SOUTHERN WEST VIRGINIA.

SEC. 359. SOUTHERN WEST VIRGINIA.(a) Cost Sharing.—Section 340(c)(3) of the Water Resources Development Act of 1992 (106 Stat. 4856) is amended to read as follows: “(3) Cost sharing.—“(A) In general.—Total project costs under each local cooperation agreement entered into under this subsection shall be shared at 75 percent Federal and 25 percent non-Federal. The Federal share may be in the form of grants or reimbursements of project costs. 110 STAT. 3727 “(B) Credit for design work.—The non-Federal interest shall receive credit for the reasonable costs of design work completed by such interest prior to entering into a local cooperation agreement with the Secretary for a project. The credit for such design work shall not exceed 6 percent of the total construction costs of the project. “(C) Credit for interest.—In the event of a delay in the funding of the non-Federal share of a project that is the subject of an agreement under this section, the non-Federal interest shall receive credit for reasonable interest incurred in providing the non-Federal share of a project’s cost. “(D) Credit for lands, easements, and rights-of-way.—The non-Federal interest shall receive credit for lands, easements, rights-of-way, and relocations toward its share of project costs (including all reasonable costs associated with obtaining permits necessary for the construction, operation, and maintenance of such project on publicly owned or controlled lands), but not to exceed 25 percent of total project costs. “(E)Operation and maintenance—Operation and maintenance costs for projects constructed with assistance provided under this section shall be 100 percent non-Federal.”. (b) Funding.—Section 340(g) of the Water Resources Development Act of 1992 (106 Stat. 4856) is amended by striking “$5,000,000” and inserting “$20,000,000”.