[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 646 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 646

    To create the National Endowment for the Oceans to promote the 
protection and conservation of United States ocean, coastal, and Great 
               Lakes ecosystems, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2013

  Mr. Whitehouse (for himself, Ms. Cantwell, Mr. Blumenthal, and Mr. 
    Nelson) introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
    To create the National Endowment for the Oceans to promote the 
protection and conservation of United States ocean, coastal, and Great 
               Lakes ecosystems, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Endowment for the Oceans 
Act''.

SEC. 2. PURPOSES.

    The purposes of this Act are to protect, conserve, restore, and 
understand the oceans, coasts, and Great Lakes of the United States, 
ensuring present and future generations will benefit from the full 
range of ecological, economic, educational, social, cultural, 
nutritional, and recreational opportunities and services these 
resources are capable of providing.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Coastal shoreline county.--The term ``coastal shoreline 
        county'' has the meaning given the term by the Administrator of 
        the Federal Emergency Management Agency for purposes of 
        administering the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.).
            (2) Coastal state.--The term ``coastal State'' has the 
        meaning given the term ``coastal state'' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            (3) Corpus.--The term ``corpus'', with respect to the 
        Endowment fund, means an amount equal to the Federal payments 
        to such fund, amounts contributed to the fund from non-Federal 
        sources, and appreciation from capital gains and reinvestment 
        of income.
            (4) Endowment.--The term ``Endowment'' means the endowment 
        established under subsection (a).
            (5) Endowment fund.--The term ``Endowment fund'' means a 
        fund, or a tax-exempt foundation, established and maintained 
        pursuant to this Act by the Foundation for the purposes 
        described in section 4(a).
            (6) Foundation.--The term ``Foundation'' means the National 
        Fish and Wildlife Foundation established by section 2(a) of the 
        National Fish and Wildlife Foundation Establishment Act (16 
        U.S.C. 3701(a)).
            (7) Income.--The term ``income'', with respect to the 
        Endowment fund, means an amount equal to the dividends and 
        interest accruing from investments of the corpus of such fund.
            (8) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (10) Tidal shoreline.--The term ``tidal shoreline'' has the 
        meaning given that term pursuant to section 923.110(c)(2)(i) of 
        title 15, Code of Federal Regulations, or a similar successor 
        regulation.

SEC. 4. NATIONAL ENDOWMENT FOR THE OCEANS.

    (a) Establishment.--The Secretary and the Foundation are authorized 
to establish the National Endowment for the Oceans as a permanent 
Endowment fund, in accordance with this section, to further the 
purposes of this Act and to support the programs established under this 
Act.
    (b) Agreements.--The Secretary and the Foundation may enter into 
such agreements as may be necessary to carry out the purposes of this 
Act.
    (c) Investments.--The Foundation shall invest the Endowment fund 
corpus and income for the benefit of the Endowment.
    (d) Requirements.--Any amounts received by the Foundation pursuant 
to this Act shall be subject to the provisions of the National Fish and 
Wildlife Establishment Act (16 U.S.C. 3701 et seq.), except the 
provisions of section 10(a) of that Act (16 U.S.C. 3709(a)).
    (e) Withdrawals and Expenditures.--
            (1) Allocation of funds.--Each fiscal year, the Foundation 
        shall, in consultation with the Secretary, allocate an amount 
        equal to not less than 3 percent and not more than 7 percent of 
        the corpus of the Endowment fund and the income generated from 
        the Endowment fund from the current fiscal year.
            (2) Expenditure.--Of the amounts allocated under paragraph 
        (1) for each fiscal year--
                    (A) at least 59 percent shall be used by the 
                Foundation to award grants to coastal States under 
                section 6(b);
                    (B) at least 39 percent shall be allocated by the 
                Foundation to award grants under section 6(c); and
                    (C) no more than 2 percent may be used by the 
                Secretary and the Foundation for administrative 
                expenses to carry out this Act, which amount shall be 
                divided between the Secretary and the Foundation 
                pursuant to an agreement reached and documented by both 
                the Secretary and the Foundation.
    (f) Recovery of Payments.--After notice and an opportunity for a 
hearing, the Secretary is authorized to recover any Federal payments 
under this section if the Foundation--
            (1) makes a withdrawal or expenditure of the corpus of the 
        Endowment fund or the income of the Endowment fund that is not 
        consistent with the requirements of section 5; or
            (2) fails to comply with a procedure, measure, method, or 
        standard established under section 6(a)(1).

SEC. 5. ELIGIBLE USES.

    (a) In General.--Amounts in the Endowment may be allocated by the 
Foundation to support programs and activities intended to restore, 
protect, maintain, or understand living marine resources and their 
habitats and ocean, coastal, and Great Lakes resources, including 
baseline scientific research, ocean observing, and other programs and 
activities carried out in coordination with Federal and State 
departments or agencies, that are consistent with Federal environmental 
laws and that avoid environmental degradation, including the following:
            (1) Ocean, coastal, and Great Lakes restoration and 
        protection, including the protection of the environmental 
        integrity of such areas, and their related watersheds, 
        including efforts to mitigate potential impacts of sea level 
        change, changes in ocean chemistry, and changes in ocean 
        temperature.
            (2) Restoration, protection, or maintenance of living 
        ocean, coastal, and Great Lakes resources and their habitats, 
        including marine protected areas and riparian migratory habitat 
        of coastal and marine species.
            (3) Planning for and managing coastal development to 
        enhance ecosystem integrity or minimize impacts from sea level 
        change and coastal erosion.
            (4) Analyses of current and anticipated impacts of ocean 
        acidification and assessment of potential actions to minimize 
        harm to ocean, coastal, and Great Lakes ecosystems.
            (5) Analyses of, and planning for, current and anticipated 
        uses of ocean, coastal, and Great Lakes areas.
            (6) Regional, subregional, or site-specific management 
        efforts designed to manage, protect, or restore ocean, coastal, 
        and Great Lakes resources and ecosystems.
            (7) Research, assessment, monitoring, observation, 
        modeling, and sharing of scientific information that contribute 
        to the understanding of ocean, coastal, and Great Lakes 
        ecosystems and support the purposes of this Act.
            (8) Efforts to understand better the processes that govern 
        the fate and transport of petroleum hydrocarbons released into 
        the marine environment from natural and anthropogenic sources, 
        including spills.
            (9) Efforts to improve spill response and preparedness 
        technologies.
            (10) Acquiring property or interests in property in coastal 
        and estuarine areas, if such property or interest is acquired 
        in a manner that will ensure such property or interest will be 
        administered to support the purposes of this Act.
            (11) Protection and relocation of critical coastal public 
        infrastructure affected by erosion or sea level change.
    (b) Matching Requirement.--An amount from the Endowment may not be 
allocated to fund a project or activity described in paragraph (10) or 
(11) of subsection (a) unless non-Federal contributions in an amount 
equal to 30 percent or more of the cost of such project or activity is 
made available to carry out such project or activity.
    (c) Considerations for Great Lakes States.--Programs and activities 
funded in Great Lakes States shall also seek to attain the goals 
embodied in the Great Lakes Restoration Initiative Plan, the Great 
Lakes Regional Collaboration Strategy, the Great Lakes Water Quality 
Agreement, or other collaborative planning efforts of the Great Lakes 
Region.
    (d) Prohibition on Use of Funds for Litigation.--No funds made 
available under this Act may be used to fund litigation over any 
matter.

SEC. 6. GRANTS.

    (a) Administration of Grants.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Foundation shall establish the 
        following:
                    (A) Application and review procedures for the 
                awarding of grants under this section, including 
                requirements ensuring that any amounts awarded under 
                such subsections may only be used for an eligible use 
                described under section 5.
                    (B) Approval procedures for the awarding of grants 
                under this section that require consultation with the 
                Secretary of Commerce and the Secretary of the 
                Interior.
                    (C) Eligibility criteria for awarding grants--
                            (i) under subsection (b) to coastal States; 
                        and
                            (ii) under subsection (c) to entities 
                        including States, Indian tribes, regional 
                        bodies, associations, non-governmental 
                        organizations, and academic institutions.
                    (D) Performance accountability and monitoring 
                measures for programs and activities funded by a grant 
                awarded under subsection (b) or (c).
                    (E) Procedures and methods to ensure accurate 
                accounting and appropriate administration of grants 
                awarded under this section, including standards of 
                record keeping.
                    (F) Procedures to carry out audits of the Endowment 
                as necessary, but not less frequently than once every 5 
                years.
                    (G) Procedures to carry out audits of the 
                recipients of grants under this section.
            (2) Approval procedures.--
                    (A) Submittal.--The Foundation shall submit to the 
                Secretary each procedure, measure, method, and standard 
                established under paragraph (1).
                    (B) Determination and notice.--Not later than 90 
                days after receiving the procedures, measures, methods, 
                and standards under subparagraph (A), the Secretary 
                shall--
                            (i) determine whether to approve or 
                        disapprove of such procedures, measures, 
                        methods, and standards; and
                            (ii) notify the Foundation of such 
                        determination.
                    (C) Justification of disapproval.--If the Secretary 
                disapproves of the procedures, measures, methods, and 
                standards under subparagraph (B), the Secretary shall 
                include in notice submitted under clause (ii) of such 
                subparagraph the rationale for such disapproval.
                    (D) Resubmittal.--Not later than 30 days after the 
                Foundation receives notification under subparagraph 
                (B)(ii) that the Secretary has disapproved the 
                procedures, measures, methods, and standards, the 
                Foundation shall revise such procedures, measures, 
                methods, and standards and submit such revised 
                procedures, measures, methods, and standards to the 
                Secretary.
                    (E) Review of resubmittal.--Not later than 30 days 
                after receiving revised procedures, measures, methods, 
                and standards resubmitted under subparagraph (D), the 
                Secretary shall--
                            (i) determine whether to approve or 
                        disapprove the revised procedures, measures, 
                        methods, and standards; and
                            (ii) notify the Foundation of such 
                        determination.
    (b) Grants to Coastal States.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        Foundation shall award grants of amounts allocated under 
        section 4(e)(2)(A) to coastal States that have a coastal 
        management program approved under the Coastal Zone Management 
        Act of 1972 (16 U.S.C. 1451 et seq.), based on the following 
        formula:
                    (A) Fifty percent of the funds are allocated 
                equally among such coastal States.
                    (B) Twenty-five percent of the funds are allocated 
                on the basis of the ratio of tidal shoreline miles in a 
                coastal State to the tidal shoreline miles of all 
                coastal States.
                    (C) Twenty-five percent of the funds are allocated 
                on the basis of the ratio of population density of the 
                coastal shoreline counties of a coastal State to the 
                population density of all coastal shoreline counties.
            (2) Maximum allocation to states.--Notwithstanding 
        paragraph (1), not more than 10 percent of the total funds 
        distributed under this subsection may be allocated to any 
        single State. Any amount exceeding this limit shall be 
        redistributed among the remaining States according to the 
        formula established under paragraph (1).
            (3) Maximum allocation to certain geographic areas.--
                    (A) In general.--Notwithstanding paragraph (1), 
                each geographic area described in subparagraph (B) may 
                not receive more than 1 percent of the total funds 
                distributed under this subsection. Any amount exceeding 
                this limit shall be redistributed among the remaining 
                States according to the formula established under 
                paragraph (1).
                    (B) Geographic areas described.--The geographic 
                areas described in this subparagraph are the following:
                            (i) American Samoa.
                            (ii) The Commonwealth of the Northern 
                        Mariana Islands.
                            (iii) Guam.
                            (iv) Puerto Rico.
                            (v) The Virgin Islands.
            (4) Requirement to submit plans.--
                    (A) In general.--To be eligible to receive a grant 
                under this subsection, a coastal State shall submit to 
                the Secretary, and the Secretary shall review, a 5-year 
                plan, which shall include the following:
                            (i) A prioritized list of goals the coastal 
                        State intends to achieve during the time period 
                        covered by the 5-year plan.
                            (ii) Identification and general 
                        descriptions of existing State projects or 
                        activities that contribute to realization of 
                        such goals, including a description of the 
                        entities conducting those projects or 
                        activities.
                            (iii) General descriptions of projects or 
                        activities, consistent with the eligible uses 
                        described in section 5, applicable provisions 
                        of law relating to the environment, and 
                        existing Federal ocean policy, that could 
                        contribute to realization of such goals.
                            (iv) Criteria to determine eligibility for 
                        entities which may receive grants under this 
                        subsection.
                            (v) A description of the competitive 
                        process the coastal State will use in 
                        allocating funds received from the Endowment, 
                        except in the case of allocating funds under 
                        paragraph (7), which shall include--
                                    (I) a description of the relative 
                                roles in the State competitive process 
                                of the State coastal zone management 
                                program approved under the Coastal Zone 
                                Management Act of 1972 (16 U.S.C. 1451 
                                et seq.) and any State Sea Grant 
                                Program; and
                                    (II) a demonstration that such 
                                competitive process is consistent with 
                                the application and review procedures 
                                established by the Foundation under 
                                subsection (a)(1).
                    (B) Updates.--As a condition of receiving a grant 
                under this subsection, a coastal State shall submit to 
                the Secretary, not less frequently than once every 5 
                years, an update to the plan submitted by the coastal 
                State under subparagraph (A) for the 5-year period 
                immediately following the most recent submittal under 
                this paragraph.
            (5) Opportunity for public comment.--In determining whether 
        to approve a plan or an update to a plan described in 
        subparagraph (A) or (B) of paragraph (4), the Secretary shall 
        provide the opportunity for, and take into consideration, 
        public input and comment on the plan.
            (6) Approval procedure.--
                    (A) In general.--Not later than 30 days after the 
                opportunity for public comment on a plan or an update 
                to a plan of a coastal State under paragraph (5), the 
                Secretary shall notify such coastal State that the 
                Secretary--
                            (i) approves the plan as submitted; or
                            (ii) disapproves the plan as submitted.
                    (B) Disapproval.--If the Secretary disapproves a 
                proposed plan or an update of a plan submitted under 
                subparagraph (A) or (B) of paragraph (4), the Secretary 
                shall provide notice of such disapproval to the 
                submitting coastal State in writing, and include in 
                such notice the rationale for the Secretary's decision.
                    (C) Resubmittal.--If the Secretary disapproves a 
                plan of a coastal State under subparagraph (A), the 
                coastal State shall resubmit the plan to the Secretary 
                not later than 30 days after receiving the notice of 
                disapproval under subparagraph (B).
                    (D) Review of resubmittal.--Not later than 60 days 
                after receiving a plan resubmitted under subparagraph 
                (C), the Secretary shall review the plan.
            (7) Indian tribes.--As a condition on receipt of a grant 
        under this subsection, a State that receives a grant under this 
        subsection shall ensure that Indian tribes in the State are 
        eligible to participate in the competitive process described in 
        the State's plan under paragraph (4)(A)(v).
    (c) National Grants for Oceans, Coasts, and Great Lakes.--
            (1) In general.--The Foundation may use amounts allocated 
        under section 4(e)(2)(B) to award grants according to the 
        procedures established in subsection (a) to support activities 
        consistent with section 5.
            (2) Advisory panel.--
                    (A) In general.--The Foundation shall establish an 
                advisory panel to conduct reviews of applications for 
                grants under paragraph (1) and the Foundation shall 
                consider the recommendations of the Advisory Panel with 
                respect to such applications.
                    (B) Membership.--The advisory panel established 
                under subparagraph (A) shall include persons 
                representing a balanced and diverse range, as 
                determined by the Foundation, of--
                            (i) ocean, coastal, and Great Lakes 
                        dependent industries;
                            (ii) geographic regions;
                            (iii) nonprofit conservation organizations 
                        with a mission that includes the conservation 
                        and protection of living marine resources and 
                        their habitats; and
                            (iv) academic institutions with strong 
                        scientific or technical credentials and 
                        experience in marine science or policy.

SEC. 7. ANNUAL REPORT.

    (a) Requirement for Annual Report.--Beginning with fiscal year 
2014, not later than 60 days after the end of each fiscal year, the 
Foundation shall submit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Natural Resources of 
the House of Representatives a report on the operation of the Endowment 
during the fiscal year.
    (b) Content.--Each annual report submitted under subsection (a) for 
a fiscal year shall include--
            (1) a statement of the amounts deposited in the Endowment 
        and the balance remaining in the Endowment at the end of the 
        fiscal year; and
            (2) a description of the expenditures made from the 
        Endowment for the fiscal year, including the purpose of the 
        expenditures.

SEC. 8. FUNDING.

    (a) Outer Continental Shelf Lease Revenue.--Section 8 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding at 
the end the following:
    ``(q) Deposits in the National Endowment for the Oceans.--
            ``(1) In general.--Beginning with the first fiscal year 
        beginning after the date of the enactment of the National 
        Endowment for the Oceans Act, the Secretary shall deposit 12.5 
        percent of the revenue paid to the United States under this 
        section in the National Endowment for the Oceans established 
        pursuant to section 4 of that Act.
            ``(2) Fines collected for violations of federal law.--
                    ``(A) In general.--Beginning with the first fiscal 
                year beginning after the date of the enactment of the 
                National Endowment for the Oceans Act, the President 
                shall ensure that 10 percent of the civil penalties 
                paid to the United States for a violation of a law set 
                out under subparagraph (B) or for a violation of any 
                requirement or prohibition of any rule, order, or 
                permit promulgated, issued, or approved under such a 
                law that occurs on the outer Continental Shelf are 
                deposited in the National Endowment for the Oceans 
                referred to in paragraph (1).
                    ``(B) Laws.--The laws set out under this 
                subparagraph are the following:
                            ``(i) The Federal Water Pollution Control 
                        Act (33 U.S.C. 1251 et seq.) (commonly referred 
                        to as the `Clean Water Act') other than 
                        penalties provided for under section 311 of 
                        such Act (33 U.S.C. 1321).
                            ``(ii) The Comprehensive Environmental 
                        Response, Compensation, and Liability Act of 
                        1980 (42 U.S.C. 9601 et seq.).
                            ``(iii) Chapter 601 of title 49, United 
                        States Code.
                            ``(iv) The Act of March 3, 1899 (30 Stat. 
                        1151, chapter 425; 33 U.S.C. 401 et seq.).''.
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