under this section only if the project is publicly owned. (d) Local cooperation agreements (1) In general Before providing assistance under this section, the Secretary shall enter into a local cooperation agreement with the non-Federal interest to provide for design and construction of the project to be carried out with the assistance. (2) Requirements Each local cooperation agreement entered into under this subsection shall provide for the following: (A) Plan Development by the Secretary, in consultation with appropriate Federal and State officials, of a facilities or resource protection and development plan, including appropriate engineering plans and specifications. (B) Legal and institutional structures Establishment of any legal and institutional structures as are necessary to ensure the effective long-term operation of the project by the non-Federal interest. (3) Cost sharing (A) In general The Federal share of the cost of a project carried out with assistance under this section shall be 75 percent. (B) Credit for design work The non-Federal interest shall receive credit toward the non-Federal share for the reasonable costs of design work completed by the non-Federal interest before entering into a local cooperation agreement with the Secretary for a project. (C) Credit for interest In case of a delay in the funding of the non-Federal share of a project carried out with assistance under this section, the non-Federal interest shall receive credit for reasonable interest incurred in providing the non-Federal share of the cost of the project. (D) Land, easements, and rights-of-way credit The non-Federal interest shall receive credit toward the non-Federal share for land, easements, rights-of-way, and relocations (including all reasonable costs associated with obtaining permits necessary for the construction, operation, and maintenance of the project on publicly owned or controlled land), not to exceed 25 percent of the total cost of the project. (E) Operation and maintenance The non-Federal share of operation