This bill amends the Federal Water Pollution Control Act (commonly known as the Clean Water Act) to allow a permittee under the Act to satisfy compensatory mitigation requirements for discharging dredged or fill material into the waters of the United States (permitted activity) by entering into a preservation lease with a state or Indian tribe whose wetlands are affected.

A preservation lease is an agreement under which a permittee leases wetlands or other aquatic sites on state or Indian land for the sole purpose of preserving the wetlands or other aquatic sites in an undisturbed state during the term of the lease to mitigate for a permitted activity. The term of the lease may not be less than the life of the permitted activity and must be adjusted to account for the cessation of the impacts caused by such activity.

If a permittee enters into a preservation lease and subsequently ceases to maintain the permitted activity, or seeks to abandon the permitted activity without a good faith transfer, the permittee must obtain a permit modification from the U.S. Army Corps of Engineers, which may require restoration and rehabilitation of the area.