize 
        takings under the authority of the permit within the 
        jurisdiction of the State, local government, or group of local 
        governments, if--
                    ``(i) the State, local government, or group of 
                local governments meets the performance bond or other 
                financial security requirements under paragraph (8) 
                with respect to all such certificates, or each 
                certificate is effective only after the landowner to 
                whom the certificate is issued has met those 
                requirements with respect to the certificate;
                    ``(ii) the State, local government, or group of 
                local governments ensures that all incidental take 
                certificates issued under the permit are consistent 
                with the permit and approved habitat conservation plan;
                    ``(iii) the State, local government, or group of 
                local governments provides adequate public notice and 
                opportunity to comment on decisions to issue incidental 
                take certificates; and
                    ``(iv) the Secretary and the State, local 
                government, or group of local governments have adequate 
                authority to enforce the terms and conditions of the 
                incidental take certificates.
            ``(D) To encourage the timely development of plans under 
        this paragraph, the Secretary shall--
                    ``(i) ensure the participation of a broad range of 
                public and private interests in the development of the 
                plan;
                    ``(ii) provide technical assistance to the maximum 
                extent practicable; and
                    ``(iii) give such plans priority consideration for 
                funding under section 6.
            ``(E) The Secretary may approve the use of pooled bonds or 
        deposits in order to meet the requirements of paragraph (8) for 
        plans approved under this paragraph which--
                    ``(i) do not meet the requirements of subparagraph 
                (B); and
                    ``(ii) involve more than 1 landowner.
            ``(11) Citizen participation; independent scientists.--(A) 
        The Secretary may issue a permit under this section only after 
        notice of the receipt of an application for such a permit has 
        been published in the Federal Register, a 60-day public comment 
        period has been provided, and a notice of permit approval has 
        been published in the Federal Register with agency responses to 
        public comments.
            ``(B) The Secretary shall, upon receipt of request for 
        agency involvement in the development of a large-scale 
        conservation plan pursuant to paragraphs (2)(A) and (10), 
        promptly publish a notice in the Federal Register announcing 
        the agency's involvement and briefly describing the activities 
        that would be permitted under the plan. The Secretary shall 
        make available upon request any information in the Secretary's 
        possession or control concerning such planning efforts.
            ``(C) The Secretary shall invite members of the public to 
        participate in the development of large-scale conservation 
        plans and multiple landowner, multispecies plans. The Secretary 
        shall promulgate regulations establishing a development process 
        under this paragraph which ensures an equitable balance of 
        participation among citizens with a primary interest in 
        carrying out economic development activities that may affect 
        species conservation and citizens whose primary interest is in 
        species conservation. Meetings of participants under this 
        subparagraph shall not be subject to the Federal Advisory 
        Committee Act (5 U.S.C. App.), but shall be open to the public.
            ``(D) Upon receipt of a request for agency involvement in 
        the development of a large-scale conservation plan, the 
        Secretary shall invite independent scientists with expertise on 
        species that may be affected by the plan to provide input.
            ``(E) For the purposes of this paragraph:
                    ``(i) The term `agency involvement' means any role 
                played by the Secretary in the development of a 
                conservation plan pursuant to paragraph (2)(A).
                    ``(ii) The term `large-scale conservation plan' 
                means a conservation plan that would cover a 
                significant portion of the range of a threatened 
                species, endangered species, candidate species, or 
                species proposed for listing under section 4.
                    ``(iii) For purposes of this subparagraph, an 
                independent scientist is a scientist that meets that 
                criteria set forth in clauses (i) and (ii) of section 
                4(f)(D).
            ``(12) Public outreach and community assistance program.--
        (A) The Secretary shall establish a Community Assistance 
        Program to provide timely and accurate information to local 
        governments or property owners.
            ``(B) Under the Community Assistance Program, the Secretary 
        shall assign to each field office of the United States Fish and 
        Wildlife Service employees whose duties include, but are not 
        limited to--
                    ``(i) providing accurate, timely information on 
                local impacts of determinations that species are 
                endangered species or threatened species, recovery 
planning efforts, and other actions under this Act;
                    ``(ii) providing assistance on obtaining permits 
                under this section and otherwise complying with this 
                Act;
                    ``(iii) serving as a focal point for questions, 
                requests, complaints, and suggestions from property 
                owners and local governments concerning the policies 
                and activities of the United States Fish and Wildlife 
                Service or other Federal agencies in the implementation 
                of this Act; and
                    ``(iv) training Federal personnel on public 
                outreach efforts under this Act.''.

SEC. 109. CITIZEN SUITS.

    Section 11(g) (16 U.S.C. 1540(g)) is amended--
            (1) in paragraph (1), in subparagraph (A), by striking ``in 
        violation'' and all that follows through the end of the 
        subparagraph and inserting ``in violation of this Act, any 
        regulation or permit issued under this Act, any statement 
        provided by the Secretary under section 7(b)(3), or any 
        agreement concluded under authority of this Act;'';
            (2) in paragraph (2)(A)(i), by inserting before the 
        semicolon the following ``, except that notwithstanding this 
        clause such an action may be brought immediately after such 
        notification in the case of an action against any person 
        regarding an emergency posing a significant risk to any species 
        of fish or wildlife or plant included in a list under section 
        4(c) or proposed for inclusion in such a list''; and
            (3) in paragraph (2)(B)(i), by inserting before the 
        semicolon the following: ``, except that notwithstanding this 
        clause such an action may be brought immediately after such 
        notification in the case of an action under this section 
        against any person regarding an emergency posing a significant 
        risk to any species of fish or wildlife or plant included in a 
        list under section 4(c)''.

SEC. 110. NATURAL RESOURCE DAMAGE LIABILITY.

    Section 11 (16 U.S.C. 1540) is amended by adding at the end the 
following:
    ``(i) Natural Resource Damage Liability.--
            ``(1) In general.--Any person who, in violation of this 
        Act, negligently damages any member or habitat of a species 
        included in a list under section 4(c)--
                    ``(A) shall be liable to the United States for the 
                costs incurred by the United States in restoring or 
                replacing the member or habitat, including reasonable 
                costs of assessing such damage; and
                    ``(B) shall be liable to a State for the costs 
                incurred by the State in restoring or replacing the 
                member or habitat under a management agreement with the 
                Secretary under section 6(a) or a cooperative agreement 
                with the Secretary under section 6(c), including 
                reasonable costs of assessing such damage.
            ``(2) Deposit.--Amounts received by the United States under 
        this subsection shall be deposited in the Habitat Conservation 
        Plan Fund established under section 10, and may be obligated 
        only for the acquisition or rehabilitation of damaged habitat 
        or populations.
            ``(3) Civil actions by secretary.--The Secretary may 
        commence a civil action on behalf of the United States under 
        this subsection.
            ``(4) Notice.--No action may be commenced under this 
        paragraph by the Secretary or a State before the end of the 60-
        day period beginning on the date the Secretary or the State, 
        respectively, provides written notice of the action to the 
        person against whom the action is commenced.''.

                        TITLE II--TAX INCENTIVES

SEC. 201. ENDANGERED SPECIES CONSERVATION AGREEMENTS.

    Section 5 (16 U.S.C. 1534) is amended by adding at the end the 
following new subsection:
    ``(c) Endangered Species Conservation Agreements.--
            ``(1) In general.--The Secretary may enter into an 
        agreement in accordance with this subsection, to be known as an 
        `endangered species conservation agreement', with any person 
        that is an owner or lessee of real property on which will be 
        carried out conservation measures for any species described in 
        paragraph (3) in accordance with the agreement.
            ``(2) Required terms.--The Secretary shall include in an 
        agreement with a person under this subsection provisions that--
                    ``(A) require the person--
                            ``(i) to carry out on real property owned 
                        or leased by the person activities not 
                        otherwise required by law that contribute to 
                        the conservation of a species described in 
                        paragraph (3);
                            ``(ii) to refrain from carrying out on real 
                        property owned or leased by the person 
                        otherwise lawful activities that would inhibit 
                        the conservation of a species described in 
                        paragraph (3); or
                            ``(iii) to do any combination of clauses 
                        (i) and (ii);
                    ``(B) describe the real property referred to in 
                subparagraph (A) (i) and (ii);
                    ``(C) specify species conservation goals for such 
                actions by the person, and measures for attaining such 
                goals;
                    ``(D) require the person to make measurable 
                progress each year in achieving those goals;
                    ``(E) specify actions to be taken by the Secretary 
                or the person (or both) to monitor the effectiveness of 
                the agreement in attaining those conservation goals;
                    ``(F) require the person to notify the Secretary 
                if--
                            ``(i) any right or obligation of the person 
                        under the agreement is assigned to any other 
                        person; or
                            ``(ii) any term of the agreement is 
                        breached by the person or any other person to 
                        whom is assigned a right or obligation of the 
                        person under the agreement;
                    ``(G) specify the date on which the agreement takes 
                effect; and
                    ``(H) provide that the agreement shall not be in 
                effect on and after any date on which the Secretary 
                publishes a certification under paragraph (4) that the 
                person has not complied the agreement.
            ``(3) Covered species.--A species referred to in paragraphs 
        (2)(A) (i) and (ii) is any species that is--
                    ``(A) listed as an endangered species or threatened 
                species under section 4;
                    ``(B) proposed for such listing under section 4; or
                    ``(C) identified by the Secretary as a candidate 
                for such listing under section 4.
            ``(4) Review and approval of proposed agreements by 
        secretary.--Upon submission by any person of a proposed 
        agreement under this subsection, the Secretary--
                    ``(A) shall review the proposed agreement and 
                determine whether it complies with the requirements of 
                this subsection; and
                    ``(B) if the Secretary determines that the 
                agreement complies with the requirements of this 
                subsection, shall--
                            ``(i) approve and enter with the person 
                        into the agreement; and
                            ``(ii) promptly notify the Secretary of the 
                        Treasury that the agreement has been entered 
                        into, specifying the date on which the 
                        agreement takes effect.
            ``(5) Monitoring implementation of agreement.--The 
        Secretary shall--
                    ``(A) periodically monitor the implementation of 
                each agreement entered into under this subsection; and
                    ``(B) based on the information obtained from that 
                monitoring, annually certify to the Secretary of the 
                Treasury whether or not each person that has entered 
                into an agreement under this subsection has complied 
                with the agreement.
            ``(6) State cooperation.--The Secretary shall establish a 
        technical assistance program in cooperation with the States to 
        assist landowners in the development and implementation of 
        endangered species conservation agreements.''.

SEC. 202. DEFERRAL OF ESTATE TAXES FOR REAL PROPERTY SUBJECT TO 
              ENDANGERED SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Part IV of subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 (relating to taxable estate) is amended 
by adding at the end the following new section:

``SEC. 2057. CERTAIN REAL PROPERTY SUBJECT TO ENDANGERED SPECIES 
              CONSERVATION AGREEMENT.

    ``(a) General Rule.--If--
            ``(1) on the due date (including extensions) for filing the 
        return of tax imposed by section 2001 with respect to the 
        estate of the decedent, an endangered species conservation 
        agreement is in effect with respect to any real property 
        included in the decedent's estate,
            ``(2) the executor of such estate--
                    ``(A) elects the application of this section with 
                respect to such real property, and
                    ``(B) files such agreement with the Secretary, and
            ``(3) each person entering into such agreement consents to 
        the application of subsection (c),
then, for purposes of the tax imposed by section 2001, the value of the 
taxable estate shall be determined by deducting from the value of the 
gross estate an amount equal to the value of such real property.
    ``(b) Endangered Species Conservation Agreement.--For purposes of 
this section, the term `endangered species conservation agreement' 
means, with respect to any real property, any endangered species 
conservation agreement (as defined in section 5(c) of the Endangered 
Species Act of 1973) which is entered into by each person who has an 
interest in such property (whether or not in possession).
    ``(c) Recapture of Tax Benefit.--
            ``(1) Disposition of interest; material breach or 
        termination of agreement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), if--
                            ``(i) any person disposes of any interest 
                        in any property subject to an endangered 
                        species conservation agreement,
                            ``(ii) there is a material breach by any 
                        person who holds an interest in such property 
                        of such agreement, or
                            ``(iii) such agreement terminates,
                then there is hereby imposed an additional estate tax.
                    ``(B) Amount of tax.--The amount of the tax imposed 
                by subparagraph (A) with respect to any interest shall 
                be the amount which bears the same ratio to the fair 
                market value of such interest (as of the date of the 
                event causing such tax to be imposed) as--
                            ``(i) the excess of--
                                    ``(I) what would have been the 
                                estate tax liability but for subsection 
                                (a) over
                                    ``(II) the estate tax liability, 
                                bears to
                            ``(ii) the value of such interest which 
                        would have been included in determining the 
                        gross estate but for subsection (a).
                For purposes of this subparagraph, the term `estate tax 
                liability' means the tax imposed by section 2001 
                reduced by the credits allowable against such tax.
                    ``(C) Exception if transferee assumes obligations 
                of transferor.--Subparagraph (A)(i) shall not apply to 
                a disposition if the transferee enters into a binding 
                written agreement--
                            ``(i) to assume the obligations imposed on 
                        the transferor under the endangered species 
                        conservation agreement,
                            ``(ii) to assume personal liability for any 
                        tax imposed under subparagraph (A) with respect 
                        to--
                                    ``(I) any future disposition or 
                                breach by such transferee, and
                                    ``(II) the termination of the 
                                agreement if such transferee holds an 
                                interest in such property as of such 
                                termination, and
                            ``(iii) to provide written notice to the 
                        Secretary who entered into the endangered 
                        species conservation agreement that the 
                        transferee has assumed such obligations and 
                        liabilities.
            ``(2) Due date of additional tax.--The tax imposed by 
        paragraph (1) shall become due and payable on--
                    ``(A) in a case described in paragraph (1)(A)(i), 
                the day that is 6 months after the date of the 
                disposition, and
                    ``(B) in a case described in clause (ii) or (iii) 
                of paragraph (1)(A), on April 15 of the calendar year 
                following the calendar year in which there is a finding 
                under section 5(c)(2) of the Endangered Species Act of 
                1973 that the event described in such clause has 
                occurred.
    ``(d) Statute of Limitations.--If a taxpayer incurs a tax liability 
pursuant to subsection (c), then--
            ``(1) the statutory period for the assessment of any 
        additional tax imposed by subsection (c) shall not expire 
        before the expiration of 3 years from the date the Secretary is 
        notified (in such manner as the Secretary may by regulation 
        prescribe) of the incurring of such tax liability, and
            ``(2) such additional tax may be assessed before the 
        expiration of such 3-year period notwithstanding the provisions 
        of any other law or rule of law that would otherwise prevent 
        such assessment.
    ``(e) Election and Filing of Agreement.--The election under this 
section shall be made on the return of the tax imposed by section 2001. 
Such election, and the filing under subsection (a) of an endangered 
species conservation agreement, shall be made in such manner as the 
Secretary shall by regulation provide.''
    (b) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 11 of such Code is amended by adding at the end 
the following new item:

                              ``Sec. 2057. Certain real property 
                                        subject to endangered species 
                                        conservation agreement.''
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.

SEC. 203. ADDITIONAL DEDUCTION FOR CERTAIN STATE AND LOCAL REAL 
              PROPERTY TAXES IMPOSED WITH RESPECT TO PROPERTY SUBJECT 
              TO AN ENDANGERED SPECIES CONSERVATION AGREEMENT.

    (a) In General.--Section 164 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (g) as subsection (h) and by 
adding the following new subsection (g):
    ``(g) Additional Deduction for Certain State and Local Property 
Taxes Imposed With Respect to Property Subject to an Endangered Species 
Conservation Agreement.--
            ``(1) General rule.--Except as provided in paragraph (3), 
        there shall be allowed as a deduction an amount equal to 25 
        percent of the deduction allowed for the taxable year under 
        this section (without regard to this subsection) for State and 
        local real property taxes imposed on property to which this 
        subsection applies. The deduction under this subsection shall 
        be in addition to any other deduction allowed by this section.
            ``(2) Property to which subsection applies.--This 
        subsection shall apply to property which, on the last day of 
        the taxable year--
                    ``(A) is subject to an endangered species 
                conservation agreement under section 5(c) of the 
                Endangered Species Act of 1973 (16 U.S.C. 1534(c)), and
                    ``(B) with respect to which no event described in 
                section 2057(c)(1)(A) (other than a disposition 
                described in section 2057(c)(1)(C)) has occurred.
            ``(3) Deduction not allowed.--No deduction shall be allowed 
        pursuant to this subsection for taxes imposed upon real 
        property subject to a perpetual easement that is valued 
        pursuant to section 170(h)(7).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

SEC. 204. CREDIT FOR COSTS OF COMPLIANCE WITH ENDANGERED SPECIES 
              CONSERVATION AGREEMENT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30A. COSTS OF COMPLIANCE WITH ENDANGERED SPECIES CONSERVATION 
              AGREEMENT.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
endangered species conservation agreement costs paid or incurred by the 
taxpayer during the taxable year.
    ``(b) Endangered Species Conservation Agreement Costs.--For 
purposes of subsection (a), the term `endangered species conservation 
agreement costs' means expenses which would not have been incurred by 
the taxpayer but for an endangered species conservation agreement (as 
defined in section 5(c) of the Endangered Species Act of 1973) entered 
into by the taxpayer.
    ``(c) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and sections 27, 
        28, 29, and 30, over
            ``(2) the tentative minimum tax for the taxable year.''
    (b) Clerical Amendment.--The table of sections for such subpart B 
is amended by adding at the end the following new item:

                              ``Sec. 30A. Costs of compliance with 
                                        endangered species conservation 
                                        agreement.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

               TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 15 (16 U.S.C. 1542) is amended to read as follows:

                   ``authorization of appropriations

    ``Sec. 15. (a) In General.--There are authorized to be 
appropriated--
            ``(1) to the Secretary of the Interior for carrying out 
        this Act--
                    ``(A) $130,000,000 for fiscal year 1999;
                    ``(B) $135,000,000 for fiscal year 2000;
                    ``(C) $140,000,000 for fiscal year 2001; and
                    ``(D) $145,000,000 for fiscal year 2002; and
            ``(2) to the Secretary of Commerce for carrying out this 
        Act--
                    ``(A) $30,000,000 for fiscal year 1999;
                    ``(B) $35,000,000 for fiscal year 2000;
                    ``(C) $40,000,000 for fiscal year 2001; and
                    ``(D) $45,000,000 for fiscal year 2002.
    ``(b) Convention Implementation.--In addition to other amounts 
authorized by this section, there are authorized to be appropriated to 
the Secretary of the Interior for carrying out functions under section 
8 related to implementation of the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora--
            ``(1) $3,000,000 for each of fiscal years 1999 and 2000; 
        and
            ``(2) $4,000,000 for each of fiscal years 2001 and 2002.
    ``(c) Habitat Conservation Plan Fund.--In addition to other amounts 
authorized by this section, there are authorized to be appropriated to 
the Habitat Conservation Plan Fund established under section 10 
$20,000,000 for each of fiscal years 1999, 2000, 2001, and 2002.
    ``(d) Cooperative Agreement Funds.--In addition to other amounts 
authorized by this section, there are authorized to be appropriated--
            ``(1) to the Secretary of the Interior for entering into 
        cooperative agreements under section 6 with States and Indian 
        Tribes, $20,000,000 for each of fiscal years 1999, 2000, 2001, 
        and 2002; and
            ``(2) to the Secretary of Commerce for entering into 
        cooperative agreements under section 6 with States and Indian 
        Tribes, $5,000,000 for each of fiscal years 1999, 2000, 2001, 
        and 2002.''.
                                 <all>