[House Report 105-277]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-277
_______________________________________________________________________


 
                  CORAL REEF CONSERVATION ACT OF 1997

                                _______
                                

 September 29, 1997.--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. 2233]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 2233) to assist in the conservation of coral reefs, 
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 ``Coral Reef Conservation Act of 1997''.

SEC. 2. PURPOSES.

  The purposes of this Act are the following:
          (1) To preserve, sustain, and restore the health of coral 
        reef ecosystems.
          (2) To assist in the conservation and protection of coral 
        reefs by supporting conservation programs.
          (3) To provide financial resources for those programs.
          (4) To establish a formal mechanism for collecting and 
        allocating monetary donations from the private sector to be 
        used for coral reef conservation projects.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Coral.--The term ``coral'' means species of the phylum 
        Cnidaria, including--
                  (A) all species of the orders Antipatharia (black 
                corals), Scleractinia (stony corals), Gorgonacea (horny 
                corals), Stolonifera (organpipe corals and others), and 
                Coenothecalia (blue coral), of the class Anthozoa; and
                  (B) all species of the order Hydrocorallina (fire 
                corals and hydrocorals), of the class Hydrozoa.
          (2) Coral reef.--The term ``coral reef'' means any reef or 
        shoal composed primarily of the skeletal material of species of 
        the order Scleractinia (class Anthozoa).
          (3) Coral reef ecosystem.--The term ``coral reef ecosystem'' 
        means the complex of species associated with coral reefs and 
        their environment that--
                  (A) functions as an ecological unit in nature; and
                  (B) is necessary for that function to continue.
          (4) Corals and coral products.--The term ``corals and coral 
        products'' means any living or dead specimens, parts, or 
        derivatives, or any product containing specimens, parts, or 
        derivatives, of any species referred to in paragraph (1).
          (5) Conservation.--The term ``conservation'' means the use of 
        methods and procedures necessary to preserve or sustain corals 
        and species associated with coral reefs as diverse, viable, and 
        self-perpetuating coral reef ecosystems, including all 
        activities associated with resource management, such as 
        conservation, protection, restoration, and management of 
        habitat; habitat monitoring; assistance in the development of 
        management strategies for marine protected areas and marine 
        resources consistent with the National Marine Sanctuaries Act 
        (16 U.S.C. 1431 et seq.) and the Magnuson-Stevens Fishery 
        Conservation and Management Act (16 U.S.C. 1801 et seq.); law 
        enforcement through community participation; conflict 
        resolution initiatives; and community outreach and education.
          (6) Fund.--The term ``Fund'' means the Coral Reef 
        Conservation Fund established under section 5(a).
          (7) Secretary.--The term ``Secretary'' means the Secretary of 
        Commerce.

SEC. 4. CORAL REEF CONSERVATION ASSISTANCE.

  (a) In General.--The Secretary, subject to the availability of funds, 
shall use amounts in the Fund to provide grants of financial assistance 
for projects for the conservation of coral reefs for which final 
project proposals are approved by the Secretary in accordance with this 
section.
  (b) Project Proposal.--Any relevant natural resource management 
authority of a State or territory of the United States or other 
government jurisdiction with coral reefs whose activities directly or 
indirectly affect coral reefs, or any nongovernmental organization or 
individual with demonstrated expertise in the conservation of coral 
reefs, may submit to the Secretary a project proposal under this 
section. Each proposal shall include the following:
          (1) The name of the individual responsible for conducting the 
        project.
          (2) A succinct statement of the purposes of the project.
          (3) A description of the qualifications of the individuals 
        who will conduct the project.
          (4) An estimate of the funds and time required to complete 
        the project.
          (5) Evidence of support of the project by appropriate 
        representatives of States or territories of the United States 
        or other government jurisdictions in which the project will be 
        conducted, if the Secretary determines that the support is 
        required for the success of the project.
          (6) Information regarding the source and amount of matching 
        funding available to the applicant.
          (7) Any other information the Secretary considers to be 
        necessary for evaluating the eligibility of the project for 
        funding under this Act.
  (c) Project Review and Approval.--
          (1) In general.--The Secretary shall review each final 
        project proposal to determine if it meets the criteria set 
        forth in subsection (d).
          (2) Consultation; approval or disapproval.--Not later than 6 
        months after receiving a final project proposal, and subject to 
        the availability of funds, the Secretary shall--
                  (A) request written comments on the proposal from 
                each State or territory of the United States or other 
                government jurisdiction, including the relevant 
                regional fishery management councils established under 
                the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1801 et seq.), within which 
                the project is to be conducted;
                  (B) provide for the merit-based peer review of the 
                proposal and require standardized documentation of that 
                peer review;
                  (C) after reviewing any written comments and 
                recommendations based on merit review, approve or 
                disapprove the proposal; and
                  (D) provide written notification of that approval or 
                disapproval to the person who submitted the proposal, 
                and each of those States, territories, and other 
                government jurisdictions.
  (d) Criteria for Approval.--The Secretary may approve a final project 
proposal under this section if the project will enhance programs for 
conservation of coral reefs by assisting efforts to--
          (1) implement conservation programs;
          (2) address the conflicts arising from the use of 
        environments near coral reefs or from the use of corals, 
        species associated with coral reefs, and coral products;
          (3) enhance compliance with laws that prohibit or regulate 
        the taking of corals, species associated with coral reefs, and 
        coral products or regulate the use and management of coral reef 
        ecosystems;
          (4) develop sound scientific information on the condition of 
        coral reef ecosystems or the threats to such ecosystems; or
          (5) promote cooperative projects on coral reef conservation 
        that involve foreign governments, affected local communities, 
        nongovernmental organizations, or others in the private sector.
  (e) Project Sustainability.--In determining whether to approve 
project proposals under this section, the Secretary shall give priority 
to projects which promote sustainable development and ensure effective, 
long-term conservation of coral reefs.
  (f) Project Reporting.--Each grantee under this section shall provide 
periodic reports, as the Secretary considers necessary, to the 
Secretary. Each report shall include all information required by the 
Secretary for evaluating the progress and success of the project.
  (g) Matching Funds.--In determining whether to approve project 
proposals under this section, the Secretary shall give priority to 
projects for which there exist matching funds in the amount of at least 
50 percent of the total cost of each project.

SEC. 5. CORAL REEF CONSERVATION FUND.

  (a) Establishment.--There is established in the general fund of the 
Treasury a separate account, to be known as the ``Coral Reef 
Conservation Fund'', which shall consist of amounts deposited into the 
Fund by the Secretary of the Treasury under subsection (b).
  (b) Deposits Into the Fund.--The Secretary of the Treasury shall 
deposit into the Fund--
          (1) all amounts received by the Secretary in the form of 
        monetary donations under subsection (d); and
          (2) other amounts appropriated to the Fund.
  (c) Use.--
          (1) In general.--Subject to paragraph (2), the Secretary may 
        use amounts in the Fund without further appropriation to 
        provide assistance under section 4.
          (2) Administration.--Of amounts in the Fund available for 
        each fiscal year, the Secretary may use not more than 3 percent 
        to administer the Fund.
  (d) Acceptance and Use of Monetary Donations.--The Secretary may 
accept and use monetary donations to provide assistance under section 
4. Amounts received by the Secretary in the form of donations shall be 
transferred to the Secretary of the Treasury for deposit into the Fund.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Fund $1,000,000 for 
each of fiscal years 1998, 1999, 2000, 2001, and 2002 to carry out this 
Act, which may remain available until expended.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2233 is to assist in the conservation 
of coral reefs.

                  BACKGROUND AND NEED FOR LEGISLATION

    Coral reefs are among the world's most biologically diverse 
and productive marine habitats. Reefs require warm water free 
of excessive nutrients and sediments, which generally restricts 
growth to shallow, tropical and subtropical coastal regions. 
Thus, coral reefs are well developed in the coastal waters of 
only two U.S. States, Florida and Hawaii. Extensive reefs are 
also associated with islands and territories under U.S. 
jurisdiction in the Caribbean and Pacific (American Samoa, 
Guam, the Northern Mariana Islands, Puerto Rico, and U.S. 
Virgin Islands). Offshore in Federal waters, deeper coral 
communities with broader distribution are also present, which 
include Gray's Reef off the coast of Georgia and the Flower 
Garden Banks off Texas.
    Healthy coral reefs provide countless products and benefits 
to the coastal communities of these U.S. States and 
territories. They are vital to coastal economies, serving as 
the basis for coastal and marine tourism. Each year, the reefs 
of the Florida Keys attract over six million visitors and 
generate over $2.1 billion in revenue from snorkelers and scuba 
divers, recreational fishermen, boaters, and wildlife 
enthusiasts. This reef-based tourism creates hundreds of 
thousands of job opportunities in south Florida.
    Healthy reefs support valuable subsistence and commercial 
reef fisheries. In 1995, domestic landings of commercial reef 
fish and shellfish (snapper, grouper, spiny lobster, etc.) 
exceeded $79.5 million. Reef fish imports, for consumption or 
the marine aquarium trade, account for an additional $25-50 
million annually.
    Many marine organisms valued by the biomedical and 
pharmaceutical industries inhabit reefs. For example, a 
chemical compound derived from Caribbean reef sponges is the 
active ingredient in medicines which are widely used in cancer 
chemotherapy. Many other marine plants and animals which live 
on coral reefs produce compounds with antiviral, antibacterial 
and related properties.
    Finally, healthy reefs serve as natural protection for 
coastlines. Coral reefs are effective coastal breakwaters and 
barriers, and can reduce energy from incoming waves by up to 97 
percent. This minimizes the impacts of high waves, storm 
surges, coastal erosion and the accompanying threats to human 
life and property.
    Scientists agree that the world's coral reefs are subject 
to numerous natural and human-induced threats, including: 
predator damage; storms and extreme weather events; tourism 
pressures; commercial harvests; destructive fishing techniques; 
vessel damage; parasites and other diseases; and water quality 
degradation.
    Recent research has shown that these factors have had a 
significant effect on coral reefs worldwide. It is difficult to 
make precise estimates of the amount of reef degradation 
worldwide, as many reefs are located in extremely remote areas. 
The best estimates, however, indicate that a minimum of 10 
percent of reefs have degraded beyond recovery. This statistic 
is expected to reach 20 to 30 percent by 2010.
    H.R. 2233 would create a Coral Reef Conservation Fund in 
the U.S. Treasury, from which monies would be competitively 
awarded to organizations conducting a variety of coral reef 
conservation projects. The program will be administered by the 
Department of Commerce, will be funded through appropriations 
and donations, and will give priority to projects which provide 
matching funds. H.R. 2233 would authorize $1 million to be 
appropriated into the Fund annually for the next five years.
    This fund is modeled after the highly successful African 
Elephant Conservation Fund and the Rhino and Tiger Conservation 
Fund. There appears to be a consensus in the conservation 
community that this type of model is an effective way to 
leverage private sector monies to fund worthwhile projects to 
help recover various species.

                            COMMITTEE ACTION

    On March 13, 1997, and May 6, 1997, the Subcommittee on 
Fisheries Conservation, Wildlife, and Oceans held hearings on 
the status of coral reef ecosystems. Witnesses at these 
hearings included representatives of the Administration, the 
American Oceans Campaign, the International Year of the Reef 
Organizing Committee, the International Marinelife Alliance, 
the Nature Conservancy, the American Zoo and Aquarium 
Association, and Dr. James Porter of the University of Georgia.
    H.R. 2233 was introduced on July 23, 1997, by Congressman 
Jim Saxton (R-NJ), Chairman, Subcommittee on Fisheries 
Conservation, Wildlife, and Oceans, and Congressman Neil 
Abercrombie (D-HI), Ranking Democratic Member, Subcommittee on 
Fisheries Conservation, Wildlife, and Oceans. The bill was 
referred to the Committee on Resources, and within the 
Committee to the Subcommittee on Fisheries Conservation, 
Wildlife, and Oceans.
    On July 31, 1997, the Subcommittee met to mark up H.R. 
2233. The bill was ordered favorably reported to the Full 
Committee without amendment by voice vote. On September 17, 
1997, the full Resources Committee met to consider H.R. 2233. 
An amendment to clarify that the proposed program would not 
conflict with existing marine resource management efforts was 
offered by Mr. Saxton, and adopted by voice vote. The bill, as 
amended, was then ordered favorably reported to the House of 
Representatives by voice vote.

            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.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2233.

                        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. 2233. 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. 
2233 does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures. 
According to the Congressional Budget Office, enactment of H.R. 
2233 would result in additional discretionary spending of about 
$4 million over the 1998-2002 period. In addition, H.R. 2233 
would affect receipts and direct spending by allowing the 
Secretary of Commerce to accept and spend donations, but any 
such transactions would involve minor, offsetting amounts.
    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. 2233.
    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. 
2233 from the Director of the Congressional Budget Office.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                                Congressional Budget Office
                                Washington, DC, September 26, 1997.
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. 2233, the Coral 
Reef Conservation Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Gary Brown.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2233--Coral Reef Conservation Act of 1997

    Summary: H.R. 2233 would establish a new fund to support 
the conservation of coral reefs. The bill would direct the 
Secretary of Commerce to use amounts in the new fund to finance 
eligible conservation efforts, which may include research and 
education projects as well as ongoing activities such as law 
enforcement. For this purpose, the bill would authorize 
appropriations to the fund of $1 million for each of fiscal 
years 1998 through 2002. Also, the Secretary would be 
authorized to accept and use donated funds without further 
appropriation.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 2233 would result in 
additional discretionary spending of about $4 million over the 
1998-2002 period. The legislation would affect direct spending 
and receipts by allowing the Secretary to accept and spend 
donations; therefore, pay-as-you-go procedures would apply. Any 
such transactions, however, would involve minor, offsetting 
amounts. H.R. 2233 does not contain any intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act of 1995 (UMRA), and would have no impact on the 
budgets of state, local, or tribal governments.
    Estimated cost to the Federal Government: For purposes of 
this estimate, CBO assumes that the entire amounts authorized 
by H.R. 2233 will be appropriated for each of fiscal years 1998 
through 2002. Outlay estimates are based on obligation patterns 
for similar programs, which indicate that the rate of spending 
over the first few years of the new program would be slow. The 
estimated budgetary impact of H.R. 2233 is shown in the 
following table.

                                                                        
------------------------------------------------------------------------
                                      By fiscal years in millions of    
                                                 dollars--              
                                 ---------------------------------------
                                   1998    1999    2000    2001    2002 
------------------------------------------------------------------------
                    SPENDING SUBJECT TO APPROPRIATION                   
                                                                        
Authorization Level.............       1       1       1       1       1
Estimated Outlays...............   (\1\)   (\1\)       1       1       1
------------------------------------------------------------------------
\1\ Less than $500,000.                                                 

    The costs of this legislation fall within budget function 
300 (natural resources and environment). Spending for the 
conservation of coral reefs would constitute a new program in 
the federal budget; that is, there is no spending for this 
activity under current law.
    Enacting H.R. 2233 also would affect both receipts and 
direct spending by authorizing the Secretary of Commerce to 
accept and use donations. CBO estimates that this provision 
would increase federal receipts by less than $500,000 annually 
once the conservation program has been established. Because 
these receipts would be offset by additional direct spending, 
the net impact of this provision on the federal budget would be 
negligible in each year.
    Pay-as-you-go considerations; The Balanced Budget and 
Emergency Deficit Control Act of 1985 specifies pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. Although enacting H.R. 2233 would affect both 
receipts and direct spending, CBO estimates that the amounts 
involved would be less than $500,000 annually.
    Intergovernmental and private-sector impact: H.R. 2233 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would have no impact on the budgets of 
state, local, or tribal governments. Some of the funds 
authorized by this bill could support projects conducted by 
states or local government entities. The bill would not require 
matching funds but would give priority to projects supported by 
nonfederal funds in amounts at least equal to the federal funds 
provided.
    Estimate prepared by: Federal Costs: Gary Brown; Impact on 
State, Local, and Tribal Governments: Marjorie Miller.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    H.R. 2233 contains no unfunded mandates.

                        CHANGES IN EXISTING LAW

    If enacted, H.R. 2233 would make no changes in existing 
law.

                                
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