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                                                       Calendar No. 704
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-312

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



 
              THE GREAT LAKES AND LAKE CHAMPLAIN PROGRAM 
                              ACT OF 2002

                                _______
                                

                October 15, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [to accompany H.R. 1070]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (H.R. 1070) to amend the Federal Water 
Pollution Control Act to authorize the Administrator of the 
Environmental Protection Agency to carry out projects and 
conduct research for remediation of sediment contamination in 
areas of concern in the Great Lakes, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and an amendment to the title, and recommends that 
the bill, as amended, do pass.

                    General Statement, Background, 
                   and Objectives of the Legislation

    The first title of the bill, the ``Great Lakes Legacy Act 
of 2002'', amends the Federal Water Pollution Control Act (33 
U.S.C. 1268), or Clean Water Act, to authorize the 
Environmental Protection Agency to assist the Great Lakes 
region in the remediation of contaminated sediment identified 
in Areas of Concern. The second title is the Daniel Patrick 
Moynihan Lake Champlain Basin Program Act of 2002, which amends 
the Federal Water Pollution Control Act, (33 U.S.C. 1270), or 
Clean Water Act, to reauthorize the Lake Champlain Basin 
Program. This title authorizes Federal participation in the 
implementation of ``Opportunities for Action'', the plan to 
preserve and protect Lake Champlain. The third title allows 
communities that will be required to obtain a National 
Pollutant Discharge Elimination System (NPDES) permit under the 
regulation entitled, ``National Pollutant Discharge Elimination 
System--Regulations for Revision of the Water Pollution Control 
Program Addressing Storm Water Discharges'', promulgated by the 
Administrator of the Environmental Protection Agency on 
December 8, 1999 (64 Fed. 17 Reg. 68722), which takes effect in 
March of 2003, to retain eligibility for funding provided by 
the Administrator through section 319 of the Federal Water 
Pollution Control Act, (33 U.S.C. 1329 et seq.), or Clean Water 
Act.
Great Lakes Legacy Act of 2002
    Over 33 million people live in the Great Lakes Basin, 
representing one tenth of the U.S. population and one quarter 
of the Canadian population. The Great Lakes constitute the 
largest system of fresh, surface water on Earth: holding 18 
percent of the world's supply and 95 percent of the U.S. 
supply.
    Industrialization and development have had a significant 
impact on the Great Lakes ecosystem. The Great Lakes are 
particularly vulnerable to contamination because outflow rates 
from most of the Lakes are very slow: Lake Superior retains 
water for 173 years, Lake Michigan for 62 years, Lake Huron for 
31 years. Lake Erie, the shallowest of the Lakes, has the 
shortest water retention, at 2.7 years. Lakes with low outflow 
rates do not flush contaminants quickly. As a result, many 
pollutants discharged into the Great Lakes settle into the 
sediments at the bottom of the Lakes.
    According to EPA's National Water Quality Inventory 1998 
Report to Congress (based on State surveys of 90 percent of 
Great Lakes shoreline miles) most of the Great Lakes are safe 
for swimming and other recreational activities and can be used 
as a source of drinking water. However, only 4 percent of the 
near-shore waters fully support all of their designated uses. 
Water quality impairments in the Great Lakes generally involve 
fish advisories and aquatic life impacts. States report that 
the primary sources of pollutants causing these impairments are 
atmospheric deposition and contaminated sediment.
    Efforts to restore the Great Lakes are proceeding through 
cooperative efforts with Canada as well as through efforts of 
EPA, the Army Corps of Engineers and other Federal agencies, 
the States, industry, and local communities.
    Under the Boundary Waters Treaty of 1909 (36 Stat. 2448; TS 
548), the United States and Canada created the International 
Joint Commission (IJC). In 1972, the United States and Canada 
signed the Great Lakes Water Quality Agreement. The primary 
purpose of the 1972 agreement was to reduce phosphorus 
loadings. In 1987, the two nations revised the agreement and 
committed to ecosystem cleanup plans for ``Areas of Concern'' 
and to the resolution of whole-lake problems associated with 
critical pollutants through ``Lakewide Management Plans.'' The 
IJC monitors progress toward these commitments and issues 
biennial reports.
    To support the commitments made in the Great Lakes Water 
Quality Agreement, in 1987 Congress added section 118 to the 
Federal Water Pollution Control Act (33 U.S.C. 1268), or Clean 
Water Act. Section 118 established the Great Lakes National 
Program Office within EPA. One of its functions is to ensure 
that Remedial Action Plans are developed for the Areas of 
Concern identified by the United States and Canada.
    To date, most active sediment remediation at U.S. Areas of 
Concern has occurred as a result of Superfund enforcement 
action or threat of Superfund enforcement action. However, 
Superfund's suitability for cleanup of Areas of Concern is 
limited. There are generally multiple contaminants from 
multiple parties accumulated over several generations. Only a 
handful of contaminated sediment sites have ever been placed on 
Superfund's National Priorities List.
    Section 118 of the 1987 amendments to the Federal Water 
Pollution Control Act (33 U.S.C. 1268), or Clean Water Act, 
authorized demonstration projects relating to the control and 
removal of toxic pollutants in the Great Lakes. Some activities 
to carry out Remedial Action Plans at Areas of Concern also are 
eligible for assistance from Federal Water Pollution Control 
Act (33 U.S.C. 1268 et seq.), or Clean Water Act, State 
Revolving Loan Funds or section 319 grants for nonpoint source 
programs. However, at present, there is no specific Federal 
authorization for assistance for implementation of Remedial 
Action Plans at Areas of Concern.
    In May 2002, the General Accounting Office (GAO) completed 
a study on the cleanup of Areas of Concern in the Great Lakes 
entitled, ``EPA Needs to Define Organizational Responsibilities 
Better for Effective Oversight and Cleanup of Contaminated 
Areas (GAO-02-563). GAO found that there has been slow progress 
of cleanup efforts, in part due to lack of funds and in part 
due to EPA oversight.
    The Great Lakes Legacy Act of 2002 provides funding to EPA 
to implement Remedial Action Plans at Areas of Concern. This is 
the first source of funds provided specifically for this 
purpose. This authority will assist in expediting the 
remediation of sites with contaminated sediment and will 
improve the ability of the United States to meet its 
commitments under the Great Lakes Water Quality Agreement.
Daniel Patrick Moynihan Lake Champlain Basin Program Act of 2002
    Lake Champlain is the sixth largest freshwater lake in the 
world, after only the Great Lakes. Flowing north along the 
borders of Vermont, New York, and Canada, it is 120 miles long 
and just 12 miles wide at its widest point. Lake Champlain is 
home to a diverse array of 81 species of fish, 318 species of 
birds, 56 species of mammals, 21 species of amphibians and 20 
reptile species. Today, the lake is plagued by excess 
phosphorous loadings, toxics such as mercury, and non-native 
species such as the zebra mussel and sea lamprey.
    The Lake Champlain Basin Program began in 1990 when 
Congress designated the lake as a resource of national 
significance under the Lake Champlain Special Designation Act 
of 1990 (33 U.S.C. 1270 note; P.L. 101-596.) The program began 
as a management conference with a charter to develop a 
comprehensive pollution prevention, control, and restoration 
plan for Lake Champlain. The conference evolved into today's 
Lake Champlain Basin Program, which is made up of multiple 
Federal agencies, State and local governments, and 
stakeholders. The Basin Program works cooperatively with 
partners throughout the region to protect and enhance the 
environmental integrity and the social and economic benefits of 
the Lake Champlain Basin.
    The Daniel Patrick Moynihan Lake Champlain Basin Program 
Act of 2002 authorizes the implementation of the plan prepared 
by the management conference and revised by the Lake Champlain 
Basin Program Steering Committee in January 2002.
Section 319 Funding
    Section 319 of the Federal Water Pollution Control Act (33 
U.S.C. 1329), or Clean Water Act, established a nonpoint source 
management program and authorized EPA to provide funds to 
States for implementation of nonpoint source management plans. 
This title provides a 1-year extension for fiscal year 2003 of 
the allowable use of section 319 funds in communities that will 
be obtaining an NPDES permit under the final rule entitled, 
``National Pollutant Discharge Elimination System--Regulations 
for Revision of the Water Pollution Control Program Addressing 
Storm Water Discharges'', promulgated by the Administrator of 
the Environmental Protection Agency on December 8, 1999 (64 
Fed. 17 Reg. 68722). This regulation is commonly referred to as 
the ``phase II stormwater regulation.'' This regulation takes 
effect in March 2003. Existing EPA interpretation of the 
Federal Water Pollution Control Act (33 U.S.C. 1268), or Clean 
Water Act, prohibits States from using section 319 funding for 
addressing permitted discharges. In letters to the committee, 
States have expressed two concerns about EPA's interpretation. 
First, because EPA's guidance outlining how section 319 funds 
could be spent was finalized prior to the promulgation of the 
phase II stormwater regulations, States assert that the 
guidance was not informed by an understanding of how the denial 
of funding for clean water tools, such as mapping of storm 
water systems, would affect the ability of States and towns to 
address nonpoint source pollution. Second, States assert that 
the EPA's statutory interpretation could preclude the use of 
section 319 funding anywhere within the jurisdiction of a 
community required to obtain a NPDES permit under the phase II 
stormwater regulations. In some States, this could mean the 
virtual exclusion of that State from the ability to use section 
319 funds. This situation could slow the progress in reducing 
nonpoint source pollution, which remains one of the nation's 
most important hurdles in meeting our clean water goals.

                      Section-by-Section Analysis

                Title I--Great Lakes Legacy Act of 2002

Section 101. Short Title
    Great Lakes Legacy Act of 2002.
Sec. 102. Report on Remedial Action Plans

                         SUMMARY AND DISCUSSION

    This section requires a report from the Administrator of 
EPA to Congress on such actions, time periods, and resources as 
are necessary to fulfill the duties of the Agency relating to 
oversight of Remedial Action Plans under this paragraph and the 
Great Lakes Water Quality Agreement. This report is a key 
element of the legislation. The General Accounting Office 
specifically called for this evaluation in its May 2002 report 
entitled, ``EPA Needs to Define Organizational Responsibilities 
Better for Effective Oversight and Cleanup of Contaminated 
Areas (GAO-02-563).
Sec. 103. Remediation of Sediment Contamination in Areas of Concern in 
        the Great Lakes

                           QUALIFIED PROJECTS

    Section 103 amends section 118(c) of the Federal Water 
Pollution Control Act (33 U.S.C. 1268), or Clean Water Act, by 
adding a paragraph entitled: ``Remediation of Sediment 
Contamination in Areas of Concern.'' This section provides a 
mechanism for providing funds through an EPA program for the 
remediation of contaminated sediments in Areas of Concern in 
the Great Lakes. This is the first funding source for this 
purpose.
    Section 103 provides authority for EPA to carry out 
``qualified projects'' for the remediation of contaminated 
sediment. Qualified projects are defined as those that:

        (i) monitor or evaluate contaminated sediment, 
        including conducting a site characterization;
        (ii) remediate contaminated sediment (including 
        disposal of the contaminated sediment); or
        (iii) prevent further or renewed contamination of 
        sediment.

    The committee intends for the EPA to prioritize projects on 
which work can be commenced not later than 1 year after receipt 
of the funds for the project as well as those that encourage 
innovation in remediation projects in the Great Lakes.
    The Administrator is prohibited from carrying out a 
qualified project that is located in an Area of Concern that 
the Administrator determines is likely to suffer significant 
further or renewed sediment contamination from sources of 
pollutants after the completion of the qualified project or at 
a site that has not had a thorough site characterization.
    Funds provided in this program have a non-Federal matching 
requirement of at least 35 percent of the total project cost. 
This match can include in-kind services provided by the non-
Federal sponsor. The committee intends that the non-Federal 
share of the cost of a qualified project carried out under this 
paragraph may include the value of in-kind services or cash 
contributed by a non-Federal sponsor including any in-kind 
service performed under an administrative order on consent or 
judicial consent decree, but excluding any in-kind service or 
cash contributed performed under a unilateral administrative 
order or court order. Operations and maintenance of projects 
conducted under the program must be entirely the responsibility 
of the non-Federal sponsor such as a State.
    The Administrator is required to coordinate with the 
Secretary of the Army and the States in which qualified 
projects that receive assistance are located. The committee 
intends that the Administrator and the Secretary of the Army 
will work together to ensure that there is no duplication of 
effort in the Great Lakes. The committee intends that the 
Administrator and the States will coordinate Federal funds and 
non-Federal funds to proceed with the highest priority projects 
first.
    The title authorizes $50,000,000 for each of fiscal years 
2004 through 2008 for this program, for a total of $250,000,000 
over 5 years.

                    RESEARCH AND DEVELOPMENT PROGRAM

    Section 103 provides that the Administrator, in 
coordination with other officials, shall conduct research on 
the development and use of innovative approaches, technologies, 
and techniques for the remediation of sediment contamination in 
areas of concern in the Great Lakes. This authority is included 
to further the use of innovative approaches to the remediation 
of contaminated sediment in the Great Lakes. The committee 
authorizes $2,000,000 for each of fiscal years 2004 through 
2008 for this purpose, for a total of $10,000,000 over 5 years.

                       PUBLIC INFORMATION PROGRAM

    Section 103 provides that the Administrator is authorized 
to carry out, in coordination with the Office of Research and 
Development, States, Indian tribes, local governments, and 
other entities, a program to provide information relating to 
the remediation of contaminated sediment to the public in areas 
of concern and to provide for local coordination and 
organization in those areas. The committee authorizes 
$5,000,000 for each of fiscal years 2004 through 2008 for this 
purpose, for a total of $25,000,000 over 5 years.
Sec. 104. Relationship to Existing Federal and State Laws and 
        International Agreements
    Section 104 amends section 118(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1268), or Clean Water Act, to 
clarify that the Great Lakes Legacy Act of 2002 does not affect 
the jurisdiction, powers, or prerogatives of any department, 
agency, or officer of the Federal Government or of any State 
government, or of any tribe, nor any powers, jurisdiction, or 
prerogatives of any international body created by treaty with 
authority relating to the Great Lakes.
Sec. 105. Authorization of Appropriations
    Section 105 reauthorizes the existing Great Lakes Program 
for $40,000,000 for each of fiscal years 2004 through 2008, for 
a total of $200,000,000 over 5 years.

                        TITLE II--LAKE CHAMPLAIN

Sec. 201. Short Title
    ``Daniel Patrick Moynihan Lake Champlain Basin Program Act 
of 2002.''
Sec. 202. Lake Champlain Basin Program
    This section amends section 120 of the Federal Water 
Pollution Control Act (33 U.S.C. 1270) by inserting the text of 
this section. The committee intends to strengthen and increase 
the capacity of this cooperative effort by formally 
acknowledging the role of the Lake Champlain Basin Program and 
its Steering Committee, and to encourage this innovative 
initiative to retain its flexible, responsive approach to 
addressing the evolving environmental challenges of the Lake 
Champlain Basin.

                  AUTHORIZATION OF PLAN IMPLEMENTATION

    This section defines key terms such as ``Plan'' which is 
the plan entitled ``Opportunities for Action: An Evolving Plan 
for the Future of the Lake Champlain Basin'', approved by the 
Lake Champlain Steering Committee on January 30, 2002. The Act 
authorizes Federal agencies to participate in implementing the 
Plan.
    The Lake Champlain management conference, first authorized 
by the Lake Champlain Special Designation Act of 1990 (33 
U.S.C. 1270 note; P.L. 101-596), completed the first plan in 
1996. Since that time, the management conference has evolved 
into the Lake Champlain Basin Program. This section 
specifically authorizes the Lake Champlain Basin Program. This 
section establishes the purposes of the program:
      to protect and enhance the environmental 
integrity and social and economic benefits of the Lake 
Champlain basin; and
      to achieve the environmental goals described in 
the Plan, including--

        (i) the reduction of phosphorous inputs to Lake 
        Champlain from point sources and nonpoint sources so as 
        to--
                        (I) promote a healthy and diverse 
                        ecosystem; and
                        (II) provide for sustainable human use 
                        and enjoyment of Lake Champlain;
        (ii) the reduction of toxic contamination, such as 
        contamination by mercury and polychlorinated biphenyls, 
        to protect public health and the ecosystem of the Lake 
        Champlain basin;
        (iii) the control of the introduction, spread, and 
        impacts of nonnative nuisance species to preserve the 
        integrity of the ecosystem of the Lake Champlain basin;
        (iv) the minimization of risks to humans from water-
        related health hazards in the Lake Champlain basin, 
        including through the protection of sources of drinking 
        water in the Lake Champlain basin;
        (v) the restoration and maintenance of a healthy and 
        diverse community of fish and wildlife in the Lake 
        Champlain basin;
        (vi) the protection and restoration of wetland, 
        streams, and riparian habitat in the Lake Champlain 
        basin, including functions and values provided by those 
        areas;
        (vii) the management of Lake Champlain, including 
        shorelines and tributaries of Lake Champlain, to 
        achieve----
                        (I) the protection of natural and 
                        cultural resources of Lake Champlain; 
                        and
                        (II) the maintenance of recreational 
                        uses of Lake Champlain;
        (viii) the protection of recreation and cultural 
        heritage resources of the Lake Champlain basin;
        (ix) the continuance of the Lake Champlain long-term 
        water quality and biological monitoring program; and
        (x) the promotion of healthy and diverse economic 
        activity and sustainable development principles in the 
        Lake Champlain basin.

    This section designates the Lake Champlain Basin Program as 
the implementing body for the Plan. The Lake Champlain Basin 
Program is made up of representatives from Federal, State, and 
local agencies as well as interested stakeholders. The 
Program's organization provides a forum for consensus building 
on prioritization and implementation of priorities in the Plan. 
The committee intends for the current processes at the Lake 
Champlain Basin Program to continue to ensure smooth and 
effective implementation of the Plan.
    This section requires that the Plan be reviewed and, as 
necessary, be revised at least once every 5 years. The Plan 
authorized by this Act is the first revision of the plan 
developed in response to the Lake Champlain Special Designation 
Act of 1990 (33 U.S.C. 1270 note; P.L. 101-596.) Continual 
review and revision will be necessary to ensure that the 
document remains a current and accurate roadmap for 
preservation of Lake Champlain.
    This section authorizes the Administrator to make grants to 
implement the management strategies in the plan to State, 
interstate, and regional water pollution control agencies as 
well as public or nonprofit agencies, institutions, and 
organizations. Federal funds will be matched with at least a 25 
percent non-Federal contribution. The committee intends for the 
cost sharing applied to the Lake Champlain program to be 
consistent with the existing program that has operated for 12 
years with a 25 percent non-Federal matching requirement.

                    COORDINATION OF FEDERAL PROGRAMS

    This section authorizes the roles of other Federal agencies 
in the implementation of the Plan.
    The Secretary of Agriculture is authorized to support the 
implementation of the Lake Champlain Basin Program by providing 
financial and technical assistance relating to best management 
practices for controlling nonpoint source pollution, 
particularly with respect to preventing pollution from 
agricultural activities. The Department of Agriculture has been 
a key participant in activities in the Lake Champlain Basin 
since 1990. The committee intends that the Department, through 
programs such as the Conservation Reserve Enhancement Program 
(CREP) and the Wetlands Reserve Program (WRP) will continue 
this long-standing commitment to the Basin. The reduction of 
nutrient run-off from nonpoint sources of pollution, 
particularly agriculture, is one of the activities in the Plan 
that can have the greatest impact on water quality in Lake 
Champlain. The Department of Agriculture is a key partner in 
achieving this goal.
    The Secretary of Interior, acting through both the United 
States Geological Survey (USGS) and the Fish and Wildlife 
Service (FWS) is authorized to support the implementation of 
the Lake Champlain Basin Program. Through USGS, the Secretary 
may provide financial, scientific, and technical assistance and 
applicable watershed research, such as stream flow monitoring; 
water quality monitoring; evaluation of effectiveness of best 
management practices; research on the transport and final 
destination of toxic chemicals in the environment; and 
development of an integrated geographic information system for 
the Lake Champlain basin.
    Through the Fish and Wildlife Service, the Secretary shall 
support the implementation of the program by:

      supporting the protection and restoration of 
wetland, streams, aquatic, and riparian habitat;
      supporting restoration of interjurisdictional 
fisheries and declining aquatic species in the Lake Champlain 
watershed through propagation of fish in hatcheries and 
continued advancement in fish culture and aquatic species 
management technology;
      supporting the control and management of aquatic 
nuisance species that have adverse effects on fisheries or the 
form, function, or structure of the ecosystem of the Lake 
Champlain basin;
      providing financial and technical assistance in 
accordance with the Fish and Wildlife Coordination Act (16 
U.S.C. 661 et seq.) to private landowners seeking to improve 
fish and wildlife habitat, a goal of which is restoration of 
full function to degraded habitat, enhancement of specific 
habitat functions, establishment of valuable fish and wildlife 
habitat that did not previously exist on a particular parcel of 
real property; and
      taking other appropriate action to assist in 
implementation of the Plan.

    Through the National Park Service, the Secretary shall 
support the implementation of the program by providing 
financial and technical assistance for programs concerning 
cultural heritage, natural resources, recreational resources, 
or other programs consistent with the mission of the National 
Park Service that are identified in the Plan.
    The Secretary of Commerce, acting through the Under 
Secretary for Oceans and Atmosphere, shall support the 
implementation of the program by providing financial and 
technical assistance, through the national sea grant program of 
the Department of Commerce, for research; management of 
fisheries and other aquatic resources; related watershed 
programs; and other appropriate action to assist in 
implementation of the Plan.
    The committee authorizes $11,000,000 for each of fiscal 
years 2003 through 2007 for implementation of the Lake 
Champlain Basin Program, with $5,000,000 for the Administrator, 
$3,000,000 for Interior, $1,000,000 for Commerce; and 
$2,000,000 for Agriculture.
    This section also makes technical changes to section 542 of 
P.L. 106-541 of the Water Resources Development Act of 2000 
(114 Stat. 2671.) These modifications allow the Corps of 
Engineers to provide design and construction assistance for 
ecosystem restoration to the Lake Champlain Basin Program for 
the purposes of implementing the Plan. It adds Hamilton County 
in New York to the definition of Lake Champlain watershed. It 
authorizes the Army Corps of Engineers to conduct remote 
sensing and the development of a geographic information system 
for the Lake Champlain basin by the Cold Regions Research and 
Engineering Laboratory. It allows the Corps to provide 
assistance for ecosystem restoration projects through the Lake 
Champlain Basin Program. It clarifies existing crediting 
authority by allowing 100 percent of the non-Federal share to 
be comprised of in-kind services and by clarifying that funds 
provided to a non-Federal interest under the conservation 
reserve enhancement program of the Department of Agriculture 
announced on May 27, 1998 (63 Fed. Reg. 28965), or the wetlands 
reserve program under subchapter C of chapter 1 of 20 subtitle 
D of title XII of the Food Security Act of 1985 (16 U.S.C. 3837 
et seq.) for use in carrying out a project under the Plan shall 
be credited toward the non-Federal share of the cost of the 
project if the Secretary of Agriculture certifies that those 
funds may be used for the purpose of the project under the 
Plan. Each of these changes is intended to facilitate Army 
Corps of Engineers participation in the Lake Champlain Basin 
Program while retaining the current flexibility of the Lake 
Champlain Basin Program.

                        TITLE III--MISCELLANEOUS

Sec. 301. Phase II Storm Water Program

                         SUMMARY AND DISCUSSION

    This section of H.R. 1070 as amended provides that for 
fiscal year 2003, States may choose to use funds made available 
to carry out nonpoint source management programs under section 
319 of the Federal Water Pollution Control Act (33 U.S.C. 1329) 
for projects and activities related to the development or 
implementation of the phase II of the stormwater program of the 
Environmental Protection Agency established by the final rule 
entitled, ``National Pollutant Discharge Elimination System--
Regulations for Revision of the Water Pollution Control Program 
Addressing Storm Water Discharges'', promulgated by the 
Administrator of the Environmental Protection Agency on 
December 8, 1999 (64 Fed. 17 Reg. 68722). This section also 
retains the section 319 fund eligibility of other activities 
that are appropriate for section 319 funds and are within the 
jurisdiction of a community that is required to obtain a 
National Pollutant Discharge Elimination System (NPDES) permit 
under phase II of the stormwater program.
    Existing EPA interpretation of the Clean Water Act 
prohibits States from using section 319 funding for addressing 
permitted discharges. In letters to the committee, multiple 
States expressed concern that the existing EPA interpretation 
could potentially preclude the use of any section 319 funding 
anywhere within the geographic jurisdiction of a community 
requiring an NPDES permit under the phase II stormwater 
regulations. In some States, this could mean the virtual 
exclusion of that State from the ability to use section 319 
funds. This situation could negatively impact the progress in 
reducing nonpoint source pollution, which remains one of the 
nation's most important hurdles in meeting our clean water 
goals.
    The committee is aware that the EPA is in the process of 
reevaluating their current interpretation of the Clean Water 
Act on this issue. However, the phase II stormwater regulations 
take effect in March of 2003. It is unclear if the EPA's 
reevaluation of this policy will be complete before that 
deadline. The committee intends for section 301 of this bill to 
be a 1-year solution. During the 108th Congress, the committee 
fully intends to review the results of the EPA's reevaluation 
and any other pertinent issues surrounding the eligibility of 
funding for communities required to obtain a permit under the 
stormwater phase II rule for section 319. This section allows 
the committee's review to take place without preventing these 
communities from making progress in controlling their nonpoint 
sources of pollution during fiscal year 2003.

                          Legislative History

    H.R. 1070 was referred to the Committee on Environment and 
Public Works on September 5, 2002. The committee considered and 
amended the bill in a business meeting on September 26, 2002 
and ordered the bill, as amended, reported to the Senate.
    Senator Levin (D-MI) and Senator DeWine (R-OH) introduced 
S. 2544, the Senate version of the Great Lakes Legacy Act of 
2002, on May 22, 2002. It was referred to the Committee on 
Environment and Public Works.
    Senators Jeffords (I-VT), Leahy (D-VT), Clinton (D-NY), and 
Schumer (D-NY) introduced S. 2928, the Daniel Patrick Moynihan 
Lake Champlain Basin Program Act of 2002 on September 12, 2002. 
It was referred to the Committee on Environment and Public 
Works. The committee met to consider S. 2928 on September 26, 
2002. A manager's amendment offered by Senator Jeffords was 
agreed to by voice vote. The bill was reported out by voice 
vote. The amended text of S. 2928 was included in the manager's 
amendment to H.R. 1070 agreed to at the committee business 
meeting on September 26, 2002.

                             Rollcall votes

    The Committee on Environment and Public Works met to 
consider H.R. 1070 on September 26, 2002. A manager's amendment 
offered by Senator Jeffords was agreed to by voice vote.
    An amendment by Senator Chafee to provide authority for 
States to use nonpoint source program funds made available 
under section 319 during the 2003 fiscal year for projects and 
activities related to the development and implementation of the 
phase II stormwater program was adopted by voice vote.
    The committee favorably reported the bill by voice vote.

                      Regulatory Impact Statement

    The bill does not create any additional regulatory burdens, 
nor will it cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(2 U.S.C. note; P.L. 104-4), the committee finds that H.R. 1070 
would impose no unfunded mandates on State, local, or tribal 
governments.

                          Cost of Legislation

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 1, 2002.

Hon. James M. Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1070, the Great 
Lakes Legacy Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman, who can be reached at 226-2860.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              


               congressional Budget Office Cost Estimate

H.R. 1070, Great Lakes Legacy Act of 2002, as ordered reported by the 
        Senate Committee on Environment and Public Works on September 
        26, 2002
Summary
    CBO estimates that implementing this legislation would cost 
$390 million over the 2003-2007 period, assuming appropriation 
of the specified amounts. H.R. 1070 would authorize the 
Environmental Protection Agency (EPA), in conjunction with non-
Federal sponsors, to carry out projects aimed at cleaning up 
certain areas of the Great Lakes where contamination has 
settled into sediments at the bottom of the lakes. The bill 
would authorize the appropriation of $250 million over the 
2004-2008 period to EPA for that purpose. In addition, over the 
same period, the bill would authorize the appropriation of $10 
million for EPA to conduct research on the development and use 
of innovative methods for cleaning up the Great Lakes and $25 
million for EPA to conduct a public information program that 
would address concerns over contaminated sediment. Also, this 
legislation would authorize the appropriation of $200 million 
over the 2004-2008 period for the Great Lakes National Program 
Office to support demonstration projects on controlling and 
removing toxic pollutants from the Great Lakes, nutrient 
monitoring at the Great Lakes, and related research.
    H.R. 1070 also includes the Daniel Patrick Moynihan Lake 
Champlain Basin Program Act of 2002, which would establish the 
Lake Champlain Basin Program and authorize the appropriation of 
$55 million over the 2003-2007 period for EPA, the Department 
of the Interior, the Department of Commerce, and the Department 
of Agriculture. Such funds would be used by the various 
agencies to support efforts to improve the environmental 
quality of the Lake Champlain Basin.
    H.R 1070 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on State, local, or tribal governments.
Estimated Cost to the Federal Government
    CBO estimates that implementing the bill would cost $390 
million over the 2003-2007 period, assuming appropriation of 
the amounts authorized for each year. Another $150 million 
would be spent in subsequent years. The estimated budgetary 
impact of H.R. 1070 for the first 5 years is shown in the 
following table. The costs of this legislation fall within 
budget function 300 (natural resources and environment).


                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                   2003    2004    2005    2006    2007
------------------------------------------------------------------------
 CHANGES IN SPENDING SUBJECT TO
        APPROPRIATION\1\
EPA Funding for Clean-up
 Projects:
    Authorization Level.........       0      50      50      50      50
    Estimated Outlays...........       0      25      40      48      50

Research and Development:
    Authorization Level.........       0       2       2       2       2
    Estimated Outlays...........      10       2       2       2       2

Public Information Program:
    Authorization Level.........       0       5       5       5       5
    Estimated Outlays...........       0       5       5       5       5

Great Lakes National Program
 Office:
    Authorization Level.........       0      40      40      40      40
    Estimated Outlays...........       0      26      38      40      40

Lake Champlain Basin Program:
    Authorization Level.........      11      11      11      11      11
    Estimated Outlays...........      11      11      11      11      11

Total:
    Authorization Level.........      11     108     108     108     108
    Estimated Outlays...........      11      69      96     106     108
------------------------------------------------------------------------
\1\ EPA has not yet received a full-year appropriation for 2003. The
  Great Lakes National Program Office and the Lake Champlain Basin
  Management Conference received an appropriation of $18 million in
  2002.

Intergovernmental and Private-Sector Impact
    H.R 1070 contains no intergovernmental or private-sector 
mandates as defined in UMRA. This bill would benefit Great 
Lakes States by authorizing appropriations for grants to 
conduct projects that lead to remediation of sediment 
contamination in certain areas in the
    Great Lakes. States in the Lake Champlain basin would 
benefit from grants authorized to implement a plan to improve 
the environmental integrity of the Lake Champlain watershed. 
Any costs to participants in these programs would be incurred 
voluntarily.
Previous CBO Estimate
    On July 3, 2002, CBO transmitted a cost estimate for H.R. 
1070, as ordered reported by the House Committee on 
Transportation and Infrastructure on June 26, 2002. The Senate 
version of H.R. 1070, unlike the House version, would authorize 
the appropriation of
    $55 million over the 2003-2007 period for the Lake 
Champlain Basin Program. In addition, the Senate version would 
authorize appropriations totaling $485 million over the 2004-
2008 period for activities related to the Great Lakes, while 
the House version would authorize a total appropriation of $260 
million over the 2003-2007 period.

Estimate Prepared By: Federal Costs: Susanne S. Mehlman (226-
2860); Impact on State, Local, and Tribal Governments: Susan 
Sieg Tompkins (225-3220); Impact on the Private Sector: Cecil 
McPherson (226-2940)

Estimate Approved By: Robert A. Sunshine, Assistant Director 
for Budget Analysis.

                        Changes in Existing Law

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


                  FEDERAL WATER POLLUTION CONTROL ACT

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

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

           *       *       *       *       *       *       *


SEC. 118. GREAT LAKES.

      (a) * * *

           *       *       *       *       *       *       *

      (c) Great Lakes Management._
            (1) * * *

           *       *       *       *       *       *       *

            (12) Remediation of sediment contamination in areas 
        of concern.--
                    (A) Definition of qualified project.--In 
                this paragraph, the term ``qualified project'' 
                means a project, to be carried out in an area 
                of concern located wholly or in part in the 
                United States, to--
                            (i) monitor or evaluate 
                        contaminated sediment, including 
                        conducting a site characterization;
                            (ii) remediate contaminated 
                        sediment (including disposal of the 
                        contaminated sediment); or
                            (iii) prevent further or renewed 
                        contamination of sediment.
                    (B) Projects.--The Administrator, acting 
                through the Program Office and in coordination 
                with the Office of Research and Development of 
                the Agency, may carry out qualified projects 
                under this paragraph.
                    (C) Priority.--In carrying out this 
                paragraph, the Administrator shall give 
                priority to a qualified project that--
                            (i) consists of remedial action for 
                        contaminated sediment;
                            (ii) has been identified in a 
                        Remedial Action Plan that is--
                                    (I) submitted under 
                                paragraph (3); and
                                    (II) ready to be 
                                implemented;
                            (iii) will use an innovative 
                        approach, technology, or technique for 
                        remediation; or
                            (iv) includes remediation to be 
                        commenced not later than 1 year after 
                        the receipt of funds for the project.
                    (D) Limitations.--The Administrator may not 
                carry out a qualified project described in 
                clause (ii) or (iii) of subparagraph (A)--
                            (i) that is located in an area of 
                        concern that the Administrator 
                        determines is likely to suffer 
                        significant further or renewed sediment 
                        contamination from sources of 
                        pollutants after the completion of the 
                        qualified project; or
                            (ii) at a site that has not had a 
                        thorough site characterization.
                    (E) Non-federal matching requirement.--
                            (i) In general.--The non-Federal 
                        share of the cost of a qualified 
                        project carried out under this 
                        paragraph shall be not less than 35 
                        percent.
                            (ii) In-kind contributions.--The 
                        non-Federal share of the cost of a 
                        qualified project carried out under 
                        this paragraph may include the value of 
                        in-kind services contributed by a non-
                        Federal sponsor.
                            (iii) Operation and maintenance.--
                        The non-Federal share of the cost of 
                        the operation and maintenance of a 
                        qualified project carried out under 
                        this paragraph shall be 100 percent.
                    (F) Coordination.--In carrying out 
                qualified projects under this paragraph, the 
                Administrator shall coordinate with the 
                Secretary of the Army, and with the Governors 
                of States in which qualified projects assisted 
                under this paragraph are located, to ensure 
                that Federal and State assistance for 
                remediation in areas of concern is used as 
                efficiently as practicable.
                    (G) Authorization of appropriations.--
                            (i) In general.--In addition to 
                        other amounts authorized to be 
                        appropriated under this section, there 
                        is authorized to be appropriated to 
                        carry out this paragraph $50,000,000 
                        for each of fiscal years 2004 through 
                        2008.
                            (ii) Availability.--Funds 
                        appropriated under clause (i) shall 
                        remain available until expended.
            (13) Research and development program.--
                    (A) In general.--The Administrator, in 
                coordination with other Federal and local 
                officials, shall conduct research on the 
                development and use of innovative approaches, 
                technologies, and techniques for the 
                remediation of sediment contamination in areas 
                of concern in the Great Lakes.
                    (B) Authorization of appropriations.--
                            (i) In general.--In addition to 
                        amounts authorized to be appropriated 
                        under other law, there is authorized to 
                        be appropriated to carry out this 
                        paragraph $2,000,000 for each of fiscal 
                        years 2004 through 2008.
                            (ii) Availability.--Funds 
                        appropriated under clause (i) shall 
                        remain available until expended.
            (14) Public information program.--
                    (A) In general.--The Administrator, acting 
                through the Program Office and in coordination 
                with the Office of Research and Development of 
                the Agency, States, Indian tribes, local 
                governments, and other entities, may carry out 
                a public information program to provide--
                            (i) information relating to the 
                        remediation of contaminated sediment to 
                        the public in areas of concern that 
                        are--
                                    (I) located wholly within 
                                the United States; or
                                    (II) shared with Canada; 
                                and
                            (ii) local coordination and 
                        organization in those areas.
                    (B) Authorization of appropriations.--There 
                is authorized to be appropriated to carry out 
                this paragraph $5,000,000 for each of fiscal 
                years 2004 through 2008.

           *       *       *       *       *       *       *

      (g) Relationship to Existing Federal and State Laws and 
International Treaties.--Nothing in this section shall be 
construed to affect the jurisdiction, powers, or prerogatives 
of any department, agency, or officer of the Federal Government 
or of any State government, or of any tribe, nor any powers, 
jurisdiction, or prerogatives of any international body created 
by treaty with authority relating to the Great Lakes , 
including the cleanup and protection of the Great Lakes.
      (h) Authorizations of Great Lakes Appropriations.--[There 
are authorized to be appropriated to the Administrator to carry 
out this section not to exceed $11,000,000 per fiscal year for 
the fiscal years 1987, 1988, 1989, and 1990, and $25,000,000 
for fiscal year 1991.] There is authorized to be appropriated 
to carry out this section $40,000,000 for each of fiscal years 
2004 through 2008. Of the amounts appropriated each fiscal 
year--

           *       *       *       *       *       *       *


                WATER RESOURCES DEVELOPMENT ACT OF 2000

[Public Law 106-541]

           *       *       *       *       *       *       *


                 [Lake Champlain Management Conference

     Sec. 120. (a) Establishment.--There is established a Lake 
Champlain Management Conference to develop a comprehensive 
pollution prevention, control, and restoration plan for Lake 
Champlain. The Administrator shall convene the management 
conference within ninety days of the date of enactment of this 
section.
    [(b) Membership.--The Members of the Management Conference 
shall be comprised of--
            [(1) the Governors of the States of Vermont and New 
        York;
            [(2) each interested Federal agency, not to exceed 
        a total of five members;
            [(3) the Vermont and New York Chairpersons of the 
        Vermont, New York, Quebec Citizens Advisory Committee 
        for the Environmental Management of Lake Champlain;
            [(4) four representatives of the State legislature 
        of Vermont;
            [(5) four representatives of the State legislature 
        of New York;
            [(6) six persons representing local governments 
        having jurisdiction over any land or water within the 
        Lake Champlain basin, as determined appropriate by the 
        Governors; and
            [(7) eight persons representing affected 
        industries, nongovernmental organizations, public and 
        private educational institutions, and the general 
        public, as determined appropriate by the 
        trigovernmental Citizens Advisory Committee for the 
        Environmental Management of Lake Champlain, but not to 
        be current members of the Citizens Advisory Committee.
    [(c) Technical Advisory Committee.--(1) The Management 
Conference shall, not later than one hundred and twenty days 
after the date of enactment of this section, appoint a 
Technical Advisory Committee.
    [(2) Such Technical Advisory Committee shall consist of 
officials of: appropriate departments and agencies of the 
Federal Government; the State governments of New York and 
Vermont; and governments of political subdivisions of such 
States; and public and private research institutions.
    [(d) Research Program.--(1) \1\ The Management Conference 
shall establish a multi-disciplinary environmental research 
program for Lake Champlain. Such research program shall be 
planned and conducted jointly with the Lake Champlain Research 
Consortium.
---------------------------------------------------------------------------
    \1\ So in law. No paragraph (2). See P.L. 101-596, sec. 303, 104 
Stat. 3006.
---------------------------------------------------------------------------
    [(e) Pollution Prevention, Control, and Restoration Plan.--
(1) Not later than three years after the date of the enactment 
of this section, the Management Conference shall publish a 
pollution prevention, control, and restoration plan (hereafter 
in this section referred to as the ``Plan'') for Lake 
Champlain.
    [(2) The Plan developed pursuant to this section shall--
            [(A) identify corrective actions and compliance 
        schedules addressing point and nonpoint sources of 
        pollution necessary to restore and maintain the 
        chemical, physical, and biological integrity of water 
        quality, a balanced, indigenous population of 
        shellfish, fish and wildlife, recreational, and 
        economic activities in and on the lake;
            [(B) incorporate environmental management concepts 
        and programs established in State and Federal plans and 
        programs in effect at the time of the development of 
        such plan;
            [(C) clarify the duties of Federal and State 
        agencies in pollution prevention and control 
        activities, and to the extent allowable by law, suggest 
        a timetable for adoption by the appropriate Federal and 
        State agencies to accomplish such duties within a 
        reasonable period of time;
            [(D) describe the methods and schedules for funding 
        of programs, activities, and projects identified in the 
        Plan, including the use of Federal funds and other 
        sources of funds; and
            [(E) include a strategy for pollution prevention 
        and control that includes the promotion of pollution 
        prevention and management practices to reduce the 
        amount of pollution generated in the Lake Champlain 
        basin.
    [(3) The Administrator, in cooperation with the Management 
Conference, shall provide for public review and comment on the 
draft Plan. At a minimum, the Management Conference shall 
conduct one public meeting to hear comments on the draft plan 
in the State of New York and one such meeting in the State of 
Vermont.
    [(4) Not less than one hundred and twenty days after the 
publication of the Plan required pursuant to this section, the 
Administrator shall approve such plan if the plan meets the 
requirements of this section and the Governors of the States of 
New York and Vermont concur.
    [(5) Upon approval of the plan, such plan shall be deemed 
to be an approved management program for the purposes of 
section 319(h) of this Act and such plan shall be deemed to be 
an approved comprehensive conservation and management plan 
pursuant to section 320 of this Act.
    [(f) Grant Assistance.--(1) The Administrator may, in 
consultation with the Management Conference, make grants to 
State, interstate, and regional water pollution control 
agencies, and public or nonprofit agencies, institutions, and 
organizations.
    [(2) Grants under this subsection shall be made for 
assisting research, surveys, studies, and modeling and 
technical and supporting work necessary for the development of 
the Plan and for retaining expert consultants in support of 
litigation undertaken by the State of New York and the State of 
Vermont to compel cleanup or obtain cleanup damage costs from 
persons responsible for pollution of Lake Champlain.
    [(3) The amount of grants to any person under this 
subsection for a fiscal year shall not exceed 75 per centum of 
the costs of such research, survey, study and work and shall be 
made available on the condition that non-Federal share of such 
costs are provided from non-Federal sources.
    [(4) The Administrator may establish such requirements for 
the administration of grants as he determines to be 
appropriate.
    [(g) Definition.--For the purposes of this section, the 
term ``Lake Champlain drainage basin'' means all or part of 
Clinton, Franklin, Warren, Essex, and Washington counties in 
the State of New York and all or part of Franklin, Grand Isle, 
Chittenden, Addison, Rutland, Lamoille, Orange, Washington, 
Orleans, and Caledonia counties in Vermont, that contain all of 
the streams, rivers, lakes, and other bodies of water, 
including wetlands, that drain into Lake Champlain.
    [(h) Statutory Interpretation.--Nothing in this section 
shall be construed so as to affect the jurisdiction or powers 
of--
            [(1) any department or agency of the Federal 
        Government or any State government; or
            [(2) any international organization or entity 
        related to Lake Champlain created by treaty or 
        memorandum to which the United States is a signatory.
    [(i) Authorization.--There are authorized to be 
appropriated to the Environmental Protection Agency to carry 
out this section $2,000,000 for each of fiscal years 1991, 
1992, 1993, 1994, and 1995.]

SEC. 120. LAKE CHAMPLAIN BASIN PROGRAM.

    (a) Definitions.--In this section:
            (1) Committee.--The term `Committee' means the 
        steering committee of the program comprised of 
        representatives of Federal, State, and local 
        governments and other persons, as specified in the 
        Plan.
            (2) Lake champlain basin.--
                    (A) In general.--The term `Lake Champlain 
                basin' means all water and land resources in 
                the United States in the drainage basin of Lake 
                Champlain.
                    (B) Inclusions.--The term `Lake Champlain 
                basin' includes--
                            (i) Clinton, Essex, Franklin, 
                        Hamilton, Warren, and Washington 
                        counties in the State of New York; and
                            (ii) Addison, Bennington, 
                        Caledonia, Chittenden, Franklin, Grand 
                        Isle, Lamoille, Orange, Orleans, 
                        Rutland, and Washington counties in the 
                        State of Vermont.
            (3) Plan.--The term `Plan' means the plan entitled 
        `Opportunities for Action: An Evolving Plan for the 
        Future of the Lake Champlain Basin', approved by Lake 
        Champlain Steering Committee on January 30, 2002, that 
        describes the actions necessary to protect and enhance 
        the environmental integrity and the social and economic 
        benefits of the Lake Champlain basin.
            (4) Program.--The term `program' means the Lake 
        Champlain Basin Program established by subsection 
        (b)(1).
    (b) Establishment.--
            (1) In general.--There is established a program to 
        be known as the `Lake Champlain Basin Program'.
            (2) Purposes.--The purposes of the program are--
                    (A) to protect and enhance the 
                environmental integrity and social and economic 
                benefits of the Lake Champlain basin; and
                    (B) to achieve the environmental goals 
                described in the Plan, including--
                            (i) the reduction of phosphorous 
                        inputs to Lake Champlain from point 
                        sources and nonpoint sources so as to--
                                    (I) promote a healthy and 
                                diverse ecosystem; and
                                    (II) provide for 
                                sustainable human use and 
                                enjoyment of Lake Champlain;
                            (ii) the reduction of toxic 
                        contamination, such as contamination by 
                        mercury and polychlorinated biphenyls, 
                        to protect public health and the 
                        ecosystem of the Lake Champlain basin;
                            (iii) the control of the 
                        introduction, spread, and impacts of 
                        nonnative nuisance species to preserve 
                        the integrity of the ecosystem of the 
                        Lake Champlain basin;
                            (iv) the minimization of risks to 
                        humans from water-related health 
                        hazards in the Lake Champlain basin, 
                        including through the protection of 
                        sources of drinking water in the Lake 
                        Champlain basin;
                            (v) the restoration and maintenance 
                        of a healthy and diverse community of 
                        fish and wildlife in the Lake Champlain 
                        basin;
                            (vi) the protection and restoration 
                        of wetland, streams, and riparian 
                        habitat in the Lake Champlain basin, 
                        including functions and values provided 
                        by those areas;
                            (vii) the management of Lake 
                        Champlain, including shorelines and 
                        tributaries of Lake Champlain, to 
                        achieve--
                                    (I) the protection of 
                                natural and cultural resources 
                                of Lake Champlain; and
                                    (II) the maintenance of 
                                recreational uses of Lake 
                                Champlain;
                            (viii) the protection of recreation 
                        and cultural heritage resources of the 
                        Lake Champlain basin;
                            (ix) the continuance of the Lake 
                        Champlain long-term water quality and 
                        biological monitoring program; and
                            (x) the promotion of healthy and 
                        diverse economic activity and 
                        sustainable development principles in 
                        the Lake Champlain basin.
    (c) Implementation.--The Committee, in consultation with 
appropriate heads of Federal agencies, shall implement the 
program.
    (d) Revision of Plan.--At least once every 5 years, the 
Committee shall review and, as necessary, revise the Plan.
    (e) Grants.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator may, in consultation with the Committee, 
        make grants, for the purpose of implementing the 
        management strategies contained in the Plan, to--
                    (A) State, interstate, and regional water 
                pollution control agencies; and
                    (B) public or nonprofit agencies, 
                institutions, and organizations.
            (2) Cost sharing.--The Federal share of the cost of 
        any activity carried out using funds from a grant 
        provided under this subsection shall not exceed 75 
        percent.
            (3) Additional requirements.--The Administrator may 
        establish such additional requirements for the 
        administration of grants provided under this subsection 
        as the Administrator determines to be appropriate.
    (f) Coordination of Federal Programs.--
            (1) Agriculture.--The Secretary of Agriculture 
        shall support the implementation of the program by 
        providing financial and technical assistance relating 
        to best management practices for controlling nonpoint 
        source pollution, particularly with respect to 
        preventing pollution from agricultural activities.
            (2) Interior.--
                    (A) Geological survey.--The Secretary of 
                the Interior, acting through the United States 
                Geological Survey, shall support the 
                implementation of the program by providing 
                financial, scientific, and technical assistance 
                and applicable watershed research, such as--
                            (i) stream flow monitoring;
                            (ii) water quality monitoring;
                            (iii) evaluation of effectiveness 
                        of best management practices;
                            (iv) research on the transport and 
                        final destination of toxic chemicals in 
                        the environment; and
                            (v) development of an integrated 
                        geographic information system for the 
                        Lake Champlain basin.
                    (B) Fish and wildlife.--The Secretary of 
                the Interior, acting through the Director of 
                the United States Fish and Wildlife Service and 
                in cooperation with the Committee, shall 
                support the implementation of the program by--
                            (i) supporting the protection and 
                        restoration of wetland, streams, 
                        aquatic, and riparian habitat;
                            (ii) supporting restoration of 
                        interjurisdictional fisheries and 
                        declining aquatic species in the Lake 
                        Champlain watershed through--
                                    (I) propagation of fish in 
                                hatcheries; and
                                    (II) continued advancement 
                                in fish culture and aquatic 
                                species management technology;
                            (iii) supporting the control and 
                        management of aquatic nuisance species 
                        that have adverse effects on--
                                    (I) fisheries; or
                                    (II) the form, function, or 
                                structure of the ecosystem of 
                                the Lake Champlain basin;
                            (iv) providing financial and 
                        technical assistance in accordance with 
                        the Fish and Wildlife Coordination Act 
                        (16 U.S.C. 661 et seq.) to private 
                        landowners seeking to improve fish and 
                        wildlife habitat, a goal of which is--
                                    (I) restoration of full 
                                function to degraded habitat;
                                    (II) enhancement of 
                                specific habitat functions; or
                                    (III) establishment of 
                                valuable fish and wildlife 
                                habitat that did not previously 
                                exist on a particular parcel of 
                                real property; and
                            (v) taking other appropriate action 
                        to assist in implementation of the 
                        Plan.
                    (C) National parks.--The Secretary of the 
                Interior, acting through the Director of the 
                National Park Service, shall support the 
                implementation of the program by providing, 
                through the use of funds in the National 
                Recreation and Preservation Appropriation 
                account of the National Park Service, financial 
                and technical assistance for programs 
                concerning cultural heritage, natural 
                resources, recreational resources, or other 
                programs consistent with the mission of the 
                National Park Service that are associated with 
                the Lake Champlain basin, as identified in the 
                Plan.
            (3) Commerce.--The Secretary of Commerce, acting 
        through the Under Secretary for Oceans and Atmosphere, 
        shall support the implementation of the program by 
        providing financial and technical assistance, through 
        the national sea grant program of the Department of 
        Commerce, for--
                    (A) research;
                    (B) management of fisheries and other 
                aquatic resources;
                    (C) related watershed programs; and
                    (D) other appropriate action to assist in 
                implementation of the Plan.
    (g) No Effect on Other Authority.--Nothing in this section 
affects the authority of--
            (1) any Federal or State agency; or
            (2) any international entity relating to Lake 
        Champlain established by an international agreement to 
        which the United States is a party.
    (h) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $11,000,000 for 
each of fiscal years 2003 through 2007, of which--
            (1) $5,000,000 shall be made available to the 
        Administrator;
            (2) $3,000,000 shall be made available to the 
        Secretary of the Interior;
            (3) $1,000,000 shall be made available to the 
        Secretary of Commerce; and
            (4) $2,000,000 shall be made available to the 
        Secretary of Agriculture.

           *       *       *       *       *       *       *


SEC. 542. LAKE CHAMPLAIN WATERSHED, VERMONT AND NEW YORK.

    [(a) Definitions.--In this section, the following 
definitions apply:
            [(1) Critical restoration project.--The term 
        ``critical restoration project'' means a project that 
        will produce, consistent with Federal programs, 
        projects, and activities, immediate and substantial 
        ecosystem restoration, preservation, and protection 
        benefits.
            [(2) Lake champlain watershed.--The term ``Lake 
        Champlain watershed'' means--
                    [(A) the land areas]
    (a) Definition of Lake Champlain Watershed.--In this 
section, the term `Lake Champlain watershed' means--
            (1) the land areas within Addison, Bennington, 
        Caledonia, Chittenden, Franklin, Grand Isle, Lamoille, 
        Orange, Orleans, Rutland, and Washington Counties in 
        the State of Vermont; and
                    [(B)(i) the]
            (2)(A) the land areas that drain into Lake 
        Champlain and that are located within Essex, Clinton, 
        Franklin, Hamilton, Warren, and Washington Counties in 
        the State of New York; and
                            [(ii) the]
            (B) the near-shore areas of Lake Champlain within 
        the counties referred to in subparagraph (A).
    (b) [Critical Restoration Projects] Ecosystem Restoration 
Program.--
            (1) In general.--The Secretary may [participate in] 
        provide design and construction assistance to non-
        Federal interests for [critical restoration] ecosystem 
        restoration projects in the Lake Champlain watershed.
            (2) Types of projects.--[A] An [critical 
        restoration] ecosystem restoration project shall be 
        eligible for assistance under this section if the 
        [critical restoration] ecosystem restoration project 
        consists of--
                    (A) implementation of an intergovernmental 
                agreement for coordinating regulatory and 
                management responsibilities with respect to the 
                Lake Champlain watershed;
                    (B) acceleration of whole farm planning to 
                implement best management practices to maintain 
                or enhance water quality and to promote 
                agricultural land use in the Lake Champlain 
                watershed;
                    (C) acceleration of whole community 
                planning to promote intergovernmental 
                cooperation in the regulation and management of 
                activities consistent with the goal of 
                maintaining or enhancing water quality in the 
                Lake Champlain watershed;
                    (D) natural resource stewardship activities 
                on public or private land to promote land uses 
                that--
                            (i) preserve and enhance the 
                        economic and social character of the 
                        communities in the Lake Champlain 
                        watershed; and
                            (ii) protect and enhance water 
                        quality; or
                    (E) any other activity determined by the 
                Secretary to be appropriate, including remote 
                sensing and the development of a geographic 
                information system for the Lake Champlain basin 
                by the Cold Regions Research and Engineering 
                Laboratory.
    (c) Public Ownership Requirement.--The Secretary may 
provide [assistance for a] design and construction assistance 
for an [critical restoration] ecosystem restoration project 
under this section only if--
            (1) the [critical restoration] ecosystem 
        restoration project is publicly owned; or
            (2) the non-Federal interest with respect to the 
        [critical restoration] ecosystem restoration project 
        demonstrates that the [critical restoration] ecosystem 
        restoration project will provide a substantial public 
        benefit in the form of ecosystem restoration or water 
        quality improvement.
    (d) Project Selection.--
            [(1) In general.--In consultation with the Lake 
        Champlain Basin Program and the heads of other 
        appropriate Federal, State, tribal, and local agencies, 
        the Secretary may--
                    [(A) identify [critical restoration] 
                ecosystem restoration projects in the Lake 
                Champlain watershed; and
                    [(B) carry out the [critical restoration] 
                ecosystem restoration projects after entering 
                into an agreement with an appropriate non-
                Federal interest in accordance with section 221 
                of the Flood Control Act of 1970 (42 U.S.C. 
                1962d-5b) and this section.
            [(2) Certification.--
                    [(A) In general.--A]
    (d) Criteria for Eligibility.--
            (1) In general.--An [critical restoration] 
        ecosystem restoration project shall be eligible for 
        financial assistance under this section only if the 
        appropriate State official for the [critical 
        restoration] ecosystem restoration project certifies to 
        the Secretary that the [critical restoration] ecosystem 
        restoration project will contribute to the protection 
        and enhancement of the quality or quantity of the water 
        resources of the Lake Champlain watershed.
                    [(B) Special]
            (2) Special consideration.--In certifying [critical 
        restoration] ecosystem restoration projects to the 
        Secretary, the appropriate State officials shall give 
        special consideration to projects that implement plans, 
        agreements, and measures that preserve and enhance the 
        economic and social character of the communities in the 
        Lake Champlain watershed.
    (e) Cost Sharing.--
            (1) In general.--Before providing assistance under 
        this section with respect [to a] to an [critical 
        restoration] ecosystem restoration project, the 
        Secretary shall enter into a [project] project (which 
        assistance may include the provision of funds through 
        the Lake Champlain Basin Program), cooperation 
        [agreement that shall require the non-Federal interest] 
        agreement that is in accordance with section 221 of the 
        Flood Control Act of 1970 (42 U.S.C. 1962d-5b) and 
        under which the non-Federal interest agrees--
                    (A) to pay 35 percent of the total costs of 
                the project;
                    (B) to provide any land, easements, rights-
                of-way, dredged material disposal areas, and 
                relocations necessary to carry out the project;
                    (C) to pay 100 percent of the operation, 
                maintenance, repair, replacement, and 
                rehabilitation costs associated with the 
                project; and
                    (D) to hold the United States harmless from 
                any claim or damage that may arise from 
                carrying out the project, except any claim or 
                damage that may arise from the negligence of 
                the Federal Government or a contractor of the 
                Federal Government.
            (2) Non-federal share.--
                    (A) Credit for design work.--The non-
                Federal interest shall receive credit for the 
                reasonable costs of design work carried out by 
                the non-Federal interest before the date of 
                execution of a project cooperation agreement 
                for the [critical restoration] ecosystem 
                restoration project, if the Secretary finds 
                that the design work is integral to the 
                project.
                    (B) Credit for land, easements, and rights-
                of-way.--The Secretary shall credit the non-
                Federal interest for the value of any land, 
                easement, right-of-way, dredged material 
                disposal area, or relocation provided for 
                carrying out the project.
                    (C) Form.--The non-Federal interest may 
                provide up to [50] 100 percent of the non-
                Federal share in the form of services, 
                materials, supplies, or other in-kind 
                contributions.
            (3) Credit for agricultural conservation.--Funds 
        provided to a non-Federal interest under the 
        conservation reserve enhancement program of the 
        Department of Agriculture announced on May 27, 1998 (63 
        Fed. Reg. 28965), or the wetlands reserve program under 
        subchapter C of chapter 1 of subtitle D of title XII of 
        the Food Security Act of 1985 (16 U.S.C. 3837 et seq.), 
        for use in carrying out a project under the Plan shall 
        be credited toward the non-Federal share of the cost of 
        the project if the Secretary of Agriculture certifies 
        that those funds may be used for the purpose of the 
        project under the Plan.
    (f) Applicability of other federal and state laws.--Nothing 
in this section waives, limits, or otherwise affects the 
applicability of Federal or State law with respect to a project 
carried out with assistance provided under this section.
    (g) Authorization of appropriations.--There is authorized 
to be appropriated to carry out this section $20,000,000, to 
remain available until expended.