[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2762 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2762

    To amend the Federal Water Pollution Control Act to improve the 
   protection of the Nation's wetlands and watersheds, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 1997

Mr. Gilchrest introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Water Pollution Control Act to improve the 
   protection of the Nation's wetlands and watersheds, 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; REFERENCES; DEFINITIONS.

    (a) Short Title.--This Act may be cited as the ``Wetlands and 
Watershed Management Act of 1997''.
    (b) References.--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 
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
    (c) Definitions.--In this Act, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Army, acting through the Chief of Engineers.

 SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Wetlands perform a number of valuable functions needed 
        to restore and maintain the chemical, physical, and biological 
        integrity of the Nation's waters, including--
                    (A) reducing pollutants (including nutrients, 
                sediment, and toxics) from nonpoint and point sources;
                    (B) storing, conveying, and purifying flood and 
                storm waters;
                    (C) reducing both bank erosion and wave and storm 
                damage to adjacent lands and trapping sediment from 
                upland sources;
                    (D) providing habitat and food sources for a broad 
                range of commercial and recreational fish, shellfish, 
                and migratory wildlife species (including waterfowl and 
                threatened and endangered species); and
                    (E) providing a broad range of recreational values 
                for canoeing, boating, birding, nature study and 
                observation, and hunting and fishing, as appropriate.
            (2) Original wetlands in the contiguous United States have 
        been reduced by an estimated 50 percent and continue to 
        disappear at a rate of 100,000 to 150,000 acres a year. Many of 
        these original wetlands have also been altered or partially 
        degraded, reducing their ecological value.
            (3) Wetlands are highly sensitive to changes in water 
        regimes and are, therefore, susceptible to degradation by 
        fills, drainage, excavation, water extractions, and other 
        activities within their watersheds which affect the quantity, 
        quality, and flow of surface and ground waters. Protection and 
        management of wetlands, therefore, should be integrated with 
        management of water systems on a watershed basis. A watershed 
        protection and management perspective is also needed to 
        understand and reverse the gradual, continued destruction of 
        wetlands that occurs due to cumulative impacts.
            (4) Wetlands constitute an estimated 5 percent of the 
        Nation's surface area. Because much of this land is in private 
        ownership, wetlands protection and management strategies must 
        take into consideration private property rights and the need 
        for economic development and growth. This can be best 
        accomplished in the context of a cooperative and coordinated 
        Federal, State, and local strategy for data gathering, 
        planning, management, and restoration with an emphasis on 
        advance planning of wetlands in watershed contexts.
    (b) Purposes.--The purposes of this Act are--
            (1) to help create a coordinated national wetland 
        management effort with efficient use of scarce Federal, State, 
        and local financial and manpower resources to protect wetland 
        functions and values and reduce natural hazard losses;
            (2) to help reverse the trend of wetland loss in a fair, 
        efficient, and cost-effective manner;
            (3) to reduce inconsistencies and duplication in Federal, 
        State, and local wetland management efforts and encourage 
        integrated permitting at the Federal, State, and local levels;
            (4) to increase technical assistance, cooperative training, 
        and educational opportunities for States, local governments, 
        and private landowners;
            (5) to help integrate wetland protection and management 
        with other water resource management programs on a watershed 
        basis such as flood control, storm water management, allocation 
        of water supply, protection of fish and wildlife, and point and 
        nonpoint source pollution control;
            (6) to increase regionalization of wetland delineation and 
        management policies within a framework of national policies 
        through advance planning of wetland areas, general permits, and 
        other approaches and the tailoring of policies to ecosystem and 
        land use needs to reflect significant watershed variance in 
        wetland resources;
            (7) to address the cumulative loss of wetland resources;
            (8) to increase the predictability of planning and 
        regulatory policies for private landowners;
            (9) to help achieve no net loss in the remaining wetland 
        base of the United States (and in the long-term a net gain in 
        such wetland base) through watershed-based restoration 
        strategies involving all levels of government;
            (10) to restore and create wetlands in order to increase 
        the quality and quantity of the wetland resources and by so 
        doing to restore and maintain the quality and quantity of the 
        waters of the United States; and
            (11) to provide mechanisms for State, Federal, and local 
        coordination to better protect wetland resources.

SEC. 3. DEFINITIONS.

    (a) Navigable Waters.--Section 502(7) (33 U.S.C. 1362(7)) is 
amended by inserting ``and wetlands'' before the period.
    (b) Prior Converted Cropland.--Section 502(7) (33 U.S.C. 1362(7)) 
is further amended by adding at the end the following: ``Areas 
certified by the Secretary of Agriculture, in consultation with the 
Administrator, as prior converted cropland are not navigable waters 
unless cropping has ceased and the area meets the definition of 
wetland.''.
    (c) Wetlands.--Section 502 (33 U.S.C. 1362) is amended by adding at 
the end the following:
    ``(21) The term `wetlands' means areas that are inundated or 
saturated by surface water or ground water at a frequency and duration 
sufficient to support, and that under normal circumstances do support, 
a prevalence of vegetation typically adapted to life in saturated soil 
conditions.''.
    (d) Other Alteration.--Section 502 (33 U.S.C. 1362) is further 
amended by adding at the end the following:
    ``(22) The term `other alteration' means any activity affecting 
navigable waters which changes the flow, reach, circulation, hydrologic 
regime, bottom contour, or configuration of such waters or which 
changes the type, distribution, or diversity of vegetation, fish, or 
wildlife that are present in such waters. The term includes draining, 
dredging, excavation, channelization, flooding, clearing of vegetation, 
driving of pilings or placement of other obstructions, and diversion or 
withdrawal of water.''.

SEC. 4. DELINEATION.

    Section 404 (33 U.S.C. 1344) is amended by adding at the end the 
following:
    ``(u) Wetlands Delineations Manual.--
            ``(1) Use of wetlands delineations manual.--The Secretary, 
        the Administrator, and the Secretaries of the Interior, 
        Commerce, and Agriculture shall use the Corps of Engineers 
        Wetlands Delineation Manual (1987) in carrying out this section 
        unless a new manual has been prepared and formally adopted by 
        the Secretary and the Administrator with input from the 
        Secretaries of the Interior, Commerce, and Agriculture and the 
        heads of other relevant departments and agencies and after 
        field testing, hearings, and public comment.
            ``(2) Contents of new manual.--Any new manual adopted 
        pursuant to this section shall specifically consider the 
        recommendations of the 1995 report of the National Academy of 
        Sciences concerning the characteristics and boundaries of 
        wetlands.
            ``(3) Training on use of manual.--The Secretary shall 
        develop materials and conduct training courses for consultants, 
        State and local governments, and landowners explaining the use 
        of the Corps of Engineers Wetlands Delineation Manual (1987), 
        including any subsequent revisions, in the delineation of 
        wetland areas.
            ``(4) Development of supplemental technical criteria and 
        procedures.--The Secretary and the Administrator, in 
        cooperation with the States and the Secretaries of the Interior 
        and Agriculture, may develop supplemental technical criteria 
        and procedures pertaining to wetland hydrology, soils, and 
        vegetation for identification of regional wetland types.''.

SEC. 5. EXPANSION OF SCOPE OF PERMIT PROGRAM.

    (a) Prohibition of Activities.--Section 301(a) (33 U.S.C. 1311(a)) 
is amended by inserting after ``the discharge of any pollutant'' the 
following: ``or other alteration of navigable waters''.
    (b) Certification.--The first sentence of section 401(a)(1) (33 
U.S.C. 1341(a)(1)) is amended to read as follows: ``Any applicant for a 
Federal license or permit to conduct any activity including, but not 
limited to, the construction or operation of facilities, which 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 discharge or other alteration originates or will 
originate (or, if appropriate, from the interstate water pollution 
control agency having jurisdiction over the navigable waters where the 
discharge or other alteration originates or will originate) that the 
discharge or other alteration will comply with the applicable 
provisions of sections 301, 302, 303, 306, and 307 of this Act and will 
allow for the protection, achievement, and maintenance of designated 
uses included in applicable water quality standards.''.
    (c) Issuance of Permits.--Section 404(d) (33 U.S.C. 1344(d)) is 
amended to read as follows:
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Discharge of dredged material.--The term `discharge 
        of dredged material' means any addition of dredged material 
        into navigable waters and includes, without limitation, any 
        addition (including redeposit) of dredged material (including 
        excavated material) into such waters which is incidental to any 
        activity (including mechanized landclearing, ditching, 
        channelization, or other excavation) that has or would have the 
        effect of destroying or degrading any area of such waters, 
        including wetlands.''.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of the Army, acting through the Chief of Engineers.''.

SEC. 6. PERMITS FOR DISCHARGE OF DREDGED OR FILL MATERIAL.

    (a) Permit Monitoring and Tracking.--Section 404 (33 U.S.C. 1344), 
as amended by section 4 of this Act, is further amended by adding at 
the end the following:
    ``(v) Permit Monitoring and Tracking Program.--
            ``(1) Establishment.--The Secretary and the Administrator 
        shall establish and implement a permit monitoring and tracking 
        program on a watershed basis to monitor the cumulative impact 
        of individual and general permits issued under this section.
            ``(2) Purpose.--The purpose of the program shall be to 
        determine the impact of permitted activities under this section 
        on the functions of directly and indirectly impacted wetlands 
        and other waters (including protection of water quality, flood 
        storage, and fish and wildlife habitat) and to determine 
        whether such activities are consistent with the national goal 
        of achieving no net loss of the functions and acres of 
        wetlands.
            ``(3) Reports.--Not later than 2 years after the date of 
        the enactment of this subsection, and biennially thereafter, 
        the Secretary and the Administrator shall transmit to Congress 
        a report on the results of the program established under this 
        subsection.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $1,000,000 for 
        each of fiscal years 1999 and 2000.''.
    (b) Revocation or Modification of General Permits.--Section 
404(e)(2) (33 U.S.C. 1344(e)(2)) is amended--
            (1) by striking ``may be revoked'' and inserting ``shall be 
        revoked'';
            (2) by striking ``environment or'' and inserting 
        ``environment,''; and
            (3) by striking the period at the end and inserting ``, or 
        a State or regional entity has failed to adequately monitor or 
        control the individual and cumulative adverse effects of 
        activities authorized by State programmatic general permits.''.
    (c) Programmatic General Permits.--Section 404(e) is amended by 
adding at the end the following:
            ``(3) Programmatic general permits.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary, after providing notice and an opportunity 
                for public comment, may issue programmatic general 
                permits on a Statewide basis for the purpose of 
                avoiding unnecessary duplication of regulations by 
                Federal, State, and regional regulatory programs. A 
                programmatic general permit issued under this paragraph 
                must comply with the requirements of paragraph (2).
                    ``(B) Requirements.--
                            ``(i) In general.--The Secretary may issue 
                        a programmatic general permit based on a State 
regulatory program if the general permit includes adequate safeguards 
to ensure that the State program will have no more than minimal 
individual and cumulative impacts on the environment and will provide 
at least the same degree of protection for the environment, including 
all navigable waters, and for Federal interests, as is provided by this 
section and by the Federal permitting program pursuant to subsection 
(a).
                            ``(ii) Safeguards.--Safeguards under clause 
                        (i) shall include provisions whereby the 
                        Secretary and the Administrator, in 
                        coordination with the Secretaries of the 
                        Interior and Commerce, as appropriate, shall 
                        have an opportunity to--
                                    ``(I) review a permit application 
                                submitted to the State regulatory 
                                agency which, if approved, could result 
                                in more than minimal individual or 
                                cumulative adverse impacts on the 
                                environment;
                                    ``(II) attempt to resolve any 
                                related environmental concern and 
                                protect Federal interests at issue; and
                                    ``(III) if such concern is not 
                                adequately addressed by the State 
                                agency, require the processing of an 
                                individual Federal permit under this 
                                section for the specific proposed 
                                activity.
                            ``(iii) Protection of federal interests.--
                        In carrying out this subparagraph, the 
                        Secretary and the Administrator, in 
                        coordination with the Secretaries of the 
                        Interior and Commerce, as appropriate, shall 
                        protect all Federal interests, including 
                        national security, navigation, flood control, 
                        Federal endangered or threatened species, 
                        Federal interests under the Wild and Scenic 
                        Rivers Act, special aquatic sites of national 
                        importance, and other interests of overriding 
                        national importance.
                    ``(C) Consistency with guidelines.--A programmatic 
                general permit shall not be issued under this paragraph 
                unless the State regulatory program is no less 
                protective than and contains comparable procedural 
                opportunities to those provided under guidelines 
                promulgated to implement subsection (b)(1).''.
    (d) Grandfather of Existing General Permits.--Section 404(e) is 
further amended by adding at the end the following:
            ``(4) Grandfather of existing general permits.--General 
        permits in effect on the day before the date of the enactment 
        of this paragraph shall remain in effect according to the terms 
        of the permit until the expiration date contained in the permit 
        unless otherwise modified or revoked by the Secretary or held 
        invalid by a court.''.
    (e) Activities Not Requiring a Permit.--Section 404(f) (33 U.S.C. 
1344(f)) is amended by striking the subsection designation and all that 
follows through paragraph (1) and inserting the following:
    ``(f) Activities Not Requiring a Permit.--
            ``(1) In general.--Except as provided in paragraph (2), 
        activities are exempt from the requirements of this section and 
        are not prohibited by or otherwise subject to regulation under 
        this section or section 301 or 402 of this Act (except effluent 
        standards or prohibitions under section 307 of this Act) if 
        such activities--
                    ``(A) result from normal farming, silviculture, and 
                ranching activities and practices, such as plowing, 
                seeding, cultivating, haying, grazing, minor drainage 
                in connection with such activities, harvesting for the 
                production of food, fiber, and forest products, or 
                upland soil and water conservation practices;
                    ``(B) are for the purpose of routine or emergency 
                maintenance of currently serviceable structures such as 
                dikes, dams, levees, groins, riprap, breakwaters, 
                causeways, bridge abutments or approaches, and 
                transportation structures;
                    ``(C) are for the purpose of construction or 
                maintenance of farm or stock ponds or irrigation 
                ditches or the maintenance of drainage ditches and tile 
                lines (including resloping of drainage ditches for the 
                exclusive purpose of controlling bank erosion);
                    ``(D) are for the purpose of construction of 
                temporary sedimentation basins on a construction site 
                which does not include placement of fill material into 
                the navigable waters;
                    ``(E) are for the purpose of construction or 
                maintenance of farm roads, forest roads, or temporary 
roads for moving mining equipment in accordance with best management 
practices to assure that flow and circulation patterns and chemical and 
biological characteristics of the navigable waters are not impaired, 
that the reach of the waters is not reduced, and that any adverse 
effect on the aquatic environment will be otherwise minimized; or
                    ``(F) are agricultural activities performed on 
                farmed wetlands, such as haying, grazing, harrowing, 
                discing, maintenance of irrigation water retention 
                basins, or maintenance of existing drainage tile 
                systems.

SEC. 7. COMPENSATORY MITIGATION.

    Section 404 (33 U.S.C. 1344), as amended by section 6 of this Act, 
is further amended by adding at the end the following:
    ``(w) General Requirements.--
            ``(1) Mitigation sequence requirements.--Any application 
        for a permit submitted under this section shall be reviewed to 
        ensure that mitigation measures are taken in the following 
        order:
                    ``(A) Measures to avoid any adverse effects on 
                wetlands caused by the proposed activities.
                    ``(B) Measures to minimize any adverse effects that 
                cannot be avoided.
                    ``(C) Measures to compensate for adverse impacts on 
                wetland functions, values, and acreage.
            ``(2) Standards.--The Secretary, in consultation with the 
        Administrator, shall ensure that compensatory mitigation by a 
        permitee--
                    ``(A) is a specific, enforceable condition of the 
                permit for which it is required;
                    ``(B) will meet defined success criteria; and
                    ``(C) is monitored to ensure compliance with the 
                conditions of the permit and to determine the 
                effectiveness of the mitigation in compensating for the 
                adverse effects for which the mitigation is required.
            ``(3) Compensatory mitigation defined.--In this subsection, 
        the term `compensatory mitigation' means the restoration, 
        creation, enhancement, and, in exceptional circumstances, 
        preservation of wetlands or other aquatic resources and 
        associated upland habitat for the purpose of compensating for 
        unavoidable adverse impacts which remain after all appropriate 
        and practicable steps have been taken to avoid and minimize 
        such impacts. In carrying out this subsection, preference shall 
        be given to in-kind restoration on the same waterbody and 
        within the same local watershed where practicable and 
        environmentally preferable.
            ``(4) Regulations.--Not later than 90 days after the date 
        of the enactment of this subsection, the Secretary, after 
        providing notice and opportunity for comment, shall issue 
        proposed rules defining the exceptional circumstances in which 
        preservation of wetlands is permissible as a mitigation option 
        for a permittee under this section. The definition of 
        exceptional circumstances shall be limited to circumstances in 
        which the parcel to be preserved is facing a discrete, 
        identifiable threat to its continued existence as a wetland.

SEC. 8. ESTABLISHMENT AND USE OF MITIGATION BANKS.

    Section 404 (33 U.S.C. 1344), as amended by section 7 of this Act, 
is further amended by adding at the end the following:
    ``(x) Establishment and Use of Mitigation Banks.--
            ``(1) In general.--Not later than 1 year after the date of 
        the enactment of this subsection, and after providing notice 
        and an opportunity for public review and comment, the Secretary 
        and the Administrator shall issue regulations for the 
        establishment, use, maintenance, and oversight of mitigation 
        banks. The regulations shall be developed in consultation with 
        the Secretary of the Interior (acting through the Director of 
        the United States Fish and Wildlife Service) and the Secretary 
        of Commerce (acting through the Administrator of the National 
        Oceanic and Atmospheric Administration).
            ``(2) Requirements for bank establishment.--
                    ``(A) Submission of plans.--In order to be eligible 
                to operate a mitigation bank, an applicant shall submit 
                to the Secretary and the Administrator for approval 
                detailed plans for establishment of the bank, including 
                bank goals, bank size, type of wetlands to be restored, 
                created, or enhanced, methods for determining debits 
                and credits, performance standards for determining bank 
                success, ownership of bank lands, description of 
                baseline conditions and geographical extent of bank 
                lands, financial assurances, contingency and remedial 
                actions and responsibilities in case of bank failure, 
                reporting protocols and provisions for long term 
                management, monitoring, and maintenance.
                    ``(B) Public review and comment.--The Secretary and 
                the Administrator shall make a plan submitted under 
                subparagraph (A) available for public review. The 
                public shall have a minimum of 30 days to review and 
                comment on the plan before the authorization of a 
                mitigation banking instrument.
                    ``(C) Agency coordination in development of banking 
                instrument.--In making a decision to approve an 
                application to establish and operate a mitigation bank, 
                the Secretary and the Administrator shall consult with 
                the Secretaries of the Interior, Commerce, and 
                Agriculture, as appropriate. The Secretary and the 
                Administrator shall also coordinate with the 
                appropriate State, local, and tribal resource agencies 
                and the potential bank sponsors in developing a legally 
                binding banking instrument.
                    ``(D) Approval of mitigation banking instrument.--
                Upon approval of the proposed mitigation bank plans 
                required under subparagraph (A) by the Secretary and 
                the Administrator, in consultation with the Secretaries 
                of the Interior, Commerce, and Agriculture, as 
                appropriate, such plans shall be recognized as the 
                legally binding mitigation banking instrument. Approval 
                of a banking instrument by the Secretary and the 
                Administrator shall be required prior to bank 
                development.
                    ``(E) Grandfathering of existing mitigation 
                banks.--Mitigation banks in operation on the day before 
                the date of the enactment of this subsection shall 
                submit to the Secretary and the Administrator, within 
                180 days of such date of enactment, mitigation bank 
                plans in accordance with the requirements of 
                subparagraph (A), unless a similar plan or instrument 
                was developed in accordance with interagency guidance 
                on wetlands mitigation banking in consultation with the 
                Secretary.
            ``(3) Use of mitigation banks.--
                    ``(A) Watershed management.--Mitigation banks shall 
                be planned and developed to address specific resource 
                needs of a particular watershed and shall be planned in 
                conjunction with comprehensive watershed management 
                plans developed in accordance with section 321, where 
                applicable.
                    ``(B) Mitigation sequencing.--In accordance with 
                the requirements of this section, all practical and 
                appropriate steps shall be taken to sequentially avoid 
                and minimize impacts to wetlands and other aquatic 
                resources prior to authorization to use a mitigation 
                bank.
                    ``(C) In-kind compensation required.--In the 
                interest of achieving functional replacement, in-kind 
                compensation of wetlands or aquatic resources shall be 
                required, except where out-of-kind mitigation is 
                determined to be environmentally preferable.
                    ``(D) Geographic transport of mitigation bank 
                credits.--In order for the purchase of credits from a 
                mitigation bank to fulfill mitigation requirements 
                associated with a permit issued under this section, the 
                mitigation bank must be located in the same hydrologic 
                cataloguing unit (as established on maps published by 
                the U.S. Geological Survey) as the project or impact 
                site.
            ``(4) Credit withdrawal.--
                    ``(A) Total number of credits.--The total number of 
                credits to be contained in a single mitigation bank 
                shall be agreed upon and outlined within the banking 
                instrument and may not be increased over the life of 
                the bank.
                    ``(B) Debiting.--Where adequate financial 
                assurances exist and bank success is highly likely, and 
                when all signatories to the banking instrument agree, 
                debiting of up to 20 percent of the total number of 
                projected credits within the bank may be allowed to 
                occur at one time to provide initial capital for the 
                restoration, creation, or enhancement project if--
                            ``(i) appropriate measurements of success 
                        are agreed upon by the signatories of the bank 
                        instrument;
                            ``(ii) no additional credits may be sold 
                        prior to successful establishment of the 
                        initial credits; and
                            ``(iii) signatories to the bank instrument 
                        are allowed to conduct periodic on-site 
                        inspections of bank performance.
            ``(5) Monitoring, maintenance, and remediation 
        provisions.--The bank instrument shall also include provisions 
        for--
                    ``(A) the types of monitoring, the frequency and 
                duration of monitoring, and requirements for reporting 
                on bank progress to the instrument signatories;
                    ``(B) any regular maintenance which may be required 
                to maintain hydrologic, soil, and hydrophytic 
                vegetation criteria; and
                    ``(C) procedures for identifying and implementing 
                remedial measures at a bank in case of bank failure.
            ``(6) Financial Assurances.--
                    ``(A) Responsibilities of bank sponsor.--The bank 
                sponsor shall be responsible for meeting all funding 
requirements reflecting realistic cost estimates for monitoring, 
maintenance, contingency, and remedial actions throughout the 
operational life of the bank. The bank sponsor shall also be 
responsible for providing adequate funding for any long-term 
maintenance beyond the operational life of the bank which are 
identified in the banking instrument.
                    ``(B) Form of financial assurances.--Financial 
                assurances may be in the form of performance bonds, 
                irrevocable trusts, escrow accounts, casualty 
                insurance, letters of credit, or other sources approved 
                within the bank instrument.
                    ``(C) Phasing out of financial assurances.--
                Financial assurances may be phased out or reduced once 
                bank maturity or self sufficiency has been established, 
                as outlined in the bank instrument.
            ``(7) Methods for determining debits, credits, and fee 
        structures.--
                    ``(A) Methods for determining debits and credits.--
                Banking instruments shall include consistent and 
                scientifically sound methods for determining debits and 
                credits.
                    ``(B) Methods for determining fees.--Each bank 
                shall base fee charges for participation in a 
                mitigation bank that reflect the full costs of 
                replacing lost wetlands functions and acreage, 
                including the costs of land acquisition, wetlands 
                establishment, management measures, long-term 
                maintenance, monitoring and protection, potential 
                remediation of project failure, and other relevant 
                factors.
            ``(8) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Compensatory mitigation.--The term 
                `compensatory mitigation' means the restoration, 
                creation, enhancement, and, in exceptional 
                circumstances, preservation of wetlands or other 
                aquatic resources and associated upland habitat for the 
                purpose of compensating for unavoidable adverse impacts 
                which remain after all appropriate and practicable 
                steps have been taken to avoid and minimize such 
                impacts.
                    ``(B) Credit.--The term `credit' means a unit of 
                measure representing the attainment of function at a 
                mitigation bank. The measure of function is typically 
                indexed to the number and quality of acres restored, 
                created, or enhanced.
                    ``(C) Debit.--The term `debit' means a unit of 
                measure representing the loss of wetland or aquatic 
                resource function at an impact or project site.
                    ``(D) Mitigation bank.--The term `mitigation bank' 
                means a site where wetlands or other aquatic resources 
                have been restored, created, enhanced, or, in 
                exceptional circumstances, preserved by 1 or more 
                public or private parties expressly for the purpose of 
                providing compensatory mitigation credits to offset 
                authorized impacts to similar resources.
                    ``(E) Mitigation banking instrument.--The term 
                `mitigation banking instrument' means a legally binding 
                agreement between a bank sponsor, the Secretary, the 
                Administrator, and the heads of other appropriate 
                Federal, State, tribal, and local resource agencies 
                outlining the objectives and administration of the 
                bank, including detailed physical and legal 
                characteristics of the bank and how the bank will be 
                established and operated.
                    ``(F) Mitigation sequencing.--The term `mitigation 
                sequencing' means sequentially avoiding impacts, 
                minimizing impacts, and compensating for unavoidable 
                impacts made to navigable waters, including 
                wetlands.''.

SEC. 9. COMPREHENSIVE WATERSHED PLANNING AND MANAGEMENT.

    (a) Statement of Congressional Policy.--Section 101 (33 U.S.C. 
1251) is amended by adding at the end the following:
    ``(h) Water Quality.--It is the policy of Congress to encourage the 
development and implementation of comprehensive watershed management to 
maintain and enhance water quality, to protect and conserve wetland 
resources, and to further the purposes of this Act by--
            ``(1) increasing public participation in selecting measures 
        to maintain and enhance water quality;
            ``(2) coordinating the water quality programs of this Act 
        with other programs to restore and protect natural resources;
            ``(3) identifying for specific watersheds long-term social, 
        economic, and natural resource objectives consistent with the 
        goals of this Act and the water quality necessary to support 
        those objectives; and
            ``(4) provide assistance to States that formulate and 
        implement comprehensive management plans to improve water 
        quality and protect natural resources.''.
    (b) Wetlands and Watershed Management Plans.--Title III (33 U.S.C. 
1311 et seq.) is amended by adding at the end the following:

``SEC. 321. WETLANDS AND WATERSHED MANAGEMENT PLANS.

    ``(a) Management Entity.--An approved management entity of a State 
shall determine the management entity responsible for developing and 
implementing a plan for each wetlands and watershed management unit 
designated under this section. The management entity may be an agency 
of State government, a local government agency, a substate or 
interstate regional planning organization, a conservation district or 
other natural resource management district, or other public entity that 
has adequate powers and resources to carry out the responsibilities 
authorized by this section in a comprehensive manner.
    ``(b) Approval.--Each designation of a wetlands and watershed 
management unit and a corresponding management entity under this 
subsection shall be submitted to the Administrator and the Secretary of 
the Army, acting through the Chief of Engineers (referred to in this 
section as the `Secretary'), for approval. If the Administrator and the 
Secretary disapprove a designation, the Administrator and the Secretary 
shall notify the management entity in writing of the reasons for the 
disapproval. A revised designation may be submitted to meet the 
objections of the Administrator and the Secretary.
    ``(c) Public Participation.--Approved management entities shall 
opportunities for public participation in the development of wetlands 
and watershed management plans under this section including procedures 
for public notice and comment and establishment of scientific and 
citizens advisory committees.
    ``(d) Approval of Plans.--
            ``(1) Submission of plan.--The Governor of a State may 
        submit to the Administrator for approval by the Administrator 
        and the Secretary a comprehensive wetlands and watershed 
        management plan developed pursuant to this section.
            ``(2) Decision on plan.--The Administrator and the 
        Secretary shall, in consultation with the Secretaries of the 
        Interior, Agriculture, and Commerce, and after providing notice 
        and an opportunity for public comment, approve or disapprove a 
        comprehensive wetlands and watershed management plan.
            ``(3) Plan requirements.--A wetlands and watershed 
        management plan shall include--
                    ``(A) the designation of an administering agency 
                which shall be responsible for making reports to the 
                Secretary and the Administrator every 2 years on 
                implementation of the plan and on the losses and gains 
                in functions and acres of wetlands within the watershed 
                plan area;
                    ``(B) inventory, mapping, and characterization of--
                            ``(i) the boundary of the plan area; and
                            ``(ii) all wetlands and waters of the 
                        United States within the plan area as well as 
                        other areas proposed for protection under the 
                        plan, including characterization of weather 
                        effects and other physical factors affecting 
                        the plan area;
                    ``(C) proposed wetlands restoration sites with a 
                description of the intended functions of the sites upon 
                completion and the time required for completion;
                    ``(D) primary land uses within the boundaries of 
                the plan;
                    ``(E) presence of endangered species, cultural and 
                historic resources, wetlands and other natural resource 
                areas of special State, regional, or national concern;
                    ``(F) current infrastructure such as major roads 
                and bridges and sewage treatment facilities;
                    ``(G) a description of the regulatory policies and 
                standards applicable to all wetlands and waters within 
                the plan areas and all activities which may affect 
                these wetlands and waters that will assure, at a 
                minimum, no net loss of the functions and acres of 
                wetlands within the plan area;
                    ``(H) demonstration that the administering agency 
                has the legal authority, financial resources, and 
                scientific monitoring capability to carry out the 
                proposed plan;
                    ``(I) provisions that the management entity will 
                report to the Administrator, the Secretary, and the 
                public not later than 2 years after the date of 
implementation of the plan, and every 2 years thereafter, on the 
implementation of the plan and on the losses and gains in functions and 
acres of wetlands within the wetlands and watershed management unit.
    ``(e) Planning, Implementation, and Monitoring Schedule.--Each 
wetlands and watershed management plan submitted and approved under 
subsection (b) shall include a planning, implementation, and monitoring 
schedule for a period of at least 10 years. The implementation schedule 
shall include all appropriate milestones for meeting the management 
objectives established under the plan.
    ``(f) Incentives for Wetlands and Watershed Management Planning.--
            ``(1) Grants.--Subject to the requirements of this section, 
        the Administrator is authorized to make grants to approved 
        management entities which shall be eligible to receive funding 
        for the following activities in the development of a wetlands 
        and watershed management plan:
                    ``(A) An inventory and mapping of--
                            ``(i) all navigable waters within the 
                        proposed wetlands and watershed management 
                        unit; and
                            ``(ii) potential wetlands restoration 
                        sites.
                    ``(B) An assessment of the functions and relative 
                value of wetlands within the wetlands and watershed 
                management unit.
                    ``(C) The identification of potential mitigation 
                banks.
                    ``(D) The development and implementation of 
                measures to integrate wetlands planning and management 
                with broader water resource and land use planning and 
                management, including floodplain management, water 
                supply, stormwater management, and the control of point 
                and nonpoint source pollution.
                    ``(E) The development and implementation of 
                management strategies for preserving and restoring 
                wetlands on a watershed basis.
                    ``(F) The consideration of, and coordination with, 
                water resource and land use planning efforts in 
                adjacent States within the region or basin in which the 
                wetlands and watershed management unit is located.
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $10,000,000 for 
        each of fiscal years 1999 through 2003.
            ``(3) Expedited permit review.--At the request of an 
        approved management entity, a decision under section 404(a) 
        with respect to a completed application for a permit for the 
        discharge of dredged or fill material into navigable waters 
        within a designated wetlands and watershed unit shall be made 
        in accordance with expedited permit processing procedures if 
        the application is in compliance with an approved wetlands and 
        watershed management plan. Such procedures shall be established 
        by the Secretary and the Administrator after providing notice 
        and an opportunity for public comment.
            ``(4) Technical assistance.--At the request of an approved 
        management entity, the Secretaries of the Interior, Commerce, 
        and Agriculture, shall, to the extent practicable, provide the 
        management entity with technical assistance in carrying out 
        wetlands and watershed management planning activities under 
        this section.
    ``(g) Research Program.--The Secretary, in cooperation with the 
Administrator, the Secretaries of the Interior and Commerce, and the 
heads of other appropriate Federal, State, and local government 
entities, shall carry out a research program on wetlands and watershed 
management. The research program shall include--
            ``(1) study of the functions, values, and management needs 
        of altered, artificial, and managed wetlands systems;
            ``(2) study and development of techniques and methods for 
        determining and analyzing the functions and values of different 
        types of wetlands;
            ``(3) study and development of techniques for managing and 
        restoring wetlands within a watershed context;
            ``(4) study and development of techniques for better 
        coordinating and integrating wetlands protection, floodplain 
        management, stormwater management, point and nonpoint source 
        pollution controls, and water supply planning on a watershed 
        basis;
            ``(5) development of criteria for identifying wetlands 
        restoration sites on a watershed basis; and
            ``(6) recommendation of procedures and ecological criteria 
        for wetlands restoration.''.

SEC. 10. GRANTS TO FACILITATE IMPLEMENTATION OF SECTION 404.

    (a) In General.--Subject to the requirements of this section, the 
Administrator may make grants to States for activities that implement 
section 404 of the Federal Water Pollution Control Act through--
            (1) State assumption of permitting pursuant to subsections 
        (g) and (h) of section 404 of such Act;
            (2) permitting through a programmatic general permit 
        pursuant to section 404(e) of such Act; and
            (3) other monitoring, management, protection, and 
        enforcement activities.
    (b) Assurances.--In order to be eligible to receive a grant under 
this section, a State shall provide assurances satisfactory to the 
Administrator that amounts received by the State in grants under this 
section will be used to carry out the activities listed in subsection 
(a) consistent with the overall goals of section 404 of the Federal 
Water Pollution Control Act and the standards and procedures of 
subsections (g) and (h) of such section 404.
    (c) Maximum Amount.--No State may receive more than $300,000 in 
grants under this section in any fiscal year.
    (d) Federal Share.--The Federal share of the cost of activities 
carried out using amounts made available in grants under this section 
shall not exceed 75 percent.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 1999 through 2003.

SEC. 11. STATE, LOCAL, AND LANDOWNER TECHNICAL ASSISTANCE AND 
              COOPERATIVE TRAINING.

    (a) State and Local Technical Assistance.--Upon request, the 
Administrator or the Secretary, as appropriate, shall provide technical 
assistance to State and local governments in the development and 
implementation of State permitting programs under subsections (e) and 
(h) of section 404 of the Federal Water Pollution Control Act and 
wetlands and watershed management plans under section 321 of such Act.
    (b) Cooperative Training.--The Administrator and the Secretary 
shall conduct training courses for States and local governments 
involving wetland delineation, utilization of wetlands in nonpoint 
pollution control, wetland and stream restoration, wetland planning, 
wetland evaluation, mitigation banking, and other subjects deemed 
appropriate by the Administrator or the Secretary.
    (c) Private Landowner Technical Assistance.--The Administrator and 
the Secretary, in cooperation with appropriate State and Federal 
agencies, shall develop and provide to private landowners guidebooks, 
pamphlets, or other materials and technical assistance to help the 
landowners in identifying and evaluating wetlands, developing 
integrated wetland management plans for their lands consistent with the 
goals of this Act and the Federal Water Pollution Control Act, and 
restoring wetlands.

SEC. 12. CITIZEN SUITS.

    Section 505 (33 U.S.C. 1365) is amended by striking the section 
heading and all that follows through subsection (a) and inserting the 
following:

``SEC. 505. CITIZEN SUITS.

    ``(a) In General.--Except as provided in subsection (b) of this 
section and section 309(g)(6), any citizen may commence a civil action 
on his own behalf--
            ``(1) against any person, including the United States and 
        any other governmental instrumentality or agency to the extent 
        permitted by the eleventh amendment to the Constitution, who is 
        alleged to be in violation of--
                    ``(A) an effluent standard or limitation under this 
                Act;
                    ``(B) the terms and conditions included in a 
                general permit, a mitigation banking instrument, or 
                other mitigation requirement; or
                    ``(C) an order issued by the Secretary or the 
                Administrator (or both) or a State with respect to such 
                standard or limitation; and
            ``(2) against the Secretary or the Administrator where 
        there is alleged a failure of the Secretary or the 
        Administrator to perform any act or duty under this Act which 
        is not discretionary with the Secretary or the Administrator.
The district courts shall have jurisdiction, without regard to the 
amount in controversy or the citizenship of the parties, to enforce 
such an effluent standard or limitation, general permit term, 
mitigation requirement, or such an order, or to order the Secretary or 
the Administrator to perform such act or duty, as the case may be, and 
to apply any appropriate civil penalties under section 309(d).''.
                                 <all>