"NEW SECTION.  Sec. 1   A new section is added to chapter 90.58 RCW to read as follows:
     (1) If a voluntary habitat restoration project causes a landward shift in the ordinary high water mark and expands the area subject to this chapter, a substantial development permit is not required for development within the habitat restoration areas that were not regulated by this chapter before the habitat restoration project if the shorelines were designated as, or consistent with, a high-intensity shoreline environment designation under the applicable master program.
     (2) Regardless of shoreline classification, requests for development approval within habitat restoration areas that were not previously subject to this chapter may be granted in the form of a restoration project variance that authorizes relief from bulk, dimension, or other master program development standards, if:
     (a) The shift in shoreline jurisdiction results in hardship within the restoration area that was not previously subject to this chapter. "Hardship" under this subsection means that a reasonable use of the property is precluded or significantly hindered within the newly regulated area due to regulations in the applicable master program; and
     (b) The restoration project variance permit includes measures to ensure no net loss of shoreline ecological functions within the restoration area from any use of property allowed under this section. The restoration project variance must be the minimum necessary to afford relief, and the public interest must suffer no substantial detriment.
     (3) Master programs may include provisions to ensure that restoration project variance processes achieve the objectives of this section, including conditions of approval, areas of applicability, and other elements."