[House Report 104-521]
[From the U.S. Government Publishing Office]



                                                                       
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-521
_______________________________________________________________________


 
          COASTAL ZONE MANAGEMENT REAUTHORIZATION ACT OF 1996
                                _______


 April 16, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1965]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 1965) to reauthorize the Coastal Zone Management Act of 
1972, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coastal Zone Management 
Reauthorization Act of 1996''.

SEC. 2. FINANCIAL ASSISTANCE FOR DEVELOPMENT OF STATE COASTAL PROGRAMS.

    (a) Reauthorization of Program.--Section 305(a) of the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1454(a)) is amended--
          (1) by striking ``1991, 1992, and 1993'' and inserting 
        ``1996, 1997, 1998, and 1999''; and
          (2) by striking ``two'' and inserting ``four''.
    (b) Termination of Program.--
          (1) In general.--Section 305 of the Coastal Zone Management 
        Act of 1972 (16 U.S.C. 1454) is amended--
                  (A) by striking subsection (a);
                  (B) by striking ``(b)''; and
                  (C) by amending the heading to read as follows:
              ``submittal of state program for approval''.
          (2) Conforming amendments.--Section 308(b)(2)(B) of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1457(b)(2)(B)) 
        is amended--
                  (A) in clause (iv) by adding ``and'' after the 
                semicolon;
                  (B) by striking clause (v); and
                  (C) by redesignating clause (vi) as clause (v).
          (3) Effective date.--This subsection shall take effect on 
        October 1, 1999.

SEC. 3. IMPLEMENTATION ASSISTANCE FOR COASTAL ZONE ENHANCEMENT.

    Section 309(b) of the Coastal Zone Management Act of 1972 (16 
U.S.C. 1456b(b)) is amended--
          (1) by inserting ``(1)'' before ``Subject to''; and
          (2) by adding at the end the following new paragraph:
    ``(2)(A) In addition to any amounts provided under section 306, and 
subject to the availability of appropriations, the Secretary may make 
grants under this subsection to States for implementing program changes 
approved by the Secretary in accordance with section 306(e).
    ``(B) Grants under this paragraph to implement a program change may 
not be made in any fiscal year after the second fiscal year that begins 
after the approval of that change by the Secretary.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS FOR GRANTS.

    Section 318 of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1464) is amended--
          (1) by striking ``Sec. 318.'' and all that follows through 
        subsection (a) and inserting the following:
    ``Sec. 318. (a) There are authorized to be appropriated to the 
Secretary, to remain available until expended--
          ``(1) for grants under sections 306, 306A, and 309--
                  ``(A) $46,200,000 for fiscal year 1996;
                  ``(B) $47,600,000 for fiscal year 1997;
                  ``(C) $49,000,000 for fiscal year 1998;
                  ``(D) $50,500,000 for fiscal year 1999; and
                  ``(E) $52,000,000 for fiscal year 2000; and
          ``(2) for grants under section 315--
                  ``(A) $4,300,000 for fiscal year 1996;
                  ``(B) $4,400,000 for fiscal year 1997;
                  ``(C) $4,500,000 for fiscal year 1998;
                  ``(D) $4,600,000 for fiscal year 1999; and
                  ``(E) $4,700,000 for fiscal year 2000.'';
          (2) by striking subsection (b); and
          (3) by redesignating subsections (c) and (d) in order as 
        subsections (b) and (c).

SEC. 5. COASTAL ZONE MANAGEMENT FUND.

    (a) Authorization for Administrative Expenses.--Section 
308(b)(2)(A) of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1456a(b)(2)(A)) is amended to read as follows:
          ``(A) Expenses incident to the administration of this title, 
        in an amount not to exceed for each of fiscal years 1996, 1997, 
        1998, 1999, and 2000 the higher of--
                  ``(i) $4,000,000; or
                  ``(ii) 8 percent of the total amount appropriated 
                under this title for the fiscal year.''.
    (b) Authorization for Program Development Grants.--Section 
308(b)(2)(B)(v) of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1456a(b)(2)(B)(v)) is amended to read as follows:
                  ``(v) program development grants as authorized by 
                section 305, in an amount not to exceed $500,000 for 
                fiscal year 1996, and $200,000 for each of fiscal years 
                1997, 1998, and 1999; and''.

SEC. 6. MATCHING REQUIREMENT.

    Section 315(e)(3) of the Coastal Zone Management Act of 1972 (16 
U.S.C. 1461(e)(3)) is amended by adding at the end the following new 
subparagraph:
    ``(C) Notwithstanding subparagraphs (A) and (B), financial 
assistance under this subsection provided from amounts recovered as 
natural resource damages may be used to pay 100 percent of the costs of 
activities carried out with the assistance.''.

                          Purpose of the Bill

    The purpose of H.R. 1965 is to reauthorize the Coastal Zone 
Management Act of 1972.

                  Background and Need for Legislation

    Over sixty percent of all Americans live within 50 miles of 
the Atlantic, Pacific, Gulf, and Great Lakes coasts. The 
population density in this area is four times the national 
average, and coastal population is expected to grow by 15 
percent in the next 20 years. This rise in population will lead 
to increase use of coastal areas. Existing uses have already 
caused significant impacts on coastal ecosystems, including 
shoreline erosion and wildlife habitat. It also places greater 
demands on the limited coastal areas available for public use.
    In light of the enormous growth of coastal populations, and 
in lieu of Federally-mandated land use legislation, Congress 
enacted and President Richard Nixon signed into law the Coastal 
Zone Management Act (CZMA) in 1972. The CZMA provides grants to 
states that develop Federally-approved coastal zone management 
(CZM) plans to help plan for development in coastal areas and 
to reduce conflicts among competing uses of the coastal zone. 
It also allows states with approved plans to review Federal 
actions for consistency with those plans, and authorizes the 
establishment of the National Estuarine Research Reserve 
System. The CZMA is entirely voluntary.
    To date, 29 of 35 eligible coastal states and U.S. 
territories have Federally-approved CZM plans, and five other 
states are working to prepare acceptable plans. These 29 
approved plans include 95,000 miles of coastline, which 
represent almost 95 percent of the national total.
    The CZMA requires that approved state management programs 
include: (1) the boundaries of the coastal zone affected by the 
program; (2) an inventory and designation of areas of 
particular concern in the coastal zone; (3) a definition of 
permitted land and water/uses that directly impact coastal 
waters; (4) an identification of how those uses will be 
controlled; (5) an outline of broad guidelines to determine 
priority of uses in coastal areas; (6) a description of the 
administrative structure that will operate the approved 
management program; (7) a definition of ``beach'' and a 
planning process for dealing with access to public coastal 
areas; (8) a planning process for energy facilities likely to 
be located in or to significantly affect the coastal zone; and 
(9) a planning process for studying both the effects of coastal 
erosion and ways to control it. State coastal zone programs are 
comprised entirely of state laws and regulations, are staffed 
by state government employees, and serve primarily as 
coordination and planning tools for all activities in coastal 
areas.
    The CZMA is administered by the National Oceanic and 
Atmospheric Administration (NOAA) in the Department of 
Commerce. NOAA reviews and recommends to the Secretary of 
Commerce the approval of state CZM programs, provides technical 
assistance and program administration guidance, administers the 
grants program, and coordinates programs among the states.

                          State Grant Programs

    Under section 306 of the CZMA, each coastal state receives 
between $500,000 and $2.15 million annually in grants to 
implement its Federally-approved coastal zone management 
program. These funds must be matched 50/50 by the state. The 
grant amount is calculated using the state's coastal population 
and shoreline mileage.
    In addition, coastal states making satisfactory progress 
implementing their plans are eligible for Resource Management 
Improvement Grants under CZMA section 306A. These grants are 
targeted to help states preserve or restore certain coastal 
areas, redevelop urban waterfronts and ports, and provide 
access to public beaches and coastal waters. These grants must 
also be matched by the state.
    States are also eligible for limited grants to help develop 
CZM programs under section 305 of the CZMA. Under current law, 
states may receive up to $200,000, which must be matched on a 
4:1 basis with state contributions. Funds are derived from the 
Coastal Zone Management Fund established under section 308 of 
the CZMA, which is capitalized from repayments of loans to 
coastal states under the now-defunct Coastal Energy Impact 
Program. Authorizations for development grants expired in 1993.
    Finally, participating states may compete for section 309 
Coastal Zone Enhancement Grants. These additional Federal funds 
can be used to strengthen the state programs in several areas, 
including public access to coastal areas; control of 
development impacts; protection from coastal hazards; special 
area management planning; and management of ocean resources. 
These grants are awarded by NOAA based on a review of the state 
programs. Funding for Coastal Zone Enhancement Grants comes 
from a set-aside of between 10 and 20 percent of appropriations 
for the section 306 and 306A grants, up to a maximum of $10 
million annually. No state match is required for these grants.
    Section 306 and 306A state grants were funded at $45.5 
million in Fiscal Year 1995, and $46.2 million in Fiscal Year 
1996 under the continuing budget resolution.

                              Consistency

    Under the CZMA, states with approved plans are able to 
review Federal activities (including private activities that 
require Federal permits) affecting any land or water use or 
natural resource of the coastal zone to determine whether these 
activities are consistent with their programs. Federal agencies 
must ensure that their activities and development projects are 
consistent to the maximum extent practicable with the state 
programs; the Federal agency makes this determination. For 
activities requiring Federal permits or licenses (including 
offshore oil and gas exploration and development activities on 
the Outer Continental Shelf) and for state and local government 
requests for financial Federal assistance, the state makes the 
determination. If a state finds that the proposed activity is 
not consistent with its CZM program, the Federal license, 
permit or financial assistance may not be granted. The 
applicant may appeal a state objection to the Secretary of 
Commerce.

               national estuarine research reserve system

    Section 315 of the CZMA authorizes the National Estuarine 
Research Reserve System (NERRS). Under the CZMA, the Secretary 
of Commerce can make grants, which must be matched by the 
relevant state, which enable coastal states to acquire, 
develop, and operate estuarine research reserves. Estuarine 
research reserves are areas of representative estuarine 
ecosystems suitable for long-term protection and study. Only 
areas nominated by a Governor are eligible for designation. The 
program protects the integrity of these sites while allowing 
the public to learn firsthand about the coastal zone and the 
complexity and fragility of life within it.
    Since the NERRS program began in 1974, it has grown from a 
single 4,400-acre site in Oregon to a 26-site system managing 
almost 450,000 acres in 19 states and Puerto Rico. The program 
received $4 million for section 315 in Fiscal Year 1974. 
Between Fiscal Years 1975 and 1995, section 315 funding ranged 
from zero in Fiscal Years 1975 and 1976 to $3.7 million in 
Fiscal Year 1992. In Fiscal Year 1996, the program received 
$4.3 million.

                             administration

    In Fiscal Year 1995, NOAA was authorized to expend up to 
$5.9 million in Fiscal Year 1995 for administration of the 
program; it received $4 million. In Fiscal Year 1996, NOAA also 
received $4 million for administration. Administrative costs 
are also transferred from the Coastal Zone Management Fund 
established under section 308 of the CZMA.

                            Committee Action

    H.R. 1965 was introduced on June 29, 1995, by the Chairman 
of the Subcommittee on Fisheries, Wildlife and Oceans, Jim 
Saxton, and has 129 cosponsors. The bill was referred to the 
Committee on Resources, and within the Committee to the 
Subcommittee on Fisheries, Wildlife and Oceans.
    On September 12, 1995, the Subcommittee held a hearing on 
H.R. 1965, where testimony was received from Mr. Jeffrey 
Benoit, NOAA, Department of Commerce; Mr. Robert Shinn, 
Commissioner, New Jersey Department of Environmental 
Protection; Ms. Trudy Coxe, Secretary, Massachusetts Executive 
Office of Environmental Affairs; Ms. Sarah Chasis, Natural 
Resources Defense Council; Mr. Michael Fischer, Executive 
Director, California State Coastal Conservancy; Dr. H. Wayne 
Beam, Chairman, Coastal States Organization; and Mr. George 
Berkowitz, President, Legal Seafoods. All witnesses testified 
in strong support of the reauthorization bill. Mr. David 
Duplantier of Chevron U.S.A. submitted testimony on behalf of 
the American Petroleum Institute and the National Ocean 
Industries Association stressing the need for the Department of 
Commerce to act expeditiously on consistency appeals to the 
Secretary of Commerce, as required under NOAA regulations.
    On October 18, 1995, the Subcommittee met to mark up H.R. 
1965. The bill was ordered favorably reported by voice vote to 
the Full Committee without amendment. On March 13, 1996, the 
Full Resources Committee met to consider H.R. 1965. An 
amendment in the nature of a substitute to reauthorize 
appropriations for coastal zone management programs through 
Fiscal Year 2000, and for other purposes, was offered by 
Congressman Jim Saxton, and adopted by voice vote. The bill, as 
amended, was then ordered favorably reported to the House of 
Representatives by voice vote in the presence of a quorum.

                      Section-by-Section Analysis

Section 1. Short title

    The short title of H.R. 1965 is the ``Coastal Zone 
Management Reauthorization Act of 1995.''

Sec. 2. Financial assistance for development of State coastal programs

    Section 2 extends financial assistance for Management 
Development Grants through Fiscal Year 1999; increases the 
total number of grants a coastal state is eligible to receive 
from two to four grants; and repeals Federal financial 
assistance for state program development after Fiscal Year 
1999.

Sec. 3. Implementation assistance for coastal zone enhancement

    Section 3 allows the states to use a portion of their 
section 309 funding to implement new program elements for up to 
two full fiscal years after the year in which the program 
change is approved.

Sec. 4. Authorization of appropriations for grants

    Section 4 authorizes the following amounts:
          For sections 306, 306A and 309 grants: $46.2 million 
        for Fiscal Year 1996; $47.6 million for Fiscal Year 
        1997; $49.0 million for Fiscal Year 1998; $50.5 million 
        for Fiscal Year 1999; and $52.0 million for Fiscal Year 
        2000.
          National Estuarine Research Reserve Grants: $4.3 
        million for Fiscal Year 1996; $4.4 million for Fiscal 
        Year 1997; $4.5 million for Fiscal Year 1998; $4.6 
        million for Fiscal Year 1999; and $4.7 million for 
        Fiscal Year 2000.

Sec. 5. Coastal Zone Management Fund

    Section 5 authorizes expenditures for the following amounts 
from the Coastal Zone Management Fund:
          Administrative expenses: the higher of $4 million or 
        eight percent of the total amount appropriated for each 
        of Fiscal Years 1996-2000; and
          State program development: $500,000 in Fiscal Year 
        1996, and $200,000 for Fiscal Years 1997-1999.

Sec. 6. Matching requirement

    Section 6 amends section 315 of the Coastal Zone Management 
Act, which establishes the National Estuarine Research Reserve 
(NERR) System. Under section 315, the Secretary of Commerce may 
make grants to coastal states to acquire lands and waters for 
NERRs, operating and managing a NERR, and conducting 
educational or interpretative activities at a NERR. Section 
315(e)(3) requires, in some cases, a state match ranging from 
30 to 50 percent of the costs incurred. The amendment made by 
section 6 of H.R. 1965 waives this state matching requirement 
in those cases where the Secretary of Commerce, as a trustee 
for Federal marine resources, determines under other law that 
funds recovered by the Secretary for harm to those natural 
resources can be properly used to create, operate, manage or 
conduct educational or interpretative activities at a NERR. By 
this amendment to the Coastal Zone Management Act, the 
Committee does not intend to expand or otherwise affect the 
requirements for collecting or the use of natural resources 
damages under other laws. This section merely waives a state-
match condition for NERRs and retains any restriction regarding 
the use of natural resource damages under the four Federal laws 
under which natural resource damages are authorized.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee on Resources' oversight findings and 
recommendations are reflected in the body of this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that the 
enactment of H.R. 1965 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 1965. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
1965 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 1965.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
1965 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 4, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1965, the Coastal 
Zone Management Reauthorization Act of 1996.
    Enactment of H.R. 1965 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 1965.
    2. Bill title: Coastal Zone Management Reauthorization Act 
of 1996.
    3. Bill status: As ordered reported by the House Committee 
on Resources on March 13, 1996.
    4. Bill purpose: H.R. 1965 would amend the Coastal Zone 
Management Act of 1972 as follows:
    Coastal Zone Management Plan Development (Section 305 
Grants).--The bill would authorize appropriations through 
fiscal year 1999 and abolish grants for new state programs 
thereafter. It also would raise the maximum number of 
management development grants a state may receive from two to 
four.
    Coastal Zone Enhancement and Technical Assistance (Section 
309-10 Grants).--The bill would authorize appropriations 
through fiscal year 2000 and allow states to use a portion of a 
coastal zone enhancement grant (Section 309 grants) to fund new 
management program elements (that is, for Section 306 grant 
purposes) for up to two years after a grant is awarded.
    Coastal Zone Administration, Resource Management, the 
Coastal Zone Management Fund, and the National Estuarine 
Research Reserve System (Section 306, 306A, 308, and 315 
Grants).--The bill would authorize appropriations through 
fiscal year 2000 and allow states to use one hundred percent of 
the federal funds they receive for natural resource damages 
toward the required state match for estuarine research reserve 
system grants (Section 315 grants).
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the authorized amounts, CBO estimates that 
enacting H.R. 1965 would result in new discretionary spending 
totaling about $200 million over the 1996-2000 period. 
Additional spending of about $30 million from the amounts 
authorized in the bill would occur after 2000.

----------------------------------------------------------------------------------------------------------------
                                                                       1996     1997     1998     1999     2000 
----------------------------------------------------------------------------------------------------------------
             SPENDING SUBJECT TO APPROPRIATIONS ACTION                                                          
                                                                                                                
Spending under current law:                                                                                     
    Budget authority...............................................       55        0        0        0        0
    Estimated outlays..............................................       54       19        7        3        0
Proposed changes:                                                                                               
    Authorization level............................................        0       56       58       59       61
    Estimated outlays..............................................        0       36       50       55       60
Spending under H.R. 1965:                                                                                       
    Estimated budget authority.....................................       55       56       58       59       61
    Estimated outlays..............................................       54       55       57       58       60
----------------------------------------------------------------------------------------------------------------

    The costs of this bill fall within budget function 300.
    6. Basis of estimate: H.R. 1965 would authorize $234 
million in new grants to states for coastal zone management and 
estuarine reserve programs. Outlays are estimated based on 
historical spending rates for these activities.
    The bill would raise current limits on the number of grants 
a state may receive and the purposes for which they may be 
spent. CBO estimates that these changes would have no budgetary 
impact.
    7. Pay-as-you-go considerations: None.
    8. Estimated impact on State, local, and tribal 
governments: H.R. 1965 contains no intergovernmental mandates 
as defined in Public Law 104-4 and would impose no direct costs 
on state, local or tribal governments.
    Most of the appropriations authorized by this bill would be 
for grants to states. The bill gives the states some additional 
flexibility in using some of these grants, but would eliminate 
one program--management program development grants--after 
fiscal year 1999.
    States may benefit from a provision that would allow them 
to use amounts received as damages from parties responsible for 
injuries to natural resources to pay for 100 percent of the 
costs of activities under the National Estuarine Research 
Reserve System. (The state of Alaska has received such damages 
as a result of the Exxon Valdez oil spill settlement.) Under 
current law, states are required to provide matching funds from 
other sources.
    9. Estimated impact on the private sector: The bill would 
impose no new federal private sector mandates, as defined by 
Public Law 104-4.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal Cost Estimate: Gary 
Brown; State and Local Government Impact: Marjorie Miller; and 
Private Sector Impact: Army Downs.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 1965 contains no unfunded mandates.

                          Departmental Reports

    The Committee has received no departmental reports on H.R. 
1965.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                  COASTAL ZONE MANAGEMENT ACT OF 1972

          * * * * * * *

               TITLE III--MANAGEMENT OF THE COASTAL ZONE

                              short title

    Sec. 301. This title may be cited as the ``Coastal Zone 
Management Act of 1972''.
          * * * * * * *

                 management program development grants

    Sec. 305. (a) In fiscal years [1991, 1992, and 1993] 1996, 
1997, 1998, and 1999, the Secretary may make a grant annually 
to any coastal state without an approved program if the coastal 
state demonstrates to the satisfaction of the Secretary that 
the grant will be used to develop a management program 
consistent with the requirements set forth in section 306. The 
amount of any such grant shall not exceed $200,000 in any 
fiscal year, and shall require State matching funds according 
to a 4-to-1 ratio of Federal-to-State contributions. After an 
initial grant is made to a coastal state pursuant to this 
subsection, no subsequent grant shall be made to that coastal 
state pursuant to this subsection unless the Secretary finds 
that the coastal state is satisfactorily developing its 
management program. No coastal state is eligible to receive 
more than [two] four grants pursuant to this subsection.
          * * * * * * *

                      coastal zone management fund

    Sec. 308. (a) * * *
    (b)(1) The Secretary shall establish and maintain a fund, 
to be known as the ``Coastal Zone Management Fund'' which shall 
consist of amounts retained and deposited into the Fund under 
subsection (a) and fees deposited into the Fund under section 
307(i)(3).
    (2) Subject to amounts provided in appropriation Acts, 
amounts in the Fund shall be available to the Secretary for use 
for the following:
          [(A) Expenses incident to the administration of this 
        title, in an amount not to exceed--
                  [(i) $5,000,000 for fiscal year 1991;
                  [(ii) $5,225,000 for fiscal year 1992;
                  [(iii) $5,460,125 for fiscal year 1993;
                  [(iv) $5,705,830 for fiscal year 1994; and
                  [(v) $5,962,593 for fiscal year 1995.]
          (A) Expenses incident to the administration of this 
        title, in an amount not to exceed for each of fiscal 
        years 1996, 1997, 1998, 1999, and 2000 the higher of--
                  (i) $4,000,000; or
                  (ii) 8 percent of the total amount 
                appropriated under this title for the fiscal 
                year.
          (B) After use under subparagraph (A)--
                  (i) * * *
          * * * * * * *
                  [(v) program development grants as authorized 
                by section 305; and]
                  (v) program development grants as authorized 
                by section 305, in an amount not to exceed 
                $500,000 for fiscal year 1996, and $200,000 for 
                each of fiscal years 1997, 1998, and 1999; and
          * * * * * * *

                    coastal zone enhancement grants

    Sec. 309. (a) * * *
    (b)(1) Subject to the limitations and goals established in 
this section, the Secretary may make grants to coastal states 
to provide funding for development and submission for Federal 
approval of program changes that support attainment of one or 
more coastal zone enhancement objectives.
    (2)(A) In addition to any amounts provided under section 
306, and subject to the availability of appropriations, the 
Secretary may make grants under this subsection to States for 
implementing program changes approved by the Secretary in 
accordance with section 306(e).
    (B) Grants under this paragraph to implement a program 
change may not be made in any fiscal year after the second 
fiscal year that begins after the approval of that change by 
the Secretary.
          * * * * * * *

               national estuarine research reserve system

    Sec. 315. (a) * * *
          * * * * * * *
    (e) Financial Assistance.--(1) * * *
          * * * * * * *
    (3)(A) * * *
          * * * * * * *
    (C) Notwithstanding subparagraphs (A) and (B), financial 
assistance under this subsection provided from amounts 
recovered as natural resource damages may be used to pay 100 
percent of the costs of activities carried out with the 
assistance.
          * * * * * * *

                    authorization of appropriations

    [Sec. 318. (a) There are authorized to be appropriated to 
the Secretary--
          [(1) such sums, not to exceed $750,000 for each of 
        the fiscal years occurring during the period beginning 
        October 1, 1990, and ending September 30, 1993, as may 
        be necessary for grants under section 305, to remain 
        available until expended;
          [(2) such sums, not to exceed $42,000,000 for the 
        fiscal year ending September 30, 1991, $48,890,000 for 
        the fiscal year ending September 30, 1992, $58,870,000 
        for the fiscal year ending September 30, 1993, 
        $67,930,000 for the fiscal year ending September 30, 
        1994, and $90,090,000 for the fiscal year ending 
        September 30, 1995, as may be necessary for grants 
        under sections 306, 306A, and 309, to remain available 
        until expended;
          [(3) such sums, not to exceed $6,000,000 for the 
        fiscal year ending September 30, 1991, $6,270,000 for 
        the fiscal year ending September 30, 1992, $6,552,000 
        for the fiscal year ending September 30, 1993, 
        $6,847,000 for the fiscal year ending September 30, 
        1994, and $7,155,000 for the fiscal year ending 
        September 30, 1995, as may be necessary for grants 
        under section 315, to remain available until expended; 
        and
          [(4) such sums, not to exceed $10,000,000 for each of 
        the fiscal years occurring during the period beginning 
        October 1, 1990, and ending September 30, 1995, as may 
        be necessary for activities under section 310 and for 
        administrative expenses incident to the administration 
        of this title; except that expenditures for such 
        administrative expenses shall not exceed $5,000,000 in 
        any such fiscal year.
    [(b) There are authorized to be appropriated until October 
1, 1986, to the Fund, such sums, not to exceed $800,000,000, 
for the purposes of carrying out the provisions of section 308, 
other than subsection (b), of which not to exceed $150,000,000 
shall be for purposes of subsections (c)(1), (c)(2) and (c)(3) 
of such section.]
    Sec. 318. (a) There are authorized to be appropriated to 
the Secretary, to remain available until expended--
          (1) for grants under sections 306, 306A, and 309--
                  (A) $46,200,000 for fiscal year 1996;
                  (B) $47,600,000 for fiscal year 1997;
                  (C) $49,000,000 for fiscal year 1998;
                  (D) $50,500,000 for fiscal year 1999; and
                  (E) $52,000,000 for fiscal year 2000; and
          (2) for grants under section 315--
                  (A) $4,300,000 for fiscal year 1996;
                  (B) $4,400,000 for fiscal year 1997;
                  (C) $4,500,000 for fiscal year 1998;
                  (D) $4,600,000 for fiscal year 1999; and
                  (E) $4,700,000 for fiscal year 2000.
    [(c)] (b) Federal funds received from other sources shall 
not be used to pay a coastal state's share of costs under 
section 306 or 309.
    [(d)] (c) The amount of any grant, or portion of a grant, 
made to a State under any section of this Act which is not 
obligated by such State during the fiscal year, or during the 
second fiscal year after the fiscal year, for which it was 
first authorized to be obligated by such State shall revert to 
the Secretary. The Secretary shall add such reverted amount to 
those funds available for grants under the section for such 
reverted amount was originally made available.
          * * * * * * *

  [Note: The following amendments will take effect on October 1, 1999]

                [management program development grants]

                submittal of state program for approval

    Sec. 305. [(a) In fiscal years 1996, 1997, 1998, and 1999, 
the Secretary may make a grant annually to any coastal state 
without an approved program if the coastal state demonstrates 
to the satisfaction of the Secretary that the grant will be 
used to develop a management program consistent with the 
requirements set forth in section 306. The amount of any such 
grant shall not exceed $200,000 in any fiscal year, and shall 
require State matching funds according to a 4-to-1 ratio of 
Federal-to-State contributions. After an initial grant is made 
to a coastal state pursuant to this subsection, no subsequent 
grant shall be made to that coastal state pursuant to this 
subsection unless the Secretary finds that the coastal state is 
satisfactorily developing its management program. No coastal 
state is eligible to receive more than four grants pursuant to 
this subsection.]
    [(b)] Any coastal state which has completed the development 
of its management program shall submit such program to the 
Secretary for review and approval pursuant to section 306.
          * * * * * * *
    Sec. 308. (a) * * *
    (b)(1) The Secretary shall establish and maintain a fund, 
to be known as the ``Coastal Zone Management Fund'' which shall 
consist of amounts retained and deposited into the Fund under 
subsection (a) and fees deposited into the Fund under section 
307(i)(3).
    (2) Subject to amounts provided in appropriation Acts, 
amounts in the Fund shall be available to the Secretary for use 
for the following:
          (A) * * *
          (B) After use under subparagraph (A)--
                  (i) projects to address management issues 
                which are regional in scope, including 
                interstate projects;
                  (ii) demonstration projects which have high 
                potential for improving coastal zone 
                management, especially at the local level;
                  (iii) emergency grants to State coastal zone 
                management agencies to address unforeseen or 
                disaster-related circumstances;
                  (iv) appropriate awards recognizing 
                excellence in coastal zone management as 
                provided in section 314; and
                  [(v) program development grants as authorized 
                by section 305, in an amount not to exceed 
                $500,000 for fiscal year 1996, and $200,000 for 
                each of fiscal years 1997, 1998, and 1999; and]
                  [(vi)] (v) to provide financial support to 
                coastal states for use for investigating and 
                applying the public trust doctrine to implement 
                State management programs approved under 
                section 306.
          * * * * * * *