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[Senate Report 107-296]
[From the U.S. Government Publishing Office]

107th Congress 
 2d Session                      SENATE                          Report
                                                                107-296
_______________________________________________________________________

                                     

                                                       Calendar No. 633

               COASTAL AND ESTUARINE LAND PROTECTION ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 2608

                                     

                October 3, 2002.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred seventh congress

                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman

DANIEL K. INOUYE, Hawaii             JOHN MCCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
Virginia                             CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida

                     Kevin D. Kayes, Staff Director

                       Moses Boyd, Chief Counsel

                      Gregg Elias, General Counsel

      Jeanne Bumpus, Republican Staff Director and General Counsel

             Ann Begeman, Republican Deputy Staff Director

             Robert W. Chamberlin, Republican Chief Counsel

                                  (ii)
                                                       Calendar No. 633
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-296

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               COASTAL AND ESTUARINE LAND PROTECTION ACT

                                _______
                                

                October 3, 2002.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2608]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2608) to amend the Coastal Zone 
Management Act of 1972 to authorize the acquisition of coastal 
areas in order to better ensure their protection from 
conversion or development, having considered the same, reports 
favorably thereon with an amendment in the nature of a 
substitute and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  S. 2608, as reported, would amend the Coastal Zone Management 
Act of 1972 to authorize the acquisition of coastal areas 
through a competitive grants process in order to better ensure 
their protection from conversion or development.

                          Background and Needs

  Estuaries, wetlands, and the watersheds that channel water 
into them, support fisheries and wildlife and contribute 
immensely to coastal area economies. These areas are critical 
to many life cycles of organisms and help improve surface water 
quality by filtering out wastes. Now more than ever, the 
pressures of urbanization and pollution along our Nation's 
coasts threaten to impair watersheds, impact wildlife habitat, 
and cause irreparable damage to fragile coastal ecosystems. As 
our population grows, more and more people are moving to the 
coast. More than 3,000 people move to coastal areas every day. 
By 2010, an estimated 60 percent of Americans are expected to 
live along our coasts, which represent less than 17 percent of 
our land area. Fourteen of the nation's 20 largest cities are 
on the coast, and coastal cities are five times more densely 
populated than cities in the interior of the country.
  The Coastal Zone Management Act (CZMA) of 1972 was enacted in 
order to provide clear policy objectives for states to 
establish coordinated coastal zone management programs and to 
help balance coastal development with protection. Since the 
CZMA became law, 34 of the 35 coastal States have established 
approved programs to help preserve and utilize their coastal 
resources, and the program has proven to be a successful 
partnership between the Federal government and States. One such 
tool established under the CZMA is the National Estuarine 
Research Reserves System (NERRs). The reserve system, as a 
network of 25 protected areas representing different 
biogeographic regions of the United States, protects more than 
one million acres of estuarine habitat, conducts essential 
research, and provides a variety of educational opportunities. 
Individual NERRs focus on local and regional research and 
educational needs. As a national network, many system-wide 
programs provide reserves with common research standards and 
educational goals.
  Despite this and other successful partnership programs under 
CZMA, there is currently no Federal program that explicitly 
sets aside funding for conservation of coastal or estuarine 
lands, or for coordinating coastal conservation partnerships 
among Federal, State, and local governments, private 
landowners, and non-profit organizations. Partnership programs 
that protect coastal lands by purchasing such lands from a 
willing seller can be a cost-effective means of providing areas 
with permanent protection from development, and such programs 
are strongly supported by coastal States, which work with 
private land trusts and others to protect coastal property 
around the nation.
  The ACE Basin partnership in South Carolina is only one 
example of this coordinated approach to coastal protection and 
conservation that has been the subject of growing interest 
around the nation. This 1988 partnership brought together the 
State of South Carolina, private landowners, non-profit groups 
such as the Nature Conservancy and Ducks Unlimited, and Federal 
partners like the National Oceanic and Atmospheric 
Administration's (NOAA) NERR program and the Fish and Wildlife 
Service. As a result of this coordinated approach to 
protection, this 350,000-acre area at the convergence of the 
Edisto, Ashepoo, and Combahee (ACE) rivers is now the largest 
pristine estuarine reserve on the East Coast.
  The Coastal and Estuarine Land Protection Act is modeled on a 
similar program, the U.S. Forest Service's Forest Legacy 
Program, which provides grants to States to protect 
environmentally important forests threatened by conversion. S. 
2608 would amend the CZMA to create a Coastal and Estuarine 
Land Protection program within NOAA through which States, NERR 
units, and their partners can apply for grants that are 
competitively awarded to acquire sensitive or threatened 
coastal lands. This program will focus specifically on 
protection of coastal and estuarine areas, which are now being 
affected by escalating coastal development pressures.
  Recent reports have highlighted the urgent need for such a 
program. The 2001 National Coastal Condition Report, issued 
jointly by United States Environmental Protection Agency 
(USEPA), NOAA, the Department of Interior, and the Department 
of Agriculture, found that the greatest coastal threats were 
coastal wetland loss and eutrophication; both are conditions 
linked to coastal development pressures. Last year, the U.S. 
Forest Service's Southern Forest Resource Assessment projected 
that the southeast alone could lose about 12 million acres to 
urbanization between 1992 and 2020 and an additional 19 million 
acres between 2020 and 2040, much which is slated to occur 
along the coast.

                          Legislative History

  The CZMA was enacted in 1972 in order to preserve, protect, 
develop, and where possible, restore or enhance the resources 
of the Nation's coastal zone for this and succeeding 
generations, and to encourage and assist the States to exercise 
effectively their responsibilities in the coastal zone through 
the development and implementation of management programs to 
achieve wise use of the land and water resources of the coastal 
zone, giving full consideration to ecological, cultural, 
historic, and aesthetic values as well as the needs for 
compatible economic development.
  On June 11, 2002, Chairman Hollings and Senator Gregg 
introduced S. 2608, the Coastal and Estuarine Land Protection 
Act, a bill to amend the CZMA to authorize the acquisition of 
coastal areas in order to better ensure their protection from 
conversion or development. The bill is cosponsored by Senator 
Biden, Senator Breaux, Senator Cleland, Senator Cochran, 
Senator Collins, Senator Corzine, Senator DeWine, Senator Dodd, 
Senator Feinstein, Senator Inouye, Senator Kennedy, Senator 
Kerry, Senator Landrieu, Senator Levin, Senator Lieberman, 
Senator Mikulski, Senator Murray, Senator Nelson, Senator Reed, 
Senator Sarbanes, Senator Snowe, Senator Torricelli, and 
Senator Wyden. The bill was referred to the Senate Committee on 
Commerce, Science, and Transportation.
  At its September 26, 2002, executive session, the Committee 
ordered S. 2608 to be reported favorably with an amendment in 
the nature of a substitute.
  The substitute amendment, offered by Chairman Hollings, makes 
technical changes to the introduced bill to clarify the grant 
process and the eligible sources of non-Federal matching funds.

                            Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of Rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  Because S. 2608 creates a new program, the legislation would 
have additional regulatory impact on participating entities. 
The Coastal and Estuarine Land Protection program would allow 
the Federal government, through the National Ocean Service of 
the NOAA, to issue grants through a competitive review process 
to participating States or NERR units for the purpose of 
acquiring property or interests in property. Voluntary 
participants to the program would be subject to additional 
regulatory reporting requirements.

                       NUMBER OF PERSONS COVERED

  The Coastal and Estuarine Land Protection program would allow 
the Federal government to issue grants through a competitive 
review process to participating States or NERR units for the 
purpose of acquiring property, or interests in property, of 
important coastal and estuarine areas that have significant 
conservation, recreation, ecological, historical, or aesthetic 
values and are threatened by development or conversion. The 
program would require a willing seller and purchaser of such 
interests; therefore, the program would impact only voluntary 
participants of the program and would not subject any private 
citizens or businesses not participating in the program to 
additional regulation.

                            ECONOMIC IMPACT

  The bill would authorize funding for the Coastal and 
Estuarine Land Protection program at a level of $60 million for 
fiscal year (FY) 2003 and beyond; and $5 million for the 
regional watershed demonstration project, to remain available 
until expended. These authorization levels are intended to 
improve the performance of the Federal and State entities 
implementing the CZMA and should have a beneficial impact on 
the long-term economy of the United States.

                                PRIVACY

  This legislation would not have any adverse impact on the 
personal privacy of the individuals that will be impacted by 
this legislation.

                               PAPERWORK

  S. 2608 would not impose any new paperwork requirements on 
private citizens or businesses that do not choose to 
participate in Coastal and Estuarine Land Protection program; 
entities choosing to participate in the program may be subject 
to some changes in the paperwork requirements of the program.

                      Section-by-section Analysis

SECTION 1. SHORT TITLE

  This Act may be cited as the ``Coastal and Estuarine Land 
Protection Act''.

SECTION 2. FINDINGS

  This section of the bill recognizes the national importance 
of coastal and estuarine areas and their functions, the need 
for permanent protection of these areas in light of intense 
development pressures, and the role of land acquisition from 
willing sellers as a cost-effective means to conserve these 
important areas.

SECTION 3. ESTABLISHMENT OF PROGRAM

  This section of the bill would add a new subsection 306(b) to 
the Coastal Zone Management Act and direct the Secretary of 
Commerce to create a Coastal and Estuarine Land Protection 
program to protect important coastal and estuarine areas that 
have significant conservation, recreation, ecological, 
historical, or aesthetic values and that are threatened by 
conversion.
  The section would authorize the Secretary to make grants to 
coastal States with approved coastal management programs or 
National Estuarine Research Reserves (NERR) through a 
competitive awarding process for the purpose of acquiring 
property or interests in property. At least 15 percent of the 
funds would be reserved for acquisitions that benefit NERRs. 
The bill would prohibit any more than 75 percent of the grant 
funding from being derived from Federal sources. Awards would 
be based on the demonstrated need for protection, the ability 
to effectively manage and protect land in perpetuity for 
conservation purposes, and the ability to leverage the matching 
share of non-Federal funds. The non-Federal cost share, which 
may be waived for underserved communities, may include non-
monetary or in-kind contributions. The bill additionally 
specifies that when property is acquired under this program: 
(1) title will be held by the grant recipient; (2) property 
will be managed consistently with the purpose of the program; 
and (3) funds will be returned to the Secretary if the property 
is sold, exchanged, or divested.
  This section of the bill also would authorize the Secretary 
of Commerce to conduct a regional watershed demonstration 
project as a model for future efforts that: (1) leverages land 
acquisition funding from other Federal conservation or 
acquisition programs; (2) involves partnerships with Federal, 
State, and non-governmental entities; (3) creates conservation 
corridors; (4) protects habitats that are under an imminent 
threat of development or conversion; (5) provides water quality 
protection for areas under the National Estuarine Research 
Reserve program; and (6) provides a model for future regional 
watershed protection projects.
  The bill would authorize funding for the Coastal and 
Estuarine Land Protection program at a level of $60 million for 
FY 2003 and beyond; and $5 million for the regional watershed 
demonstration project, to remain available until expended. Up 
to 5 percent of the funds made available to the Secretary or 
eligible coastal State may be used for planning or 
administration.

SECTION 4. ASSISTANCE FROM OTHER AGENCIES

  This section of the bill would amend subsection 310(a) of the 
Coastal Zone Management Act to clarify that the Secretary may 
enter into contract or other arrangements with other Federal 
agencies (including interagency financing of Coastal America 
activities) in conducting the program of technical assistance 
and management-oriented research necessary to develop and 
implement State coastal management program amendments and 
research appropriate to the furtherance of international 
cooperative efforts and technical assistance in coastal zone 
management.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                  COASTAL ZONE MANAGEMENT ACT OF 1972

                        [16 U.S.C. 1451 ET SEQ.]

SEC. 306B. COASTAL AND ESTUARINE LAND PROTECTION PROGRAM.

  (a) In General.--The Secretary shall establish a Coastal and 
Estuarine Land Protection program, in cooperation with 
appropriate State, regional, and other units of government for 
the purposes of protecting the environmental integrity of 
important coastal and estuarine areas, including wetlands and 
forests, that have significant conservation, recreation, 
ecological, historical, or aesthetic values, and that are 
threatened by conversion from their natural, undeveloped, or 
recreational state to other uses. The program shall be 
administered by the National Ocean Service of the National 
Oceanic and Atmospheric Administration through the Office of 
Ocean and Coastal Resource Management.
  (b) Property Acquisition Grants.--The Secretary shall make 
grants under the program to coastal states with approved 
coastal zone management plans or National Estuarine Research 
Reserve units for the purpose of acquiring property or 
interests in property described in subsection (a) that will 
further the goals of--
          (1) a Coastal Zone Management Plan or Program 
        approved under this title; or
          (2) a National Estuarine Research Reserve management 
        plan; or
          (3) a regional or state watershed protection plan 
        involving coastal states with approved coastal zone 
        management plans.
  (c) Grant Process.--The Secretary shall allocate funds to 
coastal states or National Estuarine Research Reserves under 
this section through a competitive grant process in accordance 
with guidelines that meet the following requirements:
          (1) The Secretary shall consult with the State's 
        coastal zone management program, any National Estuarine 
        Research Reserve in that State, and the lead agency 
        designated by the Governor for coordinating the 
        establishment and implementation of the Coastal and 
        Estuarine Land Protection Act (if different from the 
        coastal zone management program).
          (2) Each participating State shall identify priority 
        conservation needs within the State, the values to be 
        protected by inclusion of lands of the program, and the 
        threats to those values that should be avoided.
          (3) Each participating State shall evaluate how the 
        acquisition of property or easements might impact 
        working waterfront needs.
          (4) The applicant shall identify the values to be 
        protected by inclusion of the lands in the program, 
        management activities that are planned and the manner 
        in which they may affect the values identified, and any 
        other information from the landowner relevant to 
        administration and management of the land.
          (5) Awards shall be based on demonstrated need for 
        protection and ability to successfully leverage funds 
        among participating entities, including federal 
        programs, regional organizations, State and other 
        governmental units, landowners, corporations, or 
        private organizations.
          (6) Applications must be determined to be consistent 
        with the State's or territory's approved coastal zone 
        plan, program and policies prior to submittal to the 
        Secretary.
          (7) Priority shall be given to lands described in 
        subsection (a) that can be effectively managed and 
        protected and that have significant ecological or 
        watershed protection value.
          (8) In developing guidelines under this section, the 
        Secretary shall consult with other Federal agencies and 
        non-governmental entities expert in land acquisition 
        and conservation procedures.
          (9) Eligible States or National Estaurine Research 
        Reserves may allocate grants to local governments or 
        agencies eligible for assistance under section 306A(e) 
        and may acquire lands in cooperation with 
        nongovernmental entities and federal agencies.
          (10) The Secretary shall develop performance measures 
        that will allow periodic evaluation of the program's 
        effectiveness in meeting the purposes of this section 
        and such evaluation shall be reported to Congress.
  (d) Matching Requirements.--
          (1) In general.--The Secretary may not make a grant 
        under the program unless the Federal funds are matched 
        by non-Federal funds in accordance with this 
        subsection.
          (2) Maximum federal share.--
                  (A) 75 percent federal funds.--No more than 
                75 percent of the funding for any grant under 
                this section shall be derived from Federal 
                sources, unless such requirement is 
                specifically waived by the Secretary.
                  (B) Waiver of requirement.--The Secretary may 
                grant a waiver of the limitation in 
                subparagraph (A) for underserved communities, 
                communities that have an inability to draw on 
                other sources of funding because of the small 
                population or low income of the community, or 
                for other reasons the Secretary deems 
                appropriate.
          (3) Other Federal funds.--Where financial assistance 
        awarded under this section represents only a portion of 
        the total cost of a project, funding from other Federal 
        sources may be applied to the cost of the project. Each 
        portion shall be subject to match requirements under 
        the applicable provision of law.
          (4) Source of matching cost share.--For purposes of 
        paragraph (2)(A), the non-Federal cost share for a 
        project may be determined by taking onto account the 
        following:
          (A) Land value may be used as non-Federal match if 
        the lands are identified in project plans and acquired 
        within three years prior to the submission of the 
        project application or after the submission of a 
        project application until the project grant is closed 
        (not to exceed 3 years). The appraised value of the 
        land at the time of project closing will be considered 
        the non-Federal cost share.
          (B) Costs associated with land acquisition, land 
        management planning, remediation, restoration, and 
        enhancement may be used as non-Federal match if the 
        activities are identified in the plan and expenses are 
        incurred within the period of the grant award. These 
        costs may include either case or in-kind contributions.
  (e) Regional Watershed Demonstration Project.--The Secretary 
may provide up to $5,000,000 for a regional watershed 
protection demonstration project that will meet the 
requirements of this section and:
          (1) leverages land acquisition funding from other 
        federal land conservation or acquisition programs such 
        that other Federal contributions, at a minimum, equal 
        the amounts provided by the Secretary;
          (2) involves partnerships from a broad spectrum of 
        federal, State, and non-governmental entities;
          (3) provides for the creation of conservation 
        corridors and preservation of unique coastal habitat;
          (4) protects largely unfragmented habitat under 
        imminent threat of development or conversion;
          (5) provides water quality protection for areas set 
        aside for research under the National Estuarine 
        Research Reserve program; and
          (6) provides a model for future regional watershed 
        protection projects.
  (f) Reservation of Funds for National Estuarine Research 
Reserve Sites.--No less than 15 percent of funds made available 
under this section shall be available for acquisitions 
benefiting National Estuarine Research Reserve acquisitions.
  (g) Limit on Administrative Costs.--No more than 5 percent of 
the funds made available to the Secretary under this section 
shall be used by the Secretary for planning or administration 
of the program. The Secretary shall provide a report to 
Congress with an account of all expenditures under this section 
for fiscal year 2003, fiscal year 2004, fiscal year 2005, and 
triennially thereafter.
  (h) Title and Management of Acquired Property.--
          (1) In general.--If any property is acquired in whole 
        or in part with funds made available through a grant 
        under this section, the grant recipient shall provide 
        such assurances as the Secretary may require that--
                  (A) the title to the property will be held by 
                the grant recipient or other appropriate public 
                agency designated by the recipient in 
                perpetuity;
                  (B) the property will be managed in a manner 
                that is consistent with the purposes for which 
                the land entered into the program and shall not 
                convert such property to other uses; and
                  (C) if the property or interest in land is 
                sold, exchanged, or divested, funds equal to 
                the correct value will be returned to the 
                Secretary, for re-distribution in the grant 
                process.
          (2) Conservation easement.--In this subsection, the 
        term ``conservation easement'' includes an easement, 
        recorded deed, or interest deed where the grantee 
        acquires all rights, title, and interest in a property, 
        that do not conflict with the goals of this Act except 
        those rights, title, and interests that may run with 
        the land that are expressly reserved by a grantor and 
        are agreed to at the time of purchase.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary--
          (1) $60,000,000 for fiscal year 2003 and each fiscal 
        year thereafter to carry out this section (other than 
        subsection (e)); and
          (2) $5,000,000 for fiscal year 2003 to carry out 
        subsection (e), such sum to remain available without 
        fiscal year limitation.

SEC. 310. TECHNICAL ASSISTANCE

                           [16 U.S.C. 1456C]

  (a) The Secretary shall conduct a program of technical 
assistance and management-oriented research necessary to 
support the development and implementation of State coastal 
management program amendments under section 309, and 
appropriate to the furtherance of international cooperative 
efforts and technical assistance in coastal zone management. 
Each department, agency, and instrumentality of the executive 
branch of the Federal Government may assist the Secretary, on a 
reimbursable basis or otherwise, in carrying out the purposes 
of this section, including the furnishing of information to the 
extent permitted by law, the transfer of personnel with their 
consent and without prejudice to their position and rating, and 
the performance of any research, study, and technical 
assistance which does not interfere with the performance of the 
primary duties of such department, agency, or instrumentality. 
The Secretary may enter into contracts or other arrangements 
with [any qualified person for the purposes of carrying out 
this subsection.] any other Federal agencies (including 
interagency financing of Coastal America activities) and any 
other qualified person for the purposes of carrying out this 
section.
  (b)(1) The Secretary shall provide for the coordination of 
technical assistance, studies, and research activities under 
this section with any other such activities that are conducted 
by or subject to the authority of the Secretary.
  (2) The Secretary shall make the results of research and 
studies conducted pursuant to this section available to coastal 
states in the form of technical assistance publications, 
workshops, or other means appropriate.
  (3) The Secretary shall consult with coastal states on a 
regular basis regarding the development and implementation of 
the program established by this section.

                                
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