; (C) developing and executing cooperative strategies that address the water quality, coastal resilience, and living resource needs in the Gulf of Mexico ecosystem; (D) developing and implementing locally based protection and restoration programs or projects within a watershed that complement such strategies, including the creation, restoration, protection, or enhancement of habitat associated with the Gulf of Mexico ecosystem; and (E) eliminating or reducing nonpoint sources that discharge pollutants that contaminate the Gulf of Mexico ecosystem, including activities to eliminate leaking septic systems and construct connections to local sewage systems. (2) Administrative costs Administrative costs in the form of salaries, overhead, or indirect costs for services provided and charged against programs or projects carried out using funds made available through a grant under this subsection shall not exceed 25 percent of the amount of the grant. (c) Limitation on regulatory authority Nothing in this section establishes any new legal or regulatory authority of the Gulf of Mexico Alliance, itself, other than the authority to provide grants in accordance with this section. (d) Definitions In this section: (1) Gulf of Mexico Alliance The term Gulf of Mexico Alliance means the formal collaborative organization of Federal, State, local, and private participants established by the 5 Gulf States in 2004 as a non-regulatory, inclusive network of partners to provide a broad geographic focus on the primary environmental issues affecting the Gulf of Mexico. (2) Gulf of Mexico ecosystem The term Gulf of Mexico ecosystem means the ecosystem of the Gulf of Mexico and its watershed. 4. General provisions (a) Gifts and transfers to Gulf Coast Ecosystem Restoration Council Section 311(t)(2)(E) of the Federal Water Pollution Control Act ( 33 U.S.C. 1321(t)(2)(E) ) is amended by adding at the end the following: (iii) Gifts and transfers