Property Protection and Encouragement Act - Amends the Endangered Species Act of 1973 to exempt from required consultation with the appropriate Secretary any agency action affecting an endangered species that: (1) is authorized, funded, or carried out by the Department of Defense on land under its jurisdiction; or (2) occurs on privately owned land.Exempts from the prohibition against any act or omission considered a taking of any endangered species of fish or wildlife any act or omission that occurs on land that is either under Department of Defense jurisdiction or privately owned.Requires the Secretary of the Interior to create a voluntary program to use funds transferred under the Farm Security and Rural Investment Act of 2002 to provide water to at-risk natural Desert Terminal Lakes to make payments to private land owners who own property or water rights in a location that is or has been a habitat for a threatened or endangered species and who voluntarily elect to enroll into the program in order to maintain those habitats. Requires the Secretary to issue regulations implementing this program.
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