[House Report 116-295]
[From the U.S. Government Publishing Office]


116th Congress    }                                     {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {     116-295

======================================================================



 
                 KEEP AMERICA'S WATERFRONTS WORKING ACT

                                _______
                                

 November 15, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3596]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 3596) to amend the Coastal Zone Management Act 
of 1972 to establish a Working Waterfront Task Force and a 
working waterfronts grant program, 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 all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Keep America's Waterfronts Working 
Act''.

SEC. 2. WORKING WATERFRONTS GRANT PROGRAM.

  The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is 
amended by adding at the end the following:

``SEC. 320. WORKING WATERFRONTS GRANT PROGRAM.

  ``(a) Working Waterfront Task Force.--
          ``(1) Establishment and functions.--The Secretary of Commerce 
        shall establish a task force to work directly with coastal 
        States, user groups, and coastal stakeholders to identify and 
        address critical needs with respect to working waterfronts.
          ``(2) Membership.--The members of the task force shall be 
        appointed by the Secretary of Commerce, and shall include--
                  ``(A) experts in the unique economic, social, 
                cultural, ecological, geographic, and resource concerns 
                of working waterfronts; and
                  ``(B) representatives from the National Oceanic and 
                Atmospheric Administration's Office of Coastal 
                Management, the United States Fish and Wildlife 
                Service, the Department of Agriculture, the 
                Environmental Protection Agency, the United States 
                Geological Survey, the Navy, the National Marine 
                Fisheries Service, the Economic Development Agency, and 
                such other Federal agencies as the Secretary considers 
                appropriate.
          ``(3) Functions.--The task force shall--
                  ``(A) identify and prioritize critical needs with 
                respect to working waterfronts in States that have a 
                management program approved by the Secretary of 
                Commerce pursuant to section 306, in the areas of--
                          ``(i) economic and cultural importance of 
                        working waterfronts to communities;
                          ``(ii) changing environments and threats 
                        working waterfronts face from environment 
                        changes, trade barriers, sea level rise, 
                        extreme weather events, ocean acidification, 
                        and harmful algal blooms; and
                          ``(iii) identifying working waterfronts and 
                        highlighting them within communities;
                  ``(B) outline options, in coordination with coastal 
                States and local stakeholders, to address such critical 
                needs, including adaptation and mitigation where 
                applicable;
                  ``(C) identify Federal agencies that are responsible 
                under existing law for addressing such critical needs; 
                and
                  ``(D) recommend Federal agencies best suited to 
                address any critical needs for which no agency is 
                responsible under existing law.
          ``(4) Information to be considered.--In identifying and 
        prioritizing policy gaps pursuant to paragraph (3), the task 
        force shall consider the findings and recommendations contained 
        in section VI of the report entitled `The Sustainable Working 
        Waterfronts Toolkit: Final Report', dated March 2013.
          ``(5) Report.--Not later than 18 months after the date of the 
        enactment of this section, the task force shall submit a report 
        to Congress on its findings.
          ``(6) Implementation.--The head of each Federal agency 
        identified in the report pursuant to paragraph (3)(C) shall 
        take such action as is necessary to implement the 
        recommendations contained in the report by not later than 1 
        year after the date of the issuance of the report.
  ``(b) Working Waterfront Grant Program.--
          ``(1) The Secretary shall establish a Working Waterfront 
        Grant Program, in cooperation with appropriate State, regional, 
        and other units of government, under which the Secretary may 
        make a grant to any coastal State for the purpose of 
        implementing a working waterfront plan approved by the 
        Secretary under subsection (c).
          ``(2) Subject to the availability of appropriations, the 
        Secretary shall award matching grants under the Working 
        Waterfronts Grant Program to coastal States with approved 
        working waterfront plans through a regionally equitable, 
        competitive funding process in accordance with the following:
                  ``(A) The Governor, or the lead agency designated by 
                the Governor for coordinating the implementation of 
                this section, where appropriate in consultation with 
                the appropriate local government, shall determine that 
                the application is consistent with the State's or 
                territory's approved coastal zone plan, program, and 
                policies prior to submission to the Secretary.
                  ``(B) In developing guidelines under this section, 
                the Secretary shall consult with coastal States, other 
                Federal agencies, and other interested stakeholders 
                with expertise in working waterfront planning.
                  ``(C) Coastal States may allocate grants to local 
                governments, agencies, or nongovernmental organizations 
                eligible for assistance under this section.
          ``(3) In awarding a grant to a coastal State, the Secretary 
        shall consider--
                  ``(A) the economic, cultural, and historical 
                significance of working waterfront to the coastal 
                State;
                  ``(B) the demonstrated working waterfront needs of 
                the coastal State as outlined by a working waterfront 
                plan approved for the coastal State under subsection 
                (c), and the value of the proposed project for the 
                implementation of such plan;
                  ``(C) the ability to successfully leverage funds 
                among participating entities, including Federal 
                programs, regional organizations, State and other 
                government units, landowners, corporations, or private 
                organizations;
                  ``(D) the potential for rapid turnover in the 
                ownership of working waterfront in the coastal State, 
                and where applicable the need for coastal States to 
                respond quickly when properties in existing or 
                potential working waterfront areas or public access 
                areas as identified in the working waterfront plan 
                submitted by the coastal State come under threat or 
                become available; and
                  ``(E) the impact of the working waterfront plan 
                approved for the coastal State under subsection (c) on 
                the coastal ecosystem and the users of the coastal 
                ecosystem.
          ``(4) The Secretary shall approve or reject an application 
        for such a grant within 60 days after receiving an application 
        for the grant.
  ``(c) Working Waterfront Plans.--
          ``(1) To be eligible for a grant under subsection (b), a 
        coastal State must submit and have approved by the Secretary a 
        comprehensive working waterfront plan in accordance with this 
        subsection, or be in the process of developing such a plan and 
        have an established working waterfront program at the State or 
        local level, or the Secretary determines that an existing 
        coastal land use plan for that State is in accordance with this 
        subsection.
          ``(2) Such plan--
                  ``(A) must provide for preservation and expansion of 
                access to coastal waters to persons engaged in 
                commercial fishing, recreational fishing and boating 
                businesses, aquaculture, boatbuilding, or other water-
                dependent, coastal-related business;
                  ``(B) shall include one or more of--
                          ``(i) an assessment of the economic, social, 
                        cultural, and historic value of working 
                        waterfront to the coastal State;
                          ``(ii) a description of relevant State and 
                        local laws and regulations affecting working 
                        waterfront in the geographic areas identified 
                        in the working waterfront plan;
                          ``(iii) identification of geographic areas 
                        where working waterfronts are currently under 
                        threat of conversion to uses incompatible with 
                        commercial and recreational fishing, 
                        recreational fishing and boating businesses, 
                        aquaculture, boatbuilding, or other water-
                        dependent, coastal-related business, and the 
                        level of that threat;
                          ``(iv) identification of geographic areas 
                        with a historic connection to working 
                        waterfronts where working waterfronts are not 
                        currently available, and, where appropriate, an 
                        assessment of the environmental impacts of any 
                        expansion or new development of working 
                        waterfronts on the coastal ecosystem;
                          ``(v) identification of other working 
                        waterfront needs including improvements to 
                        existing working waterfronts and working 
                        waterfront areas;
                          ``(vi) a strategic and prioritized plan for 
                        the preservation, expansion, and improvement of 
                        working waterfronts in the coastal State;
                          ``(vii) for areas identified under clauses 
                        (iii), (iv), (v), and (vi), identification of 
                        current availability and potential for 
                        expansion of public access to coastal waters;
                          ``(viii) a description of the degree of 
                        community support for such strategic plan; and
                          ``(ix) a contingency plan for properties that 
                        revert to the coastal State pursuant to 
                        determinations made by the coastal State under 
                        subsection (g)(4)(C);
                  ``(C) may include detailed environmental impacts on 
                working waterfronts, including hazards, sea level rise, 
                inundation exposure, and other resiliency issues;
                  ``(D) may be part of the management program approved 
                under section 306;
                  ``(E) shall utilize to the maximum extent practicable 
                existing information contained in relevant surveys, 
                plans, or other strategies to fulfill the information 
                requirements under this paragraph; and
                  ``(F) shall incorporate the policies and regulations 
                adopted by communities under local working waterfront 
                plans or strategies in existence before the date of the 
                enactment of this section.
          ``(3) A working waterfront plan--
                  ``(A) shall be effective for purposes of this section 
                for the 5-year period beginning on the date it is 
                approved by the Secretary;
                  ``(B) must be updated and re-approved by the 
                Secretary before the end of such period; and
                  ``(C) shall be complimentary to and incorporate the 
                policies and objectives of regional or local working 
                waterfront plans as in effect before the date of 
                enactment of this section or as subsequently revised.
          ``(4) The Secretary may--
                  ``(A) award planning grants to coastal States for the 
                purpose of developing or revising comprehensive working 
                waterfront plans; and
                  ``(B) award grants consistent with the purposes of 
                this section to States undertaking the working 
                waterfront planning process under this section, for the 
                purpose of preserving and protecting working 
                waterfronts during such process.
          ``(5) Any coastal State applying for a working waterfront 
        grant under this title shall--
                  ``(A) develop a working waterfront plan, using a 
                process that involves the public and those with an 
                interest in the coastal zone;
                  ``(B) coordinate development and implementation of 
                such a plan with other coastal management programs, 
                regulations, and activities of the coastal State; and
                  ``(C) if the coastal State allows qualified holders 
                (other than the coastal State) to enter into working 
                waterfront covenants, provide as part of the working 
                waterfront plan under this subsection a mechanism or 
                procedure to ensure that the qualified holders are 
                complying their duties to enforce the working 
                waterfront covenant.
  ``(d) Uses, Terms, and Conditions.--
          ``(1) Each grant made by the Secretary under this section 
        shall be subject to such terms and conditions as may be 
        appropriate to ensure that the grant is used for purposes 
        consistent with this section.
          ``(2) A grant under this section may be used--
                  ``(A) to acquire a working waterfront, or an interest 
                in a working waterfront;
                  ``(B) to make improvements to a working waterfront, 
                including the construction or repair of wharfs, boat 
                ramps, or related facilities; or
                  ``(C) for necessary climate adaptation mitigation.
  ``(e) Public Access Requirement.--A working waterfront project funded 
by grants made under this section must provide for expansion, 
improvement, or preservation of reasonable and appropriate public 
access to coastal waters at or in the vicinity of a working waterfront, 
except for commercial fishing or other industrial access points where 
the coastal State determines that public access would be unsafe.
  ``(f) Limitations.--
          ``(1) Except as provided in paragraph (2), a grant awarded 
        under this section may be used to purchase working waterfront 
        or an interest in working waterfront, including an easement, 
        only from a willing seller and at fair market value.
          ``(2) A grant awarded under this section may be used to 
        acquire working waterfront or an interest in working waterfront 
        at less than fair market value only if the owner certifies to 
        the Secretary that the sale is being entered into willingly and 
        without coercion.
          ``(3) No Federal, State, or local entity may exercise the 
        power of eminent domain to secure title to any property or 
        facilities in connection with a project carried out under this 
        section.
  ``(g) Allocation of Grants to Local Governments and Other Entities.--
          ``(1) The Secretary shall encourage coastal States to broadly 
        allocate amounts received as grants under this section among 
        working waterfronts identified in working waterfront plans 
        approved under subsection (c).
          ``(2) Subject to the approval of the Secretary, a coastal 
        State may, as part of an approved working waterfront plan, 
        designate as a qualified holder any unit of State or local 
        government or nongovernmental organization, if the coastal 
        State is ultimately responsible for ensuring that the property 
        will be managed in a manner that is consistent with the 
        purposes for which the land entered into the program.
          ``(3) A coastal State or a qualified holder designated by a 
        coastal State may allocate to a unit of local government, 
        nongovernmental organization, fishing cooperative, or other 
        entity, a portion of any grant made under this section for the 
        purpose of carrying out this section, except that such an 
        allocation shall not relieve the coastal State of the 
        responsibility for ensuring that any funds so allocated are 
        applied in furtherance of the coastal State's approved working 
        waterfront plan.
          ``(4) A qualified holder may hold title to or interest in 
        property acquired under this section, except that--
                  ``(A) all persons holding title to or interest in 
                working waterfront affected by a grant under this 
                section, including a qualified holder, private citizen, 
                private business, nonprofit organization, fishing 
                cooperative, or other entity, shall enter into a 
                working waterfront covenant;
                  ``(B) such covenant shall be held by the coastal 
                State or a qualified holder designated under paragraph 
                (2);
                  ``(C) if the coastal State determines, on the record 
                after an opportunity for a hearing, that the working 
                waterfront covenant has been violated--
                          ``(i) all right, title, and interest in and 
                        to the working waterfront covered by such 
                        covenant shall, except as provided in 
                        subparagraph (D), revert to the coastal State; 
                        and
                          ``(ii) the coastal State shall have the right 
                        of immediate entry onto the working waterfront;
                  ``(D) if a coastal State makes a determination under 
                subparagraph (C), the coastal State may convey or 
                authorize the qualified holder to convey the working 
                waterfront or interest in working waterfront to another 
                qualified holder; and
                  ``(E) nothing in this subsection waives any legal 
                requirement under any Federal or State law.
  ``(h) Matching Contributions.--
          ``(1) Except as provided in paragraph (2), the Secretary 
        shall require that each coastal State that receives a grant 
        under this section, or a qualified holder designated by that 
        coastal State under subsection (g), shall provide matching 
        funds in an amount equal to at least 25 percent of the total 
        cost of the project carried out with the grant.
          ``(2) The Secretary may waive the application of paragraph 
        (1) for any qualified holder that is an underserved community, 
        a community that has an inability to draw on other sources of 
        funding because of the small population or low income of the 
        community, or for other reasons the Secretary considers 
        appropriate.
          ``(3) A local community designated as a qualified holder 
        under subsection (g) may utilize funds or other in-kind 
        contributions donated by a nongovernmental partner to satisfy 
        the matching funds requirement under this subsection.
          ``(4) As a condition of receipt of a grant under this 
        section, the Secretary shall require that a coastal State 
        provide to the Secretary such assurances as the Secretary 
        determines are sufficient to demonstrate that the share of the 
        cost of each eligible project that is not funded by the grant 
        awarded under this section has been secured.
          ``(5) If financial assistance under this section represents 
        only a portion of the total cost of a project, funding from 
        other Federal sources may be applied to the cost of the 
        project. Each portion shall be subject to match requirements 
        under the applicable provision of law.
          ``(6) The Secretary shall treat as non-Federal match the 
        value of a working waterfront or interest in a working 
        waterfront, including conservation and other easements, that is 
        held in perpetuity by a qualified holder, if the working 
        waterfront or interest is identified in the application for the 
        grant and acquired by the qualified holder within 3 years of 
        the grant award date, or within 3 years after the submission of 
        the application and before the end of the grant award period. 
        Such value shall be determined by an appraisal performed at 
        such time before the award of the grant as the Secretary 
        considers appropriate.
          ``(7) The Secretary shall treat as non-Federal match the 
        costs associated with acquisition of a working waterfront or an 
        interest in a working waterfront, and the costs of restoration, 
        enhancement, or other improvement to a working waterfront, if 
        the activities are identified in the project application and 
        the costs are incurred within the period of the grant award, 
        or, for working waterfront described in paragraph (6), within 
        the same time limits described in that paragraph. These costs 
        may include either cash or in-kind contributions.
  ``(i) Limit on Administrative Costs.--No more than 5 percent of the 
funds made available to the Secretary under this section may be used by 
the Secretary for planning or administration of the program under this 
section.
  ``(j) Other Technical and Financial Assistance.--
          ``(1) Up to 5 percent of the funds appropriated under this 
        section may be used by the Secretary for purposes of providing 
        technical assistance as described in this subsection.
          ``(2) The Secretary shall--
                  ``(A) provide technical assistance to coastal States 
                and local governments in identifying and obtaining 
                other sources of available Federal technical and 
                financial assistance for the development and revision 
                of a working waterfront plan and the implementation of 
                an approved working waterfront plan;
                  ``(B) provide technical assistance to States and 
                local governments for the development, implementation, 
                and revision of comprehensive working waterfront plans, 
                which may include, subject to the availability of 
                appropriations, planning grants and assistance, pilot 
                projects, feasibility studies, research, and other 
                projects necessary to further the purposes of this 
                section;
                  ``(C) assist States in developing other tools to 
                protect working waterfronts;
                  ``(D) collect and disseminate to States guidance for 
                best storm water management practices in regards to 
                working waterfronts;
                  ``(E) provide technical assistance to States and 
                local governments on integrating resilience planning 
                into working waterfront preservation efforts; and
                  ``(F) collect and disseminate best practices on 
                working waterfronts and resilience planning.
  ``(k) Reports.--
          ``(1) The Secretary shall--
                  ``(A) develop performance measures to evaluate and 
                report on the effectiveness of the program under this 
                section in accomplishing the purpose of this section; 
                and
                  ``(B) submit to Congress a biennial report that 
                includes such evaluations, an account of all 
                expenditures, and descriptions of all projects carried 
                out using grants awarded under this section.
          ``(2) The Secretary may submit the biennial report under 
        paragraph (1)(B) by including it in the biennial report 
        required under section 316.
  ``(l) Definitions.--In this section:
          ``(1) The term `qualified holder' means a coastal State or a 
        unit of local or coastal State government or a non-State 
        organization designated by a coastal State under subsection 
        (g).
          ``(2) The term `Secretary' means the Secretary, acting 
        through the National Oceanic and Atmospheric Administration.
          ``(3) The term `working waterfront' means real property 
        (including support structures over water and other facilities) 
        that provides access to coastal waters to persons engaged in 
        commercial and recreational fishing, recreational fishing and 
        boating businesses, boatbuilding, aquaculture, or other water-
        dependent, coastal-related business and is used for, or that 
        supports, commercial and recreational fishing, recreational 
        fishing and boating businesses, boatbuilding, aquaculture, or 
        other water-dependent, coastal-related business.
          ``(4) The term `working waterfront covenant' means an 
        agreement in recordable form between the owner of working 
        waterfront and one or more qualified holders, that provides 
        such assurances as the Secretary may require that--
                  ``(A) the title to or interest in the working 
                waterfront will be held by a grant recipient or 
                qualified holder in perpetuity, except as provided in 
                subparagraph (C);
                  ``(B) the working waterfront will be managed in a 
                manner that is consistent with the purposes for which 
                the property is acquired pursuant to this section, and 
                the property will not be converted to any use that is 
                inconsistent with the purpose of this section;
                  ``(C) if the title to or interest in the working 
                waterfront is sold or otherwise exchanged--
                          ``(i) all working waterfront owners and 
                        qualified holders involved in such sale or 
                        exchange shall accede to such agreement; and
                          ``(ii) funds equal to the fair market value 
                        of the working waterfront or interest in 
                        working waterfront shall be paid to the 
                        Secretary by parties to the sale or exchange, 
                        and such funds shall, at the discretion of the 
                        Secretary, be paid to the coastal State in 
                        which the working waterfront is located for use 
                        in the implementation of the working waterfront 
                        plan of the State approved by the Secretary 
                        under this section; and
                  ``(D) such covenant is subject to enforcement and 
                oversight by the coastal State or by another person as 
                determined appropriate by the Secretary.
  ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated to the Grant Program $12,000,000.''.

SEC. 3. WORKING WATERFRONTS PRESERVATION FUND; GRANTS.

  The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is 
further amended by adding at the end the following:

``SEC. 321. WORKING WATERFRONTS PRESERVATION LOAN FUND.

  ``(a) Fund.--There is established in the Treasury a separate account 
that shall be known as the `Working Waterfronts Preservation Loan Fund' 
(in this section referred to as the `Fund').
  ``(b) Use.--
          ``(1) Subject to the availability of appropriations, amounts 
        in the Fund may be used by the Secretary to make loans to 
        coastal States for the purpose of implementing a working 
        waterfront plan approved by the Secretary under section 320(c) 
        through preservation, improvement, restoration, rehabilitation, 
        acquisition of working waterfront properties under criteria 
        established by the Secretary.
          ``(2) Upon enactment of this section, the Secretary of 
        Commerce shall conduct a feasibility study on the 
        administration of the development and management of a Working 
        Waterfronts Preservation Loan Fund.
          ``(3) Upon the completion of the study under paragraph (2), 
        the Secretary shall establish a fund in accordance with the 
        results of that study, and establish such criteria as 
        referenced in subsection (c) in consultation with States that 
        have a management program approved by the Secretary of Commerce 
        pursuant to section 306 and local government coastal management 
        programs.
  ``(c) Award Criteria.--The Secretary shall award loans under this 
section through a regionally equitable, competitive funding process, 
and in accordance with the following:
          ``(1) The Governor, or the lead agency designated by the 
        Governor for coordinating the implementation of this section, 
        where appropriate in consultation with the appropriate local 
        government, shall determine that an application for a loan is 
        consistent with the State's approved coastal zone plan, 
        program, and policies prior to submission to the Secretary.
          ``(2) In developing guidelines under this section, the 
        Secretary shall consult with coastal States, other Federal 
        agencies, and other interested stakeholders with expertise in 
        working waterfront planning.
          ``(3) Coastal States may allocate amounts loaned under this 
        section to local governments, agencies, or nongovernmental 
        organizations eligible for loans under this section.
          ``(4) In awarding a loan for activities in a coastal State, 
        the Secretary shall consider--
                  ``(A) the economic and cultural significance of 
                working waterfront to the coastal State;
                  ``(B) the demonstrated working waterfront needs of 
                the coastal State as outlined by a working waterfront 
                plan approved for the coastal State under section 
                320(c), and the value of the proposed loan for the 
                implementation of such plan;
                  ``(C) the ability to successfully leverage loan funds 
                among participating entities, including Federal 
                programs, regional organizations, State and other 
                government units, landowners, corporations, or private 
                organizations;
                  ``(D) the potential for rapid turnover in the 
                ownership of working waterfront in the coastal State, 
                and where applicable the need for coastal States to 
                respond quickly when properties in existing or 
                potential working waterfront areas or public access 
                areas as identified in the working waterfront plan 
                submitted by the coastal State come under threat or 
                become available;
                  ``(E) the impact of the loan on the coastal ecosystem 
                and the users of the coastal ecosystem; and
                  ``(F) the extent of the historic connection between 
                working waterfronts for which the loan will be used and 
                the local communities within the coastal State.
  ``(d) Loan Amount and Terms.--
          ``(1) The amount of a loan under this section--
                  ``(A) shall be not less than $100,000; and
                  ``(B) shall not exceed 15 percent of the amount in 
                the Fund as of July 1 of the fiscal year in which the 
                loan is made.
          ``(2) The interest rate for a loan under this section shall 
        not exceed 4 percent.
          ``(3) The repayment term for a loan under this section shall 
        not exceed 20 years.
  ``(e) Deadline for Approval.--The Secretary shall approve or reject 
an application for a loan under this section within 60 days after 
receiving an application for the loan.
  ``(f) Limit on Administrative Costs.--No more than 5 percent of the 
funds made available to the Secretary under this section may be used by 
the Secretary for planning or administration of the program under this 
section.
  ``(g) Definitions.--The definitions in section 320(l) shall apply to 
this section.
  ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund $12,000,000.''.

                          Purpose of the Bill

    The purpose of H.R. 3596 is to amend the Coastal Zone 
Management Act of 1972 to establish a Working Waterfront Task 
Force and a working waterfronts grant program, and for other 
purposes.

                  Background and Need for Legislation

    Working waterfronts are waterfront property, 
infrastructure, and waterways that provide access to coastal 
waters for people in commercial and recreational fishing 
businesses, boatbuilding, aquaculture, or other water-dependent 
activities. Working waterfronts may include ports, small 
recreational boat harbors, fishing docks, and other places that 
provide access to coastal waters. Nationally, coastal 
activities account for over 100,000 businesses that employ more 
than 2 million full and part-time employees and contribute over 
$200 billion to GDP (roughly 3.4 percent of total GDP and 4.85 
percent of total employment).\1\
---------------------------------------------------------------------------
    \1\Sustainable Working Waterfronts Toolkit: Final Report. March 
2013. Island Institute, Maine Sea Grant, National Sea Grant Law Center, 
Coastal Enterprises Inc., Florida Sea Grant, Virginia Sea Grant, 
University of Mass. Boston. https://digitalcommons.library.umaine.edu/
cgi/viewcontent.cgi?article=1062&context=seagrant_pub.
---------------------------------------------------------------------------
    There is currently no federal program to preserve or 
improve working waterfronts. Yet, working waterfronts are 
essential for fishing, shipping, and coastal tourism 
industries. Despite their economic value, working waterfronts 
are facing numerous threats, including pressure from competing 
land use plans, aging infrastructure, changing regulations, 
coastal hazards, and environmental impacts from climate 
change.\2\
---------------------------------------------------------------------------
    \2\Ibid.
---------------------------------------------------------------------------
    The Keep America's Waterfronts Working Act amends the 
Coastal Zone Management Act (CZMA) to provide a grant program 
and loan program for coastal communities to develop and 
implement their working waterfront plans.

                            Committee Action

    H.R. 3596 was introduced on June 28, 2019, by 
Representative Chellie Pingree (D-ME). The bill was referred 
solely to the Committee on Natural Resources, and within the 
Committee to the Subcommittee on Water, Oceans, and Wildlife. 
On July 25, 2019, the Subcommittee held a hearing on the bill. 
On September 25, 2019, the Natural Resources Committee met to 
consider the bill. The Subcommittee was discharged by unanimous 
consent. Chair Raul Grijalva (D-AZ) offered an amendment in the 
nature of a substitute. Representative Joe Cunningham (D-SC) 
and Representative Garret Graves (R-LA) offered an amendment 
#1. The amendment passed by voice vote. The amendment in the 
nature of a substitute offered by Chair Grijalva was adopted by 
voice vote as amended. No additional amendments were offered, 
and the bill, as amended, was adopted and ordered favorably 
reported to the House of Representatives by a roll call vote of 
22 yeas and 13 nays, as follows:


              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--the following hearing was used to develop or 
consider H.R. 3596: legislative hearing by the Subcommittee on 
Water, Oceans, and Wildlife held on July 25, 2019.

                      Section-by-Section Analysis

    Section 2. This section amends the CZMA to establish a 
working waterfronts grant program to preserve and protect 
coastal access for water-dependent commercial activities. The 
bill requires the Secretary of Commerce to establish a Working 
Waterfront Task Force (Task Force) made up of experts with 
expertise in economics, social, and cultural concerns, and 
ecological, geographic, and natural resource values of working 
waterfronts, in addition to representatives from across 
relevant federal agencies. The Task Force identifies working 
waterfronts within communities and their critical needs related 
to their economic and cultural importance, threats from trade 
barriers, sea level rise, extreme weather, ocean acidification, 
and harmful algal blooms. The Task Force provides their 
findings and recommendations to Congress.
    This section also authorizes NOAA to award grants to 
develop and implement working waterfront plans. Plans are 
developed with public input and include economic, social, 
cultural, and historic value assessments; plans for 
preservation, expansion, and improvement of waterfronts; 
identification of areas where waterfronts are under threat of 
conversion; and identification of where working waterfronts 
could be expanded. Working waterfront plans last for five years 
after approval by the Secretary. States are authorized to 
allocate grants to eligible local governments, agencies, or 
NGOs. Grants can be used to acquire a working waterfront, make 
improvements to working waterfronts, or for necessary climate 
adaptation mitigation, but all funded projects must provide for 
expansion, improvement, or preservation of public access to 
coastal waters.
    Section 3. This section amends the CZMA to establish the 
Working Waterfronts Preservation Loan Fund, which makes loans 
available to coastal states to implement their working 
waterfront plan. Funding would be awarded though a regionally 
equitable competition process considering the economic and 
cultural significance of the working waterfront, the 
demonstrated needs of the working waterfront, the ability to 
leverage funds, the impact of the loan on the coastal community 
and ecosystem, and the potential for rapid turnover of 
ownership of the working waterfront. The bill authorizes $12 
million to carry out this section.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 1, 2019.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3596, the Keep 
America's Waterfronts Working Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sofia Guo.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    H.R. 3596 would require the Secretary of Commerce, in 
consultation with coastal States, regional governments, and 
coastal property owners, to establish a task force to identify 
the needs of working waterfronts (as defined in the bill) and 
to implement improvement plans. The bill would authorize the 
appropriation of $12 million for a grant program and $12 
million to cover the subsidy costs for loans to assist those 
waterfronts. Under the bill, the Secretary would be responsible 
for various reporting, implementation, and technical assistance 
requirements with regard to each program.
    The bill does not specify the years for the authorized 
appropriation so CBO has assumed that all of the authorizations 
would be for 2020. Assuming appropriation of the authorized 
amounts, and based on historical spending patterns for similar 
programs, CBO estimates that implementing H.R. 3596 would cost 
$23 million over the 2020-2024 period. The costs of the 
legislation (detailed in Table 1) fall within budget function 
300 (natural resources and environment).

               TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3596
----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, millions of dollars--
                                                         -------------------------------------------------------
                                                            2020     2021     2022     2023     2024   2020-2024
----------------------------------------------------------------------------------------------------------------
Authorization...........................................       24        0        0        0        0        24
Estimated Outlays.......................................        1       13        5        3        1        23
----------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Sofia Guo. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to amend the Coastal Zone 
Management Act of 1972 to establish a Working Waterfront Task 
Force and a working waterfronts grant program.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    This bill contains no unfunded mandates.

                Federal Advisory Committee Act Statement

    The bill requires the Secretary of Commerce to establish a 
Working Waterfront Task Force. In reporting the bill favorably 
to the House of Representatives, the Committee on Natural 
Resources finds that the functions of the proposed Task Force 
authorized in this bill are not already being performed by one 
or more agencies or by an advisory committee already in 
existence. The Committee finds that the Task Force's functions 
would be better performed by the proposed Task Force than by 
one or more agencies or an existing advisory committee.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program. Such program was not included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139. The Working Waterfront Grant 
Program established by the bill is related and complementary 
to, but not duplicative of, the following programs identified 
in the most recent Catalog of Federal Domestic Assistance 
published pursuant to 31 U.S.C. Sec. 6104: Coastal Zone 
Management Administration Awards (CFDA No. 11.419), Sea Grant 
Support (CFDA No. 11.417), Coastal Zone Management Estuarine 
Research Reserves (CFDA No. 11.420), Office for Coastal 
Management (CFDA No. 11.473), and Coral Reef Conservation 
Program (CFDA No. 11.482).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                  COASTAL ZONE MANAGEMENT ACT OF 1972




           *       *       *       *       *       *       *
SEC. 320. WORKING WATERFRONTS GRANT PROGRAM.

  (a) Working Waterfront Task Force.--
          (1) Establishment and functions.--The Secretary of 
        Commerce shall establish a task force to work directly 
        with coastal States, user groups, and coastal 
        stakeholders to identify and address critical needs 
        with respect to working waterfronts.
          (2) Membership.--The members of the task force shall 
        be appointed by the Secretary of Commerce, and shall 
        include--
                  (A) experts in the unique economic, social, 
                cultural, ecological, geographic, and resource 
                concerns of working waterfronts; and
                  (B) representatives from the National Oceanic 
                and Atmospheric Administration's Office of 
                Coastal Management, the United States Fish and 
                Wildlife Service, the Department of 
                Agriculture, the Environmental Protection 
                Agency, the United States Geological Survey, 
                the Navy, the National Marine Fisheries 
                Service, the Economic Development Agency, and 
                such other Federal agencies as the Secretary 
                considers appropriate.
          (3) Functions.--The task force shall--
                  (A) identify and prioritize critical needs 
                with respect to working waterfronts in States 
                that have a management program approved by the 
                Secretary of Commerce pursuant to section 306, 
                in the areas of--
                          (i) economic and cultural importance 
                        of working waterfronts to communities;
                          (ii) changing environments and 
                        threats working waterfronts face from 
                        environment changes, trade barriers, 
                        sea level rise, extreme weather events, 
                        ocean acidification, and harmful algal 
                        blooms; and
                          (iii) identifying working waterfronts 
                        and highlighting them within 
                        communities;
                  (B) outline options, in coordination with 
                coastal States and local stakeholders, to 
                address such critical needs, including 
                adaptation and mitigation where applicable;
                  (C) identify Federal agencies that are 
                responsible under existing law for addressing 
                such critical needs; and
                  (D) recommend Federal agencies best suited to 
                address any critical needs for which no agency 
                is responsible under existing law.
          (4) Information to be considered.--In identifying and 
        prioritizing policy gaps pursuant to paragraph (3), the 
        task force shall consider the findings and 
        recommendations contained in section VI of the report 
        entitled ``The Sustainable Working Waterfronts Toolkit: 
        Final Report'', dated March 2013.
          (5) Report.--Not later than 18 months after the date 
        of the enactment of this section, the task force shall 
        submit a report to Congress on its findings.
          (6) Implementation.--The head of each Federal agency 
        identified in the report pursuant to paragraph (3)(C) 
        shall take such action as is necessary to implement the 
        recommendations contained in the report by not later 
        than 1 year after the date of the issuance of the 
        report.
  (b) Working Waterfront Grant Program.--
          (1) The Secretary shall establish a Working 
        Waterfront Grant Program, in cooperation with 
        appropriate State, regional, and other units of 
        government, under which the Secretary may make a grant 
        to any coastal State for the purpose of implementing a 
        working waterfront plan approved by the Secretary under 
        subsection (c).
          (2) Subject to the availability of appropriations, 
        the Secretary shall award matching grants under the 
        Working Waterfronts Grant Program to coastal States 
        with approved working waterfront plans through a 
        regionally equitable, competitive funding process in 
        accordance with the following:
                  (A) The Governor, or the lead agency 
                designated by the Governor for coordinating the 
                implementation of this section, where 
                appropriate in consultation with the 
                appropriate local government, shall determine 
                that the application is consistent with the 
                State's or territory's approved coastal zone 
                plan, program, and policies prior to submission 
                to the Secretary.
                  (B) In developing guidelines under this 
                section, the Secretary shall consult with 
                coastal States, other Federal agencies, and 
                other interested stakeholders with expertise in 
                working waterfront planning.
                  (C) Coastal States may allocate grants to 
                local governments, agencies, or nongovernmental 
                organizations eligible for assistance under 
                this section.
          (3) In awarding a grant to a coastal State, the 
        Secretary shall consider--
                  (A) the economic, cultural, and historical 
                significance of working waterfront to the 
                coastal State;
                  (B) the demonstrated working waterfront needs 
                of the coastal State as outlined by a working 
                waterfront plan approved for the coastal State 
                under subsection (c), and the value of the 
                proposed project for the implementation of such 
                plan;
                  (C) the ability to successfully leverage 
                funds among participating entities, including 
                Federal programs, regional organizations, State 
                and other government units, landowners, 
                corporations, or private organizations;
                  (D) the potential for rapid turnover in the 
                ownership of working waterfront in the coastal 
                State, and where applicable the need for 
                coastal States to respond quickly when 
                properties in existing or potential working 
                waterfront areas or public access areas as 
                identified in the working waterfront plan 
                submitted by the coastal State come under 
                threat or become available; and
                  (E) the impact of the working waterfront plan 
                approved for the coastal State under subsection 
                (c) on the coastal ecosystem and the users of 
                the coastal ecosystem.
          (4) The Secretary shall approve or reject an 
        application for such a grant within 60 days after 
        receiving an application for the grant.
  (c) Working Waterfront Plans.--
          (1) To be eligible for a grant under subsection (b), 
        a coastal State must submit and have approved by the 
        Secretary a comprehensive working waterfront plan in 
        accordance with this subsection, or be in the process 
        of developing such a plan and have an established 
        working waterfront program at the State or local level, 
        or the Secretary determines that an existing coastal 
        land use plan for that State is in accordance with this 
        subsection.
          (2) Such plan--
                  (A) must provide for preservation and 
                expansion of access to coastal waters to 
                persons engaged in commercial fishing, 
                recreational fishing and boating businesses, 
                aquaculture, boatbuilding, or other water-
                dependent, coastal-related business;
                  (B) shall include one or more of--
                          (i) an assessment of the economic, 
                        social, cultural, and historic value of 
                        working waterfront to the coastal 
                        State;
                          (ii) a description of relevant State 
                        and local laws and regulations 
                        affecting working waterfront in the 
                        geographic areas identified in the 
                        working waterfront plan;
                          (iii) identification of geographic 
                        areas where working waterfronts are 
                        currently under threat of conversion to 
                        uses incompatible with commercial and 
                        recreational fishing, recreational 
                        fishing and boating businesses, 
                        aquaculture, boatbuilding, or other 
                        water-dependent, coastal-related 
                        business, and the level of that threat;
                          (iv) identification of geographic 
                        areas with a historic connection to 
                        working waterfronts where working 
                        waterfronts are not currently 
                        available, and, where appropriate, an 
                        assessment of the environmental impacts 
                        of any expansion or new development of 
                        working waterfronts on the coastal 
                        ecosystem;
                          (v) identification of other working 
                        waterfront needs including improvements 
                        to existing working waterfronts and 
                        working waterfront areas;
                          (vi) a strategic and prioritized plan 
                        for the preservation, expansion, and 
                        improvement of working waterfronts in 
                        the coastal State;
                          (vii) for areas identified under 
                        clauses (iii), (iv), (v), and (vi), 
                        identification of current availability 
                        and potential for expansion of public 
                        access to coastal waters;
                          (viii) a description of the degree of 
                        community support for such strategic 
                        plan; and
                          (ix) a contingency plan for 
                        properties that revert to the coastal 
                        State pursuant to determinations made 
                        by the coastal State under subsection 
                        (g)(4)(C);
                  (C) may include detailed environmental 
                impacts on working waterfronts, including 
                hazards, sea level rise, inundation exposure, 
                and other resiliency issues;
                  (D) may be part of the management program 
                approved under section 306;
                  (E) shall utilize to the maximum extent 
                practicable existing information contained in 
                relevant surveys, plans, or other strategies to 
                fulfill the information requirements under this 
                paragraph; and
                  (F) shall incorporate the policies and 
                regulations adopted by communities under local 
                working waterfront plans or strategies in 
                existence before the date of the enactment of 
                this section.
          (3) A working waterfront plan--
                  (A) shall be effective for purposes of this 
                section for the 5-year period beginning on the 
                date it is approved by the Secretary;
                  (B) must be updated and re-approved by the 
                Secretary before the end of such period; and
                  (C) shall be complimentary to and incorporate 
                the policies and objectives of regional or 
                local working waterfront plans as in effect 
                before the date of enactment of this section or 
                as subsequently revised.
          (4) The Secretary may--
                  (A) award planning grants to coastal States 
                for the purpose of developing or revising 
                comprehensive working waterfront plans; and
                  (B) award grants consistent with the purposes 
                of this section to States undertaking the 
                working waterfront planning process under this 
                section, for the purpose of preserving and 
                protecting working waterfronts during such 
                process.
          (5) Any coastal State applying for a working 
        waterfront grant under this title shall--
                  (A) develop a working waterfront plan, using 
                a process that involves the public and those 
                with an interest in the coastal zone;
                  (B) coordinate development and implementation 
                of such a plan with other coastal management 
                programs, regulations, and activities of the 
                coastal State; and
                  (C) if the coastal State allows qualified 
                holders (other than the coastal State) to enter 
                into working waterfront covenants, provide as 
                part of the working waterfront plan under this 
                subsection a mechanism or procedure to ensure 
                that the qualified holders are complying their 
                duties to enforce the working waterfront 
                covenant.
  (d) Uses, Terms, and Conditions.--
          (1) Each grant made by the Secretary under this 
        section shall be subject to such terms and conditions 
        as may be appropriate to ensure that the grant is used 
        for purposes consistent with this section.
          (2) A grant under this section may be used--
                  (A) to acquire a working waterfront, or an 
                interest in a working waterfront;
                  (B) to make improvements to a working 
                waterfront, including the construction or 
                repair of wharfs, boat ramps, or related 
                facilities; or
                  (C) for necessary climate adaptation 
                mitigation.
  (e) Public Access Requirement.--A working waterfront project 
funded by grants made under this section must provide for 
expansion, improvement, or preservation of reasonable and 
appropriate public access to coastal waters at or in the 
vicinity of a working waterfront, except for commercial fishing 
or other industrial access points where the coastal State 
determines that public access would be unsafe.
  (f) Limitations.--
          (1) Except as provided in paragraph (2), a grant 
        awarded under this section may be used to purchase 
        working waterfront or an interest in working 
        waterfront, including an easement, only from a willing 
        seller and at fair market value.
          (2) A grant awarded under this section may be used to 
        acquire working waterfront or an interest in working 
        waterfront at less than fair market value only if the 
        owner certifies to the Secretary that the sale is being 
        entered into willingly and without coercion.
          (3) No Federal, State, or local entity may exercise 
        the power of eminent domain to secure title to any 
        property or facilities in connection with a project 
        carried out under this section.
  (g) Allocation of Grants to Local Governments and Other 
Entities.--
          (1) The Secretary shall encourage coastal States to 
        broadly allocate amounts received as grants under this 
        section among working waterfronts identified in working 
        waterfront plans approved under subsection (c).
          (2) Subject to the approval of the Secretary, a 
        coastal State may, as part of an approved working 
        waterfront plan, designate as a qualified holder any 
        unit of State or local government or nongovernmental 
        organization, if the coastal State is ultimately 
        responsible for ensuring that the property will be 
        managed in a manner that is consistent with the 
        purposes for which the land entered into the program.
          (3) A coastal State or a qualified holder designated 
        by a coastal State may allocate to a unit of local 
        government, nongovernmental organization, fishing 
        cooperative, or other entity, a portion of any grant 
        made under this section for the purpose of carrying out 
        this section, except that such an allocation shall not 
        relieve the coastal State of the responsibility for 
        ensuring that any funds so allocated are applied in 
        furtherance of the coastal State's approved working 
        waterfront plan.
          (4) A qualified holder may hold title to or interest 
        in property acquired under this section, except that--
                  (A) all persons holding title to or interest 
                in working waterfront affected by a grant under 
                this section, including a qualified holder, 
                private citizen, private business, nonprofit 
                organization, fishing cooperative, or other 
                entity, shall enter into a working waterfront 
                covenant;
                  (B) such covenant shall be held by the 
                coastal State or a qualified holder designated 
                under paragraph (2);
                  (C) if the coastal State determines, on the 
                record after an opportunity for a hearing, that 
                the working waterfront covenant has been 
                violated--
                          (i) all right, title, and interest in 
                        and to the working waterfront covered 
                        by such covenant shall, except as 
                        provided in subparagraph (D), revert to 
                        the coastal State; and
                          (ii) the coastal State shall have the 
                        right of immediate entry onto the 
                        working waterfront;
                  (D) if a coastal State makes a determination 
                under subparagraph (C), the coastal State may 
                convey or authorize the qualified holder to 
                convey the working waterfront or interest in 
                working waterfront to another qualified holder; 
                and
                  (E) nothing in this subsection waives any 
                legal requirement under any Federal or State 
                law.
  (h) Matching Contributions.--
          (1) Except as provided in paragraph (2), the 
        Secretary shall require that each coastal State that 
        receives a grant under this section, or a qualified 
        holder designated by that coastal State under 
        subsection (g), shall provide matching funds in an 
        amount equal to at least 25 percent of the total cost 
        of the project carried out with the grant.
          (2) The Secretary may waive the application of 
        paragraph (1) for any qualified holder that is an 
        underserved community, a community that has an 
        inability to draw on other sources of funding because 
        of the small population or low income of the community, 
        or for other reasons the Secretary considers 
        appropriate.
          (3) A local community designated as a qualified 
        holder under subsection (g) may utilize funds or other 
        in-kind contributions donated by a nongovernmental 
        partner to satisfy the matching funds requirement under 
        this subsection.
          (4) As a condition of receipt of a grant under this 
        section, the Secretary shall require that a coastal 
        State provide to the Secretary such assurances as the 
        Secretary determines are sufficient to demonstrate that 
        the share of the cost of each eligible project that is 
        not funded by the grant awarded under this section has 
        been secured.
          (5) If financial assistance under this section 
        represents only a portion of the total cost of a 
        project, funding from other Federal sources may be 
        applied to the cost of the project. Each portion shall 
        be subject to match requirements under the applicable 
        provision of law.
          (6) The Secretary shall treat as non-Federal match 
        the value of a working waterfront or interest in a 
        working waterfront, including conservation and other 
        easements, that is held in perpetuity by a qualified 
        holder, if the working waterfront or interest is 
        identified in the application for the grant and 
        acquired by the qualified holder within 3 years of the 
        grant award date, or within 3 years after the 
        submission of the application and before the end of the 
        grant award period. Such value shall be determined by 
        an appraisal performed at such time before the award of 
        the grant as the Secretary considers appropriate.
          (7) The Secretary shall treat as non-Federal match 
        the costs associated with acquisition of a working 
        waterfront or an interest in a working waterfront, and 
        the costs of restoration, enhancement, or other 
        improvement to a working waterfront, if the activities 
        are identified in the project application and the costs 
        are incurred within the period of the grant award, or, 
        for working waterfront described in paragraph (6), 
        within the same time limits described in that 
        paragraph. These costs may include either cash or in-
        kind contributions.
  (i) Limit on Administrative Costs.--No more than 5 percent of 
the funds made available to the Secretary under this section 
may be used by the Secretary for planning or administration of 
the program under this section.
  (j) Other Technical and Financial Assistance.--
          (1) Up to 5 percent of the funds appropriated under 
        this section may be used by the Secretary for purposes 
        of providing technical assistance as described in this 
        subsection.
          (2) The Secretary shall--
                  (A) provide technical assistance to coastal 
                States and local governments in identifying and 
                obtaining other sources of available Federal 
                technical and financial assistance for the 
                development and revision of a working 
                waterfront plan and the implementation of an 
                approved working waterfront plan;
                  (B) provide technical assistance to States 
                and local governments for the development, 
                implementation, and revision of comprehensive 
                working waterfront plans, which may include, 
                subject to the availability of appropriations, 
                planning grants and assistance, pilot projects, 
                feasibility studies, research, and other 
                projects necessary to further the purposes of 
                this section;
                  (C) assist States in developing other tools 
                to protect working waterfronts;
                  (D) collect and disseminate to States 
                guidance for best storm water management 
                practices in regards to working waterfronts;
                  (E) provide technical assistance to States 
                and local governments on integrating resilience 
                planning into working waterfront preservation 
                efforts; and
                  (F) collect and disseminate best practices on 
                working waterfronts and resilience planning.
  (k) Reports.--
          (1) The Secretary shall--
                  (A) develop performance measures to evaluate 
                and report on the effectiveness of the program 
                under this section in accomplishing the purpose 
                of this section; and
                  (B) submit to Congress a biennial report that 
                includes such evaluations, an account of all 
                expenditures, and descriptions of all projects 
                carried out using grants awarded under this 
                section.
          (2) The Secretary may submit the biennial report 
        under paragraph (1)(B) by including it in the biennial 
        report required under section 316.
  (l) Definitions.--In this section:
          (1) The term ``qualified holder'' means a coastal 
        State or a unit of local or coastal State government or 
        a non-State organization designated by a coastal State 
        under subsection (g).
          (2) The term ``Secretary'' means the Secretary, 
        acting through the National Oceanic and Atmospheric 
        Administration.
          (3) The term ``working waterfront'' means real 
        property (including support structures over water and 
        other facilities) that provides access to coastal 
        waters to persons engaged in commercial and 
        recreational fishing, recreational fishing and boating 
        businesses, boatbuilding, aquaculture, or other water-
        dependent, coastal-related business and is used for, or 
        that supports, commercial and recreational fishing, 
        recreational fishing and boating businesses, 
        boatbuilding, aquaculture, or other water-dependent, 
        coastal-related business.
          (4) The term ``working waterfront covenant'' means an 
        agreement in recordable form between the owner of 
        working waterfront and one or more qualified holders, 
        that provides such assurances as the Secretary may 
        require that--
                  (A) the title to or interest in the working 
                waterfront will be held by a grant recipient or 
                qualified holder in perpetuity, except as 
                provided in subparagraph (C);
                  (B) the working waterfront will be managed in 
                a manner that is consistent with the purposes 
                for which the property is acquired pursuant to 
                this section, and the property will not be 
                converted to any use that is inconsistent with 
                the purpose of this section;
                  (C) if the title to or interest in the 
                working waterfront is sold or otherwise 
                exchanged--
                          (i) all working waterfront owners and 
                        qualified holders involved in such sale 
                        or exchange shall accede to such 
                        agreement; and
                          (ii) funds equal to the fair market 
                        value of the working waterfront or 
                        interest in working waterfront shall be 
                        paid to the Secretary by parties to the 
                        sale or exchange, and such funds shall, 
                        at the discretion of the Secretary, be 
                        paid to the coastal State in which the 
                        working waterfront is located for use 
                        in the implementation of the working 
                        waterfront plan of the State approved 
                        by the Secretary under this section; 
                        and
                  (D) such covenant is subject to enforcement 
                and oversight by the coastal State or by 
                another person as determined appropriate by the 
                Secretary.
  (m) Authorization of Appropriations.--There is authorized to 
be appropriated to the Grant Program $12,000,000.

SEC. 321. WORKING WATERFRONTS PRESERVATION LOAN FUND.

  (a) Fund.--There is established in the Treasury a separate 
account that shall be known as the ``Working Waterfronts 
Preservation Loan Fund'' (in this section referred to as the 
``Fund'').
  (b) Use.--
          (1) Subject to the availability of appropriations, 
        amounts in the Fund may be used by the Secretary to 
        make loans to coastal States for the purpose of 
        implementing a working waterfront plan approved by the 
        Secretary under section 320(c) through preservation, 
        improvement, restoration, rehabilitation, acquisition 
        of working waterfront properties under criteria 
        established by the Secretary.
          (2) Upon enactment of this section, the Secretary of 
        Commerce shall conduct a feasibility study on the 
        administration of the development and management of a 
        Working Waterfronts Preservation Loan Fund.
          (3) Upon the completion of the study under paragraph 
        (2), the Secretary shall establish a fund in accordance 
        with the results of that study, and establish such 
        criteria as referenced in subsection (c) in 
        consultation with States that have a management program 
        approved by the Secretary of Commerce pursuant to 
        section 306 and local government coastal management 
        programs.
  (c) Award Criteria.--The Secretary shall award loans under 
this section through a regionally equitable, competitive 
funding process, and in accordance with the following:
          (1) The Governor, or the lead agency designated by 
        the Governor for coordinating the implementation of 
        this section, where appropriate in consultation with 
        the appropriate local government, shall determine that 
        an application for a loan is consistent with the 
        State's approved coastal zone plan, program, and 
        policies prior to submission to the Secretary.
          (2) In developing guidelines under this section, the 
        Secretary shall consult with coastal States, other 
        Federal agencies, and other interested stakeholders 
        with expertise in working waterfront planning.
          (3) Coastal States may allocate amounts loaned under 
        this section to local governments, agencies, or 
        nongovernmental organizations eligible for loans under 
        this section.
          (4) In awarding a loan for activities in a coastal 
        State, the Secretary shall consider--
                  (A) the economic and cultural significance of 
                working waterfront to the coastal State;
                  (B) the demonstrated working waterfront needs 
                of the coastal State as outlined by a working 
                waterfront plan approved for the coastal State 
                under section 320(c), and the value of the 
                proposed loan for the implementation of such 
                plan;
                  (C) the ability to successfully leverage loan 
                funds among participating entities, including 
                Federal programs, regional organizations, State 
                and other government units, landowners, 
                corporations, or private organizations;
                  (D) the potential for rapid turnover in the 
                ownership of working waterfront in the coastal 
                State, and where applicable the need for 
                coastal States to respond quickly when 
                properties in existing or potential working 
                waterfront areas or public access areas as 
                identified in the working waterfront plan 
                submitted by the coastal State come under 
                threat or become available;
                  (E) the impact of the loan on the coastal 
                ecosystem and the users of the coastal 
                ecosystem; and
                  (F) the extent of the historic connection 
                between working waterfronts for which the loan 
                will be used and the local communities within 
                the coastal State.
  (d) Loan Amount and Terms.--
          (1) The amount of a loan under this section--
                  (A) shall be not less than $100,000; and
                  (B) shall not exceed 15 percent of the amount 
                in the Fund as of July 1 of the fiscal year in 
                which the loan is made.
          (2) The interest rate for a loan under this section 
        shall not exceed 4 percent.
          (3) The repayment term for a loan under this section 
        shall not exceed 20 years.
  (e) Deadline for Approval.--The Secretary shall approve or 
reject an application for a loan under this section within 60 
days after receiving an application for the loan.
  (f) Limit on Administrative Costs.--No more than 5 percent of 
the funds made available to the Secretary under this section 
may be used by the Secretary for planning or administration of 
the program under this section.
  (g) Definitions.--The definitions in section 320(l) shall 
apply to this section.
  (h) Authorization of Appropriations.--There is authorized to 
be appropriated to the Fund $12,000,000.

                            DISSENTING VIEWS

    H.R. 3596 is yet another attempt to ``fix'' the Coastal 
Zone Management Act (CZMA) by solving a problem that doesn't 
exists. This bill would establish a working waterfront task 
force, grant program, and preservation loan fund program to 
``preserve and protect'' water-dependent commercial activities. 
Yet, as the National Oceanic and Atmospheric Administration's 
(NOAA) witness, Rear Admiral Gallaudet, stated at the hearing 
on this bill, ``Under the CZMA, coastal states have the 
discretion to use funding for many of the purposes that would 
be addressed by the Working Waterfronts Grant Program proposed 
in H.R. 3596.''\1\
---------------------------------------------------------------------------
    \1\Written Testimony by RDML Tim Gallaudet, Deputy NOAA 
Administrator, Hearing July 25, 2019.
---------------------------------------------------------------------------
    Congress enacted the CZMA to ``preserve, protect, develop, 
and where possible, to restore or enhance the resources of the 
nation's coastal zone.''\2\ The CZMA program is experiencing 
death by a thousand cuts with the new Democrat-let majority. 
Over the past few months four bills have moved out of the 
Natural Resources Committee that are purported to ``improve'' 
the CZMA program. Yet, in many cases they are duplicative or go 
beyond NOAA's core mission area. H.R. 3596 is no different. 
According to NOAA's testimony, the agency has concerns over 
managing another loan program and also highlighted a key 
problem, repayment, stating, ``securing repayment of the loans 
such as those proposed through the Working Waterfronts 
Preservation Loan Fund, can be challenging. The Coastal Energy 
Impact Program (CEIP) was a loan and grant program authorized 
under the CZMA to help states and communities impacted by 
energy production. Despite NOAA's continued efforts to recover 
funds, five loans are still outstanding. The proposed repayment 
term of twenty years and the potential for turnover in the 
ownership of working waterfront properties may preclude the 
timely repayment of loans.''\3\
---------------------------------------------------------------------------
    \2\16 USC 1452
    \3\Written Testimony by RDML Tim Gallaudet, Deputy NOAA 
Administrator, Hearing July 25, 2019.
---------------------------------------------------------------------------
    This bill asks the American public to front the cost of 
these loans and carry the liability of default, a liability 
that according to NOAA's testimony will likely end in no 
repayments. For these reasons, we oppose this legislation.

                                   Rob Bishop.
                                   Jody B. Hice.

                                  [all]