; (B) in paragraph (1), by striking and (3) and inserting , (3), and (4) ; and (C) by adding at the end the following: (4) Water quality projects (A) Definition of water quality project In this paragraph, the term water quality project means any project identified in a State water quality control plan developed for the purpose of restoring any body of water that is identified by the State under section 303(d) of the Federal Water Pollution Control Act ( 33 U.S.C. 1313(d) ) as being impaired. (B) Financial assistance Under paragraph (1), the Secretary may provide financial assistance for the conduct of water quality projects. (C) Non-federal share credit The Secretary may credit toward the non-Federal share required under subsection (c) funds allocated by a State for the conduct of a water quality project. (D) Consultation The Secretary shall consult with the Administrator of the Environmental Protection Agency in carrying out this paragraph. (E) Limitations (i) In general In providing financial assistance to water quality projects under this paragraph, the Secretary shall only provide financial assistance to water quality projects that seek to improve water quality by improving, restoring, remediating, or developing natural hydrological systems, such as— (I) wetlands; (II) marshes; (III) living shorelines; (IV) near-shore estuarine waters; or (V) any other naturally occurring hydrological features the Secretary determines to be necessary for the purpose of reducing nutrient loads. (ii) No reimbursement Funds made available for a water quality project under this paragraph may not be used to reimburse the cost of any water quality project that has already been completed or is otherwise fully funded. (iii) Effect Nothing in this paragraph— (I) expands the authority of the Federal Government over nonnavigable waters; or (II) authorizes the Secretary to regulate the conduct of water quality projects. .