Authorizes the Secretary of a military department, and the Secretary of Defense for a Defense Agency, when engaged or proposing to engage in military testing, operations, training, or another military readiness activity or military construction that may or will result in an adverse impact to one or more species protected (or pending protection) under any applicable provision of law, or habitat for such species, to make payments to a conservation banking program or "in-lieu-fee" mitigation sponsor approved in accordance with the Federal Guidance for the Establishment, Use and Operation of Mitigation Banks, the Guidance for the Establishment, Use, and Operation of Conservation Banks or any successor or related administrative guidance or regulation.
Allows such payments to a conservation banking program or "in-lieu-fee" mitigation sponsor for military construction to be treated as eligible costs of the construction project.