16 U.S.C. § 1015a — Program

(a) Establishment. Within 180 days after March 30, 2009, the Secretary must establish the “Cooperative Watershed Management Program.” The Secretary must provide grants to form or enlarge a watershed group and to conduct one or more projects consistent with the group’s goals. (b) Application process and criteria. By September 30, 2021, the Secretary must update the program’s application process and, in consultation with the States, update the priority and eligibility criteria for considering applications submitted through that process. (c) Distribution of grant funds. (1) General rule. When distributing grants, the Secretary must follow paragraph (2). The Secretary may prioritize watershed groups that represent the maximum diversity of interests or serve subbasin-sized watersheds identified by an 8-digit hydrologic unit code, as defined by the United States Geological Survey. (2) Funding procedure. (A) First phase. (i) Amount and period. The Secretary may give a recipient up to $100,000 each year for no more than 3 years. (ii) Required use. A recipient must use the money to establish or enlarge a watershed group, develop the group’s mission statement, develop project concepts, and develop a restoration plan. (iii) Annual eligibility decision. (I) For each year, within 270 days after the recipient first receives that year’s grant money, the Secretary must decide whether the recipient made enough progress during that year to justify more funding. (II) If the Secretary decides that it did, the Secretary must provide money for the following year. (iv) Conditions for moving forward. A recipient cannot receive a second-phase grant until the Secretary decides that the watershed group has approved articles of incorporation and bylaws governing the organization and that it holds regular meetings, has completed a mission statement, and has developed a restoration plan and project concepts for the watershed. (v) Exception. A group that did not apply for or receive a first-phase grant may apply for and receive a second-phase grant if the Secretary decides that it satisfied the first-phase requirements. (B) Second phase. (i) Amount, period, and eligibility. A watershed group may apply for and receive a grant of exactly $1,000,000 each year for no more than 4 years if it applied for and received a grant under subparagraph (A), or if the Secretary decides that it satisfied the first-phase requirements. (ii) Required use. A recipient must use the money to plan and carry out watershed management projects. (iii) Annual eligibility decision. For each year, within 270 days after the recipient first receives that year’s grant money, the Secretary must decide whether the recipient made enough progress during that year to justify more funding. If the Secretary decides that it did, the Secretary must provide money for the following year. (iv) Condition for moving forward. A recipient cannot receive a third-phase grant until the Secretary decides that the recipient completed every second-phase requirement and showed that one or more of its pilot projects produced demonstrable improvements, as the Secretary determines, in the functioning condition of at least one river or stream in the watershed. (C) Third phase. (i) Amount and period. The Secretary may provide up to $5,000,000 for no more than 5 years. (ii) Exception. The Secretary may provide more than $5,000,000 if the Secretary decides that the recipient can use the additional money to further the program’s purposes in a way the recipient could not otherwise achieve with $5,000,000. (iii) Required use. A recipient must use the money to plan and carry out at least one watershed management project. (3) Administrative and other costs. A recipient may use grant money to pay administrative and coordination costs up to the lesser of 20 percent of the total grant or $100,000; the salary of no more than one full-time watershed-group employee; legal fees arising from establishing the group; water-quality and water-quantity studies of the watershed; and planning, design, and implementation of projects concerning water quality or quantity. (d) Cost share. (1) First phase. The Federal share of the cost of any activity assisted through a first-phase grant is 100 percent. (2) Second phase. The Federal share of the cost of any activity in a watershed management project assisted through a second-phase grant may not exceed 50 percent of the activity’s total cost. The non-Federal share may be in-kind contributions. (3) Third phase. The Federal share of the cost of any activity of a recipient’s watershed group relating to a watershed management project assisted through a third-phase grant may not exceed 50 percent of the project’s total costs. The non-Federal share may be in-kind contributions. (e) Annual reports. (1) Beginning one year after a recipient first receives money under this section, and every year after that, the watershed group must submit a report to the Secretary describing its progress. (2) The report must contain enough information for the Secretary to complete every report required under subsection (f), as the Secretary determines. (f) Five-year report. No later than 5 years after March 30, 2009, and every 5 years after that, the Secretary must report to the Senate Committee on Energy and Natural Resources and the House Committee on Natural Resources. The report must describe how the program assists the Secretary in addressing water conflicts, conserving water, improving water quality, and improving the ecological resiliency of a river or stream. It must also describe the program’s benefits, including, to the maximum extent practicable, a quantitative analysis of its economic, social, and environmental benefits. (g) Appropriations. Congress may appropriate $2,000,000 for each of fiscal years 2008 and 2009; $5,000,000 for fiscal year 2010; $10,000,000 for fiscal year 2011; and $20,000,000 for each of fiscal years 2012 through 2026.