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or (II) has land in the watershed that is held in tr u st; ( C )isa g rassroots , nonregulator y entity that addresses water a v aila b ility and q uality issues within the relevant watershed; ( D )is c a p able o f pro m oting the sustainable use of the water resources of the relevant watershed and improving the functioning condition of rivers and streams through — (i) water conservation; (ii) improved water quality; (iii) ecological resiliency; and (iv) the reduction of water conflicts; and ( E )ma k es decisions on a consensus basis, as defined in the bylaws of the watershed group . ( 6 ) WATERSH E DM A N A G EMENT P R OJ E C T.— T he term ‘ ‘water - shed management pro j ect ’ ’ means any project (including a dem- onstration project) that— ( A ) enhances water conservation, including alternative water uses; ( B ) improves water quality; (C) improves ecological resiliency of a river or stream; (D) reduces the potential for water conflicts; or (E) advances any other goals associated with water quality or quantity that the S ecretary determines to be appropriate. SEC.60 0 2 . PROG R AM . (a) ESTA BLI SHMENT.— N ot later than 180 days after the date of enactment of this Act, the Secretary shall establish a program, to be known as the ‘‘Cooperative Watershed M anagement P rogram’’, under which the Secretary shall provide grants— (1)(A) to form a watershed group; or (B) to enlarge a watershed group; and ( 2 ) to conduct 1 or more projects in accordance with the goals of a watershed group. (b) APPLICATION.— (1) ESTABLISHMENT O F APPLICATION PROCESS; CRITERIA.— Not later than 1 year after the date of enactment of this Act, the Secretary shall establish— (A) an application process for the program; and (B) in consultation with the States, prioriti z ation and eligibility criteria for considering applications submitted in accordance with the application process. (c) DISTRIB U TION OF G RANT F UNDS.— (1) IN GENERAL.—In distributing grant funds under this section, the Secretary— (A) shall comply with paragraph (2); and (B) may give priority to watershed groups that— (i) represent ma x imum diversity of interests; or (ii) serve subbasin-sized watersheds with an 8- digit hydrologic unit code, as defined by the U nited States Geological Survey. (2) FUNDING PROCEDURE.— (A) FIRST PHASE.— Deadlin e . Deadline. Gr an ts . 16USC 1 0 1 5 a.
