; and (B) is not— (i) licensed under this part; or (ii) exempted from the license requirements contained in this part. (3) Off-site measure The term off-site measure means any activity intended to mitigate the project effects by replacing or providing substitute resources or habitat at a location different from the project area. (b) Off-Site measures (1) In general In discharging responsibilities under any Federal authorization for the protection of, mitigation of damage to, and enhancement of resources affected by a project, the Commission and conditioning agencies— (A) shall consider and include in the public record off-site measures recommended by any licensing participant, including Federal resource agencies, State resource agencies Indian Tribes, and the public; but (B) shall not require any off-site measure that is not proposed by the applicant. (2) Coordination An off-site measure under this subsection may include coordination with another project in the applicable basin. (3) Effect on regulatory responsibilities The adoption by the Commission or any conditioning agency of an off-site measure proposed by an applicant shall satisfy the applicable requirements of a Federal authorization that otherwise would be necessary or appropriate to mitigate a project effect associated with the project site, subject to the condition that the Commission and conditioning agencies shall give preference to onsite measures to achieve that mitigation. (4) Project extent Notwithstanding section 3(11), the land, infrastructure, improvements, and waters associated with any off-site mitigation measure shall not be required to be included as part of a project, subject to the condition that any off-site measure adopted under this section shall be included, implemented, and enforced as a license condition issued by the Commission under this part. (c) Nonjurisdictional dam removal (1) In general The requirements of this subsection apply to any off-site measure that— (A) includes removal of a nonjurisdictional dam