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

SA 803. Mr. WHITEHOUSE (for himself, Mr. Rockefeller, Mr. Nelson, Mr.
Blumenthal, Ms. Cantwell, Ms. Collins, and Mr. King) submitted an
amendment intended to be proposed by him to the bill S. 601, to provide
for the conservation and development of water and related resources, to
authorize the Secretary of the Army to construct various projects for
improvements to rivers and harbors of the United States, and for other
purposes; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE XII--NATIONAL ENDOWMENT FOR THE OCEANS

SEC. 12001. SHORT TITLE.

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

SEC. 12002. PURPOSES.

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

SEC. 12003. DEFINITIONS.

In this title:
(1) Coastal shoreline county.--The term ``coastal shoreline
county'' has the meaning given the term by the Administrator
of the Federal Emergency Management Agency for purposes of
administering the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
(2) Coastal state.--The term ``coastal State'' has the
meaning given the term ``coastal state'' in section 304 of
the Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
(3) Corpus.--The term ``corpus'', with respect to the
Endowment fund, means an amount equal to the Federal payments
to such fund, amounts contributed to the fund from non-
Federal sources, and appreciation from capital gains and
reinvestment of income.
(4) Endowment.--The term ``Endowment'' means the endowment
established under subsection (a).
(5) Endowment fund.--The term ``Endowment fund'' means a
fund, or a tax-exempt foundation, established and maintained
pursuant to this title by the Foundation for the purposes
described in section 12004(a).
(6) Foundation.--The term ``Foundation'' means the National
Fish and Wildlife Foundation established by section 2(a) of
the National Fish and Wildlife Foundation Establishment Act
(16 U.S.C. 3701(a)).
(7) Income.--The term ``income'', with respect to the
Endowment fund, means an amount equal to the dividends and
interest accruing from investments of the corpus of such
fund.
(8) Indian tribe.--The term ``Indian tribe'' has the
meaning given that term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(10) Tidal shoreline.--The term ``tidal shoreline'' has the
meaning given that term pursuant to section 923.110(c)(2)(i)
of title 15, Code of Federal Regulations, or a similar
successor regulation.

SEC. 12004. NATIONAL ENDOWMENT FOR THE OCEANS.

(a) Establishment.--The Secretary and the Foundation are
authorized to establish the National Endowment for the Oceans
as a permanent Endowment fund, in accordance with this
section, to further the purposes of this title and to support
the programs established under this title.
(b) Agreements.--The Secretary and the Foundation may enter
into such agreements as may be necessary to carry out the
purposes of this title.
(c) Deposits.--There shall be deposited in the Fund, which
shall constitute the assets of the Fund, amounts as follows:
(1) Amounts appropriated or otherwise made available to
carry out this title.
(2) Amounts earned through investment under subsection (d).
(d) Investments.--The Foundation shall invest the Endowment
fund corpus and income for the benefit of the Endowment.
(e) Requirements.--Any amounts received by the Foundation
pursuant to this title shall be subject to the provisions of
the National Fish and Wildlife Establishment Act (16 U.S.C.
3701 et seq.), except the provisions of section 10(a) of that
Act (16 U.S.C. 3709(a)).
(f) Withdrawals and Expenditures.--

[[Page S3206]]

(1) Allocation of funds.--Each fiscal year, the Foundation
shall, in consultation with the Secretary, allocate an amount
equal to not less than 3 percent and not more than 7 percent
of the corpus of the Endowment fund and the income generated
from the Endowment fund from the current fiscal year.
(2) Expenditure.--Except as provided in paragraph (3), of
the amounts allocated under paragraph (1) for each fiscal
year--
(A) at least 59 percent shall be used by the Foundation to
award grants to coastal States under section 12006(b);
(B) at least 39 percent shall be allocated by the
Foundation to award grants under section 12006(c); and
(C) no more than 2 percent may be used by the Secretary and
the Foundation for administrative expenses to carry out this
title, which amount shall be divided between the Secretary
and the Foundation pursuant to an agreement reached and
documented by both the Secretary and the Foundation.
(3) Program adjustments.--
(A) In general.--In any fiscal year in which the amount
described in subparagraph (B) is less than $100,000,000, the
Foundation, in consultation with the Secretary, may elect not
to use any of the amounts allocated under paragraph (1) for
that fiscal year to award grants under section 12006(b).
(B) Determination amount.--The amount described in this
subparagraph for a fiscal year is the amount that is equal to
the sum of--
(i) the amount that is 5 percent of the corpus of the
Endowment fund; and
(ii) the aggregate amount of income the Foundation expects
to be generated from the Endowment fund in that fiscal year.
(g) Recovery of Payments.--After notice and an opportunity
for a hearing, the Secretary is authorized to recover any
Federal payments under this section if the Foundation--
(1) makes a withdrawal or expenditure of the corpus of the
Endowment fund or the income of the Endowment fund that is
not consistent with the requirements of section 12005; or
(2) fails to comply with a procedure, measure, method, or
standard established under section 12006(a)(1).

SEC. 12005. ELIGIBLE USES.

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

SEC. 12006. GRANTS.

(a) Administration of Grants.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Foundation shall establish the
following:
(A) Application and review procedures for the awarding of
grants under this section, including requirements ensuring
that any amounts awarded under such subsections may only be
used for an eligible use described under section 12005.
(B) Approval procedures for the awarding of grants under
this section that require consultation with the Secretary of
Commerce and the Secretary of the Interior.
(C) Eligibility criteria for awarding grants--
(i) under subsection (b) to coastal States; and
(ii) under subsection (c) to entities including States,
Indian tribes, regional bodies, associations, non-
governmental organizations, and academic institutions.
(D) Performance accountability and monitoring measures for
programs and activities funded by a grant awarded under
subsection (b) or (c).
(E) Procedures and methods to ensure accurate accounting
and appropriate administration grants awarded under this
section, including standards of record keeping.
(F) Procedures to carry out audits of the Endowment as
necessary, but not less frequently than once every 5 years.
(G) Procedures to carry out audits of the recipients of
grants under this section.
(2) Approval procedures.--
(A) Submittal.--The Foundation shall submit to the
Secretary each procedure, measure, method, and standard
established under paragraph (1).
(B) Determination and notice.--Not later than 90 days after
receiving the procedures, measures, methods, and standards
under subparagraph (A), the Secretary shall--
(i) determine whether to approve or disapprove of such
procedures, measures, methods, and standards; and
(ii) notify the Foundation of such determination.
(C) Justification of disapproval.--If the Secretary
disapproves of the procedures, measures, methods, and
standards under subparagraph (B), the Secretary shall include
in notice submitted under clause (ii) of such subparagraph
the rationale for such disapproval.
(D) Resubmittal.--Not later than 30 days after the
Foundation receives notification under subparagraph (B)(ii)
that the Secretary has disapproved the procedures, measures,
methods, and standards, the Foundation shall revise such
procedures, measures, methods, and standards and submit such
revised procedures, measures, methods, and standards to the
Secretary.
(E) Review of resubmittal.--Not later than 30 days after
receiving revised procedures, measures, methods, and
standards resubmitted under subparagraph (D), the Secretary
shall--
(i) determine whether to approve or disapprove the revised
procedures, measures, methods, and standards; and
(ii) notify the Foundation of such determination.
(b) Grants to Coastal States.--
(1) In general.--Subject to paragraphs (3) and (4), the
Foundation shall award grants of amounts allocated under
section 12004(e)(2)(A) to eligible coastal States, based on
the following formula:
(A) Fifty percent of the funds are allocated equally among
eligible coastal States.
(B) Twenty-five percent of the funds are allocated on the
basis of the ratio of tidal shoreline miles in a coastal
State to the tidal shoreline miles of all coastal States.
(C) Twenty-five percent of the funds are allocated on the
basis of the ratio of population density of the coastal
shoreline counties of a coastal State to the population
density of all coastal shoreline counties.
(2) Eligible coastal states.--For purposes of paragraph
(1), an eligible coastal State includes--
(A) a coastal State that has a coastal management program
approved under the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.); and
(B) during the period beginning on the date of the
enactment of this Act and ending on December 31, 2018, a
coastal State that had, during the period beginning January
1, 2008, and ending on the date of the enactment of this Act,
a coastal management program approved as described in
subparagraph (A).
(3) Maximum allocation to states.--Notwithstanding
paragraph (1), not more than 10 percent of the total funds
distributed under this subsection may be allocated to any
single State. Any amount exceeding this limit shall be
redistributed among the remaining States according to the
formula established under paragraph (1).
(4) Maximum allocation to certain geographic areas.--
(A) In general.--Notwithstanding paragraph (1), each
geographic area described in subparagraph (B) may not receive
more than 1 percent of the total funds distributed under this
subsection. Any amount exceeding this

[[Page S3207]]

limit shall be redistributed among the remaining States
according to the formula established under paragraph (1).
(B) Geographic areas described.--The geographic areas
described in this subparagraph are the following:
(i) American Samoa.
(ii) The Commonwealth of the Northern Mariana Islands.
(iii) Guam.
(iv) Puerto Rico.
(v) The Virgin Islands.
(5) Requirement to submit plans.--
(A) In general.--To be eligible to receive a grant under
this subsection, a coastal State shall submit to the
Secretary, and the Secretary shall review, a 5-year plan,
which shall include the following:
(i) A prioritized list of goals the coastal State intends
to achieve during the time period covered by the 5-year plan.
(ii) Identification and general descriptions of existing
State projects or activities that contribute to realization
of such goals, including a description of the entities
conducting those projects or activities.
(iii) General descriptions of projects or activities,
consistent with the eligible uses described in section 12005,
applicable provisions of law relating to the environment, and
existing Federal ocean policy, that could contribute to
realization of such goals.
(iv) Criteria to determine eligibility for entities which
may receive grants under this subsection.
(v) A description of the competitive process the coastal
State will use in allocating funds received from the
Endowment, except in the case of allocating funds under
paragraph (7), which shall include--

(I) a description of the relative roles in the State
competitive process of the State coastal zone management
program approved under the Coastal Zone Management Act of
1972 (16 U.S.C. 1451 et seq.) and any State Sea Grant
Program; and
(II) a demonstration that such competitive process is
consistent with the application and review procedures
established by the Foundation under subsection (a)(1).

(B) Updates.--As a condition of receiving a grant under
this subsection, a coastal State shall submit to the
Secretary, not less frequently than once every 5 years, an
update to the plan submitted by the coastal State under
subparagraph (A) for the 5-year period immediately following
the most recent submittal under this paragraph.
(6) Opportunity for public comment.--In determining whether
to approve a plan or an update to a plan described in
subparagraph (A) or (B) of paragraph (5), the Secretary shall
provide the opportunity for, and take into consideration,
public input and comment on the plan.
(7) Approval procedure.--
(A) In general.--Not later than 30 days after the
opportunity for public comment on a plan or an update to a
plan of a coastal State under paragraph (6), the Secretary
shall notify such coastal State that the Secretary--
(i) approves the plan as submitted; or
(ii) disapproves the plan as submitted.
(B) Disapproval.--If the Secretary disapproves a proposed
plan or an update of a plan submitted under subparagraph (A)
or (B) of paragraph (5), the Secretary shall provide notice
of such disapproval to the submitting coastal State in
writing, and include in such notice the rationale for the
Secretary's decision.
(C) Resubmittal.--If the Secretary disapproves a plan of a
coastal State under subparagraph (A), the coastal State shall
resubmit the plan to the Secretary not later than 30 days
after receiving the notice of disapproval under subparagraph
(B).
(D) Review of resubmittal.--Not later than 60 days after
receiving a plan resubmitted under subparagraph (C), the
Secretary shall review the plan.
(8) Indian tribes.--As a condition on receipt of a grant
under this subsection, a State that receives a grant under
this subsection shall ensure that Indian tribes in the State
are eligible to participate in the competitive process
described in the State's plan under paragraph (5)(A)(v).
(c) National Grants for Oceans, Coasts, and Great Lakes.--
(1) In general.--The Foundation may use amounts allocated
under section 12004(e)(2)(B) to award grants according to the
procedures established in subsection (a) to support
activities consistent with section 12005.
(2) Advisory panel.--
(A) In general.--The Foundation shall establish an advisory
panel to conduct reviews of applications for grants under
paragraph (1) and the Foundation shall consider the
recommendations of the Advisory Panel with respect to such
applications.
(B) Membership.--The advisory panel established under
subparagraph (A) shall include persons representing a
balanced and diverse range, as determined by the Foundation,
of--
(i) ocean, coastal, and Great Lakes dependent industries;
(ii) geographic regions;
(iii) nonprofit conservation organizations with a mission
that includes the conservation and protection of living
marine resources and their habitats; and
(iv) academic institutions with strong scientific or
technical credentials and experience in marine science or
policy.

SEC. 12007. ANNUAL REPORT.

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