(b) For purposes of this article, an enhancement project is a project that acquires habitat for preservation, or improves habitat quality and ecosystem function above baseline conditions, and that meets all of the following requirements:

1. (1) Is located within or immediately adjacent to waters of the state, as defined in Section 8670.3.
2. (2) Has measurable outcomes within a predetermined timeframe.
3. (3) Is designed to acquire, restore, or improve habitat or restore ecosystem function, or both, to benefit fish and wildlife.