**Testimony**

**By**

**The Honorable Leon E. Panetta**

**Co-Chairman, Joint Ocean Commission Initiative**

**And**

**Mr. Paul Kelly**

**Member, Joint Ocean Commission Initiative Task Force**

**Before**

**The U.S. Senate Committee on Commerce, Science, and Transportation**

**National Ocean Policy Study**

**SR 253**

**Washington, D.C.**

**August 3, 2006**

**10:00 a.m.**

Chairman Sununu, Senator Boxer, and Members of the National Ocean Policy
Study, we are pleased to appear before you today in our respective
capacities as the Co-Chair and Task Force member of the Joint Ocean
Commission Initiative, a collaborative effort of members of the U.S.
Commission on Ocean Policy and the Pew Oceans Commission, The purpose of
the Joint Initiative is to advance the pace of change for meaningful
ocean policy reform, and we are delighted to have the opportunity to
join a discussion about how to improve ocean policy and governance and
to share some of our thoughts about priorities for legislative action.

As many of you know, the Joint Ocean Commission Initiative delivered a
report to the Senate on June 13, outlining just that---our priorities
for Congressional action needed to address the many pressing issues we
are facing with regard to our oceans. We request that a copy of our
report be submitted as part of the public record for this hearing. We
delivered that report pursuant to a letter requesting our input from a
bipartisan group of ten Senators, a number of you among them. We
welcomed the opportunity to provide that input, just as we welcome the
opportunity to share some of our findings and recommendations with you
today.

**The State of our Oceans**

Implicit in the topic for this hearing is "what is the state of our
oceans?" and we have to report to you that the state is not good, and
getting worse. There are many problems besetting our oceans and coasts,
including:

-   Overexploited fisheries that bring economic hardship to fishing
    communities and businesses and jeopardize the living marine
    resources held in trust for the benefit of all U.S. citizens

-   Enormous human, environmental, and economic impacts associated with
    hurricanes and other increasingly frequent and intense storms

-   Increasing frequency and size of harmful algal blooms in many of our
    coastal areas, including the Northeast and Florida

-   Massive Dead Zones in the Gulf of Mexico, as well as in the
    Chesapeake Bay and most recently off the coast of Oregon

-   Continued loss of coastal wetlands, despite conservation commitments

-   Growing problems due to introduction of invasive species, and

-   Continuing loss of coral reefs

> []{.mark}

And these problems are exacerbated by a dysfunctional, out-of-date, and
inadequate system of ocean and coastal governance. For example:

-   Fragmented laws, confusing and overlapping jurisdictions, and the
    absence of a coherent national ocean policy hinder our management
    efforts.

-   A lack of federal support for emerging regional ocean and coastal
    governance initiatives that hampers the ability of these initiatives
    to help solve important ocean and coastal problems.

-   A dearth of U.S. leadership in international ocean and coastal
    forums threatens our national economic and security interests.

-   Dwindling U.S. investment in ocean and coastal research, science,
    and education compromises our ability to tackle such problems as
    global warming, resource depletion, harmful algal blooms, invasive
    species, and nonpoint source water pollution, to name just a few.

Yet, we are also here to report to you that we are in a time of
unprecedented opportunity. Today, as never before, we recognize the
links among the land, air, oceans, and human activities. We have access
to advanced technology and timely information on a wide variety of
scales. We recognize the detrimental impacts wrought by human
influences. We can and should act now to ensure that the ocean, coasts,
and Great Lakes are healthy and productive and that our use of their
resources is both profitable and sustainable.

As is made clear in the reports of the Pew Oceans Commission, U.S.
Commission on Ocean Policy, and now the Joint Ocean Commission
Initiative, our nation's leaders need to take action now to reform ocean
governance, pursue ecosystem-based management, improve fisheries
management, rely more heavily on science in making management decisions,
and adequately fund ocean and coastal programs. These recommendations
reflect the conviction of the two Commissions that our nation can change
its course and achieve a new ocean blueprint for the 21st century.

The reports of the two Commissions bring into sharp focus the importance
of our oceans and coasts to our nation's natural heritage, security, and
economy. With an offshore ocean jurisdiction larger than the total land
mass of the United States, U.S. waters support rich and diverse systems
of ocean life, provide a protective buffer, and support important
commerce, trade, energy, and mineral resources. The economic
contributions the oceans make are staggering:

-   More than \$1 trillion, or one-tenth, of the nation's annual gross
    domestic product (GDP) is generated within nearshore areas, the
    relatively narrow strip of land immediately adjacent to the coast.

-   When considering all coastal watershed counties, the contribution
    swells to over \$6.1 trillion, more than half of the nation's GDP.

-   In 2003, ocean-related economic activity contributed more than \$119
    billion to American prosperity and supported well over 2.2 million
    jobs.

-   More than 13 million jobs are related to trade transported by the
    network of inland waterways and ports that support U.S. waterborne
    commerce.

-   Annually, the nation's ports handle more than \$700 billion in
    goods, and the cruise industry and its passengers account for \$11
    billion in spending.

-   The commercial fishing industry's total value exceeds \$28 billion
    annually, with the recreational saltwater fishing industry valued at
    around \$20 billion, and the annual U.S. retail trade in ornamental
    fish worth another \$3 billion.

-   Nationwide retail expenditures on recreational boating exceeded \$30
    billion in 2002.

Of course, these figures capture only a small part of our oceans' worth
and potential.

Also consider that born of the sea are clouds that bring life-sustaining
water to our fields and aquifers and drifting microscopic plants that
generate much of the oxygen we breathe. The oceans host great biological
diversity with vast medical potential and are a frontier for exciting
exploration and effective education. Other ocean assets, such as
functioning coastal habitats, contribute to the health of our
environment and the sustainability of commercial and recreational
resources. Still others assist in what our nation's founders referred to
as the "pursuit of happiness."

At the dawn of the 21st century, it is clear that these invaluable and
life-sustaining assets are vulnerable to the activities of humans. Our
failure to properly manage the human activities that adversely affect
our oceans and coasts is compromising the health of these systems and
diminishing our ability to fully realize their potential.

**Priorities for Congressional Action**

Upon the release of the reports by the two Commissions, the President
and Congress publicly embraced the major recommendations of the U.S.
Commission on Ocean Policy and the Pew Oceans Commission. The President
issued the U.S. Ocean Action Plan and established the Committee on Ocean
Policy. Congress held hearings and introduced ocean-related legislation.
At the state level, several Governors demonstrated strong leadership by
initiating strategies for coordinating ocean and coastal science and
policy in regions that include the Great Lakes, Northeast, Gulf of
Mexico, West Coast, and Southeast, and states that include California,
Washington, Massachusetts, New York, Florida, New Jersey, Alaska, and
Hawaii.

These actions set high expectations for significant progress toward
ocean policy reform. Results, however, have been slow in coming. There
has been concerted attention to ocean and coastal issues by Congress,
including, of course, hard work by the Senate Commerce Committee's
National Ocean Policy Study, as well as the full Commerce Committee, and
a number of bills that have made significant progress through the
legislative process in the 109^th^ Congress. The Joint Initiative
strongly urges Congress to enact ocean and coastal legislation that has
already progressed significantly, and in so doing demonstrate progress
toward implementing the recommendations of the U.S. Commission on Ocean
Policy and the Pew Oceans Commission. It is vitally important to realize
some near term successes while continuing the essential work of
achieving the broader comprehensive reforms necessary to reverse the
decline of our oceans. If enacted, these bills will demonstrate
progress, address important issues, and show that Congress is serious
about restoring the vitality of our oceans. These bills are summarized
in Appendix A to this written testimony, and include:

-   Magnuson-Stevens Fishery Conservation and Management Act

-   Marine Debris Research, Prevention and Reduction Act

-   Tsunami Preparedness Act

-   National Ocean Exploration Program Act

-   Coastal Estuarine Land Protection Act

-   Coral Reef Conservation Amendments Act

-   Ocean and Coastal Mapping Integration Act

-   Ocean and Coastal Observing System Act of 2005

-   Coastal Zone Enhancement Reauthorization Act

-   Ballast Water Management Act of 2005

-   Water Resources Development Act of 2005

-   Flood Insurance Reform and Modernization Act of 2006

In addition to passing pending bills such as the ones mentioned above,
outlined below are several additional legislative proposals that the
Joint Ocean Commission Initiative believes provide a solid framework for
action by Congress. Many of these actions can and should be carried out
right away, signaling progress and paving the way for some of the more
challenging and long-term measures that will be needed to achieve
meaningful ocean policy reform.

**Congress should adopt a statement of national ocean policy,**
acknowledging in legislation the importance of oceans to the nation's
economic and ecological health and adopting a national policy to
protect, maintain, and restore marine ecosystems so that they remain
healthy, resilient, and able to deliver the services people want and
need.

A statement of national ocean policy should include recognition that it
is the policy of the United States to establish and maintain for the
benefit of the nation a coordinated, comprehensive, and long-range
national program of ocean and atmospheric research, conservation,
management, education, monitoring, and assessment. A new declaration of
national ocean policy should incorporate provisions relating, but not
limited to, the following concepts:

> • acknowledge the linkage of ocean, land, and atmospheric systems
>
> • protect, maintain, and restore the long-term health, productivity,
> and diversity of the ocean environment
>
> • protect life and property against natural and manmade hazards
>
> • ensure responsible management and sustainable use of fishery
> resources and other ocean and coastal resources held in the public
> trust, using ecosystem-based management and a balanced precautionary
> and adaptive approach
>
> • assure sustainable coastal development based on responsible state
> and community management and planning
>
> • develop improved scientific information and use of the best
> scientific information available to make decisions concerning natural,
> social, and economic processes affecting ocean and atmospheric
> environments
>
> • enhance sustainable ocean-related and coastal-dependent commerce and
> transportation, balancing multiple uses of the ocean environment
>
> • provide for continued investment in and improvement of technologies
> for use in ocean and climate-related activities
>
> • expand human knowledge of marine and atmospheric environments and
> ecosystem
>
> • facilitate a collaborative approach that encourages the
> participation of diverse stake­holders and the public in ocean and
> atmospheric science and policy
>
> • promote close cooperation among all levels of government, academia,
> nongovernmental organizations, the private sector, and other
> stakeholders based on this policy to ensure coherent, accountable, and
> effective planning, regulation, and management of activities affecting
> the oceans and the atmosphere
>
> • enhance and preserve the role of the United States as a global
> leader in ocean, atmospheric, and climate-related activities

**Congress should establish the National Oceanic and Atmospheric
Administration (NOAA) in law and work with the Administration to
identify and act upon opportunities to improve federal agency
coordination on ocean and coastal issues.** Congress should pass a
strong organic act establishing NOAA as the lead civilian ocean agency
and restructuring the agency to enhance its ability to fulfill its core
mission to further our understanding of oceans and coasts and apply that
knowledge to effectively manage our marine resources on an ecosystem
basis. Specifically, a NOAA organic act should:

> • Establish NOAA as the lead civilian ocean agency by statute
>
> • Set forth core missions of: assessment, prediction, and operations;
> ecosystem-based management of ocean and coastal areas and resources;
> and science, research, and education
>
> • Call for reorganization of the agency along functional lines to
> better equip it to carry out its core mission and remain
> science-based, but with its management programs better connected to
> make use of that science in decision making
>
> • Establish leadership roles and accountability mechanisms for
> implementation of major elements of the agency's mission

NOAA was established in 1970 by a presidential reorganization order and
has operated under that authority since that time. Over the years,
several bills have been introduced that can provide the basis for an act
that would codify NOAA. Most recently these include the National Ocean
Policy Leadership Act (S. 2647), which was introduced by former Senator
Ernest F. Hollings in the 108th Congress. The Bush Administration has
put forward simple organic act language, and Congressman Vernon recently
reintroduced his National Oceanic and Atmospheric Administration Act
(H.R. 5450), which reported out of the House Committee on Science in
June and was referred to the House Committee on Resources, which is
expected to consider the legislation by addressing NOAA's resource and
conservation activities, issues that fall under that committee\'s
jurisdiction. By building on these bills, Congress can codify and
strengthen NOAA and thereby enhance its mission, improve its structure,
and better enable it to carry out existing and new responsibilities in a
manner that is consistent with ecosystem-based management.

In addition, although NOAA plays a very important role and should be
strengthened to carry out its mission, there are a number of other
federal agencies with ocean and coastal responsibilities and important
ocean science and research programs, including the National Science
Foundation (NSF) and the National Aeronautics and Space Administration
(NASA). Congress should take action to enhance federal agency
coordination and leadership by conducting oversight of the
Administration's implementation of the U.S. Ocean Action Plan to
evaluate whether modifications or improvement are needed and work with
the Administration to identify opportunities to strengthen the
interagency processes for coordinating ocean and coastal issues. .

In this regard, the Joint Initiative recommends Congressional actions
that include:

-   Require the Administration to prepare a progress report outlining
    priorities, activities, and results achieved by the Committee on
    Ocean Policy and its related subcommittees, including implementation
    of the U.S. Ocean Action Plan and the overall effectiveness of the
    interagency structure.

-   Schedule a National Ocean Policy Study oversight hearing on national
    ocean governance with discussion of the progress of the interagency
    structure as a topic.

-   Based on the results of the progress report and the oversight
    hearing, pass legislation that would:

    -   Codify a permanent federal coordinating committee with staff
        support provided by an Office of Ocean Policy in the Executive
        Office of the President to oversee the federal government's
        implementation of a national ocean policy, resolve interagency
        disputes, and coordinate ocean budgets (or manage the integrated
        oceans budget).

    -   Call upon the President to appoint an Assistant to the President
        to provide leadership and support for implementation of the
        national ocean policy.

    -   Establish a nonfederal Council of Advisors to provide advice on
        ocean and coastal issues.

**Congress should foster ecosystem-based regional governance.** Congress
should pass legislation to create a national framework to support
regional approaches and collaboration and enable coordinated, integrated
ecosystem-based management that builds on existing regional and
ecosystem-based efforts. This framework should guide the development and
implementation of processes that involve federal, state, tribal, and
local governments, as well as the private sector, nongovernmental
organizations, and academic institutions, working together toward
regional actions that advance national ocean and coastal interests.
Regional governance mechanisms will vary to meet needs of different
regions, but should be encouraged to possess the following
characteristics:

-   Regional governance entities that are manageable in size
    (approximately 20-25 representatives) with a mix of federal agency
    and state representatives.

-   Regional entities that are advised and supported by a citizens'
    advisory committee.

-   Development of regional ocean strategic plans that:

    -   Identify short and long term goals

    -   Assess the region's social, economic, and ecological
        characteristics to guide progress toward those goals

    -   Determine priority issues and solutions to address them

    -   Identify indicators of management efforts

    -   Analyze gaps in authority

    -   Identify and prioritize research, data, and information needs

    -   Commit to dedicated public education and outreach efforts

    -   Implement solutions or policies to address priority problems

In addition, Congress should improve federal coordination of regional
activities by calling upon the President to direct federal agencies to
identify opportunities to further coordinate existing programs and
activities to assist and support more effective implementation of
regional approaches. Improving coordination of federal agency activities
at the regional level would be an important complement to state, local,
and tribal efforts to address ocean and coastal resource management
issues on a regional basis. Enhanced coordination would enable federal
agencies to better address state and local needs while also furthering
national goals and priorities.

Congress can further enable the transition toward an ecosystem-based
approach by expressly acknowledging that management of all marine
resources should be carried out in an ecosystem-based approach, and by
calling upon federal agencies to develop guidelines that enable improved
coordination and analysis to assist in the transition toward an
integrated management approach that considers the entire ecosystem. Such
an express acknowledgment should be part of ocean, coastal, and water
laws currently up for reauthorization. These include the
Magnuson-Stevens Fishery Conservation and Management Act, the Coastal
Zone Management Act (CZMA), the National Marine Sanctuaries Act, the
Clean Water Act, and other statutory regimes governing the use and
management of ocean and coastal resources.

Through reauthorization or passage of these statutes, Congress can
provide that management goals should be set to ensure that ocean and
coastal ecosystems remain productive with respect to all resources. For
example, through language included in the reauthorization of the
Magnuson-Stevens Act, Congress can acknowledge that a first step toward
effective ecosystem-based management of fisheries is to enable
coordinated analysis of cumulative impacts of activities on fishery
resources, as well as the impacts of fishing activities on other
sectors, by developing guidelines for Regional Fishery Management
Councils and other state and federal agencies and management entities to
perform such analyses.

Likewise, through reauthorization of the CZMA, Congress can require that
state coastal programs work with federal, state, and local agencies to
provide for periodic assessments of the state's natural, cultural, and
economic resources, and based on those assessments, set specific,
measurable goals that reflect the growing understanding of ocean and
coastal environments and the need to manage growth in regions under
pressure from coastal development. Congress can also direct that states
redefine the landward reach of their coastal zones to include coastal
watersheds, thus better enabling coastal programs to look across
political boundaries and incorporate a coastal watershed focus and the
basic tenets of ecosystem-based management.

Statutory acknowledgement of the need to incorporate ecosystem-based
management into marine resource management regimes is intended be a
first step toward ecosystem-based management by enabling improved
coordination and analysis among agencies managing marine resources and
providing for a transition toward an integrated management approach that
considers the entire ecosystem.

**Congress should reauthorize an improved Magnuson-Stevens Fishery
Conservation and Management Act that incorporates a stronger reliance on
science to guide management actions to ensure the long-term
sustainability of U.S. fisheries.** Further, it should reinforce the
principle that fishery resources are held in the public trust for the
benefit of all U.S. citizens and need to be managed in a way that
considers the relationships between and among all components of the
marine ecosystem. In addition, care should be taken to avoid changes
that compromise existing conservation provisions or allow exemptions to
established review processes that help ensure that fishery-related
actions are considered in a broad ecosystem context.

Progress on the reauthorization of the Magnuson-Stevens Act is
promising. We applaud Senator Stevens, the Chairman of your parent
Committee, and the many other Senators who helped move S. 2012 through
the Senate. We have high expectations that House will move its
reauthorization bill to the floor after the August break and a
resolution of the few differences between the House and the Senate will
be reached before adjournment.

We are pleased that both bills address recommendations made by the U.S.
Commission on Ocean Policy and the Pew Oceans Commission. We would
simply reiterate that, while progress on these bills is encouraging, the
Joint Initiative believes that a final bill should reflect the
principles outlined above, and therefore should:

-   Avoid any rollback of existing law that could result in increased
    fishing pressure on vulnerable stocks and threaten their ability to
    rebuild.

-   Show greater movement toward ecosystem-based management.

-   Strengthen provisions to ensure that the best available science is
    used to make management decisions.

-   Retain the provision in S. 2012 that strengthens the ability of the
    United States and international fishery management organizations to
    combat illegal, unreported, and unregulated fishing.

In addition, the Joint Initiative supports provisions in Senate Bill
2012 that strengthens the ability of the United States and international
fishery management organizations to combat illegal, unreported, and
unregulated fishing. The Joint Initiative encourages the House and
Senate to work together to enact a strong Magnuson-Stevens
reauthorization bill in 2006.

**The United States should accede to the United Nations Convention on
the Law of the Sea.** The United States Senate should provide its advice
and consent to U.S. accession to the convention so that the United
States can once again assume a leadership position in international
forums deciding such vital ocean matters as jurisdictional claims over
the continental margin with it vast energy resources, deep seabed
mining, scientific research, and environmental protection.

The Joint Initiative agrees with the President that accession supports
vital U.S. national security, economic, and international leadership
interests and that rapid Senate approval is needed. As a party, the
United States would be in the best position to lead future applications
of this framework for regional and international cooperation in
protecting and preserving the marine environment. U.S. accession to the
convention would send a clear message in support of our efforts to
foster international approaches while significantly furthering our own
national interests. As the lone industrialized nation not part of the
convention, we jeopardize our role as a world leader by failing to join.

The convention has been thoroughly reviewed in Senate hearings and
public forums, and U.S. accession is supported by a broad coalition of
ocean interests. The Navy and Coast Guard have testified that joining
the convention will strengthen our ability to defend freedoms of
navigation and overflight essential to military mobility and our
homeland security efforts. All major U.S. industries, including offshore
energy, maritime transportation and commerce, underwater cable
communications, and shipbuilding support U.S. accession to the
convention because its provisions help protect vital U.S. economic
interests and provide the certainty and stability crucial for investment
in global maritime enterprises. Environmental organizations strongly
support the convention as well.

**The Senate should adopt a Sense of the Senate Resolution that supports
the Administration's position in the World Trade Organization (WTO)
negotiations calling for an end to fishing subsidies that promote
overcapitalization and subsequently contribute to the global depletion
of fish stocks.** Such an action would send a strong signal to the WTO
negotiations, where legally binding language on fish subsidies is
currently being developed, and would further reinforce the Senate's
leadership role in ocean and coastal policy reform. In addition, the
U.S. Commission on Ocean Policy and the Pew Oceans Commission reports
both identified overcapitalization of the global commercial fishing
fleet as a major contributor to the widespread depletion of economically
important fish stocks. At the global level, a significant factor in the
continued overcapitalization of the commercial fishing fleet is the
system of fishing subsidies that exists in many countries. Fishing
subsidies that support overcapitalization harm the competitiveness of
U.S. exports in the international seafood market and promote illegal,
unregulated, and unreported (IUU) fishing, which further harms our
domestic commercial fisheries, both ecologically and economically.
According to the Office of the U.S. Trade Representative, the
international commercial fishing industry receives annual subsidies of
at least \$15 billion, equivalent to more than 20 percent of the value
of the world's commercial fish catch.

**Congress should expand innovation and competitiveness legislation to
incorporate ocean science and education consistent with the Bush
Administration's Ocean Research Priorities Plan and Implementation
Strategy.** The innovation and competitiveness initiative being pursued
as a result of the recommendations issued by the National Academies in
its report, *Rising Above the Gathering Storm*, highlights the
importance of improving and maintaining strong research and education
programs. Ocean-related research and education programs in agencies
across the federal government hold immense potential for propelling the
economic interest of the United States and should be incorporated into
this initiative.

The Ocean Research Priorities Plan and Implementation Strategy will
identify the best investment opportunities in marine science. Our oceans
are rich in energy resources, marine biotechnology is a rapidly growing
industry that is capitalizing on the vast biological and genetic
diversity of marine life, and advanced underwater vehicles are opening
up an era of ocean exploration that has captured the imagination of a
new generation of school-aged children. Cutting-edge research using
massive oceanic and atmospheric data sets and a new focus on promoting
multi-disciplinary studies in support of ocean science are laying the
groundwork for technological advances and a sophisticated workforce that
will allow our nation to be a leader in the global shift toward a
service sector that provides environmentally-sensitive technologies and
policies.

Congress and the President have proposed legislative and funding
initiatives to implement innovation and competitiveness activities, with
a focus on programs in the Department of Energy, NSF, and the National
Institute of Standards and Technology. Congress should expand its vision
and include enhanced programs for ocean-related research and education
as part of the initiative. Congress should target the initiatives
identified by the President's Committee on Ocean Policy is its Ocean
Research Priorities Plan and Implementation Strategy, which is currently
in development. This strategy, developed with input from the ocean
community and subject to a comprehensive review by a special National
Academies review committee, will identify ocean-related research and
education priorities government-wide, providing Congress with an ocean
science funding roadmap. This strategy is scheduled to be completed at
the end of the year. However, the other priority recommendations
described in this section offer immediate opportunities to focus and
strengthen currently uncoordinated programs and platforms from which new
initiatives can be launched.

**Congress should enact legislation to authorize and fund the Integrated
Ocean Observing System (IOOS).** The IOOS is the domestic element of the
international Global Ocean Observing System, which is part of the Global
Earth Observing System of Systems. Congress should authorize and fund a
comprehensive and sustained national IOOS that will support and enhance
our ability to understand and manage ocean and coastal resources in a
number of ways, including: protecting lives and livelihoods from natural
hazards; supporting national defense and homeland security efforts;
safeguarding public health; developing new energy resources; adapting to
climate change; and conserving biodiversity. Congress needs to consider
both ground- and space-based research (NASA, NSF) and operational (NOAA)
ocean-observing assets in developing the budget for the IOOS.
Implementation of the IOOS should be carried out in a manner that
recognizes, nurtures, and makes use of existing nonfederal
infrastructure and capacity.

Together, IOOS, the international Global Ocean Observing System, and the
multi-dimensional Global Earth Observing System of Systems offer
scientists and managers a more complete view of atmospheric,
terrestrial, and oceanic interactions occurring at the global, national,
and regional scales.

IOOS, broadly speaking, provides the infrastructure and tools needed to
translate science into products and services needed by decision makers.
IOOS supports the hardware, software, data management, synthesis, and
modeling activities that integrate the data and information generated by
the research community. IOOS also helps ensure that research efforts are
directed toward issues and questions that are limiting the capacity of
decision makers to make informed policy and regulatory decisions. For
example, IOOS supports activities such as the enhanced water quality
monitoring system called for in the President's Ocean Action Plan,
ecosystem modeling that supports multi-species management of our ocean
fisheries, and forecasting and tracking harmful algal blooms.

IOOS is also where disparate data sets are integrated to detect short-
and long-term shifts in the health and productivity of key ecosystems
and where socioeconomic trends are analyzed. This information is then
synthesized and translated into products that are understandable to
decision makers, who then use it to guide their decisions. Hidden inside
this process are infrastructure requirements (e.g., ships, satellites,
sensors, laboratories, computer soft- and hardware) and the development
of tools (e.g., new or expanded ecosystem models) that are increasingly
sophisticated and costly. Consequently, a comprehensive IOOS requires
Congress to pass authorizing legislation that will guide both the
activities of federal agencies and the numerous state and private sector
partners who are also deeply vested in the system. Without a clear
specification of the roles and responsibilities of the various players
and increased funding to implement such a system, the ocean will
continue to be the weak link in a global observing system that is
already driving major economic policy making.

**Congress should establish a New Ecosystem Research Initiative to
foster scientific cooperation and integration by rewarding interagency
and multidisciplinary research that addresses ecosystem questions.**
Decision makers need information that will help them manage human
activities and natural resources in a manner that provides the greatest
benefit to the nation. While there is broad agreement among scientists
and natural resource managers that the United States must transition
toward ecosystem-based management, there is considerable confusion about
what this process entails. Will specific ecosystem concerns, such as the
fate or habitat needs of an endangered species, or a regime-wide
phenomenon, such as climate change, take precedent over human
priorities? Are we headed toward dramatic ecological regime shifts
induced by human activities, or are these changes being driven by
natural processes?

These are legitimate questions that require the government to develop a
more coherent and broad-based research program. Such a program must be
based on multidisciplinary approaches and the cooperation of scientists
from differing disciplines within and outside the government. An
Ecosystem Research Initiative should integrate ongoing basic and applied
ecosystem research across the spectrum of federal agencies currently
engaged in such research. The consolidation of ecosystem-related
research activities under a broad interagency cross-cutting
initiative---perhaps modeled on the Climate Change Research Program---is
key to delivering usable information to managers and policy makers. For
the initiative to be successful, it must be granted an appropriate level
of discretionary funding authority to direct existing and new resources
toward high priority research areas through a competitive process.

**Congress should support an enhanced National Ocean Exploration
Program. It should enact a National Ocean Exploration Program Act that
supports an expanded national ocean exploration program.** A robust
exploration program that coordinates, enhances, and strengthens
activities across federal agencies is a missing link in a national
strategy to better understand the Earth's environment. Exploration
focuses on curiosity-driven research of ocean-related processes,
properties, and places that are poorly known or understood. Put into
context, more than 1,500 people have climbed to the summit of Mt.
Everest, more than 300 have journeyed into space, 12 have walked on the
moon, but only 2 people have descended and returned in a single dive to
the deepest part of the ocean, spending less than 30 minutes on the
ocean bottom, 95 percent of which remains unexplored.

The opportunity is ripe to develop a multi-agency exploration initiative
given the placement of NOAA, NSF, and NASA in the same Congressional
appropriations subcommittee, augmented by the support and guidance
provided by the Navy. Such an initiative should work across the spectrum
of the biological, chemical, and geological sciences and be guided by a
competitive process coordinated by NOAA and NSF with strong guidance
from the research community. It should ensure that resulting
technological and scientific advances, like other basic research
programs, will generate returns far in excess of their costs.

The discovery of new ecosystems and species has the potential for
accelerating our understanding of the origin of life and evolutionary
processes on Earth and possibly on other planets as well. An expanded
national ocean exploration initiative will allow Congress and the
Administration to create a legacy that will be recognized by future
generations as a turning point in the development of a national ocean
policy.

**Congress should support a National Ocean Education Strategy.**
Congress should mandate the development of a national ocean education
and outreach strategy that coalesces and integrates the existing array
of independently conceived and implemented education and outreach
programs and activities. There are growing numbers of ocean-related
education and outreach activities occurring at all levels of government
and within the nongovernmental sector.

The lack of a coherent strategy for aligning these activities is
compromising their effectiveness and limiting their capacity to generate
additional funding support. Congress should work with the President to
establish a governing body responsible for developing a national ocean
education and outreach strategy. The strategy should enhance educational
achievement in the natural and social sciences, increase ocean
awareness, include a five-year plan for formal and informal activities,
and facilitate links among federal, state, local, and nongovernmental
programs. NOAA and NSF should be given the lead for this activity, and
Congress should look for opportunities to increase support for
successful programs within these and other agencies, such as the NSF
Centers for Ocean Science Education Excellence.

**Congress should establish an Ocean Trust Fund in the U.S. Treasury as
a dedicated source of funds for improved management and understanding of
ocean and coastal resources by federal and state governments.** Both
Commissions addressed the need for stable funding for implementing their
recommendations, making the case that our oceans, coasts, and Great
Lakes are major contributors to the U.S. economy, with half the nation's
GDP generated in coastal watersheds. Maintaining the economic and
ecological viability of our oceans and coasts requires decision makers
at the national and state governmental levels to have access to
unbiased, credible, and up-to-date information to make informed
decisions. Unfortunately, chronic under-investment has left much of our
ocean-related infrastructure in woefully poor condition. In addition,
federal and state ocean and coastal agencies need more financial
resources to meet the challenges that were so clearly documented in the
reports of the two Commissions.

Given this acknowledged under-investment, each Commission was well aware
of the budget implications inherent in its set of recommendations.
Implementation costs outlined in the two reports arrived at similar
projections---it will cost approximately \$3--4 billion in new funds
annually to meet the needs of a comprehensive ocean policy. A portion of
those funds should be allocated to *all* coastal states to help sustain
their renewable coastal resources. The other portion should be used to
support the programs and activities of the various federal agencies with
ocean and coastal responsibilities. To address these needs and to
demonstrate a national commitment to a new national ocean policy, each
Commission recommended that an Ocean Trust Fund, composed of *dedicated*
resources, be established in the U.S. Treasury.

However, each Commission had a somewhat different approach to the
sources of and uses for the funds. The U.S. Commission on Ocean Policy
proposed a dedicated fund in the U.S. Treasury to be composed of all
"unallocated" receipts from outer continental shelf (OCS) oil and gas
development and resource rents from other new and emerging federal
offshore activities. The U.S. Commission made clear that its proposal
would not affect programs that currently receive OCS oil and gas
revenues, specifically the Land and Water Conservation Fund and two
additional programs. Rather, only after revenues for those programs were
allocated in accordance with law, would any remaining offshore proceeds
be deposited in the Trust Fund to be used by all coastal states and
federal ocean agencies for a range of purposes. Generally, those
purposes for the coastal states (to receive \$1 billion annually) would
focus on the conservation and sustainable development of renewable ocean
resources, including any new responsibilities that arise as a result of
the U.S. Commission's recommendations and the enhancement of programs
that are currently underfunded. Additionally, the U.S. Commission
recognized that the OCS producing states should be compensated for the
impacts of energy activity in adjacent federal waters. Finally, the
remainder of the funds would be distributed among federal agencies to
address the new or expanded activities assigned to them as a result of
Commission recommendations.

The Pew Oceans Commission recommended that Congress create a permanent,
dedicated fund for coastal conservation. It looked at a broad range of
potential sources of ocean-related revenues, but ultimately recommended
using general revenues with the additional suggestion that Congress
consider tapping proceeds derived from OCS oil and gas development for
habitat protection. The Pew Commission went on to maintain that this
should be done in a way that does not encourage additional OCS energy
development.

We are aware that recently the House, and on Monday of this week, the
Senate, each took action to move bills that, in part, would share a
portion of OCS oil and gas receipts with "producing" or "adjacent"
coastal states. As noted above, these bills indirectly address one of
the key issues reviewed by each of our Commissions -- the source of
ocean-related financial resources dedicated to carry out a range of
ocean and coastal activities, including those occasioned by offshore
energy activity and those needed to implement a new and comprehensive
national ocean policy (Ocean Trust Fund). With respect to such sources
and the eligible uses of the revenues, the Joint Initiative recognizes
that there are several options to consider and difficult decisions to be
made. We stand ready to engage with Congress in an ongoing discussion
about how to resolve these important issues. In the end, establishing a
dedicated Ocean Trust Fund is one of the most important early steps
Congress could take to demonstrate its commitment to a new national
ocean policy.

**Congress should increase base funding for core ocean and coastal
programs** The loss of funding for some key ocean and coastal programs
in FY 2006 and the lack of enhanced funding to address high-priority
challenges identified in the Commissions' reports must be reversed if we
are to preserve the economic benefits derived from ocean-dependent
activities and protect the health and productivity of ocean and coastal
ecosystems. Congress should increase funding for ocean and coastal
activities throughout the federal government in FY 2007 and beyond, with
an initial focus on enhancing core base programs and support for a few
broad initiatives. To this end, the Joint Initiative would like to
convey our deep appreciation for support provided for ocean-related
programs in the FY 2007 Commerce, Justice, Science appropriations bill
reported out of the Committee on Appropriations this month. We are
heartened by the Senate's strong action and available to help secure the
needed support for the spending bill as it goes before the full Senate
and into conference with the House of Representatives. Details related
to the Joint Initiative's funding recommendations are provided in
Appendix B to this written testimony.

**Further, Congress should direct that the Administration develop an
integrated ocean budget.** The lack of a coherent listing and analysis
of ocean and coastal programs distributed throughout the federal
government hampers the ability of Congress and the Administration to
evaluate, coordinate, and integrate ocean- and coastal-related science,
management, and education programs within agencies across the federal
government. To address this problem, either as separate legislation or
as part of an appropriations bill, Congress should direct the President
to submit an integrated ocean budget, making it easier to track support
for and analyze the progress of departmentally isolated but highly
interactive ocean and coastal programs, and thus facilitating greater
coordination among federal programs.

**Conclusion**

We close by commending this National Ocean Policy Study and its staff
for your commitment to making meaningful change in the way we manage our
oceans and coasts. The time is ripe for Congress again to act boldly to
transform a dysfunctional federal management regime into a truly
effective and farsighted system for managing our magnificent oceans and
coasts to benefit current and future generations. The members of the
Joint Ocean Commission Initiative stand ready to assist the Congress in
every way possible to meet this formidable challenge.

**Appendix A**

**Pending Ocean and Coastal Legislation in the 109^th^ Congress**

The following lists a number of bills that have progressed significantly
through the 109^th^ Congress, passage of which would signal progress and
demonstrate Congressional commitment to addressing the need to improve
management of our oceans and coasts. This list does *not* include
reauthorization of the Magnuson-Stevens Fishery Conservation and
Management Act, which is discussed in the body of this testimony.

**Marine Debris Research, Prevention and Reduction Act (S. 362)**
establishes within NOAA a Marine Debris Prevention and Removal Program
that would reduce the adverse impacts of lost and discarded fishing gear
on living marine resources and navigation safety and would encourage
outreach and education of the public and other stakeholders in the
fishing, fishing gear manufacturing, and plastic and waste management
industries. This bill has been approved by the Senate and in the House
was referred to the Committee on Transportation and Infrastructure and
additionally to the Committee on Resources. Both Committees have
reported the bill and it was placed on the House calendar on July 24,
2006.

**Tsunami Preparedness Act (S. 50)** directs the Administrator of NOAA
to improve our nation's tsunami detection, forecast, warning,
preparedness, and mitigation capacity through improved sensing
technology, data collection and analysis abilities, and information and
communication systems. The bill directs the Administrator to take a
strong international leadership role to facilitate the development of a
global warning system. This bill was passed by the Senate in July 2005.
In the House, it was referred to the Committees on Resources, Science,
and Transportation and Infrastructure.

**National Ocean Exploration Program Act (S. 39)** calls for the
Secretary of Commerce to develop within NOAA a coordinated national
ocean exploration program that will increase scientific knowledge for
the informed management, use, and preservation of oceanic, coastal, and
large lake resources through undersea research, exploration, education,
and technology development. This bill was passed by the Senate in July
2005. In the House, it was referred to the House Committees on Resources
and Science.

**Coastal and Estuarine Land Protection Act (S. 1215)** would codify an
existing federal program in NOAA by which coastal states can compete for
matching funds to acquire land or easements for the protection of
sensitive coastal ecosystems with the goal of better ensuring the
ecological and economic health of coastal communities. This bill has
been reported out of the Senate Commerce Committee and placed on the
Senate calendar. A companion bill in the House, H.R. 3187, has been
referred to the Committee on Resources.

**Coral Reef Conservation Amendments Act of 2005 (S. 1390)** enhances
funding for coral reef conservation, creates a community-based planning
grants program to implement locally designed coral management and
protection plans, and strengthens federal authority to undertake
emergency response actions to prevent or mitigate imminent coral reef
destruction from vessel or other physical damage. This bill was passed
by unanimous consent in the Senate and has been referred to the
Committee on Resources in the House.

**Ocean and Coastal Mapping Integration Act (S. 364)** directs the
Administrator of NOAA to establish a program to develop a coordinated
and comprehensive federal ocean and coastal mapping plan for the Great
Lakes and Coastal State waters, the territorial sea, the exclusive
economic zone, and the continental shelf of the United States. The
mapping plan should enhance ecosystem approaches in decision-making,
establish research priorities, and advance ocean and coastal science.
This bill has been reported out of the Senate Commerce Committee and
placed on the Senate calendar.

In addition, the following bills should be high priorities for Congress
to work on this year. The Joint Initiative is working to provide input
on specifics of each of these bills and stands ready to work with
Congressional staff to ensure that these bills incorporate the
principles embodied by the two Commissions in their reports.

**Ocean and Coastal Observation System Act of 2005 (S. 361)** calls on
the President to establish an integrated system for ocean and coastal
observation that would provide data and information for the timely
detection and prediction of changes in the ocean and coastal environment
that impact the nation's social, economic, and ecological systems. This
bill was passed by the Senate in July 2005. In the House, it was
referred to the House Committees on Resources and Science.

**Coastal Zone Enhancement Reauthorization Act (S. 360)** would improve
the planning and coordinating capabilities of coastal states, support
community-based planning to address pressing development issues in the
coastal zone, protect coastal habitats, and encourage the development
and use of innovative technology in coastal and estuarine management.
This bill was the subject of a hearing by the Senate Committee on
Commerce, Science, and Transportation and was reported favorably by the
Committee. It is currently on the Senate legislative calendar.

**Ballast Water Management Act of 2005 (S. 363)** is designed to prevent
ballast water introductions of nonindigenous species, and address
aquatic nuisance species and the significant adverse environmental and
economic harm that results from these releases. The bill was reported
from the Senate Committee on Commerce, Science, and Transportation in
November 2005 and is currently on the Senate legislative calendar.

**The Flood Insurance Reform and Modernization Act of 2006 (S. 3589)**
would forgive nearly \$24 billion owed to the U.S. Treasury by the
National Flood Insurance Program for the 2005 hurricane season. It would
also phase out premium subsidies on all non-primary residences and
severe repetitive loss properties and calls for new standards that
program officials must use to complete a floodplains map modernization
process. This bill was introduced at mark up and reported out of the
Senate Committee on Banking, Housing, and Urban Affairs and was placed
on the Senate calendar.

**Water Resources Development Act of 2005 (S. 728)** would reauthorize
the act and reform the U.S. Army Corps of Engineers. The bill was
reported by the Senate Committee on Environment and Public Works in
April 2005, and is on the Senate legislative calendar. It underwent
Senate floor action in July 2006 and was returned to the Senate
calendar.

**Appendix B**

**Overarching Initiatives for Funding Integrated Ocean and Coastal
Governance**

As Congress considers ocean-related funding during the FY 2007
appropriations process and beyond, its funding priorities should
recognize and support programs and activities that strengthen the
long-term economic health of the nation. The ocean and coastal economies
of the coastal states generate roughly three-quarters of the nation's
annual GDP, exceeding \$7.0 trillion in 2000. The "ocean economy" alone,
meaning those activities that rely specifically on the oceans to support
production, generated approximately \$120 billion in 2000. Thus, the
ocean economy was almost 2.5 times larger than the agricultural economy
in terms of output and over 150 percent larger than employment in the
farm sector. ^2^

Unfortunately, underinvestment in core ocean and coastal science,
management, and education programs have left the nation vulnerable to
both chronic and catastrophic threats along our coasts. Poor water
quality due to nonpoint source pollution, ecologic degradation
associated with invasive species and habitat loss, and inappropriate
land use that has resulted in escalating costs associated natural
hazards are all evidence of the inadequacies of current ocean and
coastal governance and funding regimes.

Further exacerbating the situation is the fact that the funding regime
for federal ocean-related programs is in disarray. NOAA, the nation's
lead civilian ocean agency, has a \$3.9 billion budget consisting of
hundreds of budget lines, which support important but discrete
activities. Ocean and coastal programs in other agencies, such as DOI,
EPA, and NASA, are often considered lower priorities and suffer from
chronic underinvestment. The lack of emphasis on enhancing core ocean
programs and activities across the government is clearly illustrated by
the Administration's 2005 Ocean and Coastal Activities Report to the
U.S. Congress^3^ outyear budget projection for FY 2010, which shows
decreases in most agencies' ocean budgets, with NOAA decreasing by \$60
million, Department of Defense by \$180 million, NASA by \$90 million,
Department of Transportation by \$120 million, and USDA by \$100
million, while the ocean budget for DHS increases by \$500 million.

Due to the wide distribution of ocean-related programs throughout the
federal system and the lack of a coherent process for monitoring their
support, the Joint Initiative recommends that Congress begin moving
toward a more comprehensive funding regime for ocean-related programs
that is capable of focusing on high priority, large-scale initiatives
that provide the agencies with increased flexibility and discretionary
funding authority to respond to existing and emerging challenges. This
will require a significant shift in the Administration budget
formulation process, as well as how Congress exercises its fiscal
oversight of federal ocean programs and activities.

Following the approach outlined above, the Joint Initiative has
identified four broad functional categories for organizing ocean and
coastal funding. These are:

-   Ocean Governance and Coastal Management

-   Ocean Science and Research

-   Monitoring, Observing, and Mapping

-   Ocean Education and Outreach

Outlined below, the Joint Ocean Commission Initiative recommends \$715
million in new funding above FY 2006 levels to cover the costs of
implementing a new national ocean policy consistent with the
recommendations of the two Commissions. In addition, recommended new
funds for implementing a strengthened Magnuson-Stevens fisheries act
(\$29 million) and for implementation costs related to accession to the
United Nations Convention on the Law of the Sea (\$3 million) bring the
overall new funding needed to a total of \$747 million.

**Funding Category 1: Ocean Governance and Coastal Management**

**Congress should provide funds to support new governance efforts at
both the federal and regional levels, with additional emphasis on
expanding support for watershed initiatives that support ecosystem-based
management.** Moving toward an ecosystem-based management approach will
demand major changes to the current federal approach to ocean management
and governance. The coordination and integration required as part of
this process has demanded considerable additional effort by managers
given the increasing complexity of the issues being addressed, such as
evaluating cumulative impacts on coastal watersheds. This process should
mature over time, but it will languish unless managers are provided with
additional funding to help facilitate the communication and coordination
needed to make it successful. While funding is needed across a broad
spectrum of ocean management activities, the Joint Initiative believes
that the greatest potential for short-term gains is associated with the
support for the following actions.

*Support for the new interagency coordination efforts.* The President
established the Committee on Ocean Policy and its supporting science and
policy coordination subcommittees to facilitate greater interagency
collaboration and communication. The costs associated with these efforts
have been borne by the member agencies, which provide staff and funding
to support the interagency effort. While this is a functional approach,
providing both CEQ and the Office of Science and Technology Policy with
\$500,000 each to support a small permanent staff dedicated to
supporting interagency cooperation, as recommended by both Commissions,
would greatly increase the effectiveness of the current effort to
integrate federal programs and also enhance federal, state, and regional
partnerships. *Total: +\$1 million*

*Support regional coordination.* Efforts to develop regional ocean and
coastal coordination strategies are increasing around the nation. Great
progress has been made in the Great Lakes and the Gulf of Mexico, and
efforts are beginning to emerge on the West Coast and in the Southeast.
Funding for these efforts has come from a mixture of sources, but there
is no coherent federal strategy for supporting these efforts. The U.S.
Commission on Ocean Policy estimated the cost supporting regional
coordination efforts at roughly \$5 million the first year, rising to
\$12 million in the third year. *Total: +\$5 million*

*Support watershed-related activities.* There is growing recognition of
the value of a watershed approach and the importance of addressing the
cumulative impacts of all activities that take place within a watershed.
EPA has reoriented federal and state clean water programs to address
certain problems on a watershed basis and has developed extensive
guidance for use by states, tribes, and territories, including the
development of an online Watershed Academy and a targeted watershed
grant program that encourages community-based approaches. USDA has
chosen high priority watersheds in which agricultural runoff is a major
source of pollution as the basis for distributing funds under its
conservation programs. NOAA's Coastal Zone Management Program has been
instrumental in guiding state efforts to watershed management
approaches, and the opportunity exists for Congress to strengthen its
support for watershed management during the reauthorization of the CZMA.
The transition toward watershed management would benefit from additional
resources for these programs, and the Joint Initiative suggests
providing an additional \$20 million for the NOAA Coastal Zone
Management Program, \$5 million for the EPA watershed grant program, and
\$4 million for USDA's Watershed Surveys and Planning account, above
their FY 2006 funded levels. The U.S. Army Corps of Engineers also
requires greater ability to use its funding to support watershed-wide
feasibility studies and impact analyses prior to making final
determinations on proposed coastal projects. *Total: +\$29 million*

*Other established conservation and management programs* have made
significant contributions toward maintaining and improving the quality
of coastal resources and could make even greater contributions with
additional fiscal resources. These include the EPA National Estuary
Program; the DOI Coastal Program, Coastal Barrier Resources System, and
Coastal Wetland Grants Program; and NOAA's Coastal and Estuarine Land
Conservation Program and National Marine Sanctuaries Program. While the
Joint Initiative has not identified discrete levels of funding
applicable to each of these programs, the need clearly exceeds \$50
million, recognizing that the U.S. Commission suggested at least an
additional \$35 million in support for the Coastal Estuarine land and
Conservation Program and the +\$10 million funding cut endured by the
National Marine Sanctuary Program in FY 2006. *Total: +\$50 million*

*Total for Ocean Governance and Coastal Management: + \$85 million.*

**Funding Category 2: Ocean Science and Research**

**Congress should encourage greater interagency collaboration in support
of all dimensions of ocean science, from exploration and basic research
to applied research, by supporting a number of overarching initiatives,
including ocean exploration, ecosystem research, ocean observing, and
education, the Administration is currently developing an *Ocean Research
and Priorities Plan and Implementation Strategy*^4^** that will
eventually provide a roadmap to assist Congress in prioritizing ocean
science and research funding. However, given the overwhelming need to
take meaningful action promptly, priority should be given to supporting
endeavors that offer frameworks capable of providing focus and
continuity for ocean science and research programs. The Joint Initiative
strongly encourages Congress to support an enhanced ocean research and
education program, establishment of a new ecosystem research initiative,
the implementation of an integrated ocean observing system, and a
national ocean education strategy.

**Congress should expand the national innovation and competitiveness
initiative to include oceans.** The President's American Competitiveness
Initiative provides an excellent opportunity for Congress to draw upon
the scientific and educational resources and expertise of the ocean
community to contribute toward this broad national initiative. Thus, in
the context of supporting an enhanced national research enterprise,
Congress should increase resources for ocean research and exploration
programs in NOAA, NSF, and the Navy, as well as other ocean and coastal
programs in federal agencies, as part of the innovation and
competitiveness initiative.

Ocean science and exploration are closely related endeavors. Explorers
discover the new places, species, and phenomena that other scientists
then study and explain. Many experts have pointed out that we now know
more about the surface of the moon---and increasingly the surface of
Mars---than we do about the bottom of the ocean, despite the huge
potential for answering fundamental questions about our planet and
discovering new forms of life in the soup of biological diversity
contained within our oceans. This effort, in turn, has the potential to
not only support a new economic enterprise in marine biotechnology, but
also allow us to begin to address the growing health-related concerns
associated with harmful algal blooms, seafood-related illnesses, and
water-borne chemical contaminants.

**Congress should support the development of an expanded ocean research
and exploration initiative.** The Joint Initiative recommends that
Congress support an expanded ocean exploration initiative that
incorporates many of the basic ocean research programs and activities
within the federal government. Currently, ocean exploration is supported
by a broad array of federal programs housed in NSF, NOAA, and the Navy,
while basic ocean research is spread across many federal agencies.
Unfortunately, ocean research and exploration funding has stagnated or
decreased, resulting in a steady real dollar decline in support for
basic research over the past decades. This decline compromises our
nation's economic and national security and was the basis for the both
Commissions' support for doubling the federal ocean and coastal research
budget from its current level of \$650 million per year to \$1.3 billion
over the next five years.

Congress must reverse this decline by enhancing ocean research funding.
Under an ocean research and exploration initiative, Congress should
strongly consider enhancing the NSF Geosciences Directorate account by
\$42 million, the NSF Major Research Equipment and Facilities
Construction Account by \$50 million, the NSF Polar Programs by \$50
million, and the Navy's 6.1 account by \$50 million from FY 2006 enacted
levels. These programs are the foundation of ocean research and
exploration, and enhanced support is crucial. In addition, there are
numerous other basic research programs that merit increased support from
their FY 2006 funding levels, including, but not limited to: NOAA Ocean
Exploration (+\$36 million); NOAA/National Centers for Ocean Coastal
Science (+\$25 million); NOAA/Ocean Human Health (+\$15 million);
NOAA/National Undersea Research Program (+\$11 million); DOI/USGS
Coastal and Marine Geology Program (+\$10 million); and EPA/ORD Ocean
and Coastal Research (+\$10 million). Other areas of ocean-related
research of great importance that would benefit from additional funding
include ocean and coastal remote sensing, arctic research, atmospheric
deposition, economic and social analysis, invasive species, and coral
reefs. *Total: +\$299 million*

**Congress should complement its ocean research and exploration
initiative with an ecosystem research initiative.** Such an initiative
would greatly assist the nation as we transition toward an
ecosystem-based management approach. The initiative would stimulate
multidisciplinary approaches and scientific cooperation among federal
and nonfederal research entities. The Joint Initiative envisions this
initiative as having an applied research focus, addressing issues that
will directly benefit managers and policy makers who must understand and
balance economic, social, and environmental factors when making
decisions that will affect the health and productivity of coastal
ecosystem.

The Joint Initiative recognizes that budgetary initiatives are primarily
a responsibility of the Executive Branch. Thus, we recommend that
Congress strongly encourage the Adminis­tration to consider developing
and supporting an ecosystem research budget initiative. Such an
initiative would help identify and begin the process of coordinating the
broad suite of ecosystem-related research activities taking place
throughout the government. Examples of programs and activities that
could possibly be coordinated under this initiative include: aquatic
invasive species research; ocean remote sensing; marine mammal research;
development of fishery ecosystem plans; habitat restoration; coral reef
research; and marine protected areas, including the National Estuarine
Research Reserve System. Congress should ensure that funding for these
activities and programs is protected, and preferably enhanced, as part
of concerted national effort to support federal, state, and regional
efforts to restore the health and productivity of our oceans, coasts,
and Great Lakes.

*Funding Total for Ocean Science and Research: +\$299 million*

.

**Funding Category 3: Monitoring, Observing, and Mapping**

**Congress should increase funding for the implementation of an
Integrated Ocean Observing System (IOOS) and other scientific tools and
infrastructure that are the backbone of the ocean science enterprise.**
A critical component of a robust ocean science enterprise is the set of
tools that allow scientists to collect, monitor, observe, map, model,
analyze, and synthesize data, and then translate and communicate their
findings in useable and understandable forms to managers and
policymakers. An important tool to achieve well-informed, science-based
ocean and coastal management with an ecosystem focus is the national
IOOS. As the ocean component of the President's Global Earth Observing
System of Systems, a fully operating IOOS will provide critical
information for: protecting human lives and property from marine
hazards; improving ocean health; predicting global climate change;
enhancing the nation's security; and providing for the protection,
sustainable use, and enjoyment of ocean resources.

Many of the elements of a national system are already in place, but they
operate independently. Support for IOOS is the process through which
these elements are interconnected into global and coastal observation
networks. Congress should place a high priority on the passage of
legislation mandating the implementation of an IOOS and should increase
the level of funding in support of global and regional IOOS programs,
providing the community with the flexibility to direct funding toward
activities and infrastructure that will allow for the orderly and
coherent development of an effective and efficient program.

There are many elements that constitute the IOOS, some
infrastructure-related, others programmatic activities that develop more
effective tools for translating and sharing the information generated.
One very important element is the need to create a national base map
that is seamless across the shoreline and can incorporate new geospatial
data of all types as they are collected. Another is the need to
reinforce the network of infrastructure and technology used to support
science and exploration, such as research vessels, satellites, buoys,
and sensors, as well as computer hardware and software. A third is
establishing a data management and communication center where federal
and state agencies can coordinate the collection, archiving, fusion,
modeling, and distribution of IOOS-related information and products.

*Congress should increase its support for the IOOS.* The U.S. Commission
on Ocean Policy identified four components that are essential for the
IOOS, including: data management and communications; enhancing regional
coastal information systems; accelerating implementation of the global
ocean observing system; and enhancing and integrating existing
federally-supported observing programs. The first year cost was
calculated at \$138 million, with the annual cost increasing to roughly
\$500 million in the fifth year. The Joint Initiative strongly
recommends that Congress bolster the funding commitment to IOOS, with
new funding being targeted among the three areas described above.
*Total: +\$138 million*

*Other monitoring-related activities* and suggested levels of increased
financial support they require are provided below. The funding levels
are generally based on guidance provided in Chapter 30 and Appendix G of
the U.S. Commission on Ocean Policy report and represent increases above
enacted funding levels: develop a national monitoring network (\$10
million); implement improved sediment research monitoring, assessment,
and technologies (\$12 million); expand federal mapping and charting and
data integration (\$50 million); establish a NOAA/Navy ocean and coastal
information management and communication partnership (\$20 million);
develop regional approaches to address atmospheric deposition (\$3
million); modernize NPDES monitoring, strengthen enforcement, and
implement stormwater programs (\$7 million); increase ballast water
research and demonstration programs (\$2 million); implement early
detection and notification plans for aquatic invasive species (\$30
million); expand marine debris monitoring (\$5 million); create and fund
a national program for social science and economic research (\$5
million); and increase support for data management software (\$7
million). *Total: +\$151 million*

*Total for Monitoring, Observing, and Mapping: +\$289 million*

**Funding Category 4: Ocean Education and Outreach**

**Congress should increase funding for established ocean education
programs.**

**We recommend the establishment of a national ocean education strategy,
with NOAA and NSF being given the lead in coordinating the program.**
The strategy should enhance educational achievement in the physical,
natural, and social sciences, increase ocean awareness, include a
five-year plan for formal and informal activities, and facilitate links
among federal, state, local, and nongovernmental programs. It is our
understanding that the Administration's Ocean Research Priorities Plan
and Implementation Strategy will include recommendations for advancing
federal ocean education programs. The Joint Initiative feels strongly
that Congress should increase funding for existing federal ocean
education initiatives in NOAA, NSF, and the Navy in FY 2007. Doing so
will contribute directly to the objectives of the innovation and
competitiveness initiative supported by Congress by enticing more
students at all levels of education into scientific and technical
professions. An increased investment in ocean-related education will
play a key role in stimulating a new generation of engineers and
scientists who will help this nation maintain its technological lead in
an increasingly competitive world while also helping to establish a new
ocean stewardship ethic.

**Congress should make funding for formal and informal education a
priority** and provide support above the FY 2006 enacted level for the
following programs: NOAA Education Initiatives (\$12 million); NSF
Centers for Ocean Science and Education Excellence (\$10 million); and
NOAA Sea Grant (\$20 million). We anticipate identifying a broader suite
of programs across other federal agencies when the Administration
completes its Ocean Research Priorities Plan and Implementation
Strategy, one component of which will address ocean-related education
funding needs.

*Total for Ocean Education and Outreach: +\$42 million*

The Joint Initiative recognizes that expanding beyond relatively rigid
mission-driven responsibilities toward multi-agency, multi-discipline
funding initiatives that are not rewarded in the federal budget
formulation process will require a major change in the Executive Branch
budget formulation process. It will also require Congress to reconsider
how it authorizes and funds such initiatives. A sustained and successful
transition toward ecosystem-based management is as dependent upon the
willingness of Congress to reconsider its institutional policy-setting
and funding processes as it is upon the ocean science community to
demonstrate its capacity for collaborating and coordinating in a
meaningful way through the federal budget process. Thus, Congress should
look toward developing oversight mechanisms that will strengthen its
capacity to evaluate and guide interagency cooperation and funding.

In this appendix, the Joint Initiative makes a number of funding
recommendations, both general and specific, and we want to emphasize
that current funding levels are clearly inadequate given the state of
our oceans and coasts. It is not our intent to develop a comprehensive
budget analysis in this document. Rather, we will continue to work with
the ocean community to build upon these funding recommendations in the
coming months and provide Congress with additional information that we
hope will be helpful in the appropriations process.