Small harbor improvement projects account. Deposit and expenditure of funds.

(b) The small harbor improvement projects account may be used (1) for federal and nonfederal dredging projects in small harbors to (A) support, in full or in part, local and state matching requirements for such projects; (B) cover the incremental costs associated with applicable environmental regulatory requirements or management practices, including beneficial use; and (C) cover part or all of the costs of such projects in the absence of adequate federal funds; and (2) to fund private maritime infrastructure projects in small harbors, provided all applicable permits and authorizations are obtained before such private maritime infrastructure projects receive any such funding. If the account is used for the purpose described in subparagraph (C) of subdivision (1) of this subsection, the authority shall pursue reimbursement to the account from the federal government. (c) The authority shall adopt procedures in accordance with section 1-121 to implement the provisions of this section, including, but not limited to, a process for contracting for projects in small harbors under this section.