[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2110 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2110

  To amend the Endangered Species Act of 1973 to enhance the role of 
States in the recovery of endangered species and threatened species, to 
implement a species conservation recovery system, to establish certain 
recovery programs, to provide Federal financial assistance and a system 
    of incentives to promote the recovery of species, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 15, 2005

   Mr. Crapo (for himself, Mrs. Lincoln, Mr. Thomas, and Mr. Allard) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Endangered Species Act of 1973 to enhance the role of 
States in the recovery of endangered species and threatened species, to 
implement a species conservation recovery system, to establish certain 
recovery programs, to provide Federal financial assistance and a system 
    of incentives to promote the recovery of species, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
                  TITLE I--STATE GOVERNMENT ASSISTANCE

Sec. 101. Short title.
Sec. 102. Cooperation with the States.
              TITLE II--PRIORITY FOR LISTING AND RECOVERY

Sec. 201. Short title.
Sec. 202. Determination and recovery of endangered species and 
                            threatened species.
               TITLE III--INCENTIVES FOR SPECIES RECOVERY

Sec. 301. Short title.
Sec. 302. Conservation banks.
Sec. 303. Exceptions.
Sec. 304. Technical corrections.
Sec. 305. Tax incentives.
             TITLE IV--PROTECTIONS AND MEASURES IN FORESTS

Sec. 401. Protections and measures.

                  TITLE I--STATE GOVERNMENT ASSISTANCE

SEC. 101. SHORT TITLE.

    This title may be cited as the ``State Government Assistance in 
Recovery Act''.

SEC. 102. COOPERATION WITH THE STATES.

    Section 6 of the Endangered Species Act (16 U.S.C. 1535) is 
amended--
            (1) in subsection (c), by adding at the end the following:
            ``(3) Cooperative agreements.--
                    ``(A) Agreements.--
                            ``(i) In general.--A cooperative agreement 
                        entered into by the Secretary under this 
                        subsection may provide for development of a 
                        program for the conservation of--
                                    ``(I) a species determined to be a 
                                candidate species under section 
                                4(b)(3)(B)(iii); or
                                    ``(II) any other species that the 
                                State and the Secretary agree is likely 
                                to be determined to be an endangered 
                                species or threatened species under 
                                section 4(a)(1).
                            ``(ii) Application of take statement.--
                        After consultation on the cooperative agreement 
                        in accordance with subsection (e)(2), any 
                        incidental take statement issued on the 
                        cooperative agreement shall apply to any 
                        species described in clause (i) and to the 
                        State and any landowners enrolled in any 
                        program under the cooperative agreement, 
                        without further consultation (except any 
                        additional consultation required under 
                        subsection (e)(2)), if--
                                    ``(I) the species is subsequently 
                                determined to be an endangered species 
                                or a threatened species; and
                                    ``(II) the cooperative agreement 
                                remains an adequate and active program 
                                for the conservation of endangered 
                                species and threatened species.
                    ``(B) Monitoring.--A cooperative agreement entered 
                into by the Secretary under this subsection may provide 
                for monitoring, or assistance in monitoring, the status 
                of--
                            ``(i) a candidate species in accordance 
                        with section 4(b)(3)(C)(iii); or
                            ``(ii) a species that is determined to be 
                        recovered, and that is delisted, in accordance 
                        with section 4.
            ``(4) Enrollment of land or water rights.--A cooperative 
        agreement entered into by the Secretary under this subsection 
        that provides for the enrollment of private land or water 
        rights in any program established by the cooperative agreement 
        shall ensure that the decision to enroll is voluntary for each 
        owner of the land or water rights.'';
            (2) in subsection (d)(1)--
                    (A) in the first sentence--
                            (i) by striking ``pursuant to subsection 
                        (c) of this section''; and
                            (ii) by striking ``or to assist'' and all 
                        that follows through ``section 4(g)'' and 
                        inserting ``under paragraphs (1) or (2) of 
                        subsection (c) or section 4(b)(5)(C), or to 
                        address candidate species or other species at 
                        risk and recovered species under subsection 
                        (c)(3)''; and
                    (B) in subparagraph (F), by striking ``monitoring 
                the status of candidate species'' and inserting 
                ``developing a conservation program for, or monitoring 
                the status of, candidate species or other species 
                determined to be at risk under subsection (c)(3)''; and
            (3) by striking subsection (e) and inserting the following:
    ``(e) Review of State Programs.--
            ``(1) In general.--Any action taken by the Secretary under 
        this section shall be subject to periodic review by the 
        Secretary at least every 3 years.
            ``(2) Applicable authority.--A cooperative agreement 
        entered into by the Secretary under subsection (c) shall be 
        subject to subsections (a)(2) through (d) of section 7 
        (including implementing regulations) only before the date on 
        which--
                    ``(A) the Secretary enters into the cooperative 
                agreement; or
                    ``(B) the Secretary approves any renewal of, or 
                amendment to, the cooperative agreement that--
                            ``(i) addresses species that--
                                    ``(I) are determined to be 
                                endangered species or threatened 
                                species;
                                    ``(II) are not addressed in the 
                                cooperative agreement; and
                                    ``(III) may be affected by the 
                                cooperative agreement; or
                            ``(ii) contains new information about any 
                        species addressed in the cooperative agreement 
                        that the Secretary determines--
                                    ``(I) constitutes the best 
                                scientific and commercial data 
                                available; and
                                    ``(II) indicates that the 
                                cooperative agreement may have adverse 
                                effects on the species that had not 
                                been considered previously when the 
                                cooperative agreement was entered into 
                                or during any revision of or amendment 
                                to the cooperative agreement.
            ``(3) Suspension of cooperative agreement.--The Secretary 
        may suspend a cooperative agreement entered into by the 
        Secretary under subsection (c), after consultation with the 
        Governor of the affected State, if Secretary finds during the 
        periodic review required by paragraph (1) that the cooperative 
        agreement no longer constitutes an adequate and active program 
        for the conservation of endangered species and threatened 
        species.
            ``(4) Termination of cooperative agreement.--The Secretary 
        may terminate a cooperative agreement entered into by the 
        Secretary under subsection (c), after consultation with the 
        Governor of the affected State, if--
                    ``(A) as result of subsections (a)(2) through (d) 
                of section 7 (including implementing regulations), the 
                Secretary determines that--
                            ``(i) continued implementation of the 
                        cooperative agreement is likely--
                                    ``(I) to jeopardize the continued 
                                existence of endangered species or 
                                threatened species; or
                                    ``(II) to result in the destruction 
                                or adverse modification of critical 
                                habitat; and
                            ``(ii) the cooperative agreement is not 
                        amended or revised to incorporate a reasonable 
                        and prudent alternative offered by the 
                        Secretary under section 7(b)(3); or
                    ``(B) the cooperative agreement--
                            ``(i) has been suspended under paragraph 
                        (3); and
                            ``(ii) as of the date that is 180 days 
                        after the date of the suspension, has not been 
                        amended or revised and found by the Secretary 
                        to constitute an adequate and active program 
                        for the conservation of endangered species and 
                        threatened species.''.

              TITLE II--PRIORITY FOR LISTING AND RECOVERY

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Priority for Listing and Recovery 
Act''.

SEC. 202. DETERMINATION AND RECOVERY OF ENDANGERED SPECIES AND 
              THREATENED SPECIES.

    (a) In General.--Section 4 of the Endangered Species Act of 1973 
(16 U.S.C. 1533) is amended--
            (1) by striking the section heading and all that follows 
        through ``(a) General.--(1) The Secretary'' and inserting the 
        following:

``SEC. 4. DETERMINATION AND RECOVERY OF ENDANGERED SPECIES AND 
              THREATENED SPECIES.

    ``(a) In General.--
            ``(1) Factors.--The Secretary'';
            (2) in subsection (a)(3)(A), by striking clause (i) and 
        inserting the following:
            ``(i) shall designate any habitat of an endangered species 
        or a threatened species that is considered to be critical 
        habitat in accordance with the priority system established 
        under subsection (b); and''; and
            (3) in subsection (b)--
                    (A) by striking ``(b) Basis for Determinations.--
                (1)(A) The Secretary'' and inserting the following:
    ``(b) Basis, Priority, and Schedule for Decisions.--
            ``(1) Basis for decisions.--
                    ``(A) In general.--The Secretary'';
                    (B) in paragraph (1), by striking ``(B) In carrying 
                out'' and inserting the following:
                    ``(B) Considerations.--In carrying out'';
                    (C) in paragraph (2), by striking ``(2) The 
                Secretary'' and inserting the following:
            ``(2) Designation of critical habitat.--The Secretary'';
                    (D) by redesignating paragraphs (5) through (8) as 
                paragraphs (7) through (10), respectively;
                    (E) in paragraph (3)--
                            (i) by striking ``(3)(A) To'' and inserting 
                        the following:
            ``(5) Petition.--
                    ``(A) In general.--To'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``(B) Within 12 
                                months'' and inserting the following:
                    ``(B) Findings.--In accordance with the schedule 
                established under paragraph (4), and not later than 3 
                years'';
                                    (II) in clause (ii), by striking 
                                ``paragraph (5)'' and inserting 
                                ``paragraph (7)'';
                                    (III) in clause (iii)(I), by 
                                striking ``paragraphs (5) and (6)'' and 
                                inserting ``paragraphs (7) and (8)''; 
                                and
                                    (IV) by indenting clauses (i) 
                                through (iii) and subclauses (I) and 
                                (II) appropriately;
                            (iii) in subparagraph (C)--
                                    (I) by striking ``(C)(i) A 
                                petition'' and inserting the following:
                    ``(C) Other requirements.--
                            ``(i) Treatment of certain petitions.--A 
                        petition'';
                                    (II) in clause (ii), by striking 
                                ``(ii) Any'' and inserting the 
                                following:
                            ``(ii) Judicial review.--Any''; and
                                    (III) in clause (iii)--
                                            (aa) by striking ``(iii) 
                                        The Secretary'' and inserting 
                                        the following:
                            ``(iii) Monitoring.--The Secretary''; and
                                            (bb) by striking 
                                        ``paragraph 7'' and inserting 
                                        ``paragraph (9)''; and
                            (iv) in subparagraph (D)--
                                    (I) by striking ``(D)(i) To the 
                                maximum extent practicable, within 90 
                                days'' and inserting the following:
                    ``(D) Substantial scientific information.--
                            ``(i) In general.--In accordance with the 
                        schedule described in paragraph (4), and not 
                        later than 1 year''; and
                                    (II) in clause (ii), by striking 
                                ``(ii) Within 12 months'' and inserting 
                                the following:
                            ``(ii) Intent to proceed.--In accordance 
                        with the schedule described in paragraph (4), 
                        and not later than 3 years'';
                    (F) in paragraph (4), by striking ``(4) Except as 
                provided in paragraphs (5) and (6) of this subsection'' 
                and inserting the following:
            ``(6) Rulemaking procedures.--Except as provided in 
        paragraphs (7) and (8)'';
                    (G) in paragraph (7)(A) (as redesignated by 
                subparagraph (C))--
                            (i) in clause (i), by striking ``, and'' 
                        and inserting a semicolon; and
                            (ii) by striking clause (ii) and inserting 
                        the following:
                    ``(ii) give actual notice of the proposed 
                regulation (including the complete text of the 
                regulation) to, and invite the comment of--
                            ``(I) the State agency in each State in 
                        which the species is believed to occur;
                            ``(II) each county or equivalent 
                        jurisdiction in which the species is believed 
                        to occur; and
                            ``(III) any county or municipality that has 
                        administrative jurisdiction over the area; and
                    ``(iii) with respect to a regulation to designate 
                or revise a designation of critical habitat--
                            ``(I) publish maps and coordinates that 
                        describe, in detail, the specific areas that 
                        meet the definition under section 3 of, and are 
                        designated under subsection (a)(3) as, critical 
                        habitat, and all field survey data upon which 
                        the designation is based; and
                            ``(II) maintain the maps, coordinates, and 
                        data on a publicly accessible Internet page of 
                        the Department; and
                    ``(iv) include in each of the notices required 
                under this subparagraph a reference to the Internet 
                page described in clause (iii)(II);'';
                    (H) in paragraph (8) (as redesignated by 
                subparagraph (C))--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (5)(A)(i)'' and inserting 
                        ``paragraph (7)(A)(i)'';
                            (ii) in subparagraph (C), by striking the 
                        matter preceding clause (i) and inserting the 
                        following:
                    ``(C) Final regulation.--Either 3 years after the 
                date on which a recovery program is commissioned or in 
                accordance with the schedule described in paragraph 
                (4), and in no case later than 5 years after the date 
                on which an endangered species or threatened species is 
                listed under this Act, the Secretary shall publish a 
                final regulation designating the critical habitat of 
                the endangered species or threatened species, unless 
                the Secretary determines that--''; and
                            (iii) by adding at the end the following:
                    ``(D) Provisional recovery goals.--The Secretary 
                shall promulgate and publish provisional recovery goals 
                for a species at the time of the listing of the 
                species, which--
                            ``(i) may set standards for delisting; and
                            ``(ii) shall remain in effect, unless 
                        replaced by an approved recovery plan.'';
                    (I) in paragraph (9) (as redesignated by 
                subparagraph (C)), by striking ``(9) Neither paragraph 
                (4), (5), or (6)'' and inserting the following:
            ``(9) Emergencies.--Neither paragraphs (6) through (8)'';
                    (J) in paragraph (10) (as redesignated by 
                subparagraph (C)), by striking ``(8) The publication'' 
                and inserting the following:
            ``(10) Publication of regulations.--The publication'';
                    (K) by inserting after paragraph (2) the following:
            ``(3) Priority for determinations, designations, and 
        commissioning of recovery programs.--
                    ``(A) In general.--Not later than 270 days after 
                the date of enactment of the Priority for Listing and 
                Recovery Act, the Secretary of the Interior and the 
                Secretary of Commerce, after providing notice and an 
                opportunity for public comment, each shall establish a 
                priority system for making all decisions under this 
                subsection, subsection (a), and subsection (f) 
                regarding various species in the most efficient and 
                effective manner practicable.
                    ``(B) Criteria for priorities.--The priority system 
                shall assign priorities to species based on--
                            ``(i) the magnitude and immediacy of risk 
                        of extinction (high, moderate, or low), 
                        considering--
                                    ``(I) the level of risk to the 
                                species based on the factors described 
                                in subsection (a)(1);
                                    ``(II) the geographic distribution 
                                of the species (wide or narrow),
                                    ``(III) the habitat specificity of 
                                the species (broad or restricted); and
                                    ``(IV) the taxonomic 
                                distinctiveness of the species 
                                (monotypic genus, species, subspecies, 
                                or distinct population segment);
                            ``(ii) the likelihood of achieving recovery 
                        of the species;
                            ``(iii) the quality and quantity of 
                        available information, with the species 
                        priority increasing progressively as current 
                        professional documentation is obtained for each 
                        of the following in order of increasing 
                        importance:
                                    ``(I) Distribution of the species 
                                based on data describing presence and 
                                absence.
                                    ``(II) Habitat types that correlate 
                                with population density (defined as 
                                various concentrations of individuals 
                                of the species occupying an area).
                                    ``(III) Rates of reproduction, 
                                survival, or population growth.
                                    ``(IV) Habitat types that correlate 
                                with rates of reproduction, survival, 
                                or population growth;
                            ``(iv) the degree to which recovering the 
                        species helps recover other species; and
                            ``(v) the degree to which recovery efforts 
                        would minimize conflicts with--
                                    ``(I) construction, development 
                                projects, jobs, private property, or 
                                other economic activities;
                                    ``(II) military training and 
                                operations; or
                                    ``(III) other human activities.
                    ``(C) Incentive for collaborative conservation.--
                            ``(i) In general.--The Secretary shall 
                        assign highest priority to a decision pending 
                        for any species if petitioned to do so by a 
                        collaborative group that, in the judgment of 
                        the Secretary, meets the description of an 
                        executive committee under subsection (f)(3)(B).
                            ``(ii) Facilitation.--If a collaborative 
                        group described in clause (i) uses non-Federal 
                        funds to carry out actions that support the 
                        completion of the pending action for a species, 
                        the Secretary shall facilitate the pending 
                        action to a commensurate extent.
            ``(4) Schedule.--
                    ``(A) In general.--The Secretary shall establish a 
                schedule of all decisions under this subsection, 
                subsection (a), and subsection (f) based on the 
                priority ranking system described in paragraph (3).
                    ``(B) Estimates.--Not later than February 1 of each 
                year following the date of enactment of this 
                subparagraph, the Secretary shall submit to the 
                Committee on Appropriations of the Senate and the 
                Committee on Appropriations of the House of 
                Representatives an estimate with respect to the 
                following year, based on the priority ranking system 
                described in paragraph (3), of--
                            ``(i) the quantity of--
                                    ``(I) petitions to be reviewed 
                                under this section;
                                    ``(II) status reviews to be 
                                completed under this section; and
                                    ``(III) rules that will be 
                                promulgated with respect to status and 
                                critical habitat; and
                            ``(ii) the amount of funds required for 
                        each recovery plan to be funded under this 
                        section.
                    ``(C) Pending actions.--The schedule established 
                under subparagraph (A) shall include all decisions 
                pending under this subsection, subsection (a), and 
                subsection (f), including--
                            ``(i) findings and decisions based on 
                        status reviews, proposed determinations, or 
                        final determinations for which a court has 
                        issued an order prior to the date of enactment 
                        of the Collaboration for the Recovery of 
                        Endangered Species Act remanding to the 
                        Secretary a decision, or setting a schedule for 
                        the Secretary to act, or requiring any other 
                        action regarding such findings and decisions; 
                        and
                            ``(ii) designations of critical habitat for 
                        which a court has issued an order prior to the 
                        date of enactment of the Collaboration for the 
                        Recovery of Endangered Species Act remanding to 
                        the Secretary a decision, or ordering the 
                        Secretary to act by a specified date, or 
                        requiring any other action regarding the 
                        designation of critical habitat.
                    ``(D) Remanded actions.--No court shall have the 
                power to require the Secretary to complete an action 
                inconsistent with the schedule established under 
                subparagraph (A).
                    ``(E) Revisions to schedule.--The Secretary may 
                revise the schedule established under subparagraph (A) 
                during a fiscal year by--
                            ``(i) reviewing a petition received during 
                        the fiscal year that the Secretary determines 
                        to be filed in a timely manner; or
                            ``(ii) elevating the priority of a recovery 
                        plan that receives financial or other 
                        commitments from a non-Federal sponsor.'';
            (4) by striking subsection (f) and inserting the following:
    ``(f) Recovery Programs.--
            ``(1) In general.--When a species is scheduled for recovery 
        under subsection (b)(4), or upon the petition of a 
        collaborative group that qualifies as an executive committee 
        under paragraph (3), the Secretary--
                    ``(A) shall establish a recovery program for that 
                species, and other threatened or endangered species if 
                practicable, by assigning a recovery coordinator; and
                    ``(B) may, based on the nature and extent of 
                actions required for recovery, also form a recovery 
                team, an executive committee, or both.
            ``(2) Recovery team.--
                    ``(A) Establishment.--
                            ``(i) In general.--If the Secretary 
                        establishes a recovery team, the team shall 
                        consist of members of appropriate public and 
                        private agencies and institutions reflecting 
                        individual perspectives and objectiveness 
                        resulting from professional expertise, and 
                        technical and academic experience, relating to 
                        the species or ecosystem that is the subject of 
                        the recovery program.
                            ``(ii) Lack of bias.--In carrying out the 
                        duties described in subparagraph (B), members 
                        described in clause (i) shall provide their 
                        expertise in good faith and not express the 
                        views or representations of any organization.
                    ``(B) Duties.--After considering the provisional 
                recovery goals set by the Secretary under subsection 
                (b)(8)(D) and identifying all relevant conservation 
                programs of State, local, tribal, and private entities 
                and foreign governments, a recovery team shall propose 
                a recovery plan to the executive committee.
                    ``(C) FACA.--A recovery team established under this 
                subsection shall not be subject to the Federal Advisory 
                Committee Act (5 U.S.C. App.).
            ``(3) Executive committee.--
                    ``(A) In general.--For each recovery program, the 
                Secretary shall establish an executive committee to 
                propose collaborative efforts to achieve the goals of 
                the recovery plan.
                    ``(B) Membership.--The membership of an executive 
                committee shall--
                            ``(i) reflect a cross-section of interests 
                        from appropriate public and private persons, 
                        agencies, or institutions reflecting a balance 
                        of viewpoints;
                            ``(ii) to be selected for diversity of 
                        knowledge and experience in natural resource 
                        issues and for commitment to collaborative 
                        decisionmaking;
                            ``(iii) to the maximum extent practicable, 
                        be from communities within and adjacent to the 
                        recovery plans geographic area; and
                            ``(iv) have an economic, social, or 
                        professional interest in the recovery of the 
                        species.
                    ``(C) Duties.--An executive committee shall--
                            ``(i) review the proposed recovery plan and 
                        make recommendations on collaborative efforts 
                        that may be undertaken to implement and achieve 
                        the goals of the recovery plan;
                            ``(ii) consult with the applicable recovery 
                        team, as necessary;
                            ``(iii) consult with State, local, and 
                        tribal governments and landowners on 
                        opportunities for implementation of the 
                        recovery plan; and
                            ``(iv) after approval by the Secretary of 
                        the applicable recovery plan, publish a work 
                        plan describing the collaborative and voluntary 
                        efforts that the executive committee recommends 
                        to contribute to the recovery of the applicable 
                        species.
                    ``(D) FACA.--An executive committee established 
                under this subsection shall not be subject to the 
                Federal Advisory Committee Act (5 U.S.C. App.).
            ``(4) Recovery coordinator.--The Secretary shall assign for 
        each recovery program, by direct employment or cooperative 
        arrangement with an appropriate Federal department or agency, a 
        full-time recovery coordinator--
                    ``(A) to serve as the primary staff to implement 
                the recovery plan and manage program operations for the 
                executive committee, if applicable; and
                    ``(B) to the maximum extent practicable, to ensure 
                that relevant Federal and State programs are 
                coordinated to support programs toward the recovery 
                goals of the recovery plan.
            ``(5) Recovery plan.--
                    ``(A) In general.--A recovery plan shall--
                            ``(i) be proposed by a recovery team and an 
                        executive committee, in a case in which a 
                        recovery team and executive committee are 
                        involved in the recovery program;
                            ``(ii) be approved by the Secretary; and
                            ``(iii) include--
                                    ``(I) a description of site-
                                specific recovery actions that may be 
                                necessary to achieve the goal of the 
                                plan for the conservation of the 
                                species, including appropriate 
                                financial assistance and incentive 
                                programs for landowners;
                                    ``(II) guidance on how the 
                                geographic distribution of site-
                                specific recovery actions can enhance 
                                the effectiveness of the actions in 
                                promoting recovery; and
                                    ``(III) objective, measurable 
                                criteria (including population size and 
                                geographic range) that, when met, would 
                                result in a determination, in 
                                accordance with this section, that the 
                                status of the species should be changed 
                                from an endangered species or a 
                                threatened species, or that the species 
                                should be removed from the list.
                    ``(B) Effect of plan.--A recovery plan approved by 
                the Secretary--
                            ``(i) shall be non-binding and advisory; 
                        and
                            ``(ii) may be amended by the Secretary or 
                        by recommendation of the executive committee 
                        and approval by the Secretary.
                    ``(C) Relationship to conservation programs.--The 
                Secretary shall--
                            ``(i) acknowledge appropriate existing 
                        conservation programs; and
                            ``(ii) coordinate with all governmental 
                        agencies to incorporate those programs in a 
                        recovery plan.
            ``(6) Periodic review.--
                    ``(A) In general.--The Secretary shall periodically 
                review the progress of all recovery programs.
                    ``(B) Inquiry.--If the Secretary finds that a 
                recovery program is not making progress towards 
                recovery of the species or is not acting within the 
                guidance of the recovery plan, the Secretary shall 
                submit to the relevant executive committee a written 
                inquiry for an explanation that requests specific 
                remedial actions.
                    ``(C) Response.--The executive committee shall have 
                180 days from the date of receipt of the inquiry to 
                fulfill the request.
                    ``(D) Dispute resolution.--If the executive 
                committee disputes the findings of the Secretary--
                            ``(i) the Secretary shall, in consultation 
                        with an appropriate professional society, 
                        appoint a technical reviewer;
                            ``(ii) the executive committee shall, in 
                        consultation with an appropriate professional 
                        society, appoint a technical reviewer;
                            ``(iii) the 2 technical reviewers shall 
                        appoint a third technical reviewer;
                            ``(iv) the technical reviewers, based on 
                        majority opinion, shall make a recommendation 
                        to the Secretary as to whether the program is 
                        achieving progress toward recovery and whether 
                        remedial actions are necessary; and
                            ``(v) having considered the recommendation 
                        of the technical reviewers, the Secretary may--
                                    ``(I) require remedial actions of 
                                the executive committee;
                                    ``(II) decommission the recovery 
                                program; or
                                    ``(III) take other appropriate 
                                actions.'';
            (5) in subsection (g)(2), by striking ``paragraph 7 of 
        subsection (b) of this section'' and inserting ``subsection 
        (b)(9)'';
            (6) in subsection (h)(1), by striking ``subsection (b)(3) 
        of this section'' and inserting ``subsection (b)(5)''; and
            (7) in subsection (i)--
                    (A) by striking ``subsection (b)(5)(A)(ii)'' and 
                inserting ``subsection (b)(7)(A)(ii)''; and
                    (B) by striking ``subsection (b)(3)'' and inserting 
                ``subsection (b)(5)''.
    (b) Conforming Amendment.--The table of contents in the first 
section of the Endangered Species Act of 1973 (16 U.S.C. 1531 note) is 
amended by striking the item relating to section 4 and inserting the 
following:

        ``Sec. 4. Determination and recovery of endangered species and 
                            threatened species.''.

               TITLE III--INCENTIVES FOR SPECIES RECOVERY

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Incentives for Species Recovery 
Act''.

SEC. 302. CONSERVATION BANKS.

    (a) In General.--The Endangered Species Act of 1973 (16 U.S.C. 1531 
et seq.) is amended by inserting after section 4 the following:

``SEC. 4A. CONSERVATION BANKS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to conserve, restore, and enhance habitat for the 
        conservation and recovery of--
                    ``(A) candidate species;
                    ``(B) threatened species;
                    ``(C) endangered species; and
                    ``(D) species of special concern; and
            ``(2) to provide market incentives that promote 
        conservation of species on private property.
    ``(b) Definitions.--In this section:
            ``(1) Conservation bank.--The term `conservation bank' 
        means an area of land, water, or other habitat (not necessarily 
        contiguous) that is managed--
                    ``(A) in perpetuity, or for another appropriate 
                period, under an enforceable legal instrument; and
                    ``(B) for purposes of conservation and recovery 
                of--
                            ``(i) a habitat;
                            ``(ii) a candidate species, threatened 
                        species, or endangered species; or
                            ``(iii) a species of special concern.
            ``(2) Credit.--
                    ``(A) In general.--The term `credit' means the unit 
                of currency of a conservation bank, generated by 
                preserving or restoring habitat in a conservation bank 
                agreement, as established through a quantification of 
                the conservation values of a species or habitat.
                    ``(B) Conservation values.--Conservation values 
                described in subparagraph (A) shall--
                            ``(i) be determined by the Secretary for 
                        each conservation bank; and
                            ``(ii) be converted into a fixed number of 
                        credits that may be bought, sold, or traded to 
                        offset the impact of Federal, State, tribal, 
                        local, or private activities.
            ``(3) Service area.--
                    ``(A) In general.--The term `service area' means an 
                area identified in a conservation bank agreement.
                    ``(B) Inclusions.--The term `service area' includes 
                a soil type, watershed, habitat type, political 
                boundary, an area described in a federally-recognized 
                conservation plan, and an area designated for 
                conservation purposes in which a credit may be used to 
                offset an effect of a project.
    ``(c) Establishment and Management of Conservation Banks.--
            ``(1) Establishment.--A conservation bank under this 
        section may be established by any private landowner that--
                    ``(A) submits to the Secretary an application, in 
                accordance with any regulations promulgated by the 
                Secretary;
                    ``(B) demonstrates that the affected area of land, 
                water, or other habitat is managed under an enforceable 
                legal instrument; and
                    ``(C) contributes to the conservation of the 
                candidate species, threatened species, endangered 
                species, or species of special concern that is the 
                subject of the conservation bank.
            ``(2) Certain property owners.--A property owner that uses 
        Federal or State funding (including funding for technical 
        assistance), such as funding under the Farm Security and Rural 
        Investment Act of 2002 (Public Law 107-171; 116 Stat. 134) or 
        an amendment made by that Act, may submit an application to the 
        Secretary under paragraph (1)(B)(i).
            ``(3) Determinations regarding applications.--The Secretary 
        shall approve or disapprove a proposed conservation bank under 
        paragraph (1)(B) not later than 180 days after the date on 
        which the application relating to the conservation bank is 
        submitted to the Secretary under paragraph (1)(B)(i).
            ``(4) Management.--
                    ``(A) In general.--A conservation bank established 
                under paragraph (1) may be managed, in accordance with 
                a conservation bank agreement under subparagraph (B), 
                by--
                            ``(i) a State, in accordance with a process 
                        of the State that has been approved by the 
                        Secretary;
                            ``(ii) the holder of the conservation bank;
                            ``(iii) a party other than the holder of 
                        the conservation bank, as specified in the 
                        conservation bank agreement; or
                            ``(iv) a party that acquires property 
                        rights relating to the conservation bank.
                    ``(B) Conservation bank agreements.--
                            ``(i) In general.--The holder of a 
                        conservation bank under this section shall--
                                    ``(I) establish an agreement that 
                                describes the proposed management of 
                                the conservation bank; and
                                    ``(II) submit the agreement to the 
                                Secretary for approval.
                            ``(ii) Approval by secretary.--As soon as 
                        practicable after the date on which the 
                        Secretary receives an agreement under clause 
                        (i)(II), the Secretary shall approve or 
                        disapprove the agreement.
                            ``(iii) Amendments.--An agreement approved 
                        under clause (ii) may be amended on the 
                        approval of--
                                    ``(I) each party to the agreement; 
                                and
                                    ``(II) the Secretary.
                            ``(iv) Nullification of agreement.--The 
                        Secretary shall nullify an agreement approved 
                        under clause (ii) on a determination by the 
                        Secretary that--
                                    ``(I) the holder of the 
                                conservation bank has been convicted 
                                of--
                                            ``(aa) making a materially 
                                        false statement on a bank 
                                        application or a report to the 
                                        Secretary; or
                                            ``(bb) any other offense 
                                        that demonstrates that the 
                                        holder is unfit to manage the 
                                        conservation bank; or
                                    ``(II)(aa) the holder of the 
                                conservation bank has irremediably 
                                failed to carry out the duties of the 
                                holder; and
                                    ``(bb) the failure was not the 
                                result of a drought, hurricane, 
                                tornado, or other event outside the 
                                reasonable control of the holder.
    ``(d) Recovery Plans and Incentive Programs.--In developing and 
implementing recovery plans and incentive programs, the Secretary 
shall--
            ``(1) take into consideration the practicability of 
        establishing conservation banks; and
            ``(2) not later than 180 days after the date of enactment 
        of this section, promulgate regulations to manage conservation 
        banks in a manner that balances--
                    ``(A) the biological conditions of candidate 
                species, threatened species, and endangered species, 
                species of special concern, and habitat; with
                    ``(B) economic free market principles to ensure 
                value to landowners through a tradable credit program.
    ``(e) Regulations.--Regulations promulgated under subsection (d)(2) 
shall include provisions relating to--
            ``(1) conservation and recovery goals;
            ``(2) activities that may be carried out in a conservation 
        bank;
            ``(3) design, operation, and management to ensure the 
        viability of conservation banks;
            ``(4) the demonstration of adequate legal control of 
        property proposed to be included in the conservation bank, such 
        as a title, license, easement, or option relating to the 
        property;
            ``(5) criteria for determining--
                    ``(A) the number of credits allocated to a 
                conservation bank under subsection (f)(1);
                    ``(B) methods for accounting for, and recording, 
                the creation and use of credits; and
                    ``(C) a timeline with respect to the transfer and 
                accounting of credits;
            ``(6) the determination of the boundaries of service areas;
            ``(7) the applicability of, and compliance with, sections 7 
        and 10;
            ``(8) the monitoring of, and reporting requirements for, 
        conservation banks;
            ``(9) financial requirements to ensure the viability of 
        conservation banks;
            ``(10) procedures for resolving disputes relating to 
        conservation bank management, including procedures for 
        providing notices; and
            ``(11) remedies for disputes that are not resolved under a 
        procedure described in paragraph (10).
    ``(f) Transfer of Credits by Conservation Banks.--
            ``(1) Allocation.--The number of credits allocated for 
        transfer by a conservation bank shall be determined by 
        biological data that reflects--
                    ``(A) the quality of habitat preserved or restored 
                in the conservation bank;
                    ``(B) the necessary amount of habitat needed to be 
                preserved or restored within the entire service area of 
                the conservation bank; and
                    ``(C) the population of candidate species, 
                threatened species, and endangered species, and species 
                of special concern, that the conservation bank supports 
                or could support.
            ``(2) Credit transfer approval process.--
                    ``(A) In general.--As soon as practicable after the 
                date of enactment of this section, the Secretary shall 
                establish a standard credit transfer approval process 
                for each service area to facilitate efficient and 
                prompt transactions relating to credits.
                    ``(B) Requirements.--The process established under 
                subparagraph (A) shall provide for credit transfers for 
                purposes of--
                            ``(i) compliance with an injunctive order 
                        of a court;
                            ``(ii) meeting a requirement under 
                        subsection (a) or (b) of section 7, or section 
                        10(a)(1); and
                            ``(iii) out-of-kind mitigation under 
                        subparagraph (C).
                    ``(C) Out-of-kind mitigation.--
                            ``(i) Definition of out-of-kind.--In this 
                        subparagraph, the term `out-of-kind', with 
                        respect to mitigation, means mitigation 
                        involving the same species or habitats, but in 
                        a different service area.
                            ``(ii) Determination by secretary.--The 
                        Secretary may allow out-of-kind mitigation 
                        through the use of credits if the Secretary 
                        determines that out-of-kind mitigation--
                                    ``(I) is a desirable ecological 
                                alternative to in-kind mitigation; and
                                    ``(II) is practicable for an 
                                expanded market of potential buyers of 
                                credits.
                            ``(iii) Preference.--Notwithstanding any 
                        other provision of this subparagraph, the 
                        Secretary shall give preference to in-kind 
                        mitigation to the maximum extent practicable.
                            ``(iv) Effect of subparagraph.--Nothing in 
                        this subparagraph affects any requirement 
                        relating to in-kind mitigation.
                    ``(D) Limitation.--In establishing a process under 
                this subsection, the Secretary shall not--
                            ``(i) regulate the price of any credit 
                        transfer; or
                            ``(ii) limit participation in the credit 
                        transfer process by any party.
            ``(3) Credit transfers.--A conservation bank may transfer 
        credits of the conservation bank--
                    ``(A) on the date on which the Secretary approves 
                the conservation bank under subsection (c)(3); or
                    ``(B) before the date described in subparagraph 
                (A), if the holder of the conservation bank 
                demonstrates to the satisfaction of the Secretary 
                that--
                            ``(i) the conservation bank agreement 
                        adequately provides for each activity proposed 
                        to be carried out relating to the conservation 
                        bank; and
                            ``(ii) a timetable relating to the 
                        activities described in clause (i) has been 
                        approved by the Secretary.
            ``(4) Use of profits by certain holders.--A holder of a 
        conservation bank described in subsection (c)(2) may retain any 
        profits from the transfer of a credit under this subsection.
    ``(g) Integration With Other Conservation Plans.--
            ``(1) In general.--Except as provided in paragraph (2), to 
        the maximum extent practicable, the creation of a conservation 
        bank shall be integrated with conservation plans developed or 
        being developed under section 10 if the conservation bank--
                    ``(A) meets the ecological criteria of the habitat 
                conservation plan; and
                    ``(B) provides greater economic benefits compared 
                with other forms of mitigation of habitat destruction.
            ``(2) Effect of subsection.--Notwithstanding paragraph (1), 
        nothing in this subsection requires any person operating a 
        conservation bank in existence on the date of enactment of this 
        section to submit an application for the conservation bank 
        under this section.
    ``(h) Judicial Review.--
            ``(1) In general.--Any party to an agreement entered into 
        with respect to a conservation bank may bring a civil action in 
        a United States district court for a breach of the agreement.
            ``(2) Actions by court.--A United States district court 
        described in paragraph (1) may--
                    ``(A) issue such awards and judgments, including 
                equitable relief, as the court determines to be 
                appropriate; and
                    ``(B) award costs of litigation to the prevailing 
                party.
            ``(3) Certain defendants.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the United States, a State, an Indian 
                tribe, or a unit of local government may 0be named as a 
                defendant in a civil action under this subsection.
                    ``(B) Sovereign immunity.--An entity described in 
                subparagraph (A) that is named as a defendant in a 
                civil action under this subsection shall be considered 
                to have waived sovereign immunity.''.
    (b) Conforming Amendment.--The table of contents of the Endangered 
Species Act of 1973 (16 U.S.C. 1531 note) is amended--
            (1) by inserting after the item relating to section 4 the 
        following:

        ``Sec. 4A. Conservation banks.'';
        and
            (2) by inserting after the item relating to section 17 the 
        following:

        ``Sec. 18. Annual cost analysis by the Fish and Wildlife 
                            Service.''.

SEC. 303. EXCEPTIONS.

    Section 10(a) of the Endangered Species Act of 1973 (16 U.S.C. 
1539(a)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking clauses (i) and (iv);
                            (ii) by redesignating clauses (ii) and 
                        (iii) as subclauses (I) and (II), respectively, 
                        and indenting the subclauses appropriately;
                            (iii) in the matter preceding subclause (I) 
                        (as redesignated by clause (i)), by striking 
                        ``that specifies--'' and inserting the 
                        following: ``that--
            ``(i) summarizes the potential for and degree of incidental 
        take that may be reasonably expected to occur under the 
        proposed action and habitat conservation plan; and
            ``(ii) specifies--'';
                            (iv) in subclause (I) (as redesignated by 
                        clause (i)), by striking ``and the funding'' 
                        and all that follows through the end of the 
                        subclause and inserting ``the funding that will 
                        be available to implement those steps, and 
                        reports describing the implementation and 
                        results of the conservation plan;'';
                            (v) in subclause (II) (as redesignated by 
                        clause (i)), by striking ``and'' at the end; 
                        and
                            (vi) by adding at the end the following:
                    ``(III) objective, measurable biological goals to 
                be achieved for species covered by the plan and 
                specific measures for achieving the goals consistent 
                with subparagraph (B);
                    ``(IV) measures the applicant will take to monitor 
                impacts of the plan on covered species and the 
                effectiveness of the measures in achieving the 
                biological goals of the plan; and
                    ``(V) adaptive management provisions necessary to 
                respond to all reasonably foreseeable changes in 
                circumstances that could appreciably reduce the 
                likelihood of the survival and recovery of any species 
                covered by the plan.'';
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``If'' and inserting ``The Secretary 
                        shall issue a permit for an application and the 
                        related conservation plan if'';
                            (ii) in clause (v)--
                                    (I) by striking ``, if any,'';
                                    (II) by striking ``subparagraph 
                                (A)(iv)'' and inserting ``subparagraph 
                                (A)(ii)''; and
                                    (III) by striking the semicolon at 
                                the end and inserting a period; and
                            (iii) by striking the matter following 
                        clause (v); and
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) Voluntary contributions to recovery.--
                            ``(i) In general.--If a proposed 
                        conservation plan implements a site-specific 
                        recovery action from a relevant approved 
                        recovery plan, the Secretary shall include such 
                        terms and conditions as the Secretary considers 
                        necessary to reduce or offset the impacts of 
                        incidental taking or otherwise comply with the 
                        requirements of paragraph (2)(B), such that--
                                    ``(I) the effect of the terms and 
                                conditions are approximately 
                                proportional in extent to the effect of 
                                the incidental take specified in the 
                                conservation plan under subparagraph 
                                (A)(i); and
                                    ``(II) the terms and conditions are 
                                feasible and consistent with the goals 
                                of the plan to the maximum extent 
                                practicable.
                            ``(ii) Additional finding.--If, in addition 
                        to a finding described in subparagraph (B), the 
                        Secretary finds that the proposed conservation 
                        plan will implement 1 or more site-specific 
                        recovery actions from a relevant approved 
                        recovery plan, so long as the contribution to 
                        recovery is at least proportional to the 
                        potential for and degree of incidental take 
                        that may reasonably be expected to occur under 
                        the plan, the application relating to, and 
                        issuance of a permit for, the plan shall be 
                        considered to be exempt from--
                                    ``(I) section 7; and
                                    ``(II) the National Environmental 
                                Policy Act of 1969 (42 U.S.C. 4321 et 
                                seq.).
                            ``(iii) Effect of paragraph.--This 
                        paragraph does not limit the authority of the 
                        Secretary to require greater than acre-for-acre 
                        mitigation when necessary to address the extent 
                        of the impacts.''; and
            (2) by adding at the end the following:
            ``(3) Qualification for provisional permit.--
                    ``(A) In general.--An applicant shall qualify for a 
                provisional permit with respect to an application and 
                the related conservation plan if, as of the date on 
                which the applicant submits the application and the 
                related conservation plan to the Secretary under this 
                subsection--
                            ``(i) the applicant voluntarily implements 
                        the terms of the proposed application under 
                        paragraph (2) during the pendency of review; 
                        and
                            ``(ii) the applicant has completed a field 
                        survey to determine the area occupied by the 
                        species.
                    ``(B) Effect of permit.--A provisional permit under 
                subparagraph (A) shall--
                            ``(i) authorize existing activities (except 
                        an activity that requires ground clearing) 
                        relating to the relevant land; and
                            ``(ii) remain in effect until the date on 
                        which a permit is issued under this subsection.
                    ``(C) Admissibility of information.--Information 
                submitted by an applicant in an application under this 
                paragraph shall not be admissible in any action 
                relating to a prohibited act under section 9.
            ``(4) Agricultural agreements.--If a landowner enters into 
        an agreement under title XII of the Food and Security Act of 
        1985 (16 U.S.C. 3831 et. seq.) and the conservation activities 
        of the landowner include 1 or more site-specific recovery 
        actions from an approved recovery plan resulting in a net 
        conservation benefit for a listed species, the Secretary shall 
        permit the incidental take of that species--
                    ``(A) for the duration of the agreement; and
                    ``(B) within the area in which the net conservation 
                benefits will accrue, so long as the contribution to 
                recovery is at least proportional to the potential for 
                and degree of incidental taking that may reasonably be 
                expected to occur in the agreement.
            ``(5) Liability while performing recovery actions.--The 
        Secretary shall permit the incidental take of a species that--
                    ``(A) occurs or may occur as a result of the 
                landowner implementing a site-specific recovery action 
                of an approved recovery plan in a manner that 
                contributes to the conservation of the species; and
                    ``(B) occurs or may occur within the area in which 
                the net conservation benefits will accrue, so long as 
                the contribution to recovery is at least proportional 
                to the potential for and degree of incidental taking 
                that may reasonably be expected to occur.
            ``(6) Requirements applicable upon compliance with 
        permit.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, if the holder of a permit under this 
                subsection for any purpose other than a scientific 
                purpose is in compliance with the terms and conditions 
                of the permit (including any conservation plan or 
                agreement incorporated by reference in the permit), as 
                determined by the Secretary, the Secretary shall not 
                require the holder to adopt any minimization, 
                mitigation, or other measure with respect to any 
                species that the Secretary determines to be adequately 
                covered by the permit during the term of the permit 
                without the consent of the holder.
                    ``(B) Identified change of circumstance.--If a 
                change of circumstance that is identified in the permit 
                occurs, as determined by the Secretary, the Secretary 
                may require the holder to carry out only such 
                additional minimization, mitigation, or other measures 
                as are provided under the permit with respect to the 
                circumstance.
                    ``(C) Unidentified change of circumstance.--If a 
                change of circumstance that is not identified in the 
                permit occurs, the Secretary may require the holder to 
                carry out only additional minimization, mitigation, and 
                other measures that do not involve--
                            ``(i) the commitment of any additional 
                        uncommitted land, water, or financial 
                        compensation; or
                            ``(ii) the imposition of additional 
                        restrictions on the use of any land, water, or 
                        other natural resource that is otherwise 
                        available for development or use under the 
                        original terms and conditions of the permit.
                    ``(D) Burden of proof.--The Secretary shall have 
                the burden of proof in demonstrating and documenting, 
                using the best scientific and commercial data 
                available, the occurrence of any changed circumstances 
                for the purpose of this paragraph.
                    ``(E) Assurances.--
                            ``(i) Recent permits.--All permits issued 
                        under this subsection on or after the date of 
                        enactment of this paragraph, other than permits 
                        issued for scientific purposes, shall contain 
                        assurances regarding requirements specified in 
                        subparagraphs (B) through (D) of this paragraph 
                        and subparagraphs (A) and (B) of paragraph (5).
                            ``(ii) Older permits.--All permits issued 
                        under this subsection on or after March 25, 
                        1998, and before the date of enactment of this 
                        paragraph, other than permits issued for 
                        scientific purposes, shall be governed by the 
                        applicable portions of subsections (b) through 
                        (d) of section 17.22, and subsections (b) 
                        through (d) of section 17.32, of title 50, Code 
                        of Federal Regulations (as in effect as of the 
                        date of enactment of this paragraph).
            ``(7) Revocation of permit.--
                    ``(A) In general.--The Secretary shall revoke a 
                permit issued under this subsection if the Secretary 
                determines that the holder of the permit is not in 
                compliance with the terms and conditions of the permit.
                    ``(B) Revocation of permit that includes 
                conservation plan.--The Secretary may revoke a permit 
                that includes a conservation plan described in this 
                subsection due to a change in circumstances only if the 
                Secretary--
                            ``(i) determines that continuing the 
                        activities under the permit would be 
                        inconsistent with paragraph (2);
                            ``(ii) not later than 60 days before the 
                        date on which the Secretary revokes the permit, 
                        provides a notice of revocation to the holder 
                        of the permit; and
                            ``(iii) is unable to otherwise remedy the 
                        inconsistency.
            ``(8) Statements and assessments.--
                    ``(A) In general.--In preparing any environmental 
                impact statement or environmental assessment under 
                section 102 of the National Environmental Policy Act of 
                1969 (42 U.S.C. 4332) with respect to the application 
                for, or issuance of, a permit under this subsection, 
                the Secretary shall not identify or analyze the impacts 
                and potential minimization and mitigation measures 
                relating to any alternative other than--
                            ``(i) the alternative presented by the 
                        permit applicant under the conservation plan or 
                        another document; and
                            ``(ii) an alternative requiring no action 
                        by the Secretary.
                    ``(B) Regulations.--The Secretary shall promulgate 
                regulations under which the Secretary, subject to the 
                availability of appropriations, shall reimburse a 
                permit applicant under this subsection for reasonable 
                amounts paid by the person for preparation by a 
                contractor, or another person selected by the 
                Secretary, of an environmental impact statement, 
                environmental assessment, or related documentation or 
                study required under section 102 of the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4332) with 
                respect to the application for, or issuance of, the 
                permit.
            ``(9) Publication of notice of decision.--Not later than 15 
        days before the proposed effective date of a permit, the 
        Secretary shall publish in the Federal Register a notice of any 
        decision of the Secretary to approve or disapprove an 
        application for, or amendment to, a permit under this 
        section.''.

SEC. 304. TECHNICAL CORRECTIONS.

    Section 4(f)(1) of the Endangered Species Act of 1978 (16 U.S.C. 
1533(f)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``in development'' and inserting ``in developing''; and
            (2) in subparagraph (A), by striking ``activity;'' and 
        inserting ``activity; and''.

SEC. 305. TAX INCENTIVES.

    (a) Deduction for Cost of Conservation and Recovery Bank Credit.--
            (1) In general.--Part VI of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 (relating to itemized 
        deductions for individuals and corporations) is amended by 
        adding at the end the following new section:

``SEC. 200. CONSERVATION BANK CREDITS.

    ``There shall be allowed as a deduction an amount equal to the cost 
of any credit purchased from a conservation bank approved under section 
4A of the Endangered Species Act of 1973 in the taxable year in which 
such credit is purchased.''.
            (2) Clerical amendment.--The table of sections for such 
        part VI is amended by adding at the end the following new item:

        ``Sec. 200. Conservation bank credits.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
    (b) Credit for Costs Incurred for Conversation Activities Related 
to Endangered, Threatened, and Candidate Species.--
            (1) In general.--Subpart B of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        other credits) is amended by adding at the end the following 
        new section:

``SEC. 30D. CREDIT FOR COSTS INCURRED FOR CONVERSATION AND RECOVERY 
              ACTIVITIES RELATED TO ENDANGERED, THREATENED, AND 
              CANDIDATE SPECIES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the qualified conservation and recovery costs of an eligible 
taxpayer for the taxable year.
    ``(b) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 30A, 30B, and 30C for the taxable year.
    ``(c) Qualified Conservation and Recovery Costs.--For purposes of 
this section, the term `qualified conservation and recovery costs' 
means costs paid or incurred by the eligible taxpayer in carrying out 
approved site-specific recovery actions under section 4(f) of the 
Endangered Species Act (16 U.S.C. 1533(f)), or any other Federal- or 
State-approved conservation and recovery agreements involving an 
endangered, threatened, or candidate species under the Endangered 
Species Act (16 U.S.C. 1531 et seq.) in an amount equal to--
            ``(1) under a binding agreement for not less than 99 years, 
        the sum of--
                    ``(A) the amount by which the fair market value of 
                the land is reduced by such site-specific recovery 
                actions or agreements, and
                    ``(B) the actual costs to the property owner of 
                such approved site-specific recovery actions or 
                agreements,
            ``(2) under a binding agreement for not less than 30 years 
        but less than 99 years, the sum of--
                    ``(A) 75 percent of the amount described in 
                paragraph (1)(A), and
                    ``(B) 75 percent of the actual costs of such 
                approved site-specific recovery actions or agreements, 
                and
            ``(3) under a binding agreement for not less than 10 years 
        but less than 30 years, 75 percent of the actual costs of such 
        approved site-specific recovery actions or agreements.
    ``(d) Eligible Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `eligible taxpayer' means any 
        person who submits to the Secretary, together with the return 
        of the taxpayer for the taxable year--
                    ``(A) evidence of the binding agreement described 
                in subsection (c), and
                    ``(B) a written verification from a biologist not 
                directly employed by the taxpayer that any conservation 
                and recovery practice for which the taxpayer seeks a 
                credit under this section--
                            ``(i) is described in a Federal- or State-
                        approved agreement in subsection (c), and
                            ``(ii) was carried out--
                                    ``(I) during the taxable year, and
                                    ``(II) in accordance with the 
                                schedule of the Federal- or State-
                                approved agreement in subsection (c).
            ``(2) Effect of governmental assistance on eligibility.--
        Such term shall not include any taxpayer who receives any cost 
        share assistance from the Federal Government or a State 
        government under any approved site-specific recovery action or 
        agreement described in subsection (c) for the taxable year, 
        unless the adjusted gross income of the taxpayer for such 
        taxable year does not exceed the amount of the adjusted gross 
        income limitation which would apply to such taxpayer for such 
        taxable year for purposes of the credit allowed under section 
        32.
    ``(e) Carryback and Carryforward Allowed.--
            ``(1) In general.--If the credit allowable under subsection 
        (a) for a taxable year exceeds the amount of the limitation 
        under subsection (b) for such taxable year (in this paragraph 
        referred to as the `unused credit year'), such excess shall be 
        a credit carryback to each of the 1 taxable years preceding the 
        unused credit year and a credit carryforward to each of the 20 
        taxable years following the unused credit year.
            ``(2) Rules.--Rules similar to the rules of section 39 
        shall apply with respect to the credit carryback and credit 
        carryforward under subparagraph (A).
    ``(f) Credits May Be Transferred.--Nothing in any law or rule of 
law shall be construed to limit the transferability of any credit 
allowed by this section through sale and repurchase agreements.
    ``(g) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (b)).
            ``(2) No double benefit.--The amount of any deduction or 
        credit allowable under this chapter (other than the credit 
        allowable under subsection (a)), shall be reduced by the amount 
        of credit allowed under subsection (a) (determined without 
        regard to subsection (b)(2)) for the taxable year.
            ``(3) Reduction for assistance.--The amount taken into 
        account under subsection (a) with respect to any project shall 
        be reduced by the amount of any Federal, State, or local grant 
        or other assistance received by the taxpayer during such 
        taxable year or any prior taxable year which was used for 
        qualified conservation and recovery costs and which was not 
        included in the gross income of such taxpayer.
    ``(h) Recapture.--The Secretary shall, by regulations, provide for 
the recapture of any credit allowable under subsection (a) if the 
taxpayer breaches or terminates the agreement described in subsection 
(c).''.
            (2) Basis adjustment.--Section 1016(a) of such Code is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(38) to the extent provided in section 30D(g)(1).''.
            (3) Clerical amendment.--The table of sections for subpart 
        B of part IV of subchapter A of chapter 1 of such Code is 
        amended by inserting after the item relating to section 30C the 
        following new item:

        ``Sec.  30D. Credit for costs incurred for conversation 
                            activities related to endangered, 
                            threatened, and candidate species.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.

             TITLE IV--PROTECTIONS AND MEASURES IN FORESTS

SEC. 401. PROTECTIONS AND MEASURES.

    Section 506(a) of the Healthy Forests Restoration Act of 2003 (16 
U.S.C. 6576(a)) is amended--
            (1) by striking ``and protection under--'' and inserting 
        ``and protection as follows:''; and
            (2) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Conservation activities that include a site-specific 
        recovery action.--In the case of a landowner that enrolls in 
        the program and the restoration plan of which includes 1 or 
        more site-specific recovery actions from a recovery plan 
        approved under section 4(f) of the Endangered Species Act of 
        1973 (16 U.S.C. 1533(f)), the landowner shall not be liable 
        under section 9 of that Act (16 U.S.C. 1538) for the incidental 
        take of species covered by the restoration plan--
                    ``(A) for the duration of the agreement; and
                    ``(B) within the area in which the net conservation 
                benefits will accrue, so long as the contribution to 
                recovery is at least proportional to the potential for 
                and degree of incidental taking that may reasonably be 
                expected to occur in the restoration plan.
            ``(2) Conservation activities that do not include a site-
        specific recovery action.--In the case of a landowner the 
        conservation activities of which do not include a site-specific 
        recovery action from a recovery plan approved under section 
        4(f) of the Endangered Species Act of 1973 (16 U.S.C. 1533(f)), 
        the Secretary of Agriculture shall make available to the 
        landowner safe harbor or similar assurances and protections 
        under--
                    ``(A) section 7(b)(4) of the Endangered Species Act 
                of 1973 (16 U.S.C. 1536(b)(4)); or
                    ``(B) section 10 (a)(1) of that Act (16 U.S.C. 
                1539(a)(1)).''.
                                 <all>