[Senate Report 106-181]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 314

106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-181

======================================================================





 
                 CHESAPEAKE BAY RESTORATION ACT OF 1999

                                _______
                                

                October 13, 1999.--Ordered to be printed

_______________________________________________________________________


    Mr. Chafee, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 492]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 492), to amend the Federal Water 
Pollution Control Act to assist in the restoration of the 
Chesapeake Bay, and for other purposes, having considered the 
same, reports favorably thereon and recommends that the bill do 
pass.

                    General Statement and Background

    The Chesapeake Bay (the Bay) is the largest estuary in the 
United States, and the first estuary in the nation to be 
targeted for restoration as a single ecosystem. The Bay covers 
4,431 square miles, and the Bay watershed covers 64,000 square 
miles including areas of Delaware, Maryland, New York, 
Pennsylvania, Virginia, West Virginia, and the District of 
Colombia. Over 100,000 streams and rivers drain into the Bay, 
with the Susquehanna River draining 42 percent of the 
watershed. The Bay is a national and regional resource which 
provides millions of pounds of sea food, functions as a center 
for shipping and commerce and is home to thousands of species 
of wildlife. In 1983, Maryland, Pennsylvania, Virginia, the 
District of Colombia, and the Environmental Protection Agency 
(EPA) signed the Chesapeake Bay Agreement, which established 
the Chesapeake Bay Program (CBP).
    The Chesapeake Bay Program has evolved considerably since 
1983 and has become a model for other estuary restoration and 
protection programs around the world. The 1987 Chesapeake Bay 
Agreement (the Agreement) expanded the initial restoration 
efforts by targeting nutrient over-enrichment as the Bay's 
major problem and establishing a goal to reduce nutrients 
flowing into the Bay by 40 percent. The Agreement included 28 
other specific commitments to address key issues in habitat, 
water quality, population growth, public information and public 
access. The 1992 amendments to the Agreement moved the program 
upriver and committed the 40 percent nutrient reduction goal to 
the ten major tributaries of the Bay beyond the year 2000.
    EPA's participation in the CBP was formally authorized by 
the Water Quality Act of 1987. Section 117 of the Act created 
the Chesapeake Bay Program office within the EPA. The office 
helps to coordinate State and Federal efforts to restore and 
protect the Bay, makes information available to the public and 
conducts scientific research on the Bay. Section 117 authorized 
$3 million annually to support the activities of the CBP office 
and $10 million annually for matching interstate development 
grants.
    The Bay has shown marked improvement since the first 
Chesapeake Bay Agreement was signed in 1983. Phosphorous loads 
to the Bay have declined by 6 million lbs. per year between 
1985 and 1997, and the Chesapeake Bay Program expects to reach 
the 40 percent reduction goal by the year 2000. Nitrogen loads 
have declined by 32 million lbs. per year, but more will need 
to be done to meet the year 2000 nitrogen reduction goal. Toxic 
pollutant loads have been reduced by 67 percent from 1988 
levels. The reduction in nutrients and toxic pollutants has 
been accompanied by a recovery in the Bay's living resources. 
Striped Bass stocks have been officially declared restored. The 
Bald Eagle population is recovering and has been reclassified 
as threatened rather than endangered. An estimated 70,000 acres 
of eel grass beds have been restored.
    While much progress has been made in restoring the Bay, 
considerable work remains to be done. In 1998, the Chesapeake 
Bay Foundation, a nonprofit group dedicated to preserving and 
restoring the Chesapeake Bay, released the first annual State 
of the Bay Report. The Report examined 12 factors relating to 
the health of the Bay. These factors included population levels 
of living resources and acres of wetlands and submerged aquatic 
vegetation. Based on these 12 environmental factors, the 
Chesapeake Bay Foundation rated the Bay's health at a 27 on a 
scale of 0-100. The main problems facing the Bay are nutrient 
enrichment, population growth and development, habitat loss and 
degradation, toxic substances, and fishery stability. Despite 
significant reductions in nutrient loadings achieved under the 
agreement, nutrient over-enrichment remains the most serious 
problem facing the Bay.
    An area of growing concern relates to land use changes 
occurring in the Chesapeake Bay watershed. Between 1985 and 
1997, suburban and urban land use increased by 413,000 acres, 
forest and wetlands declined by 264,000 acres and 158,000 acres 
of agricultural land was converted. The expansion of 
residential development away from urban centers has required 
the building of more roads and other infrastructure. Between 
1970 and 1997, vehicle miles traveled increased by four times 
the rate of population in the Bay region. While saltwater 
wetlands losses have decreased in the bay, freshwater wetlands 
are being lost at an increasing rate.
    S. 492, introduced by Senators Sarbanes and Warner, would 
reauthorize the Chesapeake Bay program and strengthen the 
Federal commitment to Bay restoration and protection. The bill 
is almost identical to provisions included in S. 1222 relating 
to the Chesapeake Bay Program office. S. 1222 was introduced by 
Senator Chafee in the 105th Congress. The bill passed the 
Senate by unanimous consent but was not acted on by the House.

                       Objectives of Legislation

    The purpose of this legislation is to amend section 117 of 
the Clean Water Act to strengthen efforts to restore and 
protect Chesapeake Bay. The bill reauthorizes the Chesapeake 
Bay program through fiscal year 2005 at $30 million per year, 
provides authority to the Administrator for a small watersheds 
grants program, and requires Federal agencies to comply with 
the Chesapeake Bay Agreement and other Federal plans.

                      Section-by-Section Analysis

Section 1. Title
    This section cites the title of the bill as the 
``Chesapeake Bay Restoration Act of 1999.''
Section 2. Findings
    This section provides the findings of the Congress 
regarding the threats to the Bay and the need for an expansion 
of Federal support for monitoring, management, and restoration 
activities in the Chesapeake Bay in order to meet and further 
the goals of the Chesapeake Bay Program.
Section 3. Chesapeake Bay
    In order to ensure effective implementation of these 
commitments, this section amends section 117 of the Federal 
Water Pollution Control Act to reauthorize and strengthen the 
Chesapeake Bay Program. It directs the Administrator of the 
Environmental Protection Agency to continue the Chesapeake Bay 
Program Office in Annapolis. The Chesapeake Bay Program is to 
continue its leadership and technology transfer to other groups 
participating in the National Estuary Program, particularly in 
the following areas: (1) nutrient reduction through new 
technologies, such as biological nutrient removal; (2) air 
deposition of nitrogen to estuarine and coastal waters; (3) 
computer modeling; and (4) environmental indicators with an 
emphasis on measuring improvements to living resources.
    This section specifically enables the Administrator: (1) to 
enter into interagency agreements with other Federal agencies; 
(2) to continue to give technical assistance grants to 
nonprofit private organizations and individuals, State and 
local governments, colleges, universities and interstate 
agencies; and (3) to provide implementation and monitoring 
grants to signatory jurisdictions.
    Subsection (f) provides new authority to ensure that 
Federal facilities in the Chesapeake Bay Watershed participate 
in the CBP and in local efforts to restore and protect the Bay 
and its tributaries. Each Federal facility adjacent to the 
Chesapeake Bay or its tributaries should ensure that the public 
has access to the shoreline and water to the maximum extent 
feasible, considering public safety and national security. All 
Federal agencies with projects or grants relating to 
restoration, or other activities in the Chesapeake Bay 
watershed shall submit a report to the President describing the 
plans for expenditure of such funds.
    Subsection (g) directs the Administrator to ensure that 
signatory jurisdictions update, expand, and begin implementing 
their tributary-specific management strategies within 1 year of 
the date of enactment of the bill. The strategies should 
include nutrient reduction targets as well as water quality 
requirements necessary for living resources, toxics reduction 
and prevention components, and habitat restoration and 
protection components. This subsection also establishes the 
Small Watershed Grants program as a permanent part of the 
Chesapeake Bay Program.
    Subsection (h) requires the Administrator and the 
Chesapeake Bay Executive Council to complete a comprehensive 
report on the Chesapeake Bay Program.
    Subsection (i) directs the Administrator, in cooperation 
with the scientific community of the Chesapeake Bay, to examine 
the impact of improvements in water quality on the response of 
living resources of the Chesapeake Bay ecosystem.
    Subsection (j) reauthorizes the Chesapeake Bay Program 
through fiscal year 2005 at $30 million per year.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes the following 
evaluation of the regulatory impact of the reported bill. The 
reported bill will have no regulatory impact. This bill will 
not have any adverse impacts on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds that S. 492 would 
impose no intergovernmental unfunded mandates on State, local, 
or tribal governments. The Unfunded Mandates Reform Act defines 
an intergovernmental unfunded mandate as one which imposes an 
enforceable duty and has a direct cost in excess of 
$50,000,000. While S. 492 contains language directing the EPA 
and the Chesapeake Bay Executive Council to ``ensure that 
management plans are developed and implementation is begun by 
signatories to the Chesapeake Bay Agreement to achieve and 
maintain'' the various goals and objectives of the Agreement, 
the bill contains no specific requirements for the management 
plans. The development of management plans is a collaborative 
process between the signatories to the Agreement, the Executive 
Council, and the EPA. The signatory consequently determines the 
resources expended on development and implementation of the 
management plan. The bill does not directly impose any private 
sector mandates.

                          Legislative History

    On March 2, 1999, Senators Sarbanes and Warner introduced 
S. 492, a bill to expand and strengthen cooperative efforts to 
restore and protect the Chesapeake Bay and to achieve the goals 
established in the Chesapeake Bay Agreement. On September 29, 
1999, the Committee on Environment and Public Works held a 
business meeting to consider S. 492. The bill was favorably 
reported by voice vote.

                                Hearings

    On July 22, 1999, the Environment and Public Works 
Committee held a hearing on coastal legislation in Washington, 
D.C. The hearing focused on six bills: S. 835, the Estuary 
Habitat Restoration Partnership Act of 1999; S. 878, a bill to 
amend the National Estuary Program; S. 492, the Chesapeake Bay 
Restoration Act of 1999; S. 1119, a bill to reauthorize the 
Coastal Wetlands Planning, Protection and Restoration Act; S. 
522, the Beaches Environmental Assessment, Closure, and Health 
Act of 1999; and H.R. 999, the Beaches Environmental Awareness, 
Cleanup, and Health Act of 1999. Testimony was provided by the 
Honorable Robert G. Torricelli, New Jersey; the Honorable John 
B. Breaux, Louisiana; the Honorable Paul Sarbanes, Maryland; 
the Honorable J. Charles Fox, Assistant Administrator for 
Water, U.S. Environmental Protection Agency; the Honorable 
Michael L. Davis, Deputy Assistant Secretary for Civil Works, 
Department of the Army; Mr. Martin L. Pagliughi, Mayor, the 
Burrow of Avalon; Mr. Ted Danson, President, the American 
Oceans Campaign; Ms. Linda Shead, Executive Director, the 
Galveston Bay Foundation; Mr. Richard Ribb, Director, 
Narragansett Bay Estuary Program, Rhode Island Department of 
Environmental Management; Mr. Michael Hirshfield, Senior Vice 
President, Chesapeake Bay Foundation; and Dr. Len Bahr, Coastal 
Advisor to the Governor, State of Louisiana.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 7, 1999.

Hon. John H. Chafee, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 492, the Chesapeake 
Bay Restoration Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Susanne S. 
Mehlman (for federal costs), who can be reached at 226-2860, 
and Shelley Finlayson (for the State and local impact), who can 
be reached at 225-3220.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              


               Congressional Budget Office Cost Estimate

S. 492, Chesapeake Bay Restoration, As ordered reported by the Senate 
        Committee on Environment and Public Works on September 29, 1999
Summary
    S. 492 would authorize the appropriation of $30 million for 
each of fiscal years 2000-2005 for the Environmental Protection 
Agency (EPA) to continue activities associated with its 
Chesapeake Bay program, including conducting studies on the 
status of efforts to restore the bay and the response of plants 
and animals to improvements in water quality. CBO estimates 
that implementing this legislation over the next 6 years would 
increase discretionary outlays by about $158 million. In 1999, 
$20 million was appropriated for EPA to administer the 
Chesapeake Bay program. The bill would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply.
    S.492 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Any expenditures made by State and local governments to satisfy 
the matching requirements of grants authorized by this bill 
would be voluntary.
Estimated Cost to the Federal Government
    For purposes of this estimate, CBO assumes that the amounts 
authorized will be appropriated for each fiscal year and that 
outlays will occur at rates similar to those of past 
appropriations for EPA activities associated with the 
Chesapeake Bay program. The estimated impact of S. 492 is shown 
in the following table. The costs of this legislation fall 
within budget function 300 (natural resources and the 
environment).


                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION
Authorization Level a...........................................      30      30      30      30      30      30
Estimated Outlays...............................................      15      24      29      30      30      30
----------------------------------------------------------------------------------------------------------------
aThe EPA Chesapeake Bay program office has not yet received a full-year appropriation for 2000.

Pay-as-you-go Considerations: None.
Intergovernmental and Private-Sector Impact: The bill contains 
no intergovermnental or private-sector mandates as defined in 
UMRA.
Estimate Prepared by: Federal Costs: Susanne S. Mehlman (226-
2860) Impact on State, Local, and Tribal Governments: Shelley 
Finlayson (225-3220).
Estimate Approved by: Peter H. Fontaine Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

                  Federal Water Pollution Control Act

                        (33 U.S.C. 1251 et seq.)

          [As Amended Through P.L. 105-394, November 13, 1998]

AN ACT To provide for water pollution control activities in the Public 
Health Service of the Federal Security Agency and in the Federal Works 
Agency, and for other purposes.

           *       *       *       *       *       *       *


[SEC. 117. CHESAPEAKE BAY.
      [(a) Office.--The Administrator shall continue the 
Chesapeake Bay Program and shall establish and maintain the 
Environmental Protection Agency an office, division, or branch 
of Chesapeake Bay Programs to--
            [(1) collect and make available, through 
        publications and other appropriate means, information 
        pertaining to the environmental quality of the 
        Chesapeake Bay (hereinafter in this subsection referred 
        to as the ``Bay'');
            [(2) coordinate Federal and State efforts to 
        improve the water quality of the Bay;
            [(3) determine the impact of sediment deposition in 
        the Bay and identify the sources, rates, routes, and 
        distribution patterns of such sediment deposition; and
            [(4) determine the impact of natural and man-
        induced environmental changes on the living resources 
        of the Bay and the relationships among such changes 
        with particular emphasis placed on the impact of 
        pollutant loadings of nutrients, chlorine, acid 
        precipitation, dissolved oxygen, and toxic pollutants, 
        including organic chemicals and heavy metals, and with 
        special attention given to the impact of such changes 
        on striped bass.
      [(b) Interstate Development Plan Grants.--
            [(1) Authority.--The Administrator shall, at the 
        request of the Governor of a State affected by the 
        interstate management plan developed pursuant to the 
        Chesapeake Bay Program (hereinafter in this section 
        referred to as the ``plan''), make a grant for the 
        purpose of implementing the management mechanisms 
        contained in the plan if such State has, within 1 year 
        after the date of the enactment of this section, 
        approved and committed to implement all or 
        substantially all aspects of the plan. Such grants 
        shall be made subject to such terms and conditions as 
        the Administrator considers appropriate.
            [(2) Submission of proposal.--A State or 
        combination of States may elect to avail itself of the 
        benefits of this subsection by submitting to the 
        Administrator a comprehensive proposal to implement 
        management mechanisms contained in the plan which shall 
        include (A) a description of proposed abatement actions 
        which the State or combination of States commits to 
        take within a specified time period to reduce pollution 
        in the Bay and to meet applicable water quality 
        standards, and (B) the estimated cost of the abatement 
        actions proposed to be taken during the next fiscal 
        year. If the Administrator finds that such proposal is 
        consistent with the national policies set forth in 
        section 101(a) of this Act and will contribute to the 
        achievement of the national goals set forth in such 
        section, the Administrator shall approve such proposal 
        and shall finance the costs of implementing segments of 
        such proposal.
            [(3) Federal share.--Grants under this subsection 
        shall not exceed 50 percent of the costs of 
        implementing the management mechanisms contained in the 
        plan in any fiscal year and shall be made on condition 
        that non-Federal sources provide the remainder of the 
        cost of implementing the management mechanisms 
        contained in the plan during such fiscal year.
            [(4) Administrative costs.--Administrative costs in 
        the form of salaries, overhead, or indirect costs for 
        services provided and charged against programs or 
        projects supported by funds made available under this 
        subsection shall not exceed in any one fiscal year 10 
        percent of the annual Federal grant made to a State 
        under this subsection.
      [(c) Reports.--Any State or combination of States that 
receives a grant under subsection (b) shall, within 18 months 
after the date of receipt of such grant and biennially 
thereafter, report to the Administrator on the progress made in 
implementing the interstate management plan developed pursuant 
to the Chesapeake Bay Program. The Administrator shall transmit 
each such report along with the comments of the Administrator 
on such report to Congress.
      [(d) Authorization of Appropriations.--There are hereby 
authorized to be appropriated the following sums, to remain 
available until expended, to carry out the purposes of this 
section:
            [(1) $3,000,000 per fiscal year for each of the 
        fiscal years 1987, 1988, 1989, and 1990, to carry out 
        subsection (a); and
            [(2) $10,000,000 per fiscal year for each of the 
        fiscal years 1987, 1988, 1989, and 1990, for grants to 
        States under subsection (b).]
SEC. 117. CHESAPEAKE BAY.
    (a) Definitions._In this section:
            (1) Administrative cost._The term ``administrative 
        cost'' means the cost of salaries and fringe benefits 
        incurred in administering a grant under this section.
            (2) Chesapeake bay agreement._The term ``Chesapeake 
        Bay Agreement' means the formal, voluntary agreements 
        executed to achieve the goal of restoring and 
        protecting the Chesapeake Bay ecosystem and the living 
        resources of the Chesapeake Bay ecosystem and signed by 
        the Chesapeake Executive Council.
            (3) Chesapeake bay ecosystem._The term ``Chesapeake 
        Bay ecosystem'' means the ecosystem of the Chesapeake 
        Bay and its watershed.
            (4) Chesapeake bay program._The term ``Chesapeake 
        Bay Program'' means the program directed by the 
        Chesapeake Executive Council in accordance with the 
        Chesapeake Bay Agreement.
            (5) Chesapeake executive council._The term 
        ``Chesapeake Executive Council'' means the signatories 
        to the Chesapeake Bay Agreement.
            (6) Signatory jurisdiction._The term ``signatory 
        jurisdiction'' means a jurisdiction of a signatory to 
        the Chesapeake Bay Agreement.
    (b) Continuation of chesapeake bay program._
            (1) In general._In cooperation with the Chesapeake 
        Executive Council (and as a member of the Council), the 
        Administrator shall continue the Chesapeake Bay 
        Program.
            (2) Program office._
                    (A) In general._The Administrator shall 
                maintain in the Environmental Protection Agency 
                a Chesapeake Bay Program Office.
                    (B) Function._The Chesapeake Bay Program 
                Office shall provide support to the Chesapeake 
                Executive Council by.--
                            (i) implementing and coordinating 
                        science, research, modeling, support 
                        services, monitoring, data collection, 
                        and other activities that support the 
                        Chesapeake Bay Program;
                            (ii) developing and making 
                        available, through publications, 
                        technical assistance, and other 
                        appropriate means, information 
                        pertaining to the environmental quality 
                        and living resources of the Chesapeake 
                        Bay ecosystem;
                            (iii) in cooperation with 
                        appropriate Federal, State, and local 
                        authorities, assisting the signatories 
                        to the Chesapeake Bay Agreement in 
                        developing and implementing specific 
                        action plans to carry out the 
                        responsibilities of the signatories to 
                        the Chesapeake Bay Agreement;
                            (iv) coordinating the actions of 
                        the Environmental Protection Agency 
                        with the actions of the appropriate 
                        officials of other Federal agencies and 
                        State and local authorities in 
                        developing strategies to.--
                                (I) improve the water quality 
                        and living resources in the Chesapeake 
                        Bay ecosystem; and
                                (II) obtain the support of the 
                        appropriate officials of the agencies 
                        and authorities in achieving the 
                        objectives of the Chesapeake Bay 
                        Agreement; and
                            (v) implementing outreach programs 
                        for public information, education, and 
                        participation to foster stewardship of 
                        the resources of the Chesapeake Bay.
    (c) Interagency agreements._The Administrator may enter 
into an interagency agreement with a Federal agency to carry 
out this section.
    (d) Technical assistance and assistance grants._
            (1) In general._In cooperation with the Chesapeake 
        Executive Council, the Administrator may provide 
        technical assistance, and assistance grants, to 
        nonprofit organizations, State and local governments, 
        colleges, universities, and interstate agencies to 
        carry out this section, subject to such terms and 
        conditions as the Administrator considers appropriate.
            (2) Federal share._
                    (A) In general._Except as provided in 
                subparagraph (B), the Federal share of an 
                assistance grant provided under paragraph (1) 
                shall be determined by the Administrator in 
                accordance with guidance issued by the 
                Administrator.
                    (B) Small watershed grants program._The 
                Federal share of an assistance grant provided 
                under paragraph (1) to carry out an 
                implementing activity under subsection (g)(2) 
                shall not exceed 75 percent of eligible project 
                costs, as determined by the Administrator.
            (3) Non-federal share._An assistance grant under 
        paragraph (1) shall be provided on the condition that 
        non-Federal sources provide the remainder of eligible 
        project costs, as determined by the Administrator.
            (4) Administrative costs._Administrative costs 
        shall not exceed 10 percent of the annual grant award.
    (e) Implementation and monitoring grants._
            (1) In general._If a signatory jurisdiction has 
        approved and committed to implement all or 
        substantially all aspects of the Chesapeake Bay 
        Agreement, on the request of the chief executive of the 
        jurisdiction, the Administrator.--
                    (A) shall make a grant to the jurisdiction 
                for the purpose of implementing the management 
                mechanisms established under the Chesapeake Bay 
                Agreement, subject to such terms and conditions 
                as the Administrator considers appropriate;
                    (B) may make a grant to a signatory 
                jurisdiction for the purpose of monitoring the 
                Chesapeake Bay ecosystem.
            (2) Proposals._
                    (A) In general._A signatory jurisdiction 
                described in paragraph (1) may apply for a 
                grant under this subsection for a fiscal year 
                by submitting to the Administrator a 
                comprehensive proposal to implement management 
                mechanisms established under the Chesapeake Bay 
                Agreement.
                    (B) Contents._A proposal under subparagraph 
                (A) shall include.--
                            (i) a description of proposed 
                        management mechanisms that the 
                        jurisdiction commits to take within a 
                        specified time period, such as reducing 
                        or preventing pollution in the 
                        Chesapeake Bay and its watershed or 
                        meeting applicable water quality 
                        standards or established goals and 
                        objectives under the Chesapeake Bay 
                        Agreement; and
                            (ii) the estimated cost of the 
                        actions proposed to be taken during the 
                        fiscal year.
            (3) Approval._If the Administrator finds that the 
        proposal is consistent with the Chesapeake Bay 
        Agreement and the national goals established under 
        section 101(a), the Administrator may approve the 
        proposal for an award.
            (4) Federal share._The Federal share of an 
        implementation grant under this subsection shall not 
        exceed 50 percent of the cost of implementing the 
        management mechanisms during the fiscal year.
            (5) Non-federal share._An implementation grant 
        under this subsection shall be made on the condition 
        that non-Federal sources provide the remainder of the 
        costs of implementing the management mechanisms during 
        the fiscal year.
            (6) Administrative costs._Administrative costs 
        shall not exceed 10 percent of the annual grant award.
            (7) Reporting._On or before October 1 of each 
        fiscal year, the Administrator shall make available to 
        the public a document that lists and describes, in the 
        greatest practicable degree of detail.--
                    (A) all projects and activities funded for 
                the fiscal year;
                    (B) the goals and objectives of projects 
                funded for the previous fiscal year; and
                    (C) the net benefits of projects funded for 
                previous fiscal years.
    (f) Federal facilities and budget coordination._
            (1) Subwatershed planning and restoration._A 
        Federal agency that owns or operates a facility (as 
        defined by the Administrator) within the Chesapeake Bay 
        watershed shall participate in regional and 
        subwatershed planning and restoration programs.
            (2) Compliance with agreement._The head of each 
        Federal agency that owns or occupies real property in 
        the Chesapeake Bay watershed shall ensure that the 
        property, and actions taken by the agency with respect 
        to the property, comply with the Chesapeake Bay 
        Agreement, the Federal Agencies Chesapeake Ecosystem 
        Unified Plan, and any subsequent agreements and plans.
            (3) Budget coordination._
                    (A) In general._As part of the annual 
                budget submission of each Federal agency with 
                projects or grants related to restoration, 
                planning, monitoring, or scientific 
                investigation of the Chesapeake Bay ecosystem, 
                the head of the agency shall submit to the 
                President a report that describes plans for the 
                expenditure of the funds under this section.
                    (B) Disclosure to the council._The head of 
                each agency referred to in subparagraph (A) 
                shall disclose the report under that 
                subparagraph with the Chesapeake Executive 
                Council as appropriate.
    (g) Chesapeake bay program._
            (1) Management strategies._The Administrator, in 
        coordination with other members of the Chesapeake 
        Executive Council, shall ensure that management plans 
        are developed and implementation is begun by 
        signatories to the Chesapeake Bay Agreement to achieve 
        and maintain.--
                    (A) the nutrient goals of the Chesapeake 
                Bay Agreement for the quantity of nitrogen and 
                phosphorus entering the Chesapeake Bay and its 
                watershed;
                    (B) the water quality requirements 
                necessary to restore living resources in the 
                Chesapeake Bay ecosystem;
                    (C) the Chesapeake Bay Basinwide Toxins 
                Reduction and Prevention Strategy goal of 
                reducing or eliminating the input of chemical 
                contaminants from all controllable sources to 
                levels that result in no toxic or 
                bioaccumulative impact on the living resources 
                of the Chesapeake Bay ecosystem or on human 
                health;
                    (D) habitat restoration, protection, and 
                enhancement goals established by Chesapeake Bay 
                Agreement signatories for wetlands, riparian 
                forests, and other types of habitat associated 
                with the Chesapeake Bay ecosystem; and
                    (E) the restoration, protection, and 
                enhancement goals established by the Chesapeake 
                Bay Agreement signatories for living resources 
                associated with the Chesapeake Bay ecosystem.
            (2) Small watershed grants program._The 
        Administrator, in cooperation with the Chesapeake 
        Executive Council, shall.--
                    (A) establish a small watershed grants 
                program as part of the Chesapeake Bay Program; 
                and
                    (B) offer technical assistance and 
                assistance grants under subsection (d) to local 
                governments and nonprofit organizations and 
                individuals in the Chesapeake Bay region to 
                implement.--
                            (i) cooperative tributary basin 
                        strategies that address the water 
                        quality and living resource needs in 
                        the Chesapeake Bay ecosystem; and
                            (ii) locally based protection and 
                        restoration programs or projects within 
                        a watershed that complement the 
                        tributary basin strategies.
    (h) Study of chesapeake bay program._
            (1) In general._Not later than April 22, 2000, and 
        every 5 years thereafter, the Administrator, in 
        coordination with the Chesapeake Executive Council, 
        shall complete a study and submit to Congress a 
        comprehensive report on the results of the study.
            (2) Requirements._The study and report shall.--
                    (A) assess the state of the Chesapeake Bay 
                ecosystem;
                    (B) assess the appropriateness of 
                commitments and goals of the Chesapeake Bay 
                Program and the management strategies 
                established under the Chesapeake Bay Agreement 
                for improving the state of the Chesapeake Bay 
                ecosystem;
                    (C) assess the effectiveness of management 
                strategies being implemented on the date of 
                enactment of this section and the extent to 
                which the priority needs are being met;
                    (D) make recommendations for the improved 
                management of the Chesapeake Bay Program either 
                by strengthening strategies being implemented 
                on the date of enactment of this section or by 
                adopting new strategies; and
                    (E) be presented in such a format as to be 
                readily transferable to and usable by other 
                watershed restoration programs.
    (i) Special study of living resource response._
            (1) In general._Not later than 180 days after the 
        date of enactment of this section, the Administrator 
        shall commence a 5-year special study with full 
        participation of the scientific community of the 
        Chesapeake Bay to establish and expand understanding of 
        the response of the living resources of the Chesapeake 
        Bay ecosystem to improvements in water quality that 
        have resulted from investments made through the 
        Chesapeake Bay Program.
            (2) Requirements._The study shall.--
                    (A) determine the current status and trends 
                of living resources, including grasses, 
                benthos, phytoplankton, zooplankton, fish, and 
                shellfish;
                    (B) establish to the extent practicable the 
                rates of recovery of the living resources in 
                response to improved water quality condition;
                    (C) evaluate and assess interactions of 
                species, with particular attention to the 
                impact of changes within and among trophic 
                levels; and
                    (D) recommend management actions to 
                optimize the return of a healthy and balanced 
                ecosystem in response to improvements in the 
                quality and character of the waters of the 
                Chesapeake Bay.
    (j) Authorization of appropriations._There is authorized to 
be appropriated to carry out this section $30,000,000 for each 
of fiscal years 2000 through 2005.

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