A bill to amend the Watershed Protection and Flood Prevention Act for the purpose of improving procedures by which the Federal Government assists construction work relating to watershed areas.

Amends the Watershed Protection and Flood Prevention Act to direct the Secretary of Agriculture and any other appropriate Federal officials to complete action on funding requests within one year of the completion of local participation requirements by applicants for such assistance.

Establishes procedures for exempting small watershed projects having a total water capacity of 15,000 acre feet or less from the requirement of filing an environmental impact statement under the National Environmental Policy Act. Stipulates that the status of such exemptions shall be monitored by the Council on Environmental Quality.