[Senate Report 111-333]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 620
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-333

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



 
      S. 1816 CHESAPEAKE CLEAN WATER AND ECOSYSTEM RESTORATION ACT

                                _______
                                

               September 28, 2010.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1816]

                             together with

                            ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1816) to amend the Federal Water Pollution 
Control Act to improve and reauthorize the Chesapeake Bay 
Program, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended, do 
pass.

                    General Statement and Background

    The Chesapeake Bay encompasses 64,000 square miles. Its 
watershed is home to more than 17 million people, with 
tributaries in Delaware, Maryland, New York, Pennsylvania, 
Virginia, West Virginia and the District of Columbia.\1\
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    \1\The Chesapeake Bay Watershed http://www.chesapeakebay.net/
watersheds.aspx?menuitem= 14603.
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    A recent report from the University of Maryland Center for 
Environmental Science finds that the ecological health of the 
Chesapeake Bay remains poor.\2\ The Bay continues to have poor 
water quality, degraded habitats and low populations of many 
species of fish and shellfish. The primary stressors of the 
Chesapeake Bay and its tributaries are pollution from excess 
nitrogen, phosphorus and sediment entering the water. Nutrient 
contamination contributes to algae blooms, which, when they 
decompose, deprive the water of the oxygen necessary to support 
diverse species. These algal blooms also impact water clarity, 
blocking sunlight from reaching bay grasses. Underwater grasses 
and wetlands are vital to juvenile fish and crabs, and the 
health and abundance of these animals and habitats are gauges 
of the Bay's health.
---------------------------------------------------------------------------
    \2\Chesapeake Bay Health Report Card http://www.chesapeakebay.net/
news_umcesreport card09.aspx?menuitem=35271.
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    A number of critical measures have been identified to 
restore the Chesapeake Bay and its watershed, including 
reducing pollution, restoring habitats, managing fisheries, 
protecting watersheds and fostering stewardship.\3\ In 1983 and 
1987, the states of Virginia, Maryland, Pennsylvania, the 
District of Columbia, the Chesapeake Bay Commission and the 
U.S. Environmental Protection Agency, representing the federal 
government, signed the Chesapeake Bay Agreement that 
established the Chesapeake Bay Program partnership to protect 
and restore the Chesapeake Bay's ecosystem. In 1987, the 
Congress formally authorized the Chesapeake Bay Program in 
section 117 of the Federal Water Pollution Control Act. By 
statute, the Chesapeake Bay Program is a joint federal-state 
partnership, predominantly led by states within the Chesapeake 
Bay Watershed. The governing Executive Council of the Program 
consists of the Governors of Maryland, Pennsylvania and 
Virginia; the Mayor of the District of Columbia; the Chairman 
of the Chesapeake Bay Commission (a tri-state legislative 
body); and the EPA Administrator, representing the entire 
federal government.\4\
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    \3\Bay Stressors http://www.chesapeakebay.net/
baypressures.aspx?menuitem=13959.
    \4\The 1983 Chesapeake Bay Agreement, The 1987 Chesapeake Bay 
Agreement, and the Chesapeake 2000 Agreement, http://
www.chesapeakebay.net/committee_ec_info.aspx? menuitem=16594.
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    In 1994, 25 federal agencies signed an Agreement of Federal 
Agencies on Ecosystem Management in the Chesapeake Bay, in 
which they agreed to coordinate Bay restoration efforts.
    In 1998 the American Canoe Association, Inc., and others 
brought suit against EPA, alleging that the Agency had failed 
to perform a non-discretionary duty--the classification of the 
Virginia waters of the Chesapeake Bay and its tidal waters as 
impaired, as required under the Federal Water Pollution Control 
Act, section 303(d) (33 U.S.C. 1313(d)). In a 1999 consent 
decree, the civil action (American Canoe Ass'n, Inc. v. EPA, 
Civil No. 98-979-A (E.D. Va.)) was settled with an agreement 
that the Commonwealth of Virginia had until May 2010 to develop 
a Total Maximum Daily Load (TMDL), allocating load and 
wasteload pollution limits sufficient so that the Bay and tidal 
rivers in Virginia achieved water quality standards. In the 
event that the Commonwealth failed to do so, the Court agreed 
that EPA must develop the TMDL no later than May 2011.
    Using the cooperative partnership that had been established 
under the Chesapeake Bay Agreement, the Commonwealth of 
Virginia, EPA and the other partners agreed to work together to 
remove the Bay and its tidal waters from the impaired waters 
list by 2010, thus avoiding the need to develop a TMDL.
    Through a formal Memorandum of Understanding, the Governors 
of Delaware, New York and West Virginia committed to work with 
the Executive Council in advancing water quality improvements 
in the Bay watershed.\5\
---------------------------------------------------------------------------
    \5\Memorandum of Understanding: Among the State of Delaware, the 
District of Columbia, the State of Maryland, the State of New York, the 
Commonwealth of Pennsylvania, the Commonwealth of Virginia, the State 
of West Virginia, and the United States Environmental Protection Agency 
Regarding Cooperative Efforts for the Protection of the Chesapeake Bay 
and Its Rivers http://chesapeakebay.net/content/publications/
cbp_12085.pdf.
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    On June 28, 2000, the Chesapeake Bay Program adopted a new 
Bay agreement, ``Chesapeake 2000: A Watershed Partnership,'' 
that set Bay restoration goals for the year 2010. That new 
agreement, calling for the restoration of water quality to the 
Chesapeake Bay and its tidal segments, was a central element in 
the Congressional reauthorization of the Program in 2000. The 
current authorization of appropriations expired in 2005.
    In recent years it became apparent that efforts outlined in 
the Chesapeake 2000 plan to restore water quality to the 
Chesapeake and its tidal segments would be unsuccessful. The 
principals' staff committee of the Chesapeake Basin Program, 
consisting of officials from each Chesapeake Bay State, the 
District of Columbia, the Chesapeake Bay Commission, and the 
EPA, agreed that all Basin States would take all required 
actions to restore water quality within 15 years, i.e., by 
2025. The Executive Council also requested a slightly 
accelerated schedule under which EPA should complete a 
Chesapeake Bay TMDL so that the States would have their 
assigned load and wasteload allocations and could begin the 
restoration work with clear requirements. The revised date for 
EPA to complete the TMDL is December 31, 2010. The Executive 
Council agreed that the Chesapeake Bay TMDL would address all 
segments of the Chesapeake Bay and tidal tributaries that are 
identified on the currently applicable lists of impaired waters 
for nitrogen, phosphorus and sediment under section 303(d) of 
the Federal Water Pollution Control Act (33 U.S.C. 1313(d)).
    In a settlement agreement on a separate but related 
lawsuit, among other provisions, EPA agreed to meet the 
accelerated timetable of completing the Chesapeake Bay TMDL by 
the end of 2010 (Fowler v. EPA, 2010).

                     Objectives of the Legislation

    The purpose of S. 1816 is to amend the Federal Water 
Pollution Control Act to improve and reauthorize the Chesapeake 
Bay Program authorized in section 117 of the Act.
    The bill has four primary objectives:
          1. Establish a date-certain of 2025, along with 
        appropriate milestones, for all restoration actions to 
        be implemented throughout the Chesapeake Basin that 
        will lead to attainment of water quality goals in the 
        Chesapeake Bay and its tidal segments that are on the 
        EPA list of impaired waters (Federal Water Pollution 
        Control Act, Sec. 303(d));
          2. Assure that the Basin States, as delegated 
        authorities under the Federal Water Pollution Control 
        Act, be given maximum authority and flexibility to meet 
        the restoration load and wasteload allocation pollution 
        limits;
          3. Require that the Federal government be an active 
        partner in the restoration effort, by developing the 
        overall pollution reduction targets on a state-by-state 
        basis through the Chesapeake Bay TMDL, implementing the 
        terms of Presidential Executive Order and providing 
        clear and meaningful accountability for the Basin 
        States; and
          4. Provide the States, municipalities, developers, 
        and especially agricultural producers with significant 
        new tools and financial resources to meet the 
        restoration demands within the 15 year time frame 
        contained in the legislation.

                           Section-by-Section


Sec. 1. Short title

    This Act may be cited as the ``Chesapeake Clean Water and 
Ecosystem Restoration Act''.

Sec. 2. Findings

    An extensive set of Findings details the pollutants that 
are affecting the Chesapeake Bay and its tidal rivers; the 
history of the Chesapeake Bay Program efforts to restore the 
Bay; and status of legal efforts to require stronger regulatory 
responses to enforce cleanup requirements, including EPA's 
current drafting of the Chesapeake Bay Total Maximum Daily Load 
allocation for the entire watershed and the Basin States' 
efforts to plan and adopt watershed implementation plans.

Sec. 3. Chesapeake Basin Program

    This Section replaces the current Section 117 of the 
Federal Water Pollution Control Act in its entirety.
    (a) Definitions. Replaces and expands the current set of 
definitions. Among the key definitions are:
    Chesapeake Basin State--expands the program to include the 
``headwater'' states of Delaware, New York, and West Virginia.
    Chesapeake Bay TMDL--for the purposes of the legislation, 
defines the EPA-issued TMDL as including both the Bay and its 
impaired tidal segments and allows TMDLs to be expressed in 
temporal units other than daily.
    Baseline, Credit, Offset--terms that are important to the 
functioning of the water quality trading program contained in 
the legislation are defined.
    (b) Renaming And Continuation of Chesapeake Bay Program. 
The Chesapeake Bay Program is renamed the Chesapeake Basin 
Program to more accurately reflect its watershed-wide 
restoration efforts. This subsection largely duplicated the 
current subsection 117(b), which establishes a Program Office 
for the Chesapeake Basin and details its functions. The Program 
Office is responsible for:
     Implementing and coordinating scientific research, 
modeling, monitoring, and support services
     Providing information on the environmental quality 
of and living resources of the Basin ecosystem.
     Assisting the signatories to the Bay agreements in 
their efforts to restore water quality and the living resources 
of the Bay.
     Coordinating actions among the Basin States, 
Federal partners, and other stakeholders in improving water 
quality and living resources in the ecosystem.
     Implementing programs of public outreach.
    This subsection also requires that the Chesapeake Executive 
Council meet at least once per year. Meetings will be open to 
the public, except when the Council meets in private executive 
session. Annual meetings with executive sessions are a long-
established practice of the Chesapeake Bay program, but they 
have not previously been required.
    (c) Interagency Agreements. This subsection is unchanged 
from existing law, allowing the Administrator to enter into 
interagency agreements to support restoration efforts. The 
Administrator has made extensive use of this authority in the 
past to fund staff from other Federal agencies including USDA 
Natural Resources Conservation Service, USDA Forest Service, 
the National Park Service, and the U.S. Army Corps of 
Engineers. The Committee expects this inter-agency 
collaboration to continue.
    (d) Technical Assistance and Assistance Grants. This 
subsection largely retains the same language currently in 
subsection 117(d). The Administrator is authorized to provide 
technical assistance and assistance grants to advance the 
Chesapeake Basin restoration effort. Administrative costs 
associated with these grants cannot exceed 10 percent. The list 
of current eligible grantees is expanded to include soil 
conservation districts and basin commissions. Historically, the 
Administrator has made extensive use of this authority, 
providing assistance agreements to academic and non-profit 
organizations. The ``Small Watershed Grants Program,'' first 
authorized in 2000, is renamed the ``Chesapeake Basin 
Stewardship Grants Program.'' The federal share of these 
projects cannot exceed 75 percent. These grants have been 
extremely popular and have resulted in scores of individual 
projects that have leveraged their value many times over as 
they bring restoration efforts to local communities.
    (e) Implementation, Monitoring and Centers of Excellence 
Grants. Current Section 117(e) is replaced with this new 
subsection (e). Existing authority to provide implementation 
and monitoring grants is continued, with changes. A new Centers 
of Excellence Grants program is authorized as is a Chesapeake 
Nutrient Trading Guarantee Pilot Program.
    Implementation grants are to be used to enable Basin States 
to undertake Watershed Implementation Plans, which are designed 
to meet the water quality goals for the Chesapeake through load 
and wasteload pollution reductions contained in the Chesapeake 
TMDL. Grants are provided directly to the states or their 
designees, which can include non-profit organizations, among 
others. Headwater states (DE, NY and WV) are made eligible for 
implementation grants for the first time, and are allocated at 
least 10 percent of implementation grants. These headwater 
States are responsible for just under 10 percent of the 
pollution that is responsible for the impairments to the 
Chesapeake and its tidal segments. 20 percent of implementation 
grants are set aside so farmers and forest owners can receive 
technical assistance that will help them access Farm Bill funds 
for implementing conservation practices. The Committee believes 
that technical assistance is critical to helping local farmers 
understand conservation options and plan accordingly. These 
technical assistance requirements do not apply to 
implementation grants to the District of Columbia. Signatory 
States may also use implementation grant funding to achieve the 
broader goals of the Chesapeake Bay Agreement.
    For the first time, the monitoring program is divided into 
a program for freshwater segments and a program for estuarine 
segments. USGS and NOAA are given roles in planning the 
monitoring programs, and the Administrator must also consult 
with the Chesapeake Basin Program Scientific and Technical 
Advisory Committee, Basin commissions, the U.S. Department of 
Agriculture and other Federal agencies, and the States. 
Priority is given to measuring the water quality effectiveness 
of agricultural conservation program implementation of the 
Chesapeake Bay Watershed Initiative, authorized in the Food 
Security Act of 1985 (16 U.S.C. 3839bb-4).
    Centers of Excellence grants are established. These grants 
are to be awarded to institutions or consortia of higher 
education institutions to focus on the areas of innovative 
agricultural practices, load reduction quantification, and 
formulation of recommendations for the widespread deployment of 
effective agricultural conservation technologies, policies and 
practices. Agricultural producers have requested assistance in 
identifying additional conservation practices and having those 
practices analyzed so that specific pollution reduction 
efficiencies can be assigned to them. Academic institutions 
with strong agricultural and clean water programs have both the 
expertise and the confidence of the producer community to make 
these recommendations with strong scientific backing and wide-
spread acceptance among the agricultural community.
    A Chesapeake Nutrient Trading Guarantee Pilot Program is 
established. The program is designed to leverage public funding 
to raise private capital to accelerate the restoration effort. 
A Guarantee Fund is established in the Treasury. The manager of 
the pilot program, supported by an EPA-funded cooperative 
agreement, can draw on the Fund to guarantee credit purchases 
in the nascent nutrient trading market for a minimum of five 
years. Venture capitalists, ``green'' investors, and a number 
of businesses offered strong support for a robust trading 
system. Providing a price guarantee in the early years of this 
program can provide the market with stability and certainty and 
will leverage private capital to come into the market.
    (f) Federal Facilities Coordination. Federal Agencies with 
facilities within the Chesapeake Basin must participate in 
regional and sub-watershed planning and restoration programs. 
The Basin States are given the task of meeting the EPA-assigned 
load and wasteload allocations. Therefore, Federal property 
owners must coordinate with the States to achieve the required 
pollution reductions. They must also adhere to the goals of the 
Bay Agreement and other Program efforts. This subsection 
requires the Chief of the Forest Service to work with the EPA 
Administrator to coordinate efforts among Federal facilities in 
the Bay basin to maximize forest cover at their facilities.
    (g) Federal Annual Action Plan and Progress Report. Current 
Section 117(g) is replaced with this new subsection codifying 
the actions in President Obama's Executive Order of May 12, 
2009 (E.O. 13508, 74 Fed. Reg. 23099). This subsection requires 
the Administrator to provide an annual action plan, including 
budget, and report annually on efforts by the Federal 
government to protect and restore the Chesapeake Bay during the 
upcoming fiscal year. In addition, by December 31, 2010, with 
the concurrence of the Secretary of Agriculture, the 
Administrator must create and maintain a Basin-wide database on 
the implementation of agricultural conservation management 
practices, which is to be updated at least once every two 
years. The database is to include all conservation practices, 
not simply those supported through public funds. Data are to be 
reported in aggregate form.
    (h) Chesapeake Basin Program. The current subsection (h) 
regarding a Study of the Chesapeake Bay Program is deleted. 
This new subsection requires the Administrator to work 
cooperatively with Basin States to assure that management 
strategies are developed to meet the sediment and nutrient 
reduction requirements to restore the living resources in the 
Chesapeake Bay and its tidal tributaries. The Administrator is 
also required to work with the original Bay signatory states 
(MD, PA, VA and DC) on toxins reductions and prevention goals, 
habitat enhancements, and living resource restoration and 
protection.
    This subsection establishes a Chesapeake Basin Stewardship 
Grants Program, which is focused on locally based protection 
and restoration programs or projects. A wide variety of 
entities are made eligible for grants. The grant program 
promotes local water quality and habitat restoration efforts, 
including activities for increased spawning and other habitat 
improvements for migratory fish. In addition, Stewardship 
Grants will give preference to cooperative projects involving 
local governments as well as soil conservation districts, 
sportsmen associations, and projects that involve public-
private partnerships.
    (i) Action by States. The current subsection (i) is 
deleted.
    Modeled on the State Implementation Plans (SIP) in the 
Clean Air Act, the new subsection (i) establishes a flexible 
but rigorous system for each Chesapeake Basin State to design a 
Watershed Implementation Plan (WIP) that will direct its 
actions in providing the Chesapeake with clean water and 
helping to restore the Chesapeake ecosystem.
    Under this subsection, Basin States are required to submit 
their Watershed Implementation Plan (WIP) to EPA no later than 
November 1, 2011. The WIP shall establish reduction targets, 
actions and schedules designed to meet the established point 
source and nonpoint source allocations. The allocations must be 
sufficient to meet Chesapeake Bay and Chesapeake Bay tidal 
segment water quality standards. Detailed WIP requirements are 
enumerated, including both regulatory and non-regulatory/
voluntary components, compliance, and contingency plans and 
requirements to contain enforceable or otherwise binding 
commitments to meet water quality standards. The plans must be 
designed to have in place at least 60 percent of the required 
restoration actions no later than May 31, 2017 and full 
implementation by May 12, 2025.
    This subsection establishes biennial reporting requirements 
for Basin States, including provisions to show how any 
shortfalls are being met through adaptive management 
approaches. The biennial reports must demonstrate ``reasonable 
additional progress'' in reaching the 2017 interim and 2025 
final implementation requirements.
    Basin States are given broad authority to add nonpoint 
sources that are causing water quality impairments in the 
Chesapeake Bay and its tidal segments to their National 
Pollution Discharge Elimination System programs under the 
Federal Water Pollution Control Act. Basin States are not 
limited to National Pollution Discharge Elimination System 
permits under the Federal Water Pollution Control Act in order 
to achieve these reductions. Other programs with enforceable 
provisions may also be used. The Committee expects Basin States 
to continue to make extensive use of State Department of 
Agriculture programs, for example, such as requirements for 
nutrient management plans. Federal regulators are expressly 
prohibited from taking enforcement actions against agricultural 
producers who are in full compliance with the State-designed, 
federally-approved WIP. States are also required to develop de 
minimis exemptions for new non-point source permits to 
implement the State's WIP.
    Chesapeake Basin States that submit a WIP (WIP States) must 
implement stringent stormwater permits. By 2013, each WIP State 
shall require all major new developments and redevelopment 
projects to use a variety of techniques to maintain the 
original hydrology of the site, thus stemming the flow of new 
pollution into the Bay and its tidal tributaries. Any 
unavoidable impacts related to water temperature, rate, volume 
or duration of flow will require mitigation. Priority will be 
given to in-kind mitigation (e.g., water temperature increases 
above pre-existing hydrology must be offset by reductions of 
artificially elevated temperatures elsewhere in the same 
watershed). Out-of-kind (e.g., elevations in water temperature 
mitigated by reductions in flow) and out-of-subwatershed 
mitigation is allowed, but only if in-kind and in-watershed 
mitigation options are not available. Lowest priority is given 
to fees-in-lieu, and they must be set at a high enough level to 
allow the permitting agency sufficient funds to support other 
watershed mitigation efforts. EPA is required to develop 
appropriate regulations by May 12, 2011 to implement the 
stormwater permitting program. The Committee encourages EPA to 
ensure that states are given maximum flexibility and deference 
in making final choices on best ways to achieve pre-development 
hydrology and stormwater reduction goals.
    To facilitate brownfields restoration and other 
redevelopment strategies, the Administrator must take into 
consideration, when developing regulations, the overall 
watershed protection and restoration that comes with 
redevelopment of brownfields or other previously developed 
sites. A WIP State that fails to implement the required 
stormwater permits is subject to the withholding of Federal 
Water Pollution Control Act funds.
    WIP States are also required to implement a ban on 
phosphates in laundry and dish detergents. Most Basin States 
have already instituted such bans in phosphorus pollution 
prevention efforts. A WIP State that fails to implement the 
required phosphate ban is subject to the withholding of Federal 
Water Pollution Control Act funds.
    (j) Action by Administrator. The current subsection (j), 
Authorization for Appropriations, is moved to subsection (p).
    In the new subsection (j), the Administrator is required to 
provide guidance and prompt review of state WIPs. EPA is 
currently working closely with Basin States and has provided 
written guidance to these States for over a year on what 
watershed implementation plans should encompass and how they 
can be fairly evaluated. The Committee expects EPA to continue 
dialoging with the states as watershed implementation plans are 
developed. The Administrator is required to establish minimum 
criteria that a WIP must meet and make a ``completeness 
determination'' as to whether each submitted plan meets those 
criteria. The Committee believes that these criteria should be 
based on the broad body of information already widely used and 
understood. For this reason, such criteria should be issued by 
the Administrator promptly.
    This subsection outlines methods for the approval, 
conditional approval, corrections, plan revisions, and 
disapproval of WIPs. Basin States submitting WIPs are given up 
to one year to correct deficiencies. Failure to implement a WIP 
that will meet water quality requirements by meeting EPA load 
and wasteload allocations will result in the Administrator 
taking over the program and issuing a Federal Watershed 
Implementation Plan. In these circumstances, the Basin State is 
subject to losing its Federal Water Pollution Control Act 
funding.
    All plans must contain 10 specified elements. Within this 
general constraint, States are empowered to develop their own 
suite of activities, programs and policies to meet their load 
and wasteload allocations. The Administrator's role is to 
evaluate the completeness of the Plan and the effectiveness of 
the State-designed WIPs in meeting water quality standards, not 
to design or force specific policy choices on the Basin States.
    If a Federal Watershed Implementation Plan is required, it 
will incorporate all applicable requirements for nonpoint 
sources included as part of the State's most recently approved 
watershed implementation plan. The Administrator may not change 
the state's nonpoint source requirements. Existing non-point 
source pollution control programs will continue, but under 
Federal direction so that there will be no backsliding in the 
nonpoint sector under a Federal Watershed Implementation Plan. 
This section gives the Administrator the authority to enforce 
such requirements under federal law in the same manner and with 
the same stringency as required in the most recently approved 
watershed implementation plan. The Administrator must issue and 
enforce NPDES permits under Federal Water Pollution Control Act 
authorities to the extent necessary to control pollution 
sufficient to meet the pollution reductions required to meet 
applicable water quality standards.
    The Administrator is required to establish an interstate 
nutrient trading program by May 12, 2012 and a sediment trading 
program by May 12, 2014. Standards and procedures for the 
nutrient trading program are enumerated in this subsection. The 
methods by which trades can be incorporated into existing NPDES 
permits are specified. Permit compliance remains the 
responsibility of the permit holder, not the party with whom a 
trade is undertaken. This subsection also allows third parties 
to aggregate and bank credits for sale to permitted entities, 
the use of ``banked'' credits, and direct purchase of credits 
through an exchange. Safeguards are required to assure that 
trades do not result in pollution ``hot spots'' locally.
    The sediment trading program will rely on the 
recommendations from a stakeholder-driven task force and the 
expertise of the Department of Agriculture. Every five years 
the Administrator must report to the Congress on the 
effectiveness of the trading program. State-run intrastate 
trading programs may continue without change.
    The Administrator is required to establish guidance for 
commercial and residential development and redevelopment 
projects that impact water quality. In addition, The 
Administrator shall compile a database of model ordinances and 
guidelines that states, local governments, and private entities 
may choose to implement to ensure land maintains predevelopment 
hydrology with regard to the temperature, rate, volume and 
duration of water flow. EPA's role is to provide technical 
assistance. The database of model ordinances and the examples 
of how others are addressing stormwater issues is meant to 
facilitate the spread of best practices across the watershed. 
All decisions regarding land use and development remain solely 
in the hands of local governments.
    To help local governments customize stormwater control 
programs to meet their unique needs, the Administrator is 
authorized to provide planning grants to local governments to 
develop, implement, and enforce stormwater control programs. 
The administrator is also authorized to provide grants to 
implement projects that are designed to reduce or beneficially 
reuse stormwater discharges. Local governments are facing 
extraordinary costs associated with dealing with this legacy 
pollution from an era when stormwater pollution was virtually 
uncontrolled. This new grants program is designed to help 
communities meet this funding need. Municipalities are 
encouraged to work with developers on in-fill and redevelopment 
projects in which public and private funds can be combined to 
improve water quality while benefiting the entire community.
    The Administrator, with the Chesapeake Executive Council, 
is required to review consumer and commercial products such as 
lawn fertilizer, the use of which may affect the water quality 
of the Chesapeake. The Committee is aware of numerous reports 
of over-applying do-it-yourself lawn fertilizers, resulting in 
excess nitrogen and phosphorus runoff. The Administrator shall 
submit a report to Congress detailing the findings of this 
review.
    The Administrator is authorized to implement a new 
agricultural animal waste-to-bioenergy deployment program. This 
grant program will be designed to assist agricultural animal 
producers reduce their water quality impacts while also 
generating beneficial bioenergy and generating credits for sale 
in a trading market.
    (k) Prohibition on Introduction of Asian Oysters. Two 
diseases that have decimated the native oyster population in 
the Chesapeake were introduced into the ecosystem accidentally 
when a non-native oyster was introduced into the Bay. In order 
to avoid future such disasters, this subsection requires the 
Administrator to designate the Asian oyster as a `biological 
pollutant' in the Chesapeake Bay, prohibit the issuance of 
permits for the discharge of Asian oysters in the Chesapeake 
Bay, and specify conditions under which scientific research on 
Asian oysters may be conducted in the Chesapeake Bay.
    (l) Chesapeake Nutria Eradication Program. This subsection 
authorizes the Secretary of the Interior to provide financial 
assistance to Delaware, Maryland and Virginia to eradicate and 
control the non-native, invasive nutria and restore marshland 
damaged by nutria.
    (m) Review of Studies on the Impacts of Menhaden on the 
Water Quality of the Chesapeake Bay. This subsection directs 
the Administrator, in cooperation and consultation with the 
Administrator of the National Oceanic and Atmospheric 
Administration, to prepare a report that reviews and summarizes 
research on the impacts of menhaden on water quality. The 
Administrator must report to Congress within five years on any 
recommendations for additional research or study.
    (n) Effect on Other Requirements. This subsection states 
that nothing in this section removes or otherwise affects any 
other obligation for a point source to comply with other 
applicable requirements under this Act. In addition, this 
subsection outlines enforcement actions that can be taken 
related to a violation under this section. In particular, 
failure of a Basin state to meet the terms of its WIP or to 
make needed changes in order to achieve the overall water 
quality goals of the Chesapeake TMDL constitutes a violation of 
the Federal Water Pollution Control Act. Citizens can also 
bring civil actions against the Basin State, seeking injunctive 
relief for such failures. Except for this new liability for 
Basin States to implement state WIPs, no other changes are made 
to the citizen suit provisions in current law.
    (o) Evaluations. This subsection requires the Inspectors 
General of the EPA and Department of Agriculture to evaluate 
the implementation of this section and submit reports to 
Congress every three years. Independent reviews by the National 
Academy of Sciences or the National Academy of Public 
Administration are also required. These must include an 
assessment of progress made toward meeting the goals of this 
section, efforts by Federal, State, and local governments to 
implement this section, and the methodologies and data used to 
support implementation. The independent reviews by the 
Academies must be completed no later than May 12, 2015 for the 
first review and no later than May 12, 2020 for the second 
review.
    (p) Authorization of Appropriations. Authorizations of 
appropriations are provided for the following:
         Chesapeake Basin Program Office ($20 million 
        annually FY11-FY15);
         Basin State Implementation Grants ($80 million 
        annually);
         Centers of Excellence for Water Quality and 
        Agricultural Policies ($10 million annually);
         Agricultural Animal Waste-to-Bioenergy grants 
        ($30 million over 5 years);
         Freshwater Monitoring ($5 million annually);
         Chesapeake Bay and Tidal Water monitoring ($5 
        million annually);
         Chesapeake Stewardship Grants ($15 million 
        annually);
         Stormwater Pollution Control Planning grants 
        ($10 million total);
         Stormwater Pollution Control and Reuse 
        Implementation grants ($1.5 billion total); and
         Nutria Eradication grants ($4 million 
        annually).
    Cost share requirements are established and a general 
limitation on administrative expenses of 10 percent is 
established. All funds are available until expended.
    (q) Severability. If any provisions of this section is 
invalid, unenforceable, or in conflict with any law, the 
validity, legality, or enforceability of remaining provisions 
are not affected.

Sec. 4. Federal enforcement

    Section 4 is a conforming amendment to provide the 
appropriate cross-references to Section 309 regarding 
enforcement of the Federal Water Pollution Control Act. The 
cross-references are limited to civil penalties under Section 
309.

Sec. 5. Federal responsibility to pay for stormwater programs

    Section 5 amends section 313 of the Clean Water Act to 
clarify that federal facilities must pay customary stormwater 
management fees to local governments or authorities in the same 
manner that others are required to do so. Any claims of 
sovereign immunity are explicitly waived.

Sec. 6. Relationship to National Estuary Program

    Section 6 amends section 320 to make Chesapeake Basin 
States eligible for the same flexibility afforded to National 
Estuary Program States for federal financial assistance 
programs.

                          Legislative History

    On April 20, 2009, the Water and Wildlife Subcommittee of 
the Committee on Environment and Public Works held a general 
oversight hearing on the Chesapeake Bay. Entitled ``Chesapeake 
Bay Restoration: Status Report and Recommendations,'' the field 
hearing was held at the Maryland Statehouse in Annapolis, MD--
Joint Hearing Room.
    On August 3, 2009, the subcommittee held a second oversight 
hearing. Entitled ``A Renewed Commitment to Protecting the 
Chesapeake Bay: Reauthorizing the Chesapeake Bay Program.'' 
Witnesses from the Chesapeake Basin States and other key 
stakeholders testified regarding the reauthorization of the 
Chesapeake Bay Program.
    S. 1816 was introduced on October 20, 2009 by Senator 
Benjamin L. Cardin (D-MD), with original cosponsors Senator Ted 
Kaufman (D-DE), Senator Tom Carper (D-DE) and Senator Barbara 
A. Mikulski (D-MD). The bill was read twice and referred to the 
Senate Committee on Environment and Public Works.
    On November 9, 2009, the Subcommittee on Water and Wildlife 
held a legislative hearing on two pending bills, S. 1816, The 
Chesapeake Clean Water and Ecosystem Restoration Act, and S. 
1311, a bill to reauthorize the Gulf of Mexico Program.
    On June 30, 2010 the Senate Committee on Environment and 
Public Works held a business meeting to consider a number of 
bills, including S. 1816. The Committee ordered S. 1816, with 
an amendment in the nature of a substitute, to be reported to 
the full Senate.

                             Rollcall Votes

    On June 30, 2010 the Senate Committee on Environment and 
Public Works held a business meeting to consider a number of 
bills, including S. 1816.

Amendments Accepted

    1. Senator Cardin (D-MD) offered an amendment in the nature 
of a substitute to S. 1816. The substitute amendment expanded 
the federal grant programs authorized under the bill, required 
all federal facilities to pay stormwater pollution fees to 
local utilities, added provisions related to interaction with 
agricultural producers, and required evaluation of the program 
by independent entities. The substitute amendment also 
corrected the constitutional concerns in the introduced bill. 
By unanimous consent, the substitute was considered as base 
text for the purpose of further amendment.
    2. Senator Carper (D-DE) offered an amendment that would 
authorize $30 million for fiscal 2010 through 2015 for a grant 
program to individuals and partnerships that carry out projects 
to deploy a technology for converting animal waste to bio-
energy that has a significant potential to reduce agricultural 
animal waste volume, recover nutrients, improve water quality, 
decrease pollution and recover energy. The amendment was agreed 
to by voice vote.
    3. Senator Cardin, on behalf of Senator Specter (D-PA), 
offered an amendment that would prohibit federal enforcement 
action from being brought against an agriculture producer that 
is in compliance with all applicable planning and scheduling 
requirements consistent with approved plans for watershed 
implementation, government-approved soil conservation, nutrient 
management, erosion control and other applicable requirements 
in approved State watershed implementation plans. The amendment 
was agreed to by voice vote.
    4. Senator Gillibrand (D-NY) offered an amendment that 
would reduce the State and local cost-share requirement for 
Delaware, New York and West Virginia to 20 percent, and specify 
the share for Maryland, Pennsylvania, Virginia and the District 
of Columbia at 50 percent. Senator Gillibrand also offered an 
amendment to her amendment regarding cost-share requirements 
for the implementation grants authorized in the bill. The 
second-degree Gillibrand amendment would change the State and 
local share requirements for Delaware, New York and West 
Virginia in the underlying amendment to 25 percent. The second-
degree amendment was agreed to by voice vote. The underlying 
Gillibrand amendment, as amended by the second-degree 
amendment, was agreed to by voice vote.
    5. Senator Inhofe (R-OK) offered an amendment to limit the 
applicability of certain standards and requirements to 
Chesapeake Basin States. With the support of Senator Inhofe, 
Senator Cardin offered a second-degree amendment as a 
substitute to the Inhofe amendment. The second degree amendment 
struck subsection (i) of the bill regarding Total Maximum Daily 
Loads. Several subsequent references to the Chesapeake TMDL 
were replaced with language referring to ``water quality 
standards'' for the Chesapeake Bay and its tidal tributaries.
    In addition, the second-degree amendment eliminated the 
unlimited ability of EPA to issue permits for all pollution 
sources if it should be required to administer the watershed 
implementation plan for a State. Instead, EPA is limited to 
continuing the nonpoint source programs included as part of the 
most recently approved watershed implementation plan of the 
State. EPA's ability to permit point sources is not limited. 
The Cardin second degree amendment was agreed to by voice vote. 
The Inhofe amendment, as amended, was also agreed to by voice 
vote.

Amendments Rejected

    1. Senator Barrasso (R-WY) offered an amendment that would 
require nonpoint source permits issued to agriculture producers 
be approved by the State's or the federal Agriculture 
Department. A permit would only be granted if it is determined 
it would not result in harm to the food supply or create 
economic hardship for the agricultural producer. The amendment 
was rejected 8-11 with Senators Alexander, Barrasso, Bond, 
Crapo, Inhofe, Vitter, Voinovich and Klobuchar voting in favor 
of the amendment and Senators Baucus, Boxer, Cardin, Carper, 
Gillibrand, Lautenberg, Merkley, Sanders, Specter, Udall, and 
Whitehouse voting against.
    This Committee ordered S. 1816, as amended, reported 
favorably by voice vote.

                      Regulatory Impact Statement

    In compliance with section 11(b)(2) of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that the 
Congressional Budget Office has found the bill would impose 
requirements on private entities by requiring certain States to 
develop Watershed Implementation Plans. However, CBO also notes 
that States required to develop these plans, ``already comply 
with the underlying requirements of the plans.'' The bill will 
not affect the personal privacy of individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the Committee notes that the Congressional 
Budget Office has concluded the bill will impose 
intergovernmental and private-sector impacts but CBO also notes 
that ``Implementing [Watershed Implementation Plans] plans 
would impose requirements on public and private entities such 
as wastewater facilities and industrial plants that discharge 
water into the basin. Because those States already comply with 
the underlying requirements of the plans, CBO estimates that 
the cost of those mandates would fall well below the annual 
thresholds established in UMRA for intergovernmental and 
private-sector mandates ($70 million and $141 million in 2010, 
respectively, adjusted annually for inflation).''

                                                   August 20, 2010.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1816, the Chesapeake 
Clean Water and Ecosystem Restoration Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1816--Chesapeake Clean Water and Ecosystem Restoration Act

    Summary: S. 1816 would reauthorize the Chesapeake Bay 
program within the Environmental Protection Agency (EPA) and 
rename it the Chesapeake Basin program. The bill also would 
authorize the appropriation of $2.3 billion over the 2011-2015 
period for EPA and the Department of the Interior (DOI) to 
provide grants to States and nonprofit organizations to support 
a wide range of water quality projects and programs aimed at 
restoring and protecting the ecosystem of the Chesapeake basin.
    The authorized funding also would be used by EPA to 
establish and operate trading programs for nitrogen, 
phosphorus, and sediment in the Chesapeake basin. The goal of 
the trading programs would be to reduce discharges of those 
pollutants into the bay. If sources of pollutants, such as 
farmers, reduce such discharges below targeted levels set by 
EPA, they could then sell surplus reductions (or ``credits'') 
to other pollution sources, such as wastewater treatment 
plants. (Target levels for the agriculture sector will be set 
by EPA by December 31, 2010, under current law.) Participation 
in the proposed trading programs would be voluntary.
    CBO estimates that implementing this legislation would cost 
about $1.9 billion over the 2011-2015 period, assuming 
appropriation of the authorized amounts. Pay-as-you-go 
procedures do not apply to S. 1816 because the bill would not 
affect direct spending or revenues.
    S. 1816 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
CBO estimates that the cost of those mandates would fall well 
below the annual thresholds established in UMRA for 
intergovernmental and private-sector mandates ($70 million and 
$141 million in 2010, respectively, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of this legislation is summarized in Table 1. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

                                 TABLE 1. ESTIMATED BUDGETARY EFFECTS OF S. 1816
----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2011   2012   2013   2014   2015  2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level...............................................    451    451    451    451    451      2,255
Estimated Outlays.................................................    204    383    451    451    451      1,940
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the beginning of fiscal year 2011, 
that the full amounts authorized will be appropriated for each 
year, and that outlays will follow the historical patterns of 
spending for similar programs. Components of the estimated 
costs are described below.
    This legislation would authorize appropriations totaling 
about $2.3 billion over the next five years for EPA and DOI to 
support activities related to restoring and protecting the 
Chesapeake basin ecosystem. Amounts authorized to be 
appropriated for individual programs are shown in Table 2.
    S. 1816 would authorize the appropriation of $1.5 billion 
over the 2011-2015 period for EPA to provide grants to local 
governments to support projects and activities within the 
Chesapeake basin related to reducing or reusing stormwater 
discharges.
    This legislation also would authorize the appropriation of 
$520 million over the next five years for EPA to establish and 
support centers of excellence for water quality and 
agricultural policies and practices; monitor the quality of 
freshwater supplies; and provide grants to support various 
activities related to achieving goals established under the 
Chesapeake Bay Agreement. (That agreement, first established in 
1983 between EPA and the bay-area states, identifies actions 
needed to protect the Chesapeake Bay ecosystem.) Also included 
in that amount is an authorization of $20 million over the 
2011-2015 period for EPA to establish and implement pollutant 
trading programs in the basin.
    The remaining authorizations in the bill would total about 
$225 million over the next five years. That funding would be 
used for various purposes, including administrative support for 
the Chesapeake Basin program office ($100 million), a grant 
program for DOI to assist the states of Delaware, Maryland, and 
Virginia in eradicating or controlling the nutria population 
and restoring marshland damaged by nutria ($20 million), a 
grant program for EPA to support the conversion of agricultural 
animal waste into heat, power or biofuels ($30 million), and a 
grant program for EPA to support the water quality and habitat 
in the Chesapeake basin ($75 million).

                   TABLE 2. AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR EPA PROGRAMS UNDER S. 1816
----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2011   2012   2013   2014   2015  2011-2015
----------------------------------------------------------------------------------------------------------------
Storm Water Pollution Planning and Implementation Grants..........    302    302    302    302    302      1,510
Implementation, Monitoring, and Centers of Excellence Grants......    104    104    104    104    104        520
Chesapeake Basin Program Office...................................     20     20     20     20     20        100
Nutria Eradication Grants.........................................      4      4      4      4      4         20
Agricultural Animal Waste-to-Bioenergy Deployment Grants..........      6      6      6      6      6         30
Chesapeake Stewardship Grants.....................................     15     15     15     15     15         75
                                                                   ---------------------------------------------
    Total Authorization Level.....................................    451    451    451    451    451      2,255
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 1816 would 
impose intergovernmental and private-sector mandates as defined 
in UMRA. The bill would require the states of Delaware, New 
York, and West Virginia to develop and implement plans for 
improving water quality and restoring living resources in the 
Chesapeake basin. Implementing those plans would impose 
requirements on public and private entities such as wastewater 
facilities and industrial plants that discharge water into the 
basin. Because those states already comply with the underlying 
requirements of the plans, CBO estimates that the cost of the 
mandates would fall well below the annual thresholds 
established in UMRA for intergovernmental and private-sector 
mandates ($70 million and $141 million in 2010, respectively, 
adjusted annually for inflation).

Other impacts

    The bill would authorize a number of grant and assistance 
programs that would be available to state and local 
governments. In some cases, those programs would have matching 
or administrative requirements, but the costs of such 
requirements would be incurred voluntarily as conditions of 
participation.
    Estimate prepared by: Federal Spending: Susanne S. Mehlman; 
Impact on State, Local, and Tribal Governments: Ryan Miller; 
Impact on the Private Sector: Amy Petz.
    Estimate approvd by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

      ADDITIONAL VIEWS OF SENATORS JOHN BARRASSO AND DAVID VITTER

    While we appreciate the unique pollution situation in the 
Chesapeake Bay, and the tremendous federal involvement and 
cooperation in putting together the plan that inspired this 
bill, we remain concerned about a number of provisions in S. 
1816, the Chesapeake Clean Water and Ecosystem Restoration Act.
    First and foremost, this bill was designed and tailored to 
meet the specific needs of the Chesapeake Bay, and not to serve 
as a model for the rest of the United States. In putting this 
bill together, Senator Cardin took input from all of the states 
within the Chesapeake Basin and provided for their unique 
needs. For example, New York, Delaware, and West Virginia, 
states that are traditionally outside of the Chesapeake Bay 
Program (which includes Virginia, Maryland, Pennsylvania, and 
the District of Columbia) have been given additional time and 
resources to meet the pollution goals of the aggressive 15-year 
timeline. During consideration of S. 1816, the Committee moved 
separate bills for the following water bodies: the Great Lakes, 
the Gulf of Mexico, Long Island Sound, Puget Sound, the San 
Francisco Bay, and the Columbia River.\1\ Each of these 
approaches was also carefully discussed by local stakeholders 
and tailored to meet the needs of the particular water bodies 
they address.\2\ The Committee believes that what works in one 
watershed should not be an automatic template that applies to 
other areas of the country.
---------------------------------------------------------------------------
    \1\United States Senate Committee on Environment and Public Works, 
Full Committee Business Meeting, Wednesday, June 30, 2010, http://
epw.senate.gov/public/
index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=7f356e9b-802a-23ad-
45c5-6e51a788d6c2.
    \2\``Each of the restoration efforts takes a somewhat different 
approach to deal with the specific concerns of that region. This is as 
it should be. Each of these great water bodies is unique, and each 
deserves its own restoration strategy developed by its own set of 
stakeholders.'' 111th Congress Congressional Record. S6046, July 21, 
2010 (Statement of Sen. Cardin).
---------------------------------------------------------------------------
    By placing the unique approach S. 1816 takes to watershed 
restoration into Sec. 117 of the Clean Water Act, we are 
concerned that, either through creative rulemaking, or through 
court mandate, expanded EPA authorities in S. 1816 will 
inevitably be used for waters outside of the Chesapeake Basin. 
We do not believe that this is the intent of the author and co-
sponsors of this bill, and we know it is not the intent of the 
Committee to allow this. However, in my view, it would set a 
troubling precedent if this bill became law.
    On top of this, the bill's new EPA enforcement backstop 
will significantly shift the balance of power between the 
states and the federal government in dealing with regulation 
and management of water. For 38 years, the Clean Water Act and 
subsequent amendments have produced a federal-state partnership 
to clean up and properly care for our nation's navigable 
waters. This federal-state partnership has been a cornerstone 
of CWA legislation since its inception, successfully protecting 
waters of importance to the United States. The partnership has 
also given local and state governments important flexibility in 
meeting not only the goals of the CWA but the distinct needs of 
local residents. According to the CWA, ``it is the policy of 
the Congress to recognize, preserve, and protect the primary 
responsibilities and rights of states to prevent, reduce, and 
eliminate pollution, to plan the development and use (including 
restoration, preservation, and enhancement) of land and water 
resources.''\3\ However, S. 1816 has the potential to shift a 
great deal of power away from the states and into the hands of 
EPA. This is primarily done through states giving EPA their 
watershed implementation plans for approval and expanded 
permitting authorities.
---------------------------------------------------------------------------
    \3\CWA 101(b).
---------------------------------------------------------------------------
    Section 3(i)(1) lays out the requirements for watershed 
implementation plans. This new scheme requires, in 
3(i)(1)(A)(iv)(1), ``State adopted management measures, 
including rules, or regulations, permits, consent decrees, and 
other enforceable or otherwise binding measures from point and 
nonpoint pollution sources.'' The CWA has never been able to 
require that states adopt implementation plans that are wholly 
enforceable by permit or other binding measures. Currently 
states meet their water pollution control goals through a 
combination of both binding and voluntary measures. 
Additionally, states have made great progress in improving 
water quality through voluntary partnerships and programs. 
Under the Clean Water Act, funding is set aside for a number of 
cooperative, highly successful, voluntary programs, such as the 
nonpoint source management programs under Section 319\4\ and 
the National Estuary Program under Section 320.\5\ By requiring 
that any management measure be binding and enforceable, states 
will have to take on unnecessary regulatory burden, not just in 
writing the new permits, but also in enforcing them. Moreover, 
the requirement for binding, enforceable permits may prevent 
states from achieving greater participation through a voluntary 
program.
---------------------------------------------------------------------------
    \4\In 2008, Chugwater Creek, a tributary to the Laramie River, in 
the North Platte River Basin of Wyoming was removed from WYDEQ's 303(d) 
list of impaired waters after a stakeholder group including local 
landowners, the local irrigation district, Platte County Resource 
District, Wyoming Game and Fish Department, and Pheasants Forever 
adopted numerous best management practices to reduce sedimentation. 
This successful project was made possible through CWA 319 program 
authorities. (see: http://www.epa.gov/owow/NPS/success/state/
wy_chug.htm) For more EPA 319 success stories, including dramatic 
pollution reduction in Chesapeake Basin states, see EPA's Office of 
Water's 321 page report: http://www.epa.gov/owow_keep/NPS/Success319/
pdf/319_all.pdf.
    \5\For reports regarding NEP successes, please look at testimony 
submitted for the June 26, 2008, the House Subcommittee on Water 
Resources and Environment held a hearing on ``Protecting and Restoring 
America's Great Waters, Part 1: Coasts and Estuaries.'' http://
transportation.house.gov/hearings/hearingDetail.aspx?NewsID=686. At 
that hearing, Richard Ribb, Director of the Narrangansett Bay Estuary 
Program stated that ``One of the successes of the program certainly is 
due to its non-regulatory approach. It provides a neutral forum for 
people to discuss issues and come to agreement on solutions.'' 
Additionally, EPA's website on the National Estuary Program boasts 
about their ``. . . success stories demonstrate the significant work 
being done . . . the NEPs implement the Clean Water Act in Ways that 
are Effective, Efficient, Collaborative, and Adaptive.'' http://
water.epa.gov/type/oceb/nep/action.cfm.
---------------------------------------------------------------------------
    S. 1816 allows, for the first time ever, CWA 402 National 
Pollution Discharge Permits (NPDES) to be used and enforced for 
any pollution discharge or runoff the state would like to 
permit in order to meet their watershed implementation plans. 
3(i)(2)(A) reads:

          Notwithstanding any other provision of this Act 
        (including any exclusion or exception contained in a 
        definition under section 502) and in accordance with 
        State laws (including regulations), after providing 
        appropriate opportunities for public comment, for the 
        purpose of achieving the nitrogen, phosphorus, and 
        sediment reductions required under a watershed 
        implementation plan, a Chesapeake Basin State, or, if 
        the State is not authorized to administer the permit 
        program under section 402, the Administrator, may 
        impose limitations or other controls, including permit 
        requirements, on any discharge or runoff from a 
        pollution source, including point and nonpoint sources, 
        located within the Chesapeake Basin State that the 
        program administrator determines to be necessary.

    This is a tremendous expansion of the NPDES permitting 
authority. Under current law, NPDES permits are for discharges 
of pollutants from any point source into waters of the United 
States.\6\ There is nothing in 3(i)(2)(A) that limits NPDES 
permits to just pollution of nitrogen, phosphorous, and 
sediment, as it allows any permits to be written for achieving 
the reductions required under the watershed implementation 
plan. For the first time, this bill allows permits to be 
written for nonpoint sources. This is a dramatic and 
fundamental expansion to the CWA permitting system.
---------------------------------------------------------------------------
    \6\Water Permitting 101, USEPA Office of Wastewater Management--
Water Permitting, http://www.epa.gov/npdes/pubs/101pape.pdf.
---------------------------------------------------------------------------
    Without limiting the kinds of discharges that can be 
regulated, conceivably any activity that involves water moving 
on a property could be regulated by an NPDES permit. It is 
unknown to what extent permitting could be used for existing 
sources, but it is safe to assume that, if the water quality 
goals set forth in the Chesapeake Bay TMDL are stringent 
enough, permits could be widely required for existing 
structures, not being currently developed or re-developed, 
including businesses, farms, and private residences. 
Furthermore, expanding the states use of 402 permits will 
inevitably result in more lawsuits, as all 402 permits written 
by states will be immediately enforceable through citizen 
suits.
    The 402 universe is further expanded by the removal of the 
current 502 exemption. Under the S. 1816 regime, states may 
require NPDES permits for agricultural stormwater discharges 
and irrigation return flows, which have been specifically 
exempted from permit requirements.\7\ NPDES permits 
traditionally contain strict numeric criteria that would be 
incredibly difficult to adapt to agricultural stormwater 
situations. Because agricultural runoff is largely dictated by 
rainfall, something that agricultural producers do not have 
control over, meeting numeric limitations will be extremely 
difficult and potentially costly.
---------------------------------------------------------------------------
    \7\CWA 502(14).
---------------------------------------------------------------------------
    Furthermore, it appears that the added provision against 
section 309 enforcement for farmers actually fails to provide 
any shield from enforcement actions. The protection in 
3(i)(2)(C) only applies if the agricultural producer can prove 
he is in compliance with the permit and nutrient management 
plans and soil conservation plans, and every provision of the 
state watershed implementation plan. This provision does not 
stop EPA or an activist from filing lawsuits against 
agricultural producers. In fact, depending on interpretation, 
it may make it even harder for an agricultural producer to 
defend itself from a lawsuit because the section implies that a 
producer must not only comply with the terms of a Clean Water 
Act permit, but also any additional requirements found in 
nutrient management and conservation plans or in the watershed 
implementation plan itself. Thus, this provision provides no 
protection at all from lawsuits.
    I am also concerned about how S. 1816 will impact farmers 
in the Chesapeake Bay region and how they could be the 
``camel's nose under the tent'' for regulating agriculture in 
the rest of the country. In testimony before the committee, the 
Honorable Gus Douglass, the Commissioner of the West Virginia 
Department of Agriculture argued against additional regulatory 
schemes for agriculture in the Chesapeake Basin. He testified: 
``Additional regulations at this time will be burdensome to 
both the agriculture community and the state as they try to 
implement regulations.'' Instead, he argued for continued 
support for the successful voluntary incentive-based approach 
to helping farmers achieve water quality goals for the 
Chesapeake Bay.\8\ Additional permit burdens will only further 
disadvantage family farmers who are struggling now.
---------------------------------------------------------------------------
    \8\Testimony of the Honorable Gus Douglass, Commissioner West 
Virginia Department of Agriculture, Subcommittee on Water and Wildlife 
hearing entitled, ``A Renewed Commitment to Protecting the Chesapeake 
Bay: Reauthorizing the Chesapeake Bay Program.'' Monday, August 3, 
2009. http://epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore_id=a0cc8539-a342-4fc9-bd6d-
11d6cad46524.
---------------------------------------------------------------------------
    In the event that states do not have 402 authority, 
3(i)(2)(A) gives EPA the authority to write these permits. 
Currently, the District of Columbia does not have any delegated 
NPDES authority and Pennsylvania doesn't have NPDES authority 
for the State Pretreatment Program.\9\ Right now, EPA will have 
the sole authority to permit nonpoint sources in the District 
of Columbia, and, if EPA takes over any Chesapeake Basin 
state's authority prior to S. 1816 becoming law, then EPA will 
have complete authority to permit nonpoint sources in that 
state. This is concerning because EPA has been petitioned by 
the Sierra Club, West Virginia Highlands Conservancy, Coal 
River Mountain Watch, and Ohio Valley Environmental Coalition 
to begin formal proceedings to withdraw approval of West 
Virginia's NPDES program.\10\
---------------------------------------------------------------------------
    \9\EPA Office of Water: NPDES State Program Status: http://
cfpub.epa.gov/npdes/statestats.cfm as of 15 September 2010.
    \10\``EPA Petitioned to Revoke West Virgina's Clean Water 
Authority'' ENS News Service, June 22, 2009 http://www.ens-
newswire.com/ens/jun2009/2009-06-22-091.asp.
---------------------------------------------------------------------------
    In the event that EPA utilizes the expanded 402 authority 
outside of the Chesapeake Basin, Idaho, Massachusetts, New 
Hampshire, New Mexico, American Samoa, Guam, Johnston Atoll, 
Midway Island, Northern Mariana Islands, and Wake Island would 
have EPA fully in control of their programs. Oklahoma and Texas 
would have to share authority with EPA to write nonpoint source 
permits for some of their programs, since they do not have 
NPDES authority to permit for activities associated CAFOs or 
with the exploration, development, or production of oil or gas 
or geothermal resources, including transportation of crude oil 
or natural gas by pipeline.\11\
---------------------------------------------------------------------------
    \11\EPA Office of Water: NPDES Specific State Program Status http:/
/cfpub.epa.gov/npdes/statestats.cfm?program_id=45&view=specific as of 
15 September 2010.
---------------------------------------------------------------------------
    S. 1816 also will alter the relationship between EPA and 
the states relationship for responsibilities for water will be 
altered by S. 1816. There are two potential scenarios in terms 
of watershed implementation plans. States can submit their 
plans to EPA for approval, or they can choose not to. Once a 
state submits its plan for approval, if EPA believes the plan 
is inadequate, it can take over the entire program and issue 
permits for whatever it wants. Even if EPA chooses not to take 
over a plan, we remain deeply concerned that once a plan is 
submitted for approval, all the provisions in the plan are 
subject to second-guessing by activist groups through citizen 
suits and TMDL implementation by court order.
    If a state submits a plan to EPA, and EPA approves it, any 
group that disagrees with that decision could bring an action 
against EPA to compel them to reconsider and disapprove it. 
Such speculation is not far-fetched. Current law already 
requires EPA to ``ensure'' that ``management plans are 
developed and implemented'' by Chesapeake Basin states. Even 
though the legislative history of that provision states that it 
confers no regulatory authority and is to be implemented by 
issuing grants, the Chesapeake Bay Foundation sued EPA for 
failing to meet that nondiscretionary duty and EPA settled that 
case by making many commitments related to the Chesapeake Bay 
TMDL.\12\ This could happen as Phase I state watershed 
implementation plans are submitted to EPA in early September 
2010 have already been criticized by environmentalists.\13\ If 
S. 1816 were in effect and applied to those plans, these groups 
could challenge any EPA approval of those plans by alleging a 
failure to meet the many mandates in this bill.
---------------------------------------------------------------------------
    \12\Fowler v. EPA, see press release ``EPA Reaches Settlement in 
Chesapeake Bay Lawsuit'' 11 March 2010 http://yosemite.epa.gov/opa/
admpress.nsf/ 0/ac46af32562521d48525772000591133?OpenDocument.
    \13\``States' Bay Cleanup Plans Fall Short Of EPA-Mandated 
Pollution Reductions'' Inside EPA 13 September 2010 http://
insideepa.com/Water-Policy-Report/Water-Policy-Report-09/13/2010/
states-bay-cleanup-plans-fall-short-of-epa-mandated-pollution-
reductions/menu-id-127.html.
---------------------------------------------------------------------------
    Section (3)(j)(5) gives EPA authority to directly carry out 
a state watershed implementation plan if the state submitted 
that plan to EPA for approval and EPA decides that plan is 
inadequate. EPA can also carry out a state watershed 
implementation plan if the state fails to submit a required 
revised plan, fails to submit a biennial report, misses a 2-
year milestone, or fails to remedy a disapproved plan. Again, 
citizen suits may force EPA to take over implementation of a 
plan on grounds that milestones are not being met or the plan 
is inadequate. Furthermore, in the event that a state fails to 
stay on its watershed implementation schedule, EPA has a 
judicially enforceable, nondiscretionary duty to withhold state 
funding, including SRF funds; develop and administer new 
watershed implementation plans; and require that any new or 
expanded discharges under 402 have stringent offsets. 
Essentially, by submitting a watershed implementation plan to 
EPA for approval, states will cede decision making authority 
over Chesapeake Basin water to the federal government.
    If a state does not submit a watershed implementation plan 
to EPA for approval, then S. 1816 does not grant EPA new 
implementation or enforcement authority. However, EPA has 
already threatened to compel states to submit watershed 
implementation plans to EPA for approval, even though the Clean 
Water Act does not grant EPA that authority. In a letter dated 
December 29, 2009, EPA threatened to take the following actions 
against states that do not submit their plans to EPA:
     Expanding coverage of National Pollutant Discharge 
Elimination System (NPDES) permits to sources that are 
currently unregulated.
     Increasing oversight of state-issued NPDES 
permits.
     Requiring additional pollution reductions from 
point sources such as wastewater treatment plants.
     Increasing federal enforcement and compliance in 
the watershed.
     Prohibiting new or expanded pollution discharges 
unless sufficient offsets are provided.
     Redirecting EPA grants.
     Revising water quality standards to better protect 
local and downstream waters.
     Establishing finer scale load allocations in the 
Bay TMDL.\14\
---------------------------------------------------------------------------
    \14\``EPA Outlines Framework for Holding States, D.C. Accountable 
for Reducing Chesapeake Bay Watershed Pollution; Additional $11.2 
Million Provided'' Release date: 12/29/2009 http://yosemite.epa.gov/
opa/admpress.nsf/e51aa292bac25b0b85257359003d925f/
aa36226e613bfb9e8525769b005d85b2!OpenDocument.
---------------------------------------------------------------------------
    S. 1816 contains additional citizen suits provisions. As 
citizen suits are already allowed in the Clean Water Act, a new 
citizen's suit right is not necessary in this bill. Rather than 
allowing special interest groups to sue for permit violators to 
be enforced upon, at a cost to the taxpayers, a better 
enforcement strategy would be to subject a state to an 
enforcement action by the Administrator when they are found to 
violate this act, which is a much more appropriate measure to 
help clean up the bay watershed. Allowing an expanded citizens 
suit provision will only get the states bogged down with 
unnecessary and potentially inappropriate litigations.
    Finally, I am extremely concerned that provisions that 
compel states to take on the enforcement and enactment of a 
federal regulatory program may be unconstitutional. The Supreme 
Court has previously struck down\15\ provisions of federal law 
that placed burdensome requirements on states. The Court held 
that Congress may not ``commandeer the legislative processes of 
the States by directly compelling them to enact and enforce a 
federal regulatory program.''\16\ Specifically the court 
pointed out that such detailed instructions to the states on 
how to implement federal programs are outside of Congress' 
purview. ``While Congress has substantial power to govern the 
Nation directly, . . . the Constitution has never been 
understood to confer upon Congress the ability to require the 
States to govern according to Congress' instruction.''\17\ The 
severability clause that S. 1816 contains in Section (3)(q) ``A 
determination that any provisions of this section is invalid, 
illegal, unenforceable, or in conflict with any other law shall 
not affect the validity, legality, or enforceability of the 
remaining provisions of this section,'' seems to prepare for 
this constitutional challenge.
---------------------------------------------------------------------------
    \15\New York v. United States, 505 U.S. 144 (1992).
    \16\Id. at 161.
    \17\Id. at 162.
---------------------------------------------------------------------------
    Again, we sincerely respect the process that Sen. Cardin 
and the co-sponsors of this legislation have gone through to 
help the Chesapeake Bay. We believe from introduction through 
committee mark up on August 30, 2010, important, beneficial 
changes were made to this bill that allowed for its smooth 
passage through committee, and we sincerely hope more will be 
done before this sees further Congressional action.

                                   John Barrasso.
                                   David Vitter.

                        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

           *       *       *       *       *       *       *



SEC. 117. CHESAPEAKE BAY.

  [(a) Definitions.--In this section, the following definitions 
apply:
          [(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; and
                  [(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 a 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.--A 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, 
                creation, 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, creation, 
                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, including 
                        the creation, restoration, protection, 
                        or enhancement of habitat associated 
                        with the Chesapeake Bay ecosystem.
  [(h) Study of Chesapeake Bay Program.--
          [(1) In general.--Not later than April 22, 2003, 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) compare the current state of the 
                Chesapeake Bay ecosystem with its state in 
                1975, 1985, and 1995;
                  [(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 $40,000,000 for each 
of fiscal years 2001 through 2005. Such sums shall remain 
available until expended.]

SEC. 117. CHESAPEAKE BASIN PROGRAM.

  (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) Asian oyster.--The term `Asian oyster' means the 
        species Crassostrea ariakensis.
          (3) Baseline.--The term `baseline'--
                  (A) means the basic standard or level of the 
                nutrient control requirements a credit seller 
                shall achieve to be eligible to generate 
                saleable nutrient credits; and
                  (B) consists of the nutrient load reductions 
                required of individual sources to meet water 
                quality standards and load or waste load 
                allocations under all applicable total maximum 
                daily loads and watershed implementation plans.
          (4) Basin commissions.--The term `basin commissions' 
        means--
                  (A) the Interstate Commission on the Potomac 
                River Basin established under the interstate 
                compact consented to and approved by Congress 
                under the Joint Resolution of July 11, 1940 (54 
                Stat. 748, chapter 579) and Public Law 91-407 
                (84 Stat. 856);
                  (B) the Susquehanna River Basin Commission 
                established under the interstate compact 
                consented to and approved by Congress under 
                Public Law 91-575 (84 Stat. 1509) and Public 
                Law 99-468 (100 Stat. 1193); and
                  (C) the Chesapeake Bay Commission, a tri-
                State legislative assembly representing 
                Maryland, Virginia, and Pennsylvania created in 
                1980 to coordinate Bay-related policy across 
                State lines and to develop shared solutions.
          (5) Chesapeake basin.--The term `Chesapeake Basin' 
        means--
                  (A) the Chesapeake Bay; and
                  (B) the area consisting of 19 tributary 
                basins within the Chesapeake Basin States 
                through which precipitation drains into the 
                Chesapeake Bay.
          (6) Chesapeake basin ecosystem.--The term `Chesapeake 
        Basin ecosystem' means the ecosystem of the Chesapeake 
        Basin.
          (7) Chesapeake basin program.--The term `Chesapeake 
        Basin Program' means the program, formerly known as the 
        `Chesapeake Bay Program', directed by the Chesapeake 
        Executive Council in accordance with the Chesapeake Bay 
        Agreement (including any successor programs).
          (8) Chesapeake basin state.--The term `Chesapeake 
        Basin State' means any of--
                  (A) the States of Delaware, Maryland, New 
                York, Pennsylvania, Virginia, and West 
                Virginia; or
                  (B) the District of Columbia.
          (9) Chesapeake bay agreement.--The term `Chesapeake 
        Bay Agreement' means the formal, voluntary agreements 
        executed to achieve the goal of restoring and 
        protecting the Chesapeake Basin ecosystem and the 
        living resources of the Chesapeake Basin ecosystem and 
        signed by the Chesapeake Executive Council.
          (10) Chesapeake bay tidal segment.--The term 
        `Chesapeake Bay tidal segment' means any of the 92 
        tidal segments that--
                  (A) make up the Chesapeake Bay; and
                  (B) are identified by a Chesapeake Basin 
                State pursuant to section 303(d).
          (11) Chesapeake bay tmdl.--
                  (A) In general.--The term `Chesapeake Bay 
                TMDL' means the total maximum daily load 
                (including any revision) established or 
                approved by the Administrator for nitrogen, 
                phosphorus, and sediment loading to the waters 
                in the Chesapeake Bay and the Chesapeake Bay 
                tidal segments.
                  (B) Inclusions.--The term `Chesapeake Bay 
                TMDL' includes nitrogen, phosphorus, and 
                sediment allocations in temporal units of 
                greater-than-daily duration, if the 
                allocations--
                          (i) are demonstrated to achieve water 
                        quality standards; and
                          (ii) do not lead to violations of 
                        other applicable water quality 
                        standards for local receiving waters.
          (12) Chesapeake executive council.--The term 
        `Chesapeake Executive Council' means the signatories to 
        the Chesapeake Bay Agreement.
          (13) Cleaning agent.--The term `cleaning agent' means 
        a laundry detergent, dishwashing compound, household 
        cleaner, metal cleaner, degreasing compound, commercial 
        cleaner, industrial cleaner, phosphate compound, or 
        other substance that is intended to be used for 
        cleaning purposes.
          (14) Credit.--The term `credit' means a unit provided 
        for 1 pound per year of nitrogen, phosphorus, or 
        sediment that is--
                  (A) delivered to the tidal portion of the 
                Chesapeake Bay; and
                  (B) eligible to be sold under the trading 
                programs established by this section.
          (15) Director.--The term `director' means the 
        Director of the Chesapeake Basin Program Office of the 
        Environmental Protection Agency.
          (16) Local government.--The term `local government' 
        means any county, city, or other general purpose 
        political subdivision of a State with jurisdiction over 
        land use.
          (17) Menhaden.--The term `menhaden' means members of 
        stocks or populations of the species Brevoortia 
        tyrannus.
          (18) Nutria.--The term `nutria' means the species 
        Myocaster coypus.
          (19) Offset.--The term `offset' means a reduction of 
        loading of nitrogen, phosphorous, or sediment, as 
        applicable, in a manner that ensures that the net 
        loading reaching the Chesapeake Bay and the Chesapeake 
        Bay tidal segments from a source--
                  (A) does not increase; or
                  (B) is reduced.
          (20) Signatory jurisdiction.--The term `signatory 
        jurisdiction' means a jurisdiction of a signatory to 
        the Chesapeake Bay Agreement.
          (21) Tributary basin.--The term `tributary basin' 
        means an area of land or body of water that--
                  (A) drains into any of the 19 Chesapeake Bay 
                tributaries or tributary segments; and
                  (B) is managed through watershed 
                implementation plans under this Act.
  (b) Renaming and 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--
                  (A) rename the Chesapeake Bay Program, as in 
                existence on the date of enactment of the 
                Chesapeake Clean Water and Ecosystem 
                Restoration Act, as the `Chesapeake Basin 
                Program'; and
                  (B) continue to carry out the Chesapeake 
                Basin Program.
          (2) Meetings.--
                  (A) In general.--The Chesapeake Executive 
                Council shall meet not less frequently than 
                once each year.
                  (B) Open to public.--
                          (i) In general.--Subject to clause 
                        (ii), a meeting of the Chesapeake 
                        Executive Council shall be held open to 
                        the public.
                          (ii) Exception.--The Chesapeake 
                        Executive Council may hold executive 
                        sessions that are closed to the public.
          (3) Program office.--
                  (A) In general.--The Administrator shall 
                maintain in the Environmental Protection Agency 
                a Chesapeake Basin Program Office.
                  (B) Function.--The Chesapeake Basin 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 Basin 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 Basin 
                        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 Basin 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 Basin.
  (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 soil 
        conservation districts, nonprofit organizations, State 
        and local governments, basin commissions, and 
        institutions of higher education 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) Chesapeake basin stewardship grants 
                program.--The Federal share of an assistance 
                grant provided under paragraph (1) to carry out 
                an implementing activity under subsection 
                (h)(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) Nutrient trading guarantee pilot program.--The 
        project manager of the Chesapeake nutrient trading 
        guarantee program established under subsection 
        (e)(1)(D) shall be eligible to receive technical 
        assistance or technical assistance grants under this 
        subsection.
  (e) Implementation, Monitoring, and Centers of Excellence 
Grants.--
          (1) Grants.--
                  (A) Implementation grants.--The Administrator 
                shall make an implementation grant to the 
                Chesapeake Basin State, or a designee of a 
                Chesapeake Basin State (including a soil 
                conservation district, nonprofit organization, 
                local government, institution of higher 
                education, basin commission, or interstate 
                agency), for the purposes of implementing an 
                approved watershed implementation plan of the 
                Chesapeake Basin State under subsection (i) and 
                achieving the goals established under the 
                Chesapeake Bay Agreement, subject to such terms 
                and conditions as the Administrator considers 
                to be appropriate.
                  (B) Monitoring grants.--The Administrator may 
                make a monitoring grant to--
                          (i) a Chesapeake Basin State, 
                        designee of a Chesapeake Basin State, 
                        soil conservation district, nonprofit 
                        organization, local government, 
                        institution of higher education, or 
                        basin commission for the purpose of 
                        monitoring the ecosystem of freshwater 
                        tributaries to the Chesapeake Bay; or
                          (ii) any of the States of Delaware, 
                        Maryland, or Virginia (or a designee), 
                        the District of Columbia (or a 
                        designee), nonprofit organization, 
                        local government, institution of higher 
                        education, or interstate agency for the 
                        purpose of monitoring the Chesapeake 
                        Bay, including the tidal waters of the 
                        Chesapeake Bay.
                  (C) Centers of excellence grants.--The 
                Administrator, in consultation with the 
                Secretary of Agriculture, may make grants to 
                institutions of higher education, consortia of 
                such institutions, or public, non-affiliated 
                nonprofit organizations for the purpose of 
                establishing and supporting centers of 
                excellence for water quality and agricultural 
                practices--
                          (i) to develop new technologies and 
                        innovative policies and practices for 
                        agricultural producers to reduce 
                        nitrogen, phosphorous, and sediment 
                        pollution;
                          (ii) to quantify the expected load 
                        reductions of those pollutants to be 
                        achieved in the Chesapeake Basin 
                        through the implementation of current 
                        and newly developed technologies, 
                        policies, and practices; and
                          (iii) to provide to the Administrator 
                        and the Secretary recommendations for--
                                  (I) the widespread deployment 
                                of those technologies, 
                                policies, and practices among 
                                agricultural producers; and
                                  (II) the application of those 
                                technologies, policies, and 
                                practices in Chesapeake Basin 
                                computer models.
                  (D) Chesapeake nutrient trading guarantee 
                pilot program.--
                          (i) In general.--The Administrator, 
                        in consultation with the Chesapeake 
                        Basin States and the Secretary of 
                        Agriculture, shall establish a 
                        Chesapeake nutrient trading guarantee 
                        pilot program (referred to in this 
                        subparagraph as the `guarantee pilot 
                        program') to support the interstate 
                        trading program established under 
                        subsection (j)(6).
                          (ii) Purposes.--The purposes of the 
                        guarantee pilot program are--
                                  (I) to develop innovative 
                                policies and practices to more 
                                efficiently and effectively 
                                implement best management 
                                practices, primarily on 
                                agricultural land;
                                  (II) to leverage public 
                                funding to raise private 
                                capital to accelerate the 
                                restoration of the Chesapeake 
                                Bay by providing a Federal 
                                guarantee on nutrient credit 
                                purchases; and
                                  (III) to support nutrient 
                                trading throughout the 
                                Chesapeake Basin.
                          (iii) Project manager.--
                                  (I) In general.--The 
                                Administrator shall designate a 
                                project manager to carry out 
                                the guarantee pilot program.
                                  (II) Qualifications.--The 
                                project manager shall be an 
                                institution of higher 
                                education, a nonprofit 
                                organization, or a basin 
                                commission that--
                                          (aa) demonstrates 
                                        thorough knowledge and 
                                        understanding of best 
                                        management practices 
                                        that result in nutrient 
                                        reductions in the 
                                        Chesapeake Basin;
                                          (bb) demonstrates 
                                        thorough knowledge and 
                                        understanding of the 
                                        Chesapeake watershed 
                                        computer model of the 
                                        Environmental 
                                        Protection Agency;
                                          (cc) demonstrates 
                                        thorough knowledge and 
                                        understanding of the 
                                        relevant environmental 
                                        regulations relating to 
                                        the Chesapeake Basin;
                                          (dd) has a 
                                        demonstrated history of 
                                        discharging fiduciary 
                                        responsibilities with 
                                        transparency and in 
                                        accordance with all 
                                        applicable accounting 
                                        standards; and
                                          (ee) has relevant 
                                        experience with 
                                        pollution offsets and 
                                        transactions involving 
                                        pollution offsets.
                                  (III) Duties.--
                                          (aa) In general.--The 
                                        project manager shall 
                                        provide guarantees to 
                                        purchasers of nutrient 
                                        credits under the 
                                        interstate trading 
                                        program established 
                                        under subsection 
                                        (j)(6).
                                          (bb) Managerial 
                                        duties.--In carrying 
                                        out the guarantee pilot 
                                        program, the project 
                                        manager shall--
                                                  (AA) identify 
                                                best management 
                                                practices that 
                                                result in the 
                                                greatest 
                                                reduction in 
                                                pollution 
                                                levels;
                                                  (BB) 
                                                establish 
                                                offset metrics 
                                                for 
                                                calculation, 
                                                verification, 
                                                and monitoring 
                                                protocols in 
                                                collaboration 
                                                with Federal 
                                                and State 
                                                programs;
                                                  (CC) manage 
                                                and oversee 
                                                project 
                                                verification 
                                                and monitoring 
                                                processes;
                                                  (DD) 
                                                establish 
                                                procedures that 
                                                minimize 
                                                transaction 
                                                costs and 
                                                eliminate 
                                                unnecessary or 
                                                duplicative 
                                                administrative 
                                                processes;
                                                  (EE) take 
                                                ownership of 
                                                the nutrient 
                                                reduction 
                                                offsets from 
                                                any private 
                                                funding source 
                                                for an activity 
                                                carried out 
                                                under this 
                                                subparagraph;
                                                  (FF) enter 
                                                into agreements 
                                                with private 
                                                funding sources 
                                                that enable a 
                                                private funding 
                                                source, at the 
                                                conclusion of a 
                                                project, to 
                                                sell the 
                                                verified 
                                                nutrient 
                                                reduction 
                                                offset to the 
                                                program manager 
                                                at an agreed 
                                                upon price, or 
                                                to sell the 
                                                verified 
                                                nutrient 
                                                reduction 
                                                offsets; and
                                                  (GG) manage 
                                                the Chesapeake 
                                                Nutrient 
                                                Trading 
                                                Guarantee Fund.
                          (iv) Credit purchaser requirements.--
                        As a condition of receiving a guarantee 
                        under this subparagraph, a purchaser 
                        shall comply with--
                                  (I) the regulations 
                                promulgated by the 
                                Administrator under subsection 
                                (j)(6);
                                  (II) any application 
                                procedure that the 
                                Administrator, in consultation 
                                with the project manager, 
                                determines to be necessary; and
                                  (III) any other applicable 
                                laws (including regulations).
                          (v) Termination.--The guarantee pilot 
                        program shall terminate on the date 
                        that is 5 years after the date of the 
                        establishment of the interstate trading 
                        program under subsection (j)(6).
                          (vi) Reports.--
                                  (I) In general.--The project 
                                manager shall--
                                          (aa) ensure public 
                                        transparency for all 
                                        nutrient trading 
                                        activities through a 
                                        publicly available 
                                        trading registry; and
                                          (bb) submit an annual 
                                        report to the 
                                        Administrator, the 
                                        Committee on 
                                        Environment and Public 
                                        Works of the Senate, 
                                        and the Committee on 
                                        Transportation and 
                                        Infrastructure of the 
                                        House of 
                                        Representatives.
                                  (II) Contents.--A report 
                                under subclause (I)(bb) shall 
                                include a description of--
                                          (aa) the activities 
                                        funded by the guarantee 
                                        pilot program;
                                          (bb) the nutrient 
                                        reductions achieved by 
                                        each project carried 
                                        out under the guarantee 
                                        pilot program;
                                          (cc) the efficiency 
                                        of each project carried 
                                        out under the guarantee 
                                        pilot program, measured 
                                        in pounds of pollution 
                                        reduced per dollar 
                                        expended;
                                          (dd) the total 
                                        quantity of nitrogen, 
                                        phosphorus, and 
                                        sediment reduced; and
                                          (ee) the total amount 
                                        of private funds 
                                        leveraged.
                  (E) Chesapeake nutrient trading guarantee 
                fund.--
                          (i) Establishment of fund.--There is 
                        established in the Treasury of the 
                        United States a fund to be known as the 
                        `Chesapeake Nutrient Trading Guarantee 
                        Fund' (referred to in this subparagraph 
                        as the `Fund'), to be administered by 
                        the Administrator, to be available for 
                        5 years after the date of the 
                        establishment of the interstate trading 
                        program under subsection (j)(6) and 
                        subject to appropriation, for the 
                        purposes described in subparagraph 
                        (D)(ii).
                          (ii) Transfers to fund.--The Fund 
                        shall consist of such amounts as are 
                        appropriated to the Fund under 
                        subsection (p)(2)(v).
                          (iii) Prohibition.--Amounts in the 
                        Fund may not be made available for any 
                        purpose other than a purpose described 
                        in clause (i).
                          (iv) Termination.--Subject to clause 
                        (v), the Fund shall terminate on the 
                        date that is 5 years after the date of 
                        establishment of the interstate trading 
                        program under subsection (j)(6).
                          (v) Unobligated amounts.--On the 
                        termination of the Fund, the 
                        Administrator shall--
                                  (I) require the return of any 
                                unobligated amounts in the Fund 
                                to the Secretary of the 
                                Treasury; or
                                  (II) reauthorize the use of 
                                the Fund for the purposes 
                                described in clause (i).
                          (vi) Annual reports.--
                                  (I) In general.--Not later 
                                than 60 days after the end of 
                                each fiscal year beginning with 
                                the first fiscal year after the 
                                date of the establishment of 
                                the interstate trading program 
                                under subsection (j)(6), the 
                                Administrator shall submit to 
                                the Committee on Appropriations 
                                of the House of 
                                Representatives, the Committee 
                                on Appropriations of the 
                                Senate, the Committee on 
                                Environment and Public Works of 
                                the Senate, and the Committee 
                                on Transportation and 
                                Infrastructure of the House of 
                                Representatives a report on the 
                                operation of the Fund during 
                                the fiscal year.
                                  (II) Contents.--Each report 
                                shall include, for the fiscal 
                                year covered by the report, the 
                                following:
                                          (aa) A statement of 
                                        the amounts deposited 
                                        in the Fund.
                                          (bb) A description of 
                                        the expenditures made 
                                        from the Fund for the 
                                        fiscal year, including 
                                        the purpose of the 
                                        expenditures.
                                          (cc) Recommendations 
                                        for additional 
                                        authorities to fulfill 
                                        the purpose of the 
                                        Fund.
                                          (dd) A statement of 
                                        the balance remaining 
                                        in the Fund at the end 
                                        of the fiscal year.
          (2) Administration.--
                  (A) In general.--Subject to subparagraph (C), 
                in making implementation grants to each of the 
                Chesapeake Basin States for a fiscal year under 
                this subsection, the Administrator shall ensure 
                that not less than--
                          (i) 10 percent of the funds available 
                        to make such grants are made to the 
                        States of Delaware, New York, and West 
                        Virginia (or designees of those 
                        States); and
                          (ii) 20 percent of the funds 
                        available to make such grants are made 
                        to States (or designees of the States) 
                        for the sole purpose of providing 
                        technical assistance to agricultural 
                        producers and forest owners to access 
                        conservation programs and other 
                        resources devoted to improvements in, 
                        and protection of, water quality in the 
                        Chesapeake Bay and the tributaries of 
                        the Chesapeake Bay, in accordance with 
                        subparagraph (B).
                  (B) Technical assistance.--A State (or 
                designees of a State) may use any soil 
                conservation district, nonprofit organization, 
                private sector vendor, or other appropriately 
                qualified provider to deliver technical 
                assistance to agricultural producers and forest 
                owners under subparagraph (A)(ii).
                  (C) Nonapplicability to dc.--This paragraph 
                shall not apply to any implementation grant 
                provided to the District of Columbia.
          (3) Proposals.--
                  (A) Implementation grants.--
                          (i) In general.--A Chesapeake Basin 
                        State 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 programs and achieve the 
                        goals established under the Chesapeake 
                        Bay Agreement.
                          (ii) Implementation grant contents.--
                        A proposal under clause (i) shall 
                        include--
                                  (I) a description of the 
                                proposed actions that the 
                                Chesapeake Basin State commits 
                                to take within a specified time 
                                period, including 1 or more of 
                                actions that are designed--
                                          (aa) to achieve and 
                                        maintain all applicable 
                                        water quality 
                                        standards, including 
                                        standards necessary to 
                                        support the aquatic 
                                        living resources of the 
                                        Chesapeake Bay and 
                                        related tributaries and 
                                        to protect human 
                                        health;
                                          (bb) to restore, 
                                        enhance, and protect 
                                        the finfish, shellfish, 
                                        waterfowl, and other 
                                        living resources, 
                                        habitats of those 
                                        species and resources, 
                                        and ecological 
                                        relationships to 
                                        sustain all fisheries 
                                        and provide for a 
                                        balanced ecosystem;
                                          (cc) to preserve, 
                                        protect, and restore 
                                        those habitats and 
                                        natural areas that are 
                                        vital to the survival 
                                        and diversity of the 
                                        living resources of the 
                                        Chesapeake Bay and 
                                        associated rivers;
                                          (dd) to develop, 
                                        promote, and achieve 
                                        sound land use 
                                        practices that protect 
                                        and restore watershed 
                                        resources and water 
                                        quality, reduce or 
                                        maintain reduced 
                                        pollutant loadings for 
                                        the Chesapeake Bay and 
                                        related tributaries, 
                                        and restore and 
                                        preserve aquatic living 
                                        resources;
                                          (ee) to promote 
                                        individual stewardship 
                                        and assist individuals, 
                                        community-based 
                                        organizations, 
                                        businesses, local 
                                        governments, and 
                                        schools to undertake 
                                        initiatives to achieve 
                                        the goals and 
                                        commitments of the 
                                        Chesapeake Bay 
                                        Agreement; or
                                          (ff) to provide 
                                        technical assistance to 
                                        agricultural producers, 
                                        forest owners, and 
                                        other eligible 
                                        entities, through 
                                        technical 
                                        infrastructure, 
                                        including activities, 
                                        processes, tools, and 
                                        agency functions needed 
                                        to support delivery of 
                                        technical services, 
                                        such as technical 
                                        standards, resource 
                                        inventories, training, 
                                        data, technology, 
                                        monitoring, and effects 
                                        analyses;
                                  (II) except with respect to 
                                any implementation grant 
                                proposal by the District of 
                                Columbia, a commitment to 
                                dedicate not less than 20 
                                percent of the grant funding 
                                for the Chesapeake Bay under 
                                this subsection to support 
                                technical assistance for 
                                agricultural and forest land or 
                                nutrient management practices 
                                that protect and restore 
                                watershed resources and water 
                                quality, reduce or maintain 
                                reduced pollutant loadings for 
                                the Chesapeake Bay and related 
                                tributaries, and restore and 
                                preserve aquatic living 
                                resources; and
                                  (III) the estimated cost of 
                                the actions proposed to be 
                                taken during the year.
                  (B) Monitoring grants.--
                          (i) In general.--An eligible entity 
                        described in paragraph (1)(B) may apply 
                        for a grant under this subsection for a 
                        fiscal year by submitting to the 
                        Administrator a comprehensive proposal 
                        to monitor freshwater or estuarine 
                        ecosystems, including water quality.
                          (ii) Monitoring grant contents.--A 
                        proposal under this subparagraph shall 
                        include--
                                  (I) a description of the 
                                proposed monitoring system;
                                  (II) certification by the 
                                Chesapeake Basin Program 
                                Director that such a monitoring 
                                system includes such parameters 
                                as the Chesapeake Basin Program 
                                Director determines to be 
                                necessary to assess progress 
                                toward achieving the goals of 
                                the Chesapeake Clean Water and 
                                Ecosystem Restoration Act; and
                                  (III) the estimated cost of 
                                the monitoring proposed to be 
                                conducted during the year.
                          (iii) Concurrences.--The 
                        Administrator shall--
                                  (I) obtain the concurrence of 
                                the Director of the United 
                                States Geological Survey 
                                regarding the design and 
                                implementation of the 
                                freshwater monitoring systems 
                                established under this 
                                subsection; and
                                  (II) obtain the concurrence 
                                of the Director of the 
                                Chesapeake Bay Office of the 
                                National Oceanic and 
                                Atmospheric Administration 
                                regarding the design and 
                                implementation of the estuarine 
                                monitoring systems established 
                                under this subsection.
                          (iv) Consultation.--The Administrator 
                        shall--
                                  (I) with regard to the 
                                freshwater monitoring system, 
                                consult with the basin 
                                commissions, institutions with 
                                expertise in clean water and 
                                agricultural policy and 
                                practices, and the Chesapeake 
                                Basin States regarding the 
                                design and implementation of 
                                the monitoring systems 
                                established under this 
                                subsection--
                                          (aa) giving 
                                        particular attention 
                                        through fine scale 
                                        instream and infield 
                                        stream-edge and 
                                        groundwater analysis to 
                                        the measurement of the 
                                        water quality 
                                        effectiveness of 
                                        agricultural 
                                        conservation program 
                                        implementation, 
                                        including the 
                                        Chesapeake Bay 
                                        Watershed Initiative 
                                        under section 1240Q of 
                                        the Food Security Act 
                                        of 1985 (16 U.S.C. 
                                        3839bb-4); and
                                          (bb) analyzing the 
                                        effectiveness of 
                                        stormwater pollution 
                                        control and mitigation 
                                        using green 
                                        infrastructure 
                                        techniques in 
                                        subwatersheds that have 
                                        high levels of 
                                        impervious surfaces;
                                  (II) with regard to the 
                                estuarine monitoring system, 
                                consult with institutions of 
                                higher education with expertise 
                                in estuarine systems and the 
                                Chesapeake Basin States 
                                regarding the monitoring 
                                systems established under this 
                                subsection;
                                  (III) consult with the 
                                Chesapeake Basin Program 
                                Scientific and Technical 
                                Advisory Committee regarding 
                                independent review of 
                                monitoring designs giving 
                                particular attention to 
                                integrated freshwater and 
                                estuarine monitoring 
                                strategies; and
                                  (IV) consult with Federal 
                                departments and agencies, 
                                including the Department of 
                                Agriculture, regarding 
                                cooperation in implementing 
                                monitoring programs.
  (f) Federal Facilities Coordination.--
          (1) Subwatershed planning and restoration.--A Federal 
        agency that owns or operates a facility (as defined by 
        the Administrator) within the Chesapeake Basin shall 
        participate in regional and subwatershed planning and 
        restoration programs.
          (2) Compliance with agreements and plans.--The head 
        of each Federal agency that owns or occupies real 
        property in the Chesapeake Basin shall ensure that the 
        property, and actions taken by the agency with respect 
        to the property, comply with--
                  (A) the Chesapeake Bay Agreement;
                  (B) the Federal Agencies Chesapeake Ecosystem 
                Unified Plan;
                  (C) the Chesapeake Basin action plan 
                developed in accordance with subparagraph 
                (g)(1)(A); and
                  (D) any subsequent agreements and plans.
          (3) Forest cover at federal facilities.--Not later 
        than January 1, 2012, the Administrator, with the 
        advice of the Chief of the Forest Service and the 
        appropriate Chesapeake Basin State forester, shall 
        coordinate with the head of each Federal agency that 
        owns or operates a facility within the Chesapeake Basin 
        (as determined by the Administrator) to develop plans 
        to maximize forest cover at the facility through--
                  (A) the preservation of existing forest 
                cover; or
                  (B) with respect to a facility that has been 
                previously disturbed or developed, the 
                development of a reforestation plan.
  (g) Federal Annual Action Plan and Progress Report.--The 
Administrator, in accordance with Executive Order 13508 
entitled `Chesapeake Bay Protection and Restoration' and signed 
on May 12, 2009 (74 Fed. Reg. 23099), shall--
          (1) make available to the public, not later than 
        March 31 of each year--
                  (A) a Chesapeake Basin action plan 
                describing, in the greatest practicable degree 
                of detail, how Federal funding proposed in the 
                annual budget of the United States submitted by 
                the President to Congress will be used to 
                protect and restore the Chesapeake Bay during 
                the upcoming fiscal year;
                  (B) an annual progress report that--
                          (i) assesses the key ecological 
                        attributes that reflect the health of 
                        the Chesapeake Basin ecosystem;
                          (ii) reviews indicators of 
                        environmental conditions in the 
                        Chesapeake Bay;
                          (iii) distinguishes between the 
                        health of the Chesapeake Basin 
                        ecosystem and the results of management 
                        measures;
                          (iv) assesses implementation of the 
                        action plan during the preceding fiscal 
                        year;
                          (v) recommends steps to improve 
                        progress in restoring and protecting 
                        the Chesapeake Bay and tributaries; and
                          (vi) describes how Federal funding 
                        and actions will be coordinated with 
                        the actions of States, basin 
                        commissions, and others; and
                  (C) an annual report, detailed at the State 
                and sector level where applicable, submitted by 
                the Administrator to the Chesapeake Basin 
                States and the public on specific recently 
                completed, pending, or proposed regulations, 
                guidance documents, permitting requirements, 
                enforcement actions, and other activities 
                carried out in accordance with the Executive 
                Order, including actions relating to the 
                Chesapeake Bay TMDL and State watershed 
                implementation plans.
          (2) create and maintain, with the concurrence of the 
        Secretary of Agriculture, a Chesapeake Basin-wide 
        database containing comprehensive data on 
        implementation of agricultural conservation management 
        practices in the Chesapeake Basin that--
                  (A) includes conservation management practice 
                implementation data, including, to the maximum 
                extent feasible, all publicly and privately 
                funded conservation practices, as of the 
                effective date of the Chesapeake Clean Water 
                and Ecosystem Restoration Act;
                  (B) includes data on subsequent conservation 
                management practice implementation projects 
                funded by, or reported to, the Department of 
                Agriculture, the appropriate department of any 
                Chesapeake Basin State, a local soil and water 
                conservation district, or any similar 
                institution;
                  (C) except with respect to data associated 
                with a permit or recorded in the trading 
                registry, as provided in subsection 
                (j)(6)(B)(viii), presents the required data to 
                the Administrator in statistical or aggregate 
                form without identifying any--
                          (i) individual owner, operator, or 
                        producer; or
                          (ii) specific data gathering site;
                  (D) is made available to the public not later 
                than December 31, 2010; and
                  (E) is updated not less frequently than once 
                every 2 years.
  (h) Chesapeake Basin Program.--
          (1) Management strategies.--The Administrator, in 
        coordination with other members of the Chesapeake 
        Executive Council, shall ensure that management plans 
        are developed and implemented by Chesapeake Basin 
        States to achieve and maintain--
                  (A) for each of the Chesapeake Basin States--
                          (i) the sediment and nutrient goals 
                        of the Chesapeake Bay Agreement for the 
                        quantity of sediment, nitrogen, and 
                        phosphorus entering the Chesapeake Bay 
                        and the tidal tributaries of the 
                        Chesapeake Bay; and
                          (ii) the water quality requirements 
                        necessary to restore living resources 
                        in the Chesapeake Bay and the tidal 
                        tributaries of the Chesapeake Bay; and
                  (B) for the signatory States--
                          (i) 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 
                        Basin ecosystem or on human health;
                          (ii) habitat restoration, protection, 
                        creation, and enhancement goals 
                        established by Chesapeake Bay Agreement 
                        for wetland, riparian forests, and 
                        other types of habitat associated with 
                        the Chesapeake Basin ecosystem; and
                          (iii) the restoration, protection, 
                        creation, and enhancement goals 
                        established by the Chesapeake Bay 
                        Agreement for living resources 
                        associated with the Chesapeake Basin 
                        ecosystem.
          (2) Chesapeake basin stewardship grants program.--The 
        Administrator, in cooperation with the Chesapeake 
        Executive Council, shall--
                  (A) establish a Chesapeake Basin Stewardship 
                Grants Program; and
                  (B) in carrying out that program--
                          (i) offer technical assistance and 
                        assistance grants under subsection (d) 
                        to States (or designees of States), 
                        local governments, soil conservation 
                        districts, institutions of higher 
                        education, nonprofit organizations, 
                        basin commissions, and private entities 
                        in the Chesapeake Basin region to 
                        implement--
                                  (I) cooperative watershed 
                                strategies that address the 
                                water quality, habitat, and 
                                living resource needs in the 
                                Chesapeake Basin;
                                  (II) locally based protection 
                                and restoration programs or 
                                projects within a watershed 
                                that complement the State 
                                watershed implementation plans, 
                                including the creation, 
                                restoration, or enhancement of 
                                habitat associated with the 
                                Chesapeake Basin ecosystem;
                                  (III) activities for 
                                increased spawning and other 
                                habitat for migratory fish by 
                                removing barriers or 
                                constructing fish passage 
                                devices, restoring streams with 
                                high habitat potential for cold 
                                water fisheries such as native 
                                brook trout, or other habitat 
                                enhancements for fish and 
                                waterfowl;
                                  (IV) activities for increased 
                                recreational access to the 
                                Chesapeake Bay and the tidal 
                                rivers and freshwater 
                                tributaries of the Chesapeake 
                                Bay; and
                                  (V) innovative nitrogen, 
                                phosphorus, or sediment 
                                reduction efforts; and
                          (ii) give preference to cooperative 
                        projects that involve local 
                        governments, soil conservation 
                        districts, and sportsmen associations, 
                        especially cooperative projects that 
                        involve public-private partnerships.
  (i) Actions by States.--
          (1) Watershed implementation plans.--
                  (A) Plans.--
                          (i) In general.--Not later than 
                        November 1, 2011, each Chesapeake Basin 
                        State, after providing for reasonable 
                        notice and 1 or more public meetings, 
                        may submit to the Administrator for 
                        approval a watershed implementation 
                        plan for the Chesapeake Basin State.
                          (ii) Targets.--The watershed 
                        implementation plan shall establish 
                        reduction targets, key actions, and 
                        schedules for reducing, to levels that 
                        will attain water quality standards, 
                        the loads of nitrogen, phosphorus, and 
                        sediment, including pollution from--
                                  (I) point sources, including 
                                point source stormwater 
                                discharges; and
                                  (II) nonpoint sources.
                          (iii) Pollution limitations.--
                                  (I) In general.--The 
                                pollution limitations shall be 
                                the nitrogen, phosphorus, and 
                                sediment load and wasteload 
                                allocations sufficient to meet 
                                Chesapeake Bay and Chesapeake 
                                Bay tidal segment water quality 
                                standards.
                                  (II) Stringency.--A watershed 
                                implementation plan shall be 
                                designed to attain, at a 
                                minimum, the pollution 
                                limitations described in 
                                subclause (I).
                          (iv) Plan requirements.--Each 
                        watershed implementation plan shall--
                                  (I) include State-adopted 
                                management measures, including 
                                rules or regulations, permits, 
                                consent decrees, and other 
                                enforceable or otherwise 
                                binding measures, to require 
                                and achieve reductions from 
                                point and nonpoint pollution 
                                sources;
                                  (II) include programs to 
                                achieve voluntary reductions 
                                from pollution sources, 
                                including an estimate of the 
                                funding commitments necessary 
                                to implement the programs and a 
                                plan for working to secure the 
                                funding;
                                  (III) include any additional 
                                requirements or actions that 
                                the Chesapeake Basin State 
                                determines to be necessary to 
                                attain the pollution 
                                limitations by the deadline 
                                established in this paragraph;
                                  (IV) provide for enforcement 
                                mechanisms, including a penalty 
                                structure for failures, such as 
                                fees or forfeiture of State 
                                funds, including Federal funds 
                                distributed or otherwise 
                                awarded by the State to the 
                                extent the State is authorized 
                                to exercise independent 
                                discretion in amounts of such 
                                distributions or awards, for 
                                use in case a permittee, local 
                                jurisdictions, or any other 
                                party fails to adhere to 
                                assigned pollutant limitations, 
                                implementation schedules, or 
                                permit terms;
                                  (V) include a schedule for 
                                implementation that--
                                          (aa) is divided into 
                                        2-year periods, along 
                                        with computer modeling, 
                                        or other appropriate 
                                        analysis, to 
                                        demonstrate the 
                                        projected reductions in 
                                        nitrogen, phosphorus, 
                                        and sediment loads 
                                        associated with each 2-
                                        year period; and
                                          (bb) demonstrates 
                                        reasonable additional 
                                        progress toward 
                                        achievement of the 
                                        goals described in--
                                                  (AA) 
                                                subclause 
                                                (VIII)(aa); and
                                                  (BB) clauses 
                                                (i) and (ii) of 
                                                subparagraph 
                                                (B);
                                  (VI) include the stipulation 
                                of alternate actions as 
                                contingencies;
                                  (VII) account for how the 
                                Chesapeake Basin State will 
                                address additional loadings 
                                from growth through reserved 
                                allocations, offsets, planned 
                                future controls, implementation 
                                of new technologies, or other 
                                actions;
                                  (VIII) provide assurances 
                                that--
                                          (aa) if compared to 
                                        an estimated 2008 
                                        baseline based on 
                                        modeled loads, the 
                                        initial plan shall be 
                                        designed to achieve, 
                                        not later than May 31, 
                                        2017, at least 60 
                                        percent of the nutrient 
                                        and sediment reduction 
                                        requirements described 
                                        in clause (iii)(I)(bb);
                                          (bb) the Chesapeake 
                                        Basin State will have 
                                        adequate personnel and 
                                        funding (or a plan to 
                                        secure such personnel 
                                        or funding), and 
                                        authority under State 
                                        (and, as appropriate, 
                                        local) law to carry out 
                                        the implementation 
                                        plan, and is not 
                                        prohibited by any 
                                        provision of Federal or 
                                        State law from carrying 
                                        out the implementation 
                                        plan; and
                                          (cc) to the extent 
                                        that a Chesapeake Basin 
                                        State has relied on a 
                                        local government for 
                                        the implementation of 
                                        any plan provision, the 
                                        Chesapeake Basin State 
                                        has the responsibility 
                                        for ensuring adequate 
                                        implementation of the 
                                        provision;
                                  (IX) include adequate 
                                provisions for public 
                                participation; and
                                  (X) upon the approval of the 
                                Administrator, be made 
                                available to the public on the 
                                Internet.
                  (B) Implementation.--
                          (i) In general.--In implementing a 
                        watershed implementation plan, each 
                        Chesapeake Basin State shall follow a 
                        strategy developed by the Administrator 
                        for the implementation of adaptive 
                        management principles to ensure full 
                        implementation of all plan elements by 
                        not later than May 12, 2025, 
                        including--
                                  (I) biennial evaluations of 
                                State actions;
                                  (II) progress made toward 
                                implementation;
                                  (III) determinations of 
                                necessary modifications to 
                                future actions in order to 
                                achieve objectives including 
                                achievement of water quality 
                                standards; and
                                  (IV) appropriate provisions 
                                to adapt to climate changes.
                          (ii) Deadline.--Not later than May 
                        12, 2025, each Chesapeake Basin State 
                        shall--
                                  (I) fully implement the 
                                watershed implementation plan 
                                of the State; and
                                  (II) have in place all the 
                                mechanisms outlined in the plan 
                                that are necessary to attain 
                                the applicable pollutant 
                                limitations for nitrogen, 
                                phosphorus, and sediments.
                  (C) Progress reports.--Not later than May 12, 
                2014, and biennially thereafter, each 
                Chesapeake Basin State shall submit to the 
                Administrator a progress report that, with 
                respect to the 2-year period covered by the 
                report--
                          (i) includes a listing of all 
                        management measures that were to be 
                        implemented in accordance with the 
                        approved watershed implementation plan 
                        of the Chesapeake Basin State, 
                        including a description of the extent 
                        to which those measures have been fully 
                        implemented;
                          (ii) includes a listing of all the 
                        management measures described in clause 
                        (i) that the Chesapeake Basin State has 
                        failed to fully implement in accordance 
                        with the approved watershed 
                        implementation plan of the Chesapeake 
                        Basin State;
                          (iii) includes monitored and 
                        collected water quality data;
                          (iv) includes appropriate computer 
                        modeling data or other appropriate 
                        analyses that detail the nitrogen, 
                        phosphorus, and sediment load 
                        reductions projected to be achieved as 
                        a result of the implementation of the 
                        management measures and mechanisms 
                        carried out by the Chesapeake Basin 
                        State;
                          (v) demonstrates reasonable 
                        additional progress made by the State 
                        toward achievement of the requirements 
                        and deadlines described in subparagraph 
                        (A)(iv)(VIII)(aa) and clauses (i) and 
                        (ii) of subparagraph (B);
                          (vi) includes, for the subsequent 2-
                        year period, implementation goals and 
                        Chesapeake Basin Program computer 
                        modeling data detailing the projected 
                        pollution reductions to be achieved if 
                        the Chesapeake Basin State fully 
                        implements the subsequent round of 
                        management measures;
                          (vii) identifies compliance 
                        information, including violations, 
                        actions taken by the Chesapeake Basin 
                        State to address the violations, and 
                        dates, if any, on which compliance was 
                        achieved; and
                          (viii) specifies any revisions to the 
                        watershed implementation plan submitted 
                        under this paragraph that the 
                        Chesapeake Basin State determines are 
                        necessary to attain the applicable 
                        pollutant limitations for nitrogen, 
                        phosphorus, and sediments.
          (2) Issuance of permits.--
                  (A) In general.--Notwithstanding any other 
                provision of this Act (including any exclusion 
                or exception contained in a definition under 
                section 502) and in accordance with State laws 
                (including regulations), after providing 
                appropriate opportunities for public comment, 
                for the purpose of achieving the nitrogen, 
                phosphorus, and sediment reductions required 
                under a watershed implementation plan, a 
                Chesapeake Basin State, or, if the State is not 
                authorized to administer the permit program 
                under section 402, the Administrator, may 
                impose limitations or other controls, including 
                permit requirements, on any discharge or runoff 
                from a pollution source, including point and 
                nonpoint sources, located within the Chesapeake 
                Basin State that the program administrator 
                determines to be necessary.
                  (B) Enforcement.--The Chesapeake Basin States 
                and the Administrator shall enforce any permits 
                issued in accordance with the watershed 
                implementation plan in the same manner as 
                permits issued under section 402 are enforced.
                  (C) Additional enforcement standards.--No 
                Federal enforcement action shall be brought 
                pursuant to section 309 against an agricultural 
                producer that is in compliance with all of the 
                applicable planning and scheduled 
                implementation requirements of the following, 
                as required by Federal, State, or other 
                locally-applicable law and consistent with an 
                approved State watershed implementation plan:
                          (i) State permits issued pursuant to 
                        section 402.
                          (ii) A soil conservation plan 
                        approved by the Federal Government or a 
                        State or local government, soil 
                        conservation district, or other 
                        applicable agency.
                          (iii) A government-approved nutrient 
                        management plan.
                          (iv) A State or locally approved 
                        erosion and sediment control plan.
                          (v) Any other applicable requirement 
                        described in an approved State 
                        watershed implementation plan.
                  (D) De minimis exemptions.--The Administrator 
                (with respect to the District of Columbia) or a 
                Chesapeake Basin State that is authorized to 
                administer a permit program under section 402, 
                after consultation with stakeholders (including 
                wastewater utilities, municipalities, 
                developers, agricultural producers, 
                institutions of higher education, and other 
                interested parties) shall establish de minimis 
                exemptions for permits issued under this 
                paragraph.
          (3) Stormwater permits.--
                  (A) In general.--Effective beginning January 
                1, 2013, the Chesapeake Basin State shall 
                provide assurances to the Administrator that--
                          (i) the owner or operator of any 
                        development or redevelopment project 
                        possessing an impervious footprint that 
                        exceeds a threshold to be determined by 
                        the Administrator through rulemaking, 
                        will use site planning, design, 
                        construction, and maintenance 
                        strategies for the property to maintain 
                        or restore, to the maximum extent 
                        technically feasible, the 
                        predevelopment hydrology of the 
                        property with regard to the 
                        temperature, rate, volume, and duration 
                        of flow, using onsite infiltration, 
                        evapotranspiration, and reuse 
                        approaches, if feasible; and
                          (ii) as a further condition of 
                        permitting such a development or 
                        redevelopment, the owner or operator of 
                        any development or redevelopment 
                        project possessing an impervious 
                        footprint that exceeds a threshold to 
                        be determined by the Administrator 
                        through rulemaking will compensate for 
                        any unavoidable impacts to the 
                        predevelopment hydrology of the 
                        property with regard to the 
                        temperature, rate, volume, and duration 
                        of flow, such that--
                                  (I) the compensation within 
                                the affected subwatershed shall 
                                provide in-kind or out-of-kind 
                                mitigation of function at 
                                ratios to be determined by the 
                                Administrator through 
                                rulemaking;
                                  (II) the compensation outside 
                                the affected subwatershed shall 
                                provide in-kind or out-of-kind 
                                mitigation, at ratios to be 
                                determined by the Administrator 
                                through rulemaking, within the 
                                tributary watershed in which 
                                the project is located; and
                                  (III) if mitigation of 
                                unavoidable impacts is not 
                                feasible, the Administrator may 
                                approve stringent fee-in-lieu 
                                systems.
                  (B) Regulations.--
                          (i) In general.--Not later than May 
                        12, 2011, the Administrator shall 
                        promulgate regulations that--
                                  (I) define the term 
                                `predevelopment hydrology' for 
                                purposes of subparagraph (A);
                                  (II) establish the thresholds 
                                under subparagraph (A);
                                  (III) establish the 
                                compensation ratios under items 
                                (I) and (II) of subparagraph 
                                (A)(ii); and
                                  (IV) establish the fee-in-
                                lieu systems under subparagraph 
                                (A)(ii)(III).
                          (ii) Requirement.--In developing the 
                        regulations under clause (i), including 
                        establishing minimum standards for new 
                        development and redevelopment, the 
                        Administrator shall take into 
                        consideration, based on an evaluation 
                        of field science and practice, factors 
                        such as--
                                  (I) the benefit to--
                                          (aa) overall 
                                        watershed protection 
                                        and restoration of 
                                        redevelopment of 
                                        brownfields or other 
                                        previously developed or 
                                        disturbed sites; and
                                          (bb) water quality 
                                        improvement through 
                                        lot-level stormwater 
                                        management.
                          (iii) Treatment of pending stormwater 
                        permits.--In consultation with the 
                        Chesapeake Basin States and interested 
                        stakeholders, and taking into 
                        consideration any compliance schedules 
                        developed by any Chesapeake Basin State 
                        prior to June 30, 2010, the 
                        Administrator shall develop guidance 
                        regarding the treatment of pending 
                        stormwater permits for the Chesapeake 
                        Basin States.
                  (C) Failure to provide assurances.--If a 
                Chesapeake Basin State that submits a Watershed 
                Implementation Plan under this subsection fails 
                to provide the assurances required under 
                subparagraph (A), effective beginning on May 
                12, 2013, the Administrator may withhold funds 
                otherwise available to the Chesapeake Basin 
                State under this Act, in accordance with 
                subparagraphs (A) and (B) of subsection (j)(5).
          (4) Phosphate ban.--
                  (A) Phosphorus in cleaning agents.--Each 
                Chesapeake Basin State shall provide to the 
                Administrator, not later than 3 years after the 
                date of enactment of the Chesapeake Clean Water 
                and Ecosystem Restoration Act, assurances that 
                within the jurisdiction, except as provided in 
                subparagraph (B), a person may not use, sell, 
                manufacture, or distribute for use or sale any 
                cleaning agent that contains more than 0.0 
                percent phosphorus by weight, expressed as 
                elemental phosphorus, except for a quantity not 
                exceeding 0.5 percent phosphorus that is 
                incidental to the manufacture of the cleaning 
                agent.
                  (B) Prohibited quantities of phosphorus.--
                Each Chesapeake Basin State shall provide to 
                the Administrator, not later than 3 years after 
                the date of enactment of the Chesapeake Clean 
                Water and Ecosystem Restoration Act, assurances 
                that, within the jurisdiction, a person may 
                use, sell, manufacture, or distribute for use 
                or sale a cleaning agent that contains greater 
                than 0.0 percent phosphorus by weight, but does 
                not exceed 8.7 percent phosphorus by weight, if 
                the cleaning agent is a substance that the 
                Administrator, by regulation, excludes from the 
                limitation under subparagraph (A), based on a 
                finding that compliance with that subparagraph 
                would--
                          (i) create a significant hardship on 
                        the users of the cleaning agent; or
                          (ii) be unreasonable because of the 
                        lack of an adequate substitute cleaning 
                        agent.
                  (C) Failure to provide assurances.--If a 
                Chesapeake Basin State that submits a Watershed 
                Implementation Plan under this subsection fails 
                to provide the necessary assurances under 
                subparagraphs (A) and (B) by not later than 3 
                years after the date of enactment of the 
                Chesapeake Clean Water and Ecosystem 
                Restoration Act, the Administrator may withhold 
                funds otherwise available to the Chesapeake 
                Basin State under this Act, in accordance with 
                subparagraphs (A) and (B) of subsection (j)(5).
  (j) Action by Administrator.--
          (1) In general.--Not later than 60 days after the 
        date of enactment of the Chesapeake Clean Water and 
        Ecosystem Restoration Act, the Administrator shall 
        establish any minimum criteria that the Administrator 
        determines to be necessary that any proposed watershed 
        implementation plan must meet before the Administrator 
        may approve such a plan.
          (2) Completeness finding.--
                  (A) In general.--Not later than 60 days after 
                the date on which the Administrator receives a 
                new or revised proposed watershed 
                implementation plan from a Chesapeake Basin 
                State, the Administrator shall make a 
                completeness determination based on whether the 
                minimum criteria for the plan established under 
                paragraph (1) have been met.
                  (B) Effect of finding of incompleteness.--If 
                the Administrator determines under subparagraph 
                (A) that all or any portion of a submitted 
                watershed implementation plan does not meet the 
                minimum completeness criteria established under 
                paragraph (1), the Chesapeake Basin State 
                submitting the plan shall be treated as not 
                having made the submission.
          (3) Approval and disapproval.--
                  (A) Deadline.--Not later than 90 days after 
                determining that a watershed implementation 
                plan meets minimum completeness criteria in 
                accordance with paragraph (2)(A), the 
                Administrator shall approve or disapprove the 
                plan.
                  (B) Full and partial approval and 
                disapproval.--In carrying out this paragraph, 
                the Administrator shall--
                          (i) approve a watershed 
                        implementation plan if the 
                        Administrator determines that the plan 
                        meets all applicable requirements under 
                        subsection (i)(1); and
                          (ii) approve the plan in part and 
                        disapprove the plan in part if only a 
                        portion of the watershed implementation 
                        plan meets those requirements.
                  (C) Conditional approval.--The Administrator 
                shall--
                          (i) conditionally approve the 
                        original or a revised watershed 
                        implementation plan based on a 
                        commitment of the Chesapeake Basin 
                        State submitting the plan to adopt 
                        specific enforceable management 
                        measures by not later than 1 year after 
                        the date of approval of the plan 
                        revision; but
                          (ii) treat a conditional approval as 
                        a disapproval under this paragraph if 
                        the Chesapeake Basin State fails to 
                        comply with the commitment of the 
                        Chesapeake Basin State.
                  (D) Scope of review.--In reviewing watershed 
                implementation plans for approval or 
                disapproval, the Administrator shall--
                          (i) limit the scope of the review to 
                        the adequacy of the plan to attain 
                        water quality standards; and
                          (ii) not impose, as a condition of 
                        approval, any additional requirements.
                  (E) Full approval required.--An original or 
                revised watershed implementation plan shall not 
                be treated as meeting the requirements of this 
                section until the Administrator approves the 
                entire original or revised plan.
                  (F) Corrections.--In any case in which the 
                Administrator determines that the action of the 
                Administrator approving, disapproving, or 
                conditionally approving any original or revised 
                State watershed implementation plan was in 
                error, the Administrator shall--
                          (i) in the same manner as the 
                        approval, disapproval, conditional 
                        approval, or promulgation, revise the 
                        action of the Administrator, as 
                        appropriate, without requiring any 
                        further submission from the Chesapeake 
                        Basin State; and
                          (ii) make the determination of the 
                        Administrator, and the basis for that 
                        determination, available to the public.
                  (G) Effective date.--The provisions of a 
                State watershed implementation plan shall take 
                effect upon the date of approval of the plan.
          (4) Calls for plan revision.--In any case in which 
        the Administrator determines that watershed 
        implementation plan for any area is inadequate to 
        attain or maintain applicable pollution limitations, 
        the Administrator--
                  (A) shall notify the Chesapeake Basin State 
                of, and require the Chesapeake Basin State to 
                revise the plan to correct the inadequacies;
                  (B) may establish reasonable deadlines (not 
                to exceed 180 days after the date on which the 
                Administrator provides the notification) for 
                the submission of a revised watershed 
                implementation plan;
                  (C) shall make the findings of the 
                Administrator under paragraph (3) and notice 
                provided under subparagraph (A) public;
                  (D) shall require as an element of any 
                revised plan by the Chesapeake Basin State that 
                the State adhere to the requirements applicable 
                under the original watershed implementation 
                plan, except that the Administrator may adjust 
                any dates (other than attainment dates) 
                applicable under those requirements, as 
                appropriate; and
                  (E) shall disapprove any revised plan 
                submitted by a Chesapeake Basin State that 
                fails to adhere to the requirements described 
                in subparagraph (D).
          (5) Federal implementation.--If a Chesapeake Basin 
        State that has submitted a watershed implementation 
        plan under (1)(A)(i) fails to submit a required revised 
        watershed implementation plan, submit a biennial 
        report, correct a previously missed 2-year commitment 
        made in a watershed implementation plan, or remedy a 
        disapproval of a watershed implementation plan, the 
        Administrator shall, by not later than 30 days after 
        the date of the failure and after issuing a notice to 
        the State and providing a period of not less than 1 
        year during which the failure may be corrected--
                  (A) notwithstanding sections 601(a) and 
                603(g), reserve up to 75 percent of the amount 
                of the capitalization grant to the Chesapeake 
                Basin State for a water pollution control 
                revolving fund under section 603 for activities 
                that are--
                          (i) selected by the Administrator; 
                        and
                          (ii) consistent with the watershed 
                        implementation plans described in 
                        subparagraphs (B) and (C);
                  (B) withhold all funds otherwise available to 
                the Chesapeake Basin State (or a designee) 
                under this Act, except for the funds available 
                under title VI;
                  (C) develop and administer a watershed 
                implementation plan for the Chesapeake Basin 
                State until the Chesapeake Basin State has 
                remedied the plan, reports, or achievements to 
                the satisfaction of the Administrator;
                  (D) in addition to requiring compliance with 
                all other statutory and regulatory 
                requirements, require that all permits issued 
                under section 402 for new or expanding 
                discharges of nitrogen, phosphorus, or sediment 
                shall acquire offsets that exceed, by a ratio 
                to be determined by the Administrator through 
                rulemaking, the quantities of nitrogen, 
                phosphorus, or sediment that would be 
                discharged under the permit, taking into 
                account attenuation, equivalency, and 
                uncertainty; and
                  (E) for the purposes of developing and 
                implementing a watershed implementation plan 
                under subparagraph (C)--
                          (i) continue all applicable 
                        requirements for nonpoint sources 
                        included as part of the most recently 
                        approved watershed implementation plan 
                        of the Chesapeake Basin State;
                          (ii) issue such permits to point 
                        sources as the Administrator determines 
                        to be necessary to control pollution 
                        sufficient to meet the pollution 
                        reductions required to meet applicable 
                        water quality standards;
                          (iii) enforce such nonpoint source 
                        requirements in the same manner and 
                        with the same stringency as required 
                        under most recently approved watershed 
                        implementation plan of the Chesapeake 
                        Basin State; and
                          (iv) enforce such point source 
                        permits in the same manner as other 
                        permits issued under section 402 are 
                        enforced.
          (6) Nitrogen, phosphorus, and sediment trading 
        programs.--
                  (A) Establishment.--Not later than May 12, 
                2012, the Administrator, in cooperation with 
                each Chesapeake Basin State, shall establish, 
                by regulation, an interstate nitrogen and 
                phosphorus trading program for the Chesapeake 
                Basin for the generation, trading, and use of 
                nitrogen and phosphorus credits to facilitate 
                the attainment and maintenance of water quality 
                standards in the Chesapeake Bay and the 
                Chesapeake Bay tidal segments.
                  (B) Trading system.--The trading program 
                established under this subsection shall, at a 
                minimum--
                          (i) define and standardize nitrogen 
                        and phosphorus credits and establish 
                        procedures or standards for ensuring 
                        equivalent water quality benefits for 
                        all credits;
                          (ii) establish procedures or 
                        standards for certifying, verifying, 
                        and enforcing nitrogen and phosphorus 
                        credits to ensure that credit-
                        generating practices from both point 
                        sources and nonpoint sources are 
                        achieving actual reductions in nitrogen 
                        and phosphorus, including provisions 
                        for allowing the use of third parties 
                        to verify and certify credits sold 
                        within and across State lines;
                          (iii) establish procedures or 
                        standards for generating, quantifying, 
                        trading, and applying credits to meet 
                        regulatory requirements and allow for 
                        trading to occur between and across 
                        point source or nonpoint sources, 
                        including a requirement that purchasers 
                        of credits that propose to satisfy all 
                        or part of the obligation to reduce 
                        nitrogen and phosphorus through the use 
                        of credits shall compensate, through 
                        further limitations on the discharges 
                        of the purchaser or through a new 
                        trade, for any deficiency in those 
                        reductions that results from the 
                        failure of a credit seller to carry out 
                        any activity that was to generate the 
                        credits;
                          (iv) establish baseline requirements 
                        that a credit seller shall meet before 
                        becoming eligible to generate saleable 
                        credits, which shall be at least as 
                        stringent as applicable water quality 
                        standards, total maximum daily loads 
                        (including applicable wasteload and 
                        load allocations), and watershed 
                        implementation plans;
                          (v) ensure that credits and trade 
                        requirements are incorporated, directly 
                        or by reference, into enforceable 
                        permit requirements under the national 
                        pollutant discharge elimination system 
                        established under section 402 or the 
                        system of the applicable State 
                        permitting authority for all credit 
                        purchasers covered by the permits;
                          (vi) ensure that private contracts 
                        between credit buyers and credit 
                        sellers contain adequate provisions to 
                        ensure enforceability under applicable 
                        law;
                          (vii) establish procedures or 
                        standards to ensure public transparency 
                        for all nutrient trading activities, 
                        including the establishment of a 
                        publicly available trading registry, 
                        which shall include--
                                  (I) the information used in 
                                the certification and 
                                verification process; and
                                  (II) recorded trading 
                                transactions (such as the 
                                establishment, sale, amounts, 
                                and use of credits);
                          (viii) in addition to requiring 
                        compliance with all other statutory and 
                        regulatory requirements, ensure that, 
                        in any case in which a segment of the 
                        Chesapeake Basin is impaired with 
                        respect to the nutrient being traded 
                        and a total maximum daily load for that 
                        segment has not yet been implemented 
                        for the impairment--
                                  (I) trades are required to 
                                result in progress toward or 
                                the attainment of water quality 
                                standards in that segment; and
                                  (II) sources in that segment 
                                may not rely on credits 
                                produced outside of the 
                                segment;
                          (ix) require that the application of 
                        credits to meet regulatory requirements 
                        under this section not cause or 
                        contribute to exceedances of water 
                        quality standards, total maximum daily 
                        loads, or wasteload or load allocations 
                        for affected receiving waters, 
                        including avoidance of localized 
                        impacts;
                          (x) except as part of a consent 
                        agreement, consent judgment, or 
                        enforcement order, prohibit the 
                        purchase of credits from any entity 
                        that is in significant noncompliance 
                        with an enforceable permit issued under 
                        section 402;
                          (xi) consider and incorporate, to the 
                        extent consistent with the minimum 
                        requirements of this Act, as determined 
                        by the Administrator, in consultation 
                        with the Secretary of Agriculture, 
                        elements of State trading programs in 
                        existence on the date of enactment of 
                        the Chesapeake Clean Water and 
                        Ecosystem Restoration Act;
                          (xii) allow for, as appropriate, the 
                        aggregation and banking of credits by 
                        third parties; and
                          (xiii) provide for appropriate 
                        temporal consistency between the time 
                        period during which the credit is 
                        generated and the time period during 
                        which the credit is used.
                  (C) Facilitation of trading.--In order to 
                attract market participants and facilitate the 
                cost-effective achievement of water-quality 
                goals, the Administrator, in consultation with 
                the Secretary of Agriculture, shall ensure that 
                the trading program established under this 
                paragraph--
                          (i) includes measures to mitigate 
                        credit buyer risk;
                          (ii) makes use of the best available 
                        science in order to minimize 
                        uncertainty and related transaction 
                        costs to traders by supporting research 
                        and other activities that increase the 
                        scientific understanding of nonpoint 
                        nutrient pollutant loading and the 
                        ability of various structural and 
                        nonstructural alternatives to reduce 
                        the loads;
                          (iii) eliminates unnecessary or 
                        duplicative administrative processes; 
                        and
                          (iv) incorporates a permitting 
                        approach under the national pollutant 
                        discharge elimination system 
                        established under section 402 that--
                                  (I) allows trading to occur 
                                without requiring the reopening 
                                or reissuance of the base 
                                permits to incorporate 
                                individual trades; and
                                  (II) incorporates any such 
                                trades, directly through a 
                                permit amendment or addendum, 
                                or indirectly by any 
                                appropriate mechanism, as 
                                enforceable terms of those 
                                permits on approval of the 
                                credit purchase by the 
                                permitting authority, in 
                                accordance with the 
                                requirements of the Chesapeake 
                                Basin Program, this Act, and 
                                regulations promulgated 
                                pursuant to this Act.
                  (D) Sediment trading.--
                          (i) In general.--Not later than 180 
                        days after the date of enactment of the 
                        Chesapeake Clean Water and Ecosystem 
                        Restoration Act, the Administrator, in 
                        consultation with the Secretary of 
                        Agriculture, shall convene a task 
                        force, to be composed of 
                        representatives from the Chesapeake 
                        Basin States and public and private 
                        entities--
                                  (I) to identify any 
                                scientific, technical, or other 
                                issues that would hinder the 
                                rapid deployment of an 
                                interstate sediment trading 
                                program; and
                                  (II) to provide to the 
                                Administrator recommendations 
                                to overcome any of the 
                                obstacles to rapid deployment 
                                of such a trading system.
                          (ii) Interstate sediment trading 
                        program.--
                                  (I) Establishment.--Based on 
                                the recommendations of the task 
                                force established under clause 
                                (i), the Administrator, in 
                                cooperation with each 
                                Chesapeake Basin State, shall 
                                establish an interstate 
                                sediment trading program for 
                                the Chesapeake Basin for the 
                                generation, trading, and use of 
                                sediment credits to facilitate 
                                the attainment and maintenance 
                                water quality standards in the 
                                Chesapeake Bay and the 
                                Chesapeake Bay tidal segments.
                                  (II) Requirement.--The 
                                interstate sediment trading 
                                program established under 
                                subclause (I) shall include, at 
                                a minimum, definitions, 
                                procedures, standards, 
                                requirements, assurances, 
                                allowances, prohibitions, and 
                                evaluations comparable to the 
                                interstate nitrogen and 
                                phosphorus trading program 
                                established under subparagraph 
                                (A).
                                  (III) Deadline.--Upon a 
                                finding of the Administrator, 
                                based on the recommendation of 
                                the task force established 
                                under clause (i), that such a 
                                sediment trading program would 
                                substantially advance the 
                                achievement of Bay water 
                                quality objectives and would be 
                                feasible, the interstate 
                                trading program under this 
                                clause shall be established by 
                                the later of--
                                          (aa) May 12, 2014; 
                                        and
                                          (bb) the date on 
                                        which each issue 
                                        described in clause (i) 
                                        can be feasibly 
                                        overcome.
                  (E) Evaluation of trading.--
                          (i) Reports.--Not less frequently 
                        than once every 5 years after the date 
                        of establishment of the interstate 
                        nitrogen and phosphorus trading program 
                        under this paragraph, the Administrator 
                        shall submit to Congress a report 
                        describing the results of the program 
                        with respect to enforceability, 
                        transparency, achievement of water 
                        quality results, and whether the 
                        program has resulted in any localized 
                        water pollution problem.
                          (ii) Improvements.--Based on the 
                        reports under clause (i), the 
                        Administrator shall make improvements 
                        to the trading program under this 
                        paragraph to ensure achievement of the 
                        environmental and programmatic 
                        objectives of the program.
                  (F) Effect on other trading systems.--Nothing 
                in this paragraph affects the ability of a 
                State to establish or implement an applicable 
                intrastate trading program.
          (7) Authority relating to development.--The 
        Administrator shall--
                  (A) establish, for projects resulting in 
                impervious development, guidance relating to 
                site planning, design, construction, and 
                maintenance strategies to ensure that the land 
                maintains predevelopment hydrology with regard 
                to the temperature, rate, volume, and duration 
                of flow;
                  (B) compile a database of best management 
                practices, model stormwater ordinances, and 
                guidelines with respect to the construction of 
                low-impact development infrastructure and 
                nonstructural low-impact development techniques 
                for use by States, local governments, and 
                private entities; and
                  (C) not later than 180 days after 
                promulgation of the regulations under 
                subsection (i)(3)(B), issue guidance, model 
                ordinances, and guidelines to carry out this 
                paragraph.
          (8) Assistance with respect to stormwater 
        discharges.--
                  (A) Grant program.--The Administrator may 
                provide grants to any local government within 
                the Chesapeake Basin that adopts the guidance, 
                best management practices, ordinances, and 
                guidelines issued and compiled under paragraph 
                (7).
                  (B) Use of funds.--A grant provided under 
                subparagraph (A) may be used by a local 
                government to pay costs associated with--
                          (i) developing, implementing, and 
                        enforcing the guidance, best management 
                        practices, ordinances, and guidelines 
                        issued and compiled under paragraph 
                        (7); and
                          (ii) implementing projects designed 
                        to reduce or beneficially reuse 
                        stormwater discharges.
          (9) Consumer and commercial product report.--Not 
        later than 3 years after the date of enactment of the 
        Chesapeake Clean Water and Ecosystem Restoration Act, 
        the Administrator, in consultation with the Chesapeake 
        Executive Council, shall--
                  (A) review consumer and commercial products 
                (such as lawn fertilizer), the use of which may 
                affect the water quality of the Chesapeake 
                Basin or associated tributaries, to determine 
                whether further product nutrient content 
                restrictions are necessary to restore or 
                maintain water quality in the Chesapeake Basin 
                and those tributaries; and
                  (B) submit to the Committees on 
                Appropriations, Environment and Public Works, 
                and Commerce, Science, and Transportation of 
                the Senate and the Committees on 
                Appropriations, Natural Resources, Energy and 
                Commerce, and Transportation and Infrastructure 
                of the House of Representatives a product 
                nutrient report detailing the findings of the 
                review under subparagraph (A).
          (10) Agricultural animal waste-to-bioenergy 
        deployment program.--
                  (A) Definitions.--In this paragraph:
                          (i) Agricultural animal waste.--The 
                        term `agricultural animal waste' means 
                        manure from livestock, poultry, or 
                        aquaculture.
                          (ii) Eligible technology.--The term 
                        `eligible technology' means a 
                        technology that converts or proposes to 
                        convert agricultural animal waste 
                        into--
                                  (I) heat;
                                  (II) power; or
                                  (III) biofuels.
                  (B) Grant program.--The Administrator, in 
                coordination with the Secretary of Agriculture, 
                may provide grants to any person or partnership 
                of persons for the purpose of carrying out 
                projects to deploy an eligible technology in 
                agricultural animal waste-to-bioenergy 
                treatment that has significant potential to 
                reduce agricultural animal waste volume, 
                recover nutrients, improve water quality, 
                decrease pollution potential, and recover 
                energy.
                  (C) Project selection.--
                          (i) In general.--In selecting 
                        applicants for grants under this 
                        paragraph, the Administrator shall 
                        select projects that--
                                  (I) reduce--
                                          (aa) impacts of 
                                        agricultural animal 
                                        waste on surface and 
                                        groundwater quality;
                                          (bb) emissions to the 
                                        ambient air; and
                                          (cc) the release of 
                                        pathogens and other 
                                        contaminants to the 
                                        environment; and
                                  (II) quantify--
                                          (aa) the degree of 
                                        waste stabilization to 
                                        be realized by the 
                                        project; and
                                          (bb) nutrient 
                                        reduction credits that 
                                        could contribute to the 
                                        nitrogen and phosphorus 
                                        trading program for the 
                                        Chesapeake Basin under 
                                        this subsection.
                          (ii) Prioritization.--The 
                        Administrator shall prioritize projects 
                        based on--
                                  (I) the level of nutrient 
                                reduction achieved;
                                  (II) geographic diversity 
                                among the Chesapeake Basin 
                                States; and
                                  (III) differing types of 
                                agricultural animal waste.
                  (D) Federal share.--The amount of a grant 
                awarded under this paragraph shall not exceed 
                50 percent of the cost of the project to be 
                carried out using funds from the grant.
  (k) Prohibition on Introduction of Asian Oysters.--Not later 
than 2 years after the date of enactment of the Chesapeake 
Clean Water and Ecosystem Restoration Act, the Administrator 
shall promulgate regulations--
          (1) to designate the Asian oyster as a `biological 
        pollutant' in the Chesapeake Bay and tidal waters 
        pursuant to section 502;
          (2) to prohibit the issuance of permits under 
        sections 402 and 404 for the discharge of the Asian 
        oyster into the Chesapeake Bay and Chesapeake Bay tidal 
        segments; and
          (3) to specify conditions under which scientific 
        research on Asian oysters may be conducted within the 
        Chesapeake Bay and Chesapeake Bay tidal segments.
  (l) Chesapeake Nutria Eradication Program.--
          (1) Grant authority.--Subject to the availability of 
        appropriations, the Secretary of the Interior (referred 
        to in this subsection as the `Secretary'), may provide 
        financial assistance to the States of Delaware, 
        Maryland, and Virginia to carry out a program to 
        implement measures--
                  (A) to eradicate or control nutria; and
                  (B) to restore marshland damaged by nutria.
          (2) Goals.--The continuing goals of the program shall 
        be--
                  (A) to eradicate nutria in the Chesapeake 
                Basin ecosystem; and
                  (B) to restore marshland damaged by nutria.
          (3) Activities.--In the States of Delaware, Maryland, 
        and Virginia, the Secretary shall require that the 
        program under this subsection consist of management, 
        research, and public education activities carried out 
        in accordance with the document published by the United 
        States Fish and Wildlife Service entitled `Eradication 
        Strategies for Nutria in the Chesapeake and Delaware 
        Bay Watersheds', dated March 2002, or any updates to 
        the document.
  (m) Review of Studies on the Impacts of Menhaden on the Water 
Quality of the Chesapeake Bay.--
          (1) Research review.--The Administrator, in 
        cooperation and consultation with the Administrator of 
        the National Oceanic and Atmospheric Administration, 
        shall--
                  (A) prepare a report that reviews and 
                summarizes existing, peer reviewed research 
                relating to the impacts of menhaden on water 
                quality, including the role of menhaden as 
                filter feeders and the impacts on dissolved 
                oxygen levels, nutrient levels, phytoplankton, 
                zooplankton, detritus, and similar issues by 
                menhaden at various life stages;
                  (B) identify important data gaps or 
                additional menhaden population studies, if any, 
                relating to the impacts of the menhaden 
                population on water quality; and
                  (C) provide any recommendations for 
                additional research or study.
          (2) Report and recommendations.--Not later than 5 
        years after the date of enactment of the Chesapeake 
        Clean Water and Ecosystem Restoration Act, the 
        Administrator shall submit the report and 
        recommendations required in paragraph (1) to--
                  (A) the Committee on Commerce, Science, and 
                Transportation and the Committee on Environment 
                and Public Works Committee of the Senate; and
                  (B) the Committee on Natural Resources and 
                the Committee on Transportation and 
                Infrastructure Committee of the House of 
                Representatives.
  (n) Effect on Other Requirements.--
          (1) In general.--Nothing in this section removes or 
        otherwise affects any other obligation for a point 
        source to comply with other applicable requirements 
        under this Act.
          (2) Violations by states.--
                  (A) Enforcement action by administrator.--The 
                failure of a Chesapeake Basin State that 
                submits a watershed implementation plan under 
                subsection (i) to submit a biennial report, 
                meet or correct a previously missed 2-year 
                commitment made in a watershed implementation 
                plan, or implement a watershed implementation 
                plan or permit program under this section 
                shall--
                          (i) constitute a violation of this 
                        Act; and
                          (ii) subject the State to an 
                        enforcement action by the 
                        Administrator.
                  (B) Enforcement action by citizens.--
                          (i) In general.--The failure of a 
                        Chesapeake Basin State that submits a 
                        watershed implementation plan under 
                        subsection (i) to meet or correct a 
                        previously missed 2-year commitment 
                        made in a watershed implementation plan 
                        or implement a watershed implementation 
                        plan or permit program under this 
                        section shall subject the appropriate 
                        State officer to a civil action seeking 
                        injunctive relief commenced by a 
                        citizen on behalf of the citizen.
                          (ii) Jurisdiction, venue, notice, and 
                        litigation costs.--
                                  (I) In general.--A citizen 
                                may commence a civil action on 
                                behalf of the citizen against a 
                                State under clause (i), subject 
                                to the requirements for notice, 
                                venue, and intervention 
                                described in subsections (b) 
                                and (c) of section 505 for a 
                                suit brought under section 
                                505(a)(1)(A).
                                  (II) Jurisdiction.--
                                Jurisdiction over a suit 
                                brought under subclause (I) 
                                shall be the district courts, 
                                as described in section 505(a).
                                  (III) Litigation costs.--The 
                                court may award litigation 
                                costs for suit brought under 
                                subclause (I), as described in 
                                section 505(d).
                          (iii) Savings clause.--Nothing in 
                        this subsection affects the ability of 
                        a citizen to bring an action for civil 
                        enforcement on behalf of the citizen 
                        under section 505.
  (o) Evaluations.--
          (1) In general.--The Inspectors General of the 
        Environmental Protection Agency and the Department of 
        Agriculture shall jointly evaluate and submit to 
        Congress reports describing the implementation of this 
        section not less frequently than once every 3 years.
          (2) Independent reviews.--
                  (A) In general.--The Administrator shall 
                enter into a contract with the National Academy 
                of Sciences or the National Academy of Public 
                Administration under which the Academy shall 
                conduct 2 reviews of the Chesapeake Basin 
                restoration efforts under this section.
                  (B) Inclusions.--Each review under 
                subparagraph (A) shall include an assessment 
                of--
                          (i) progress made toward meeting the 
                        goals of this section;
                          (ii) efforts by Federal, State, and 
                        local governments and the private 
                        sector in implementing this section;
                          (iii) the methodologies (including 
                        computer modeling) and data (including 
                        monitoring data) used to support the 
                        implementation of this section; and
                          (iv) the economic impacts, 
                        including--
                                  (I) a comprehensive analysis 
                                of the costs of compliance;
                                  (II) the benefits of 
                                restoration;
                                  (III) the value of economic 
                                losses avoided; and
                                  (IV) a regional analysis of 
                                items (I) through (III), by 
                                Chesapeake Basin State and by 
                                sector, to the maximum extent 
                                practicable.
                  (C) Reports.--The National Academy of 
                Sciences or the National Academy of Public 
                Administration shall submit to the 
                Administrator a report describing the results 
                of the reviews under this paragraph, together 
                with recommendations regarding the reviews 
                (including any recommendations with respect to 
                efforts of the Environmental Protection Agency 
                or any other Federal or State agency required 
                to implement applicable water quality standards 
                in the Chesapeake Basin and achieve those 
                standards in the Chesapeake Bay and Chesapeake 
                Bay tidal segments), if any, by not later 
                than--
                          (i) May 12, 2015, with respect to the 
                        first review required under this 
                        paragraph; and
                          (ii) May 12, 2020, with respect to 
                        the second review required under this 
                        paragraph.
  (p) Authorization of Appropriations.--
          (1) Chesapeake basin program office.--There is 
        authorized to be appropriated to the Chesapeake Basin 
        Program Office to carry out subsection (b)(2) 
        $20,000,000 for each of fiscal years 2010 through 2015.
          (2) Implementation, monitoring, and centers of 
        excellence grants.--
                  (A) Authorization of appropriations.--In 
                addition to amounts authorized to be 
                appropriated or otherwise made available to 
                carry out this section, there are authorized to 
                be appropriated to the Administrator--
                          (i) to carry out a program to 
                        establish and support centers of 
                        excellence for water quality and 
                        agricultural policies and practices 
                        under subsection (e)(1)(C), $10,000,000 
                        for each of fiscal years 2010 through 
                        2015;
                          (ii) to provide implementation grants 
                        under subsection (e)(3)(A), $80,000,000 
                        for each of fiscal years 2010 through 
                        2015, to remain available until 
                        expended;
                          (iii) to carry out a freshwater 
                        monitoring program under subsection 
                        (e)(3)(B), $5,000,000 for each of 
                        fiscal years 2010 through 2015;
                          (iv) to carry out a Chesapeake Bay 
                        and tidal water monitoring program 
                        under subsection (e)(3)(B), $5,000,000 
                        for each of fiscal years 2010 through 
                        2015; and
                          (v) to carry out the Chesapeake 
                        nutrient trading guarantee pilot 
                        program under subsection (e)(1)(D), 
                        $20,000,000 for the period of fiscal 
                        years 2010 through 2015.
                  (B) Cost sharing.--The Federal share of the 
                cost of a program carried out using funds from 
                a grant provided--
                          (i) under subparagraph (A)(ii) shall 
                        not exceed--
                                  (I) 80 percent, with respect 
                                to funds provided for the 
                                provision of technical 
                                assistance to agricultural 
                                producers and forest owners; 
                                and
                                  (II) with respect to all 
                                other activities under that 
                                subparagraph--
                                          (aa) for the States 
                                        of Delaware, New York, 
                                        and West Virginia, 
                                        shall not exceed 75 
                                        percent; and
                                          (bb) for the States 
                                        of Maryland, 
                                        Pennsylvania, and 
                                        Virginia and for the 
                                        District of Columbia, 
                                        shall not exceed 50 
                                        percent; and
                          (ii) under clauses (i), (iii), or 
                        (iv) of subparagraph (A) shall not 
                        exceed 80 percent.
          (3) Chesapeake stewardship grants.--There is 
        authorized to be appropriated to carry out subsection 
        (h)(2) $15,000,000 for each of fiscal years 2010 
        through 2015.
          (4) Storm water pollution planning and implementation 
        grants.--
                  (A) Authorization of appropriations.--In 
                addition to amounts authorized or otherwise 
                made available to carry out this section, there 
                are authorized to be appropriated to the 
                Administrator--
                          (i) to carry out subsection 
                        (j)(8)(B)(i), $10,000,000; and
                          (ii) to carry out subsection 
                        (j)(8)(B)(ii), $1,500,000,000.
                  (B) Cost-sharing.--A grant provided for a 
                project under--
                          (i) subsection (j)(8)(B)(i) may not 
                        be used to cover more than 80 percent 
                        of the cost of the project; and
                          (ii) subsection (j)(8)(B)(ii) may not 
                        be used to cover more than 75 percent 
                        of the cost of the project.
          (5) Nutria eradication grants.--
                  (A) In general.--There is authorized to be 
                appropriated to the Secretary of the Interior 
                to provide financial assistance in the 
                Chesapeake Basin under subsection (l) 
                $4,000,000 for each of fiscal years 2010 
                through 2015.
                  (B) Cost-sharing.--
                          (i) Federal share.--The Federal share 
                        of the cost of carrying out the program 
                        under subsection (l) may not exceed 75 
                        percent of the total costs of the 
                        program.
                          (ii) In-kind contributions.--The non-
                        Federal share of the cost of carrying 
                        out the program under subsection (l) 
                        may be provided in the form of in-kind 
                        contributions of materials or services.
          (6) Agricultural animal waste-to-bioenergy deployment 
        grants.--There is authorized to be appropriated to 
        carry out the agricultural animal waste-to-bioenergy 
        deployment program under subsection (j) $30,000,000 for 
        the period of fiscal years 2010 to 2015, to remain 
        available until expended.
          (7) Limitation on administrative costs.--Not more 
        than 10 percent of the annual amount of any grant 
        provided by the Administrator or Secretary under any 
        program described in this subsection may be used for 
        administrative costs.
          (8) Availability.--Amounts authorized to be 
        appropriated under this subsection shall remain 
        available until expended.
  (q) Severability.--A determination that any provisions of 
this section is invalid, illegal, unenforceable, or in conflict 
with any other law shall not affect the validity, legality, or 
enforceability of the remaining provisions of this section.

           *       *       *       *       *       *       *

      Sec. 309. (a)(1) Whenever, on the basis of any 
information available to him, the Administrator finds that any 
person is in violation of any condition or limitation which 
implements section 301, 302, 306, 307, 308, 318, or 405 of this 
Act in a permit issued by a State under an approved permit 
program under [section 402] section 117,402, or 404 of this 
Act, he shall proceed under his authority in paragraph (3) of 
this subsection or he shall notify the person in alleged 
violation and such State of such finding. If beyond the 
thirtieth day after the Administrator's notification the State 
has not commenced appropriate enforcement action, the 
Administrator shall issue an order requiring such person to 
comply with such condition or limitation or shall bring a civil 
action in accordance with subsection (b) of this section.
      (2) Whenever, on the basis of information available to 
him, the Administrator finds that violations of permit 
conditions or limitations as set forth in paragraph (1) of this 
subsection are so widespread that such violations appear to 
result from a failure of the State to enforce such permit 
conditions or limitations effectively, he shall so notify the 
State. If the Administrator finds such failure extends beyond 
the thirtieth day after such notice, he shall give public 
notice of such finding. During the period beginning with such 
public notice and ending when such State satisfies the 
Administrator that it will enforce such conditions and 
limitations (hereafter referred to in this section as the 
period of federally assumed enforcement''), except where an 
extension has been granted under paragraph (5)(B) of this 
subsection, the Administrator shall enforce any permit 
condition or limitation with respect to any person--
          (A) by issuing an order to comply with such condition 
        or limitation, or
          (B) by bringing a civil action under subsection (b) 
        of this section.
      (3) Whenever on the basis of any information available to 
him the Administrator finds that any person is in violation of 
section 301, 302, 306, 307, 308, 318, or 405 of this Act, or is 
in violation of any permit condition or limitation implementing 
any of such sections in a permit issued under  section 117 or 
section 402 of this Act by him or by a State or in a permit 
issued under section 404 of this Act by a State, he shall issue 
an order requiring such person to comply with such section or 
requirement, or he shall bring a civil action in accordance 
with subsection (b) of this section.

           *       *       *       *       *       *       *

      (d) Any person who violates section 301, 302, 306, 307, 
308, 311(b)(3), 318 or 405 of this Act, or any permit condition 
or limitation implementing any of such sections in a permit 
issued undersection 117 or section 402 of this Act by the 
Administrator, or by a State, or in a permit issued under 
section 404 of this Act by a State, or any requirement imposed 
in a pretreatment program approved under section 402(a)(3) or 
402(b)(8) of this Act, and any person who violates any order 
issued by the Administrator under subsection (a) of this 
section, shall be subject to a civil penalty not to exceed 
$25,000 per day for each violation. In determining the amount 
of a civil penalty the court shall consider the seriousness of 
the violation or violations, the economic benefit (if any) 
resulting from the violation, any history of such violations, 
any good-faith efforts to comply with the applicable 
requirements, the economic impact of the penalty on the 
violator, and such other matters as justice may require. For 
purposes of this subsection, a single operational upset which 
leads to simultaneous violations of more than one pollutant 
parameter shall be treated as a single violation.

           *       *       *       *       *       *       *

      (g) Administrative Penalties.--
          (1) Violations.--Whenever on the basis of any 
        information available--
                  (A) the Administrator finds that any person 
                has violated section 301, 302, 306, 307, 308, 
                318, or 405 of this Act, or has violated any 
                permit condition or limitation implementing any 
                of such sections in a permit issued 
                undersection 117 or section 402 of this Act by 
                the Administrator or by a State, or in a permit 
                issued under section 404 by a State, or

           *       *       *       *       *       *       *

          (7) Effect of action on compliance.--No action by the 
        Administrator or the Secretary under this subsection 
        shall affect any person's obligation to comply with any 
        section of this Act or with the terms and conditions of 
        any permit issued pursuant to [section 402]section 117, 
        402, or 404 of this Act.

           *       *       *       *       *       *       *

      Sec. 313. (a) Each department, agency, or instrumentality 
of the executive, legislative, and judicial branches of the 
Federal Government (1) having jurisdiction over any property or 
facility, or (2) engaged in any activity resulting, or which 
may result, in the discharge or runoff of pollutants, and each 
officer, agent, or employee thereof in the performance of his 
official duties, shall be subject to, and comply with, all 
Federal, State, interstate, and local requirements, 
administrative authority, and process and sanctions respecting 
the control and abatement of water pollution in the same 
manner, and to the same extent as any nongovernmental entity 
including the payment of reasonable service charges. The 
preceding sentence shall apply (A) to any requirement whether 
substantive or procedural (including any recordkeeping or 
reporting requirement, any requirement respecting permits and 
any other requirement, whatsoever), (B) to the exercise of any 
Federal, State, or local administrative authority, and (C) to 
any process and sanction, whether enforced in Federal, State, 
or local courts or in any other manner. This subsection shall 
apply notwithstanding any immunity of such agencies, officers, 
agents, or employees under any law or rule of law. Nothing in 
this section shall be construed to prevent any department, 
agency, or instrumentality of the Federal Government, or any 
officer, agent, or employee thereof in the performance of his 
official duties, from removing to the appropriate Federal 
district court any proceeding to which the department, agency, 
or instrumentality or officer, agent, or employee thereof is 
subject pursuant to this section, and any such proceeding may 
be removed in accordance with 28 U.S.C. 1441 et seq. No 
officer, agent, or employee of the United States shall be 
personally liable for any civil penalty arising from the 
performance of his official duties, for which he is not 
otherwise liable, and the United States shall be liable only 
for those civil penalties arising under Federal law or imposed 
by a State or local court to enforce an order or the process of 
such court. The President may exempt any effluent source of any 
department, agency, or instrumentality in the executive branch 
from compliance with any such a requirement if he determines it 
to be in the paramount interest of the United States to do so; 
except that no exemption may be granted from the requirements 
of section 306 or 307 of this Act. No such exemptions shall be 
granted due to lack of appropriation unless the President shall 
have specifically requested such appropriation as a part of the 
budgetary process and the Congress shall have failed to make 
available such requested appropriation. Any exemption shall be 
for a period not in excess of one year, but additional 
exemptions may be granted for periods of not to exceed one year 
upon the President's making a new determination. The President 
shall report each January to the Congress all exemptions from 
the requirements of this section granted during the preceding 
calendar year, together with his reason for granting such 
exemption. In addition to any such exemption of a particular 
effluent source, the President may, if he determines it to be 
in the paramount interest of the United States to do so, issue 
regulations exempting from compliance with the requirements of 
this section any weaponry, equipment, aircraft, vessels, 
vehicles, or other classes or categories of property, and 
access to such property, which are owned or operated by the 
Armed Forces of the United States (including the Coast Guard) 
or by the National Guard of any State and which are uniquely 
military in nature. The President shall reconsider the need for 
such regulations at three-year intervals.
      (b)(1) The Administrator shall coordinate with the head 
of each department, agency, or instrumentality of the Federal 
Government having jurisdiction over any property or facility 
utilizing federally owned wastewater facilities to develop a 
program of cooperation for utilizing wastewater control systems 
utilizing those innovative treatment processes and techniques 
for which guidelines have been promulgated under section 
304(d)(3). Such program shall include an inventory of property 
and facilities which could utilize such processes and 
techniques.
      (2) Construction shall not be initiated for facilities 
for treatment of wastewater at any Federal property or facility 
after September 30, 1979, if alternative methods for wastewater 
treatment at such property or facility utilizing innovative 
treatment processes and techniques, including but not limited 
to methods utilizing recycle and reuse techniques and land 
treatment are not utilized, unless the life cycle cost of the 
alternative treatment works exceeds the life cycle cost of the 
most cost effective alternative by more than 15 per centum. The 
Administrator may waive the application of this paragraph in 
any case where the Administrator determines it to be in the 
public interest, or that compliance with this paragraph would 
interfere with the orderly compliance with the conditions of a 
permit issued pursuant to section 402 of this Act.
  (c) Reasonable Service Charges.--Reasonable service charges 
described in subsection (a) include any requirement to pay a 
reasonable fee, assessment, or charge imposed by any State or 
local agency to defray or recover the cost of stormwater 
management in the same manner and to the same extent as any 
nongovernmental entity.
  (d) No Treatment as Tax or Levy.--A fee, assessment, or 
charge described in this section--
          (1) shall not be considered to be a tax or other levy 
        subject to an assertion of sovereign immunity; and
          (2) may be paid using appropriated funds.

           *       *       *       *       *       *       *


SEC. 320. NATIONAL ESTUARY PROGRAM.

      (a) Management Conference.--
          (1) Nomination of estuaries.--* * *

           *       *       *       *       *       *       *

      (b) Purposes of Conference.--The purposes of any 
management conference convened with respect to an estuary under 
this subsection shall be to--
          (1) assess trends in water quality, natural 
        resources, and uses of the estuary;
          (2) collect, characterize, and assess data on toxics, 
        nutrients, and natural resources within the estuarine 
        zone to identify the causes of environmental problems;
          (3) develop the relationship between the inplace 
        loads and point and nonpoint loadings of pollutants to 
        the estuarine zone and the potential uses of the zone, 
        water quality, and natural resources;
          (4) develop a comprehensive conservation and 
        management plan that recommends priority corrective 
        actions and compliance schedules addressing point and 
        nonpoint sources of pollution to restore and maintain 
        the chemical, physical, and biological integrity of the 
        estuary, including restoration and maintenance of water 
        quality, a balanced indigenous population of shellfish, 
        fish and wildlife, and recreational activities in the 
        estuary, and assure that the designated uses of the 
        estuary are protected;
          (5) develop plans for the coordinated implementation 
        of the plan by the States as well as Federal and local 
        agencies participating in the conference;
          (6) monitor the effectiveness of actions taken 
        pursuant to the plan; and
          (7) review all Federal financial assistance programs 
        and Federal development projects in accordance with the 
        requirements of Executive Order 12372, as in effect on 
        September 17, 1983, to determine whether such 
        assistance program or project would be consistent with 
        and further the purposes and objectives of the plan 
        prepared under this section.
For purposes of paragraph (7), such programs and projects shall 
not be limited to the assistance programs and development 
projects subject to Executive Order 12372, but may include any 
programs listed in the most recent Catalog of Federal Domestic 
Assistance which may have an effect on the purposes and 
objectives of the plan developed under this sectionor section 
117.

           *       *       *       *       *       *       *


Chapter 11 of Title 31, United States Code

           *       *       *       *       *       *       *



SEC. 1105. BUDGET CONTENTS AND SUBMISSION TO CONGRESS.

  (a) On or after the first Monday in January but not later 
than the first Monday in February of each year, the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
          (1) * * *

           *       *       *       *       *       *       *

          [(33)](35)(A)(i) a detailed, separate analysis, by 
        budget function, by agency, and by initiative area (as 
        determined by the administration) for the prior fiscal 
        year, the current fiscal year, the fiscal years for 
        which the budget is submitted, and the ensuing fiscal 
        year identifying the amounts of gross and net 
        appropriations or obligational authority and outlays 
        that contribute to homeland security, with separate 
        displays for mandatory and discretionary amounts, 
        including--
                  (I) summaries of the total amount of such 
                appropriations or new obligational authority 
                and outlays requested for homeland security;
                  (II) an estimate of the current service 
                levels of homeland security spending;
                  (III) the most recent risk assessment and 
                summary of homeland security needs in each 
                initiative area (as determined by the 
                administration); and
                  (IV) an estimate of user fees collected by 
                the Federal Government on behalf of homeland 
                security activities;
          (ii) with respect to subclauses (I) through (IV) of 
        clause (i), amounts shall be provided by account for 
        each program, project and activity; and
          (iii) an estimate of expenditures for homeland 
        security activities by State and local governments and 
        the private sector for the prior fiscal year and the 
        current fiscal year.
          (B) In this paragraph, consistent with the Office of 
        Management and Budget's June 2002 ``Annual Report to 
        Congress on Combatting Terrorism'', the term ``homeland 
        security'' refers to those activities that detect, 
        deter, protect against, and respond to terrorist 
        attacks occurring within the United States and its 
        territories.
          (C) In implementing this paragraph, including 
        determining what Federal activities or accounts 
        constitute homeland security for purposes of budgetary 
        classification, the Office of Management and Budget is 
        directed to consult periodically, but at least 
        annually, with the House and Senate Budget Committees, 
        the House and Senate Appropriations Committees, and the 
        Congressional Budget Office.
          [(35)](36) as supplementary materials, a separate 
        analysis of the budgetary effects for all prior fiscal 
        years, the current fiscal year, the fiscal year for 
        which the budget is submitted, and ensuing fiscal years 
        of the actions the Secretary of the Treasury has taken 
        or plans to take using any authority provided in the 
        Emergency Economic Stabilization Act of 2008, 
        including--
                  (A) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 using 
                methodology required by the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.) and 
                section 123 of the Emergency Economic 
                Stabilization Act of 2008;
                  (B) an estimate of the deficit, the debt held 
                by the public, and the gross Federal debt using 
                methodology required by the Federal Credit 
                Reform Act of 1990 and section 123 of the 
                Emergency Economic Stabilization Act of 2008;
                  (C) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 calculated 
                on a cash basis;
                  (D) a revised estimate of the deficit, the 
                debt held by the public, and the gross Federal 
                debt, substituting the cash-based estimates in 
                subparagraph (C) for the estimates calculated 
                under subparagraph (A) pursuant to the Federal 
                Credit Reform Act of 1990 and section 123 of 
                the Emergency Economic Stabilization Act of 
                2008; and
                  (E) the portion of the deficit which can be 
                attributed to any action taken by the Secretary 
                using authority provided by the Emergency 
                Economic Stabilization Act of 2008 and the 
                extent to which the change in the deficit since 
                the most recent estimate is due to a reestimate 
                using the methodology required by the Federal 
                Credit Reform Act of 1990 and section 123 of 
                the Emergency Economic Stabilization Act of 
                2008.
          [(36)](37) information on estimates of appropriations 
        for the fiscal year following the fiscal year for which 
        the budget is submitted for the following medical care 
        accounts of the Veterans Health Administration, 
        Department of Veterans Affairs account:
                  (A) Medical Services.
                  (B) Medical Support and Compliance.
                  (C) Medical Facilities.
          (38) a separate statement for the Chesapeake Nutrient 
        Trading Guarantee Fund established under section 
        117(e)(1)(E) of the Federal Water Pollution Control Act 
        (33 U.S.C. 1267(e)(1)(E)) (as amended by the Chesapeake 
        Clean Water and Ecosystem Restoration Act), which shall 
        include the estimated amount of deposits into the Fund, 
        obligations, and outlays from the Fund.

                                  
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