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[Senate Report 112-100]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 254
112th Congress                                                   Report
                                 SENATE
 1st Session                                                    112-100

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

 
  RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURIST OPPORTUNITIES, AND 
         REVIVED ECONOMIES OF THE GULF COAST STATES ACT OF 2011

                                _______
                                

                December 8, 2011.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1400]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1400) to restore the natural resources, 
ecosystems, fisheries, marine and wildlife habitats, beaches, 
and coastal wetlands of Gulf Coast States, to create jobs and 
revive the economic health of communities adversely affected by 
the explosion on, and sinking of, the mobile offshore drilling 
unit Deepwater Horizon, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.

                    General Statement and Background

    S. 1400, the Resources and Ecosystems Sustainability, 
Tourist Opportunities, and Revived Economies of the Gulf Coast 
States Act of 2011 (the RESTORE Act), dedicates Clean Water Act 
civil and administrative penalties paid by responsible parties 
in relation to the Deepwater Horizon oil spill for economic and 
ecological restoration activities on the Gulf Coast.
    This legislation is intended to provide for the long-term 
health of the economy and valuable natural ecosystems of the 
Gulf of Mexico (Gulf). The impacts of the BP Deepwater Horizon 
oil spill were exacerbated by pre-existing factors and 
conditions in the Gulf Coast region, such as loss of wetlands, 
water pollution that contributes to hypoxic conditions and dead 
zones, and degradation of important estuary habitat (many of 
which have been designated estuaries of national significance 
by EPA's National Estuary Program).\1\ The oil spill, lasting 
almost three months, released an estimated 4.9 million barrels 
of oil into the Gulf of Mexico, closing 88,542 square miles of 
federal waters for fishing while contaminating hundreds of 
miles of shoreline, bayous, bays, and islands with oil.\2\ This 
event significantly impacted environmental and economic health 
of the region.
---------------------------------------------------------------------------
    \1\America's Gulf Coast: A Long Term Recovery Plan after the 
Deepwater Horizon Oil Spill, http://www.restorethegulf.gov/sites/
default/files/documents/pdf/gulf-recovery-sep-2010.pdf at 26-27.
    \2\Id. at 2.
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    The Gulf of Mexico is an extremely diverse ecosystem that 
is critical to many terrestrial, aquatic and migratory species. 
The Gulf is comprised of over 600,000 square miles of water, 
and in the U.S., is bordered by five coastal states (Alabama, 
Florida, Louisiana, Mississippi, and Texas). Over forty percent 
of the continental United States drains into the Gulf of 
Mexico.\3\ Gulf habitats include coastal wetlands, submerged 
vegetation, important upland areas, and marine/offshore areas. 
Encompassing over five million acres (about half of the U.S. 
total), the Gulf's coastal wetlands serve as an essential 
habitat for numerous fish and wildlife species, including 
migrating waterfowl (about 75% traversing the U.S.), seabirds, 
wading birds, furbearers, and sport and commercial 
fisheries.\4\ The Gulf supports 100 million migratory, nesting 
and wintering birds. The hundreds of miles of coast support 
wetlands which serve as nurseries for countless marine 
organisms, including many commercially important seafood 
species. To local economies, wetlands offer food, energy, 
transportation, recreation, and protection from storms and 
flooding.\5\
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    \3\Id. at 23.
    \4\General Facts about the Gulf of Mexico, http://www.epa.gov/gmpo/
about/facts.html, accessed October 18, 2011.
    \5\Louisiana Coastal Initiative, http://conservation.audubon.org/
louisiana-coastal-initiative, accessed October 18, 2011.
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    The Gulf is also a major source of commercial seafood 
production and recreational fishing. Over one-third of the 
Nation's seafood is a product of the Gulf of Mexico, including 
72 percent of the shrimp, 66 percent of the harvested oysters, 
and 16 percent of commercial fish.\6\ ``In 2008, marine 
recreational participants took more than 24.1 million trips 
catching 190 million fish from the Gulf of Mexico and 
surrounding waters.''\7\
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    \6\Monica Bruckner, Montana State University, The Gulf of Mexico 
Dead Zone, http://serc.carleton.edu/microbelife/topics/deadzone/, 
accessed October 18, 2011.
    \7\Id. 
---------------------------------------------------------------------------
    Three reports published following the oil spill related to 
long-term recovery of the Gulf Coast recommend that a 
significant portion of any Clean Water Act civil penalties 
received as a result of the BP Horizon oil spill should be 
dedicated to the Gulf Coast for restoration activities; these 
include: America's Gulf Coast: A Long Term Recovery Plan after 
the Deepwater Horizon Oil Spill, written by Secretary of the 
Navy Ray Mabus; Deep Water: The Gulf Oil Disaster and the 
Future of Offshore Drilling, the report of the National 
Commission on the BP Deepwater Horizon Oil Spill and Offshore 
Drilling; and the Gulf of Mexico Regional Ecosystem Restoration 
Strategy (Preliminary), prepared by the Gulf Coast Ecosystem 
Restoration Task Force. All three reports also recommended the 
creation of a region-wide Gulf Coast Council to guide 
restoration efforts.
    The report prepared by Secretary Mabus recommended:

       ``Specifically it is recommended that the President 
propose to Congress that legislation be passed that would 
allow:
           A significant amount of any civil penalties 
        recovered under the Clean Water Act from the Deepwater 
        Horizon spill be deposited into a Gulf Coast Recovery 
        Fund managed by a Gulf Coast Recovery Council. These 
        funds would be used to address those critical recovery 
        needs that may fall outside the scope of the OPA.
           The establishment of a Gulf Coast Recovery 
        Council to lead to long-term ecosystem economic, and 
        health recovery in the Gulf.
           A portion of any Clean Water Act civil 
        penalties be directed to the Gulf states (Alabama 
        Florida, Louisiana, Mississippi, and Texas) to enable 
        them to jumpstart their own recovery efforts.
           The remaining amount of penalties be 
        deposited in the Oil Spill Liability Trust Fund in 
        accordance with existing law. This would allow for 
        resources to be available to respond to future 
        spills.''\8\
---------------------------------------------------------------------------
    \8\America's Gulf Coast: A Long Term Recovery Plan after the 
Deepwater Horizon Oil Spill, http://www.restorethegulf.gov/sites/
default/files/documents/pdf/gulf-recovery-sep-2010.pdf at 5-6.

    The National Commission on the BP Deepwater Horizon Oil 
---------------------------------------------------------------------------
Spill and Offshore Drilling stated:

          ``Congress should dedicate 80 percent of the Clean 
        Water Act penalties to long term restoration of the 
        Gulf of Mexico.''
          ``Congress and federal and state agencies should 
        build the organizational, financial, scientific, and 
        public outreach capacities needed to put the 
        restoration effort on a strong footing.''
          ``. . . the Commission recommends that Congress--
        recognizing that dedicated, sustained funding is 
        necessary to accomplish long-term Gulf of Mexico 
        ecosystem restoration--should direct 80 percent of 
        Clean Water Act penalties to support implementation of 
        a region-wide restoration strategy.''
          ``The Commission recommends that Congress establish a 
        joint state-federal Gulf Coast Ecosystem Restoration 
        Council.''
          ``The Commission believes that having a 
        comprehensive, binding strategy to guide the 
        restoration effort is critical to success.''\9\
---------------------------------------------------------------------------
    \9\Deep Water: The Gulf Oil Disaster and the Future of Offshore 
Drilling, the report of the National Commission on the BP Deepwater 
Horizon Oil Spill and Offshore Drilling, http://
www.oilspillcommission.gov/sites/default/files/documents/
DEEPWATER_ReporttothePresident_ FINAL.pdf at 280-281.

    In its preliminary restoration strategy, the Gulf Coast 
---------------------------------------------------------------------------
Ecosystem Restoration Task Force stated:

       ``Accordingly, the Task Force reiterates recommendations 
made by Secretary Mabus that call for Congress to:
           Formalize the long-term intergovernmental 
        partnership among the Gulf Coast States and the federal 
        government by establishing a successor coordinating 
        body to the Gulf Coast Ecosystem Restoration Task 
        Force.
           Dedicate a significant portion of the 
        eventual Clean Water Act civil penalties resulting from 
        the Deepwater Horizon oil spill for Gulf recovery, in 
        addition to current funding for Gulf programs.''\10\
---------------------------------------------------------------------------
    \10\Gulf Coast Ecosystem Restoration Task Force, Gulf of Mexico 
Regional Ecosystem Restoration Strategy (Preliminary), http://
www.epa.gov/gcertf/pdfs/GCERTF-Preliminary-Strategy_ 
10052011_forPDF_10-17_changesacc_b.pdf. Accessed October 24, 2011 at 8.
---------------------------------------------------------------------------
          ``The Task Force reaffirms the importance of 
        Secretary Mabus' two initial recommendations: that 
        Congress (1) set aside a significant portion of any 
        potential Clean Water Act civil penalties associated 
        with the Deepwater Horizon oil spill for recovery in 
        the Gulf and (2) create a Gulf Coast Recovery Council 
        to coordinate restoration and recovery in the region as 
        an eventual successor to this Task Force.''\11\
---------------------------------------------------------------------------
    \11\Id at 54.

    S. 1400 authorizes the major recommendations of these 
reports.

                     Objectives of the Legislation

    This bill directs Clean Water Act penalties collected 
pursuant to the explosion of the offshore drilling unit 
Deepwater Horizon and the subsequent oil spill to restore the 
natural resources, ecosystems, fisheries, marine and wildlife 
habitats, beaches, and coastal wetlands of Gulf Coast States, 
to create jobs and to revive the economic health of communities 
adversely affected by the oil spill.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 notes that this Act may be cited as the Resources 
and Ecosystems Sustainability, Tourist Opportunities, and 
Revived Economy of the Gulf Coast States Act of 2011 (or the 
``RESTORE the Gulf Coast Act'').

Section 2. Congressional findings

    Section 2 establishes Congressional findings that provide 
the rationale for the legislation.

Section 3. Establishment of Gulf Coast Restoration Trust Fund

    Section 3 establishes a Gulf Coast Restoration Trust Fund 
and credits to the Trust Fund amounts equal to 80 percent of 
all administrative and civil penalties paid by a responsible 
party in connection with the Deepwater Horizon oil spill 
pursuant to Section 311 of the Federal Water Pollution Control 
Act (33 U.S.C. 1321). The amounts in the fund and the interest 
earned shall be available without further appropriation solely 
for the purposes and eligible activities of this Act.
    The Secretary of the Treasury, in consultation with the 
Secretaries of Interior and Commerce, is required to develop 
procedures for the oversight of expenditures from the Trust 
Fund, including compliance with applicable requirements of the 
Act and audit requirements.

Section 4. Dedication and allocation of clean water act penalties to 
        the Gulf Coast

    Section 4 creates a new subsection in Section 311 of the 
Federal Water Pollution Control Act to govern the allocation of 
penalties deposited in the Trust Fund and to establish the 
conditions under which funds would be expended in the five Gulf 
Coast States to restore and protect the natural resources, 
ecosystems, fisheries, marine and wildlife habitats, coastal 
wetlands, and economy of the Gulf Coast.
    This section would establish three mechanisms for 
allocating 95% of the funds available in each fiscal year until 
the funds are expended:
        b  35% of the total would be allocated in equal shares 
        to the five Gulf Coast States (Subsection ``(t)(1)'');
        b  30% of the total would be allocated to the Gulf 
        Coast Ecosystem Restoration Council (Council) for the 
        development and implementation of a comprehensive 
        ecosystem restoration plan (Comprehensive Plan) 
        (Subsection ``(t)(2)'');
        b  30% would be allocated to Gulf Coast States by the 
        Council according to an impact-based formula to 
        implement state-developed plans that are consistent 
        with the Comprehensive Plan (Subsection ``(t)(3)'');
        b  the interest earned on the Trust Fund would be 
        equally divided between a National Endowment for the 
        Oceans and the research programs established in Section 
        5 (Subsection ``(t)(3)'').

                         SUBSECTION (1) SUMMARY

    Subsection (a) amends Section 311 of the Clean Water Act to 
provide definitions for terms added to Section 311 by this 
legislation.

                               DISCUSSION

    The term ``Gulf Coast Ecosystem'' is defined in paragraph 
``(32).'' The definition outlines the areas of the Gulf of 
Mexico and its coastal areas eligible to participate in the 
programs established by this Act. The term Gulf of Mexico 
Ecosystem includes the coastal zones (as defined by the Coastal 
Zone Management Act of 1972) that directly border the Gulf of 
Mexico, including federal lands within these coastal zones; any 
adjacent land, water, and watersheds, that are within 25 miles 
inland of the coastal zones of the Gulf Coast States; and all 
federal waters adjacent to coastal zones of the Gulf Coast 
States.

                         SUBSECTION (2) SUMMARY

    Subsection (2) makes a technical modification to Section 
311(s) of the Federal Water Pollution Act to clarify that funds 
deposited into the Gulf Coast Restoration Trust Fund and 
expended pursuant to the new subsection ``(t)'' are not 
required to be deposited in the Oil Spill Liability Trust Fund 
pursuant to subsection ``(s).''

                         SUBSECTION (3) SUMMARY

    Subsection (3) adds a new paragraph ``(t)'' to Section 311 
of the Federal Water Pollution Control Act to direct the 
expenditure of funds deposited into the Gulf Coast Restoration 
Trust Fund.
            Subsection ``(t)(1)'' Summary
    Subsection ``(t)(1)(A)'' reserves 35 percent of the funds 
placed in the Trust Fund for each of the Gulf Coast States. 
Funding is reserved and made available for each state in equal 
shares.
    Subsection ``(t)(1)(B)'' describes the eligible activities 
for which funds made available in this Act may be used. The 
activities are focused on (1) restoration and conservation of 
the Gulf Coast ecosystem and (2) economic recovery efforts. 
Administrative costs are eligible but are limited to 3 percent 
of the amount made available to a Gulf Coast State. No funds 
may be used for activities to support or promote imported 
seafood or any seafood product that is not harvested from the 
Gulf Coast ecosystem.
    Subsection ``(t)(1)(C)'' describes special conditions for 
the distribution of funds to coastal political subdivisions in 
a state where the coastal zone includes the entire state and in 
the state of Louisiana. In the first case, the Secretary shall 
make available to the 8 counties disproportionally affected by 
the Deepwater Horizon spill 75 percent of the funding available 
for that state pursuant to subparagraph (t)(1)(A). In the case 
of Louisiana, the Secretary shall make available funding 
reserved for the state of Louisiana pursuant to subparagraph 
(t)(1)(A) in the following manner: 70 percent to the State of 
Louisiana; and 30 percent directly to parishes in the coastal 
zone in Louisiana according to a weighted formula. As a 
condition of receiving funding under subparagraph 
``(t)(1)(C)(ii)(II),'' a parish in the coastal zone of 
Louisiana must certify that it has completed a comprehensive 
land use plan.
    Coastal political subdivisions receiving funding pursuant 
to this subsection must meet all of the conditions of 
subparagraph (D).
    Subsection ``(t)(1)(D)'' describes conditions that a Gulf 
Coast State or a coastal political subdivision must meet to 
receive funding from the Trust Fund. These conditions include:
     Agreeing to meet any conditions, including audit 
requirements, established by the Secretary of the Treasury.
     Requesting funding only for projects and programs 
designed to restore and protect the natural resources, 
ecosystems, fisheries, marine and wildlife habitats, beaches, 
coastal wetlands, or economies of the Gulf Coast.
     Carrying out an eligible activity described in 
subparagraph ``(t)(1)(B).''
     Selecting projects and programs based on 
meaningful public input, including broad-based participation 
from individuals, businesses, and non-profit organizations.
     In the case of a natural resource protection or 
restoration project, using the best-available science to select 
projects.
     Certifying that the awarding of a contract for 
expenditure of amounts made available from the Trust Fund is 
consistent with standard procurement rules and regulations 
governing similar projects or programs in the state.
     Developing and submitting a multi-year 
implementation plans for funds available to the state or 
coastal political subdivision pursuant to paragraphs 
``(t)(1)(A)'' and ``(t)(1)(C).''
    Subsection ``(t)(1)(E)'' describes the entities within each 
Gulf Coast State responsible for administering funds provided 
pursuant to paragraph ``(t)(1)(A).''
    Subsection ``(t)(1)(F)'' directs the Secretary of the 
Treasury to provide no additional funds to a state or coastal 
political subdivision if the state or coastal political 
subdivision has used funds for an activity not explicitly 
authorized by paragraph ``(t)(1)(B)(i).'' To continue receiving 
funds, the state or coastal political subdivision must deposit 
an amount equal to the amount expended on the unauthorized use 
into the Trust Fund or use such amount to implement an eligible 
project approved by the Secretary.
    Subsection ``(t)(1)(G)'' directs the Secretary of the 
Treasury to provide no additional funds to a state or coastal 
political subdivision if the Secretary determines the state or 
coastal political subdivision does not comply with any 
requirement or condition of paragraph ``(t)(1).''
    Subsection ``(t)(1)(H)'' requires Gulf Coast States to use 
appropriate procedures for public input and consultation in 
developing recommendations for projects and programs to receive 
funding under this subsection.
    Subsection ``(t)(1)(I)'' allows a state or coastal 
political subdivision to satisfy the conditions of subparagraph 
(D) if it has already established conditions substantively the 
same as those in subparagraph (D).
    Subsection ``(t)(1)(J)'' requires states to coordinate with 
the Chair of the Council established in subsection ``(t)(2)'' 
to identify large-scale projects that may be jointly supported 
by the Council pursuant to the Comprehensive Plan.
    Subsection ``(t)(1)(K)'' allows a Gulf Coast State or 
coastal political subdivision to use amounts available from the 
Trust fund to meet the cost-share requirement of other federal 
programs. The use of funds as cost-share shall not affect the 
priority in which other federal funds are allocated.
    Subsection ``(t)(1)(L)'' requires preference be given to 
individuals and companies headquartered in or principally 
engaged in business in a Gulf Coast State.
    Subsection ``(t)(1)(M)'' requires that any funds not 
identified in a plan in accordance with subparagraph (D)(iv) 
shall remain in the Trust Fund until a state or coastal 
political subdivision submits a plan for their use.
    Subsection ``(t)(1)(N)'' allows judicial review of a 
determination that a state or coastal political subdivision 
does not meet the requirements of this subsection.
            Subsection ``(t)(1)'' Discussion
    Eligible Activities: The activities authorized (subsection 
``(t)(1)(B)'') are intended to promote the restoration of the 
ecosystem and economies of the Gulf Coast.
    Funds may be used for a variety of activities to restore 
the Gulf Coast ecosystem, including coastal restoration, 
mitigation of damage to natural resources and implementation of 
existing marine, coastal or comprehensive conservation 
management plans. Economic recovery activities include tourism 
promotion, seafood promotion, workforce development, coastal 
flood protection, and mitigation of the ecological and economic 
impact of Outer Continental Shelf activities and the oil spill 
through infrastructure projects.
    This subsection authorizes expenditures for workforce 
development. This is intended to include non-profit, 
university, and community college-based workforce, career and 
technical training programs. This would also include the 
identification of projects, research, programs and partnerships 
with federal, state and local workforce agencies, industry and 
local stakeholders from economically and socially disadvantaged 
communities.
    While this subsection expressly authorizes expenditures for 
improvements to or upon ``State parks located in coastal areas 
affected by the Deepwater Horizon oil spill,'' it is the intent 
that a county or local park is also eligible to receive funding 
under the Act for any other eligible activity identified under 
Section (t)(1)(B)(i)(I).
    Conditions: The conditions established for expenditure of 
funds (subsection ``(t)(1)(D)'') are intended to ensure funds 
allocated to a state or coastal political subdivision are used 
for the purposes of this Act--restoring the ecosystems and 
economy of the Gulf Coast. The ability of the Secretary of the 
Treasury to audit expenditures of funds provides additional 
assurances that funding will be spent in accordance with all 
relevant requirements. These conditions also ensure meaningful 
public input as states and coastal political subdivisions 
identify and propose projects and programs for funding.
    Coordination with Council: To improve efficiencies and to 
promote large-scale projects, states are encouraged to 
coordinate expenditures under paragraph ``(t)(1)'' with other 
expenditures approved by the Council for restoration of the 
Gulf of Mexico pursuant to paragraphs ``(t)(2)'' and 
``(t)(3).'' Specifically, subsection ``(t)(1)(J)'' is intended 
to promote cooperation and coordination between states and the 
Council in selecting projects. The requirement is focused on 
large-scale projects that will have the greatest benefit for 
the Gulf Coast ecosystem.
    Unauthorized Use of Funds: Funds allocated to states and 
coastal political subdivisions may be used for activities 
authorized in subsection ``(t)(1)(B)(i)''. Subsection 
``(t)(1)(E)'' is intended to preclude the use of funds on 
activities not authorized by preventing a state or coastal 
political subdivision from receiving additional funds until the 
unauthorized use is fully addressed by depositing funds into 
the Trust Fund or implementing an eligible project of the same 
value.
    Local Preference: Subsection ``(t)(1)(L)'' gives a 
preference to companies located on the Gulf Coast. This 
includes the development of procurement and grant policies that 
promote the use of local workforce development agencies and 
programs to assist with training and hiring of local workers, 
including workers from disadvantaged, underserved and resource 
constrained communities.
            Subsection ``(t)(2)'' Summary
    Subsection ``(t)(2)(A)'' reserves 60 percent of the amounts 
in the Trust Fund for distribution by the Council to carry out 
the Comprehensive Plan.
    Subsection ``(t)(2)(B)'' directs the Council to expend 
funds made available from the Trust Fund to undertake projects 
and programs to restore and protect the natural resources, 
ecosystems, fisheries, marine and wildlife habitats, beaches, 
coastal wetlands, and economy of the Gulf Coast. This 
subsection directs the Secretary of Treasury to develop 
necessary conditions, including audit requirements, necessary 
to ensure the Council expends funds in accordance with 
subsection ``(t)(2).'' Administrative expenses of the Council, 
including staff expenses associated with the Council or its 
advisory committees, are limited to 3 percent of funds made 
available to the Council.
    Subsection ``(t)(2)(C)'' describes the membership and 
functions of the Council, which consists of representatives of 
seven federal agencies and the governors of the five Gulf Coast 
States. Governors may select an alternate to be appointed to 
the Council who may vote on the Governor's behalf. The Council 
is chaired by one of the federal agency members of the Council 
that is selected by the states on the Council.
    Significant actions of the Council must be approved by the 
affirmative vote of the federal Chairperson and a majority of 
state members. Significant actions include: approval of a 
Comprehensive Plan and future revisions to that plan; approval 
of state plans pursuant to paragraph (3)(B)(iii); and approval 
of reports submitted to Congress. In the case of approval of a 
state plan pursuant to paragraph (3)(B)(iv), the vote 
requirement is met by the affirmative vote of the federal 
Chairperson and the certification of the state submitting the 
plan that it meets all relevant requirements.
    Subparagraph ``(t)(2)(C)(vi)(V)'' requires the Council to 
provide public transparency of its actions, including making 
votes on significant actions and associated deliberations open 
to the public.
    The duties of the Council as outlined in subparagraph 
``(t)(2)(C)(vii)'' include: develop a Comprehensive Plan and 
regularly update that plan; identify previously-authorized 
projects that if implemented quickly would restore and protect 
the Gulf Coast ecosystem; coordinate the development of 
consistent policies, strategies and plans for the restoration 
and protection of the Gulf Coast ecosystem; establish advisory 
committees, including a science advisory committee and public 
policy advisory committee; coordinate scientific and other 
research associated with restoration of the Gulf Coast 
ecosystem, including research in carried out pursuant to 
section 5; seek to ensure all products are based on the best 
available data; make recommendations to address the needs of 
economically and socially vulnerable populations; develop 
standard terms in contracts that provide preference for 
individuals and companies residing in a Gulf Coast State; 
prepare an integrated financial plan and recommendations for 
coordinated budget requests; submit annual reports to Congress; 
and submit a final report upon expenditure of all funds.
    The Federal Advisory Committee Act does not apply to the 
Council or its advisory committees.
    Subsection ``(t)(2)(D)'' outlines the parameters for 
development of the Comprehensive Plan. The Council is required 
to develop a proposed plan within 180 days and finalize this 
plan, after public notice and comment, within one year. This 
subsection requires incorporation of the findings of the Gulf 
Coast Restoration Task Force into the Comprehensive Plan and 
close coordination with the Task Force in the development of 
the plan. The Comprehensive Plan must also consider all 
relevant findings, reports or research funded by a Center of 
Excellence or the Gulf Coast Fisheries and Ecosystem Endowment 
established in section 5.
    The Comprehensive Plan must include: such provisions as are 
necessary to incorporate recommendations of the Gulf Coast 
Restoration Task Force; a list of projects and programs 
authorized prior to the enactment of this subsection that would 
further the goals and objectives of this Act; a description of 
the manner in which funds in the Trust Fund will be allocated 
over the succeeding 10 years; and subject to available funding, 
a prioritized list of specific projects and programs to be 
funded during the 3-year period following publication of the 
Comprehensive Plan.
    The Comprehensive Plan must be updated every 5 years, and 
the 3-year list of projects and programs must be updated 
annually.
    In selecting projects and programs for inclusion on the 3-
year list, the Council must give priority to the following: 
projects and programs projected to make the greatest 
contribution to restoring and protecting the natural resources, 
ecosystems, fisheries, marine and wildlife habitats, beaches, 
and coastal wetlands of the Gulf Coast ecosystem, without 
regard to geographic location; large-scale project and 
programs; projects contained in existing state comprehensive 
plans; projects that restore the long-term resiliency of the 
natural resources and ecosystems most impacted by the Deepwater 
Horizon oil spill.
    Subsection ``(t)(2)(E)'' requires the Council to expend 
funds made available from the Trust Fund to carry out the 
Comprehensive Plan. The Council is directed to assign primary 
authority and responsibility for each project and program 
included in the Comprehensive Plan to a state or federal agency 
and to transfer such amounts necessary to the designated state 
or agency to carry out the project or plan.
    This section allows a state or coastal political 
subdivision to use amounts made available to satisfy the non-
federal share of a project or program authorized by other 
federal law if it meets the requirements in subparagraph (D) 
for inclusion in the Comprehensive Plan.
    Subsection ``(t)(2)(F)'' allows the Council to develop 
Memorandums of Understanding with federal members of the 
Council to establish integrated funding and implementation 
plans.
    Subsection ``(t)(2)(G)'' requires the Council to terminate 
following submission of the final report required in 
subparagraph ``(t)(C)(vii)(XI)''.
            Subsection ``(t)(2)'' Discussion
    Eligible Activities: In identifying priorities pursuant to 
subsection ``(t)(2)(D)'', the Comprehensive Plan may select 
from eligible activities identified in subsection 
``(t)(1)(B)(i),'' including recommendations for ecosystem 
restoration-related workforce development and job creation 
programs.
    Public Engagement: This subsection waives compliance with 
the Federal Advisory Committee Act for the Council and its 
advisory committees. However, this is not intended to limit 
public involvement in the decision-making of the Council. 
Additional public transparency and input requirements are 
included. For example, subsection ``(t)(2)(D)(ii)(I)'' requires 
the Council to allow public comment on the proposed 
Comprehensive Plan. In addition, subsection 
``(t)(2)(C)(vi)(V)'' requires the Council to make significant 
actions and associated deliberations available to the public. 
It is expected that this will involve a robust process for 
public engagement in and transparency of Council decisions.
    Scientific Input: Among the Council's duties enumerated in 
subsection ``(t)(2)(C)(vii)'' is the coordination of scientific 
and other research associated with restoration of the Gulf 
Coast ecosystem. Section 5 establishes research centers of 
excellence and a fisheries and ecosystem endowment to carry out 
ongoing research on the restoration of the Gulf of Mexico. In 
carrying out its duties, the Council should consider the 
research produced by the centers of excellence and funded 
through the fisheries and ecosystem endowment in its decision-
making.
    The Council is also directed to establish advisory 
committees necessary to assist the Council in carrying out its 
duties, including a science advisory committee. Such an 
advisory committee should provide independent scientific advice 
to the Council to aid in its decision-making, including the 
development of a Comprehensive Plan and selection of projects 
and programs for funding.
    Restoration Priorities: Subsection ``(t)(2)(D)(iii)'' 
outlines priorities for selecting projects to be included in 
the Comprehensive plan. These priorities are focused on 
projects and programs with the greatest benefit for the 
ecosystems of the Gulf Coast, including large-scale projects, 
projects contained in existing state comprehensive plans, and 
projects that restore long-term resiliency to areas most 
impacted by the Deepwater Horizon oil spill.
    Implementation: The Council is intended to function through 
its member agencies and the states. To implement projects and 
programs identified in the Comprehensive Plan, the Council is 
directed to identify a member federal agency or state to 
undertake primary responsibility for a project or program and 
to transfer appropriate funding to the state or federal agency 
to implement the project or program. Such coordination should 
allow for the agency or state with the greatest expertise 
related to a project or program to oversee its implementation.
            Subsection ``(t)(3)'' Summary
    Subsection ``(t)(3)(A)'' requires that 50 percent of the 
funding provided to the Council (or 30 percent of funds 
deposited in the Trust Fund) shall be distributed based on an 
oil spill impact formula. The formula is the weighted average 
of the following criteria:
     40 percent based on the proportionate number of 
miles of shoreline in each Gulf Coast State that experienced 
oiling as of April 10, 2011 compared to the total number of 
miles of shoreline that experienced oiling.
     40 percent based on the inverse proportion of the 
average distance from the Deepwater Horizon oil rig to the 
nearest and farthest point of the shoreline that experienced 
oiling in each Gulf Coast State.
     20 percent based on the average population in the 
2010 decennial census of coastal counties bordering the Gulf of 
Mexico.
    Each Gulf Coast State is guaranteed a minimum of 5 percent 
of the funds distributed according to the impact formula.
    Subsection ``(t)(3)(B)'' requires the Council to distribute 
funding to Gulf Coast States according to the impact formula, 
subject to the submission of a plan to the Council by the Gulf 
Coast State that meets all applicable requirements of this 
subsection. These requirements include:
     All projects, programs, and activities proposed 
for funding are eligible under paragraph ``(t)(1)(B)(i).''
     The projects, programs, and activities contribute 
to the overall ecological and economic recovery of the Gulf 
Coast.
     The plan takes into consideration the 
Comprehensive Plan and is consistent with its goals and 
objectives.
    A state plan may propose to use no more than 25 percent of 
the funding made available for infrastructure projects eligible 
under subclauses (X) and (XI) of subsection ``(t)(1)(B)(i)'' 
unless the plan: (1) will address the ecosystem restoration 
needs in the state and (2) additional investment in 
infrastructure is required to mitigate the impacts of the 
Deepwater Horizon oil spill.
    The Council must act to approve or disapprove a plan within 
60 days of the plan being submitted.
    Subsection ``(t)(3)(C)'' requires the Council to provide 
reasons in writing for disapproval of a plan and consult with 
the state to address any identified deficiencies.
    Subsection ``(t)(3)(D)'' requires that any funds allocated 
to a state under the impact formula shall remain in the Trust 
Fund in the event a state fails to submit a required plan.
    Subsection ``(t)(3)(E)'' allows states to seek judicial 
review in a district court located within the state if the 
Council fails to approve or take action on a submitted plan.
            Subsection ``(t)(3)'' Discussion
    This subsection ensures a portion of funds in the Trust 
Fund are distributed based on impacts related to the Deepwater 
Horizon oil spill. Funding distributed in this subsection is 
based on a state plan that has been developed in coordination 
with the Comprehensive Plan and approved by the Council. This 
ensures close coordination between states and the Council.
            Subsection ``(t)(4)'' Summary
    Subsection ``(t)(4)(A)'' divides the interest earned on 
funds in the Trust Fund between two endowments established in 
this subsection: the National Endowment for Oceans and the Gulf 
of Mexico Research Endowment.
    Subsection ``(t)(4)(B)'' establishes a national endowment 
for oceans to provide funds to coastal states for activities to 
restore, protect, maintain, or understand living marine 
resources and their habitats in ocean and coastal waters, 
including baseline scientific research, ocean observing, and 
other related activities. Funding is allocated to states 
according to a weighted formula. Funding is also provided to 
regional ocean and coastal planning bodies and for a National 
Grant Program for Oceans and Coastal Waters.
    Subsection ``(t)(4)(C)'' establishes a Gulf of Mexico 
Research Endowment to provide funding for research activities 
authorized in Section 5.

Section 5. Gulf Coast Ecosystem Restoration Science, Observation, 
        Monitoring, and Technology Program

    Subsection (b) establishes a Gulf Coast Ecosystem 
Restoration, Science, Observation, Monitoring, and Technology 
Program (Program) carried out by the Administrator of the 
National Oceanic and Atmospheric Administration 
(Administrator). Subsection (c) requires the Administrator to 
make grants to establish five centers of excellence in each of 
the Gulf Coast States. In carrying out this program, the 
Administrator must consult with other federal agencies with 
expertise in the discipline of a center of excellence.
    In awarding grants under subsection (c), the Administrator 
shall give priority to entities and consortia that demonstrate 
the ability to establish the broadest cross-section of 
participants. Disciplines outlined for the five centers of 
excellence are as follows:
     Coastal and deltaic sustainability, restoration 
and protection; including solutions and technology that allow 
citizens to live safely and sustainably in a coastal delta.
     Coastal fisheries and wildlife ecosystem research 
and monitoring.
     Offshore energy development, including research 
and technology to improve the sustainable and safe development 
of energy resources.
     Sustainable and resilient growth, economic and 
commercial development in the Gulf Coast.
     Comprehensive observation, monitoring, and mapping 
of the Gulf of Mexico.
    The Administrator is required to develop a plan to 
coordinate projects and activities of the Program with other 
existing federal and state science and technology programs as 
well as with the centers of excellence.
    Subsection (d) establishes a fishery and ecosystem 
endowment (Endowment) to ensure, to the maximum extent 
practicable, the long-term sustainability of the ecosystem, 
fish stocks, fish habitats, and the recreational, commercial, 
and charter fishing industry of the Gulf of Mexico. Funds may 
be expended for marine and estuarine research; marine and 
estuarine ecosystem monitoring and ocean observation, data 
collection and stock assessments, pilot programs for fishery 
independent data and reduction of exploitation of spawning 
aggregations, and cooperative research. Priority is given to 
integrated, long-term projects that build on, or are 
coordinated with, related research activities and address 
current or anticipated marine ecosystem, fishery or wildlife 
management information needs.
    The program will be administered by the Administrator, in 
consultation with the Director of the U.S. Fish and Wildlife 
Service.
    Subsection (e) reserves 5% of funds deposited in the Trust 
Funds to be equally divided between the Program and the 
Endowment. Administrative expenses are limited to not more than 
3 percent of the funds available.
            Discussion
    Section 5 establishes research centers of excellence and a 
fisheries and ecosystem endowment to carry out ongoing research 
on the restoration of the Gulf of Mexico. The Gulf Coast 
Ecosystem Restoration Council established in Section 4 is 
directed to consider the research produced by the centers of 
excellence and funded through the endowment in its decision-
making. In identifying and selecting research needs, to fulfill 
the requirements of Section 4 and Section 5, the Administrator 
and the centers of excellence receiving funding should 
coordinate with the Council on identifying research necessary 
to develop and carry out the Comprehensive Plan.
    There are multiple ongoing research efforts in the Gulf of 
Mexico based at universities and other research institutions. 
In establishing the centers of excellence and fisheries and 
ecosystem endowment, it is important to avoid duplication. When 
awarding research funding these programs should build upon and 
incorporate ongoing research efforts.
    It is the intent of the Committee that universities, 
university-affiliated entities, or other collaborative and 
consortia organizations led by universities located in the 
applicable Gulf Coast State should be given consideration in 
the selection of funding recipients.

Section 6. Gulf Coast Ecosystem Restoration Science, Observation, 
        Monitoring, and Technology Program

    The savings clause in paragraph (1) of subsection (a) 
clarifies that nothing in this Act shall affect or supersede 
any provision of federal law, including requirements of the Oil 
Pollution Act related to injury to natural resources as well as 
laws for protection of public health and the environment.
    Paragraph (2) clarifies that the provisions of this Act 
apply only to fines collected pursuant to the Deepwater Horizon 
oil spill and not to any other oil pollution event.
    Subsection (b) clarifies that funds made available under 
this Act may only be used for eligible activities specifically 
authorized in this Act.
            Discussion
    Natural Resources Damages: As highlighted by the report 
prepared by Secretary of the Navy Ray Mabus (America's Gulf 
Coast: A Long Term Recovery Plan After the Deepwater Horizon 
Oil Spill at p. 26-27), the adverse impacts of the Deepwater 
Horizon oil spill were compounded by a number of pre-existing 
factors and conditions in the Gulf Coast region such as 
erosion, storm damage, overfishing, and hypoxia. It is the 
intent of this legislation that monies deposited into the Trust 
Fund be available to address the long-term pollution and 
degradation of the ecosystem and natural resources of the Gulf 
States as well as economic recovery, which was exacerbated by 
the Deepwater Horizon oil spill. These activities are typically 
in addition to activities to restore damages associated with 
the Deepwater Horizon oil spill.
    Under the existing statutory schemes, the United States may 
seek natural resources damages (NRD) for injury to natural 
resources under Title I of Oil Pollution Act (OPA), 33 U.S.C. 
Sec. Sec. 2701-2730, and also obtain penalties from a 
responsible party for discharges of oil in violation of section 
311 of the CWA, 33 U.S.C. Sec. 1321, such as occurred in 
connection with the explosion on, and sinking of, the Deepwater 
Horizon mobile offshore drilling unit.
    The intent of the legislation is to address the long-term 
restoration of Gulf coast ecosystems and economies. It is 
expected that efforts to restore natural resources using civil 
penalties deposited into the Trust Fund will benefit from 
coordination with activities to restore those resources for 
which NRD are authorized under OPA. However, the intent of the 
savings clause in Section 6 is to make clear that in no way are 
this legislation and new Trust Fund intended to affect the 
ability of natural resources trustees under section 1006 of 
OPA, 33 U.S.C. Sec. 2706, to fully recover allowable damages 
for natural resource injuries under OPA, even if the 
restoration, rehabilitation, replacement, or acquisition of 
natural resources is funded in the first instance by civil 
penalties from the Deepwater Horizon oil spill that have been 
deposited in the Trust Fund. Under no circumstances should 
potential later efforts to seek cost recovery for NRD under OPA 
be considered ``double recovery'' for purposes of section 
1006(d) of OPA, 33 U.S.C. Sec. 2706(d).
    The ability to obtain both NRD and penalties is not, and 
has never been, considered double recovery against a 
Responsible Party, but rather separate remedies provided by law 
that serve different purposes. Clean Water Act penalties are 
punitive in nature and serve a deterrent purpose, while NRD 
claims are intended to compensate the public for natural 
resource injuries resulting from an oil spill. Accordingly, 
even if some penalties recovered in litigation related to the 
Deepwater Horizon explosion and oil spill are used to fund 
activities for the long-term restoration of natural resources 
that were also injured by that spill, it is not double recovery 
for a Natural Resources trustee to thereafter seek recovery for 
valid NRD claims. To bar NRD cost recovery under such 
circumstances would undermine the deterrent effect of any 
penalties imposed on the responsible parties.
    Nothing in this legislation shall interfere with the 
statutory responsibilities and authority of the Natural 
Resource Damage Assessment Trustee Council or the individual 
trustees to carry out their statutory responsibilities to 
assess natural resource damages and implement restoration 
actions under 33 U.S.C. Sec. 2706 and other applicable law. The 
Council established under this Act should support and closely 
coordinate with the Natural Resource Damage Trustee Council, 
but shall not preempt the decisions of the Trustee Council or 
individual trustees. While, as noted above, projects eligible 
for funding made available under this legislation could overlap 
to some extent with restoration provided for under the NRDA 
process, the Council shall seek to avoid such overlap, and 
priority should be given to projects that are not likely to be 
funded under the NRDA process.
    Public Health and Environmental Laws: Nothing in this 
section supersedes any other federal law related to public 
health and environmental protection. All projects or programs 
funded by this Act must comply with all relevant laws.

                          Legislative History

    The Resources and Ecosystems Sustainability, Tourist 
Opportunities, and Revived Economies of the Gulf Coast States 
(RESTORE) Act of 2011 was introduced by Senators Landrieu (D-
LA), Shelby (R-AL), Vitter (R-LA), Nelson (D-FL), Rubio (R-FL), 
Sessions (R-AL), Cochran (R-MS), Wicker (R-MS), and Hutchison 
(R-TX) on July 21, 2011. The bill was received, read twice, and 
referred to the Senate Committee on Environment and Public 
Works. Previously, two related pieces of legislation (S. 861 
and S. 862) to dedicate Clean Water Act fines to restoration 
activities in the Gulf of Mexico were introduced and referred 
to the Committee on Environment and Public Works.
    On September 21, 2011, the Full Committee met to discuss a 
number of bills including S. 1400. During this meeting, the 
Committee considered the bill and adopted an amendment in the 
nature of a substitute offered by Senator Boxer and co-
sponsored by Senators Whitehouse, Vitter, and Sessions that 
made technical changes to the bill and modified the allocation 
of the interest earned on the Trust Fund. S. 1400 was ordered 
to be reported favorably with an amendment in the nature of a 
substitute by voice vote.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S. 1400 on September 21, 2011. The bill was ordered to 
be reported favorably with an amendment in the nature of a 
substitute by voice vote with Senators Inhofe, Barrasso, and 
Johanns recorded as ``No''.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee finds that S. 1400 
does not create any additional regulatory burdens, nor will it 
cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee noted that the Congressional 
Budget Office (CBO) has found, ``S. 1400 contains no 
intergovernmental or private-sector mandates as defined in UMRA 
and would impose no costs on state, local, or tribal 
governments.''

               Congressional Budget Office Cost Estimate

                                                  October 19, 2011.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1400, the Resources 
and Ecosystems Sustainability, Tourist Opportunities, and 
Revived Economies of the Gulf Coast States Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sarah Puro.
                                Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1400--Resources and Ecosystems Sustainability, Tourist 
        Opportunities, and Revived Economies of the Gulf Coast States 
        Act of 2011

    Summary: S. 1400 would establish the Gulf Coast Restoration 
Trust Fund (GCRTF) and would require that 80 percent of any 
administrative and civil penalties paid to the federal 
government under the Clean Water Act (CWA) in connection with 
the April 2010 explosion at the Deepwater Horizon facility in 
the Gulf of Mexico be deposited into that Trust Fund. The bill 
would also establish two smaller funds, which would receive 
interest credited to the GCRTF, to support programs that 
maintain the health of the Gulf of Mexico and oceans worldwide. 
Amounts in all three funds would be available for spending 
without further appropriation. Those amounts would otherwise be 
deposited in the Oil Spill Liability Trust Fund (OSLTF) and 
eligible to be spent only subject to further appropriation 
action.
    CBO estimates that enacting the legislation would increase 
direct spending by $1.2 billion over the 2012-2021 period. Pay-
as-you-go procedures apply because enacting the legislation 
would affect direct spending. S. 1400 would not affect 
revenues.
    The bill would require the Department of the Treasury to 
complete audits of spending from the GCRTF and to ensure 
compliance with the provisions of the legislation. CBO 
estimates that implementing those requirements would cost $13 
million over the 2012-2016 period, subject to appropriation of 
the necessary amounts.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1400 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and the environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2012    2013    2014    2015    2016    2017    2018    2019    2020    2021   2012-2016  2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Gulf Coast Restoration Trust Fund:
    Estimated Budget Authority....................       0       0      37     127     163     309     318     323     309     290       327      1,876
    Estimated Outlays.............................       0       0       2      12      40      94     155     228     279     300        54      1,110
Oceans Endowment and Gulf of Mexico Endowment:
    Estimated Budget Authority....................       0       0       0       6      14      26      41      55      61      67        19        270
    Estimated Outlays.............................       0       0       0       1       4      10      18      27      35      43         5        138
    Total Changes:
        Estimated Budget Authority................       0       0      37     133     177     335     359     378     370     357       346      2,146
        Estimated Outlays.........................       0       0       2      13      44     104     173     255     314     343        59      1,248

                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Department of the Treasury:
    Estimated Authorization Level.................       0       0       5       5       5      10      10      10      10      10        15         65
    Estimated Outlays.............................       0       0       3       5       5       7      10      10      10      10        13         60
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes S. 1400 
will be enacted early in fiscal year 2012 and that the 
necessary amounts to audit the new programs that the 
legislation would establish will be provided for each year.

Penalty collections under current law

    The magnitude of any administrative and civil penalties 
that may be collected under the CWA because of the Deepwater 
Horizon incident and when the government might collect such 
penalties is uncertain. Under the CWA, penalties related to oil 
spills are generally based on the size of the discharge and the 
applicable penalty rate, which is higher for discharges caused 
by gross negligence. The CWA authorizes lower penalties to be 
assessed based on a number of considerations, including the 
financial position of the violator and whether the violator 
takes action to mitigate the damage from the spill. Negotiated 
settlements between the federal government and the entity 
responsible for an oil spill are also authorized by the CWA.
    It is possible that any penalty payments related to the 
Deepwater Horizon incident will be received by the government 
only after a lengthy legal process that could take several 
years to resolve. In that case, penalty collections could be 
delayed until after 2021. On the other hand, they could be 
collected relatively quickly if a settlement with the violator 
is reached. CBO weighed the probabilities associated with those 
scenarios to estimate the magnitude and the timing of penalties 
that may be paid under current law as a result of the Deepwater 
Horizon incident. Based on those probabilities, CBO estimates 
that revenues from civil penalties will total about $2.3 
billion over the 2012-2021 period. Under current law, those 
amounts would be deposited into the OSLTF and generally could 
only be spent if provided for in appropriation acts.

Direct spending

    Gulf Coast Restoration Trust Fund. S. 1400 would establish 
the GCRTF and require that 80 percent of any CWA penalties 
(estimated to total about $1.9 billion over the 2012-2021 
period) paid to the federal government in connection with the 
explosion at the Deepwater Horizon facility in the Gulf of 
Mexico be deposited into the fund. Balances in the GCRTF would 
be available, without further appropriation, to pay for 
environmental remediation and restoration projects in Alabama, 
Florida, Louisiana, Mississippi, and Texas. Because such 
projects have historically taken several years to complete, CBO 
estimates enacting this provision would increase direct 
spending by $1.1 billion over the 2012-2021 period.
    Oceans Endowment and Gulf of Mexico Endowment. S. 1400 
would transfer any interest amounts credited to the GCRTF to 
two new funds--the National Endowment for the Oceans and the 
Gulf of Mexico Endowment. Under the provisions of the bill, 
those amounts, in addition to interest credited directly to the 
endowments, would be available to be spent without further 
appropriation for grants to states to engage in environmental 
research, restoration, or protection for the Gulf of Mexico or 
oceans worldwide. CBO estimates that enacting those provisions 
would increase direct spending by $138 million over the 2012-
2021 period.

Spending subject to appropriation

    The bill would require the Department of the Treasury to 
complete audits of spending from the GCRTF and to ensure 
compliance with the provisions of the legislation. Based on 
historical spending for similar efforts, CBO estimates that 
enacting those requirements would cost $13 million over the 
2012-2016 period, subject to appropriation of the necessary 
amounts.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 1400, RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURIST OPPORTUNITIES, AND REVIVED ECONOMIES OF THE GULF
               COAST STATES ACT OF 2011, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS ON SEPTEMBER 21, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2012    2013    2014    2015    2016    2017    2018    2019    2020    2021   2012-2016  2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact....................       0       0       2      13      44     104     173     255     314     343        59      1,248
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: S. 1400 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. Those governments could benefit from grants 
authorized by the bill, but any costs would be incurred 
voluntarily as conditions of federal assistance.
    Estimate prepared by: Federal Spending: Sarah Puro; Federal 
Revenues: Pamela Greene; Impact on State, Local, and Tribal 
Governments: Ryan Miller; Impact on the Private Sector: Amy 
Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis; Frank Sammartino, Assistant 
Director for Tax Analysis.

                        Changes in Existing Law

    In compliance with section 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 matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

           *       *       *       *       *       *       *

                              ----------                              

FEDERAL WATER POLLUTION CONTROL ACT

           *       *       *       *       *       *       *

    Sec. 301. (a)* * *

           *       *       *       *       *       *       *

    Sec. 311. (a) For the purpose of this section, the term--
          (1) ``oil'' means oil of any kind or in any form, 
        including, but not limited to, petroleum, fuel oil, 
        sludge, oil refuse, and oil mixed with wastes other 
        than dredged spoil;
          (2)* * *

           *       *       *       *       *       *       *

          (25) ``removal costs'' means--
                  (A) the costs of removal of oil or a 
                hazardous substance that are incurred after it 
                is discharged; and
                  (B) in any case in which there is a 
                substantial threat of a discharge of oil or a 
                hazardous substance, the costs to prevent, 
                minimize, or mitigate that threat; [and]
          (26) ``nontank vessel'' means a self-propelled vessel 
        that--
                  (A) is at least 400 gross tons as measured 
                under section 14302 of title 46, United States 
                Code, or, for vessels not measured under that 
                section, as measured under section 14502 of 
                that title;
                  (B) is not a tank vessel;
                  (C) carries oil of any kind as fuel for main 
                propulsion; and
                  (D) operates on the navigable waters of the 
                United States, as defined in section 2101(17a) 
                of that title[.];
          (27) the term `Chairperson' means the Chairperson of 
        the Council;
          (28) the term `coastal political subdivision' means 
        any local political jurisdiction that is immediately 
        below the State level of government, including a 
        county, parish, or borough, with a coastline that is 
        contiguous with any portion of the United States Gulf 
        of Mexico;
          (29) the term `Comprehensive Plan' means the 
        comprehensive plan developed by the Council pursuant to 
        subsection (t);
          (30) the term `Council' means the Gulf Coast 
        Ecosystem Restoration Council established pursuant to 
        subsection (t);
          (31) the term `Deepwater Horizon oil spill' means the 
        blowout and explosion of the mobile offshore drilling 
        unit Deepwater Horizon that occurred on April 20, 2010, 
        and resulting hydrocarbon releases into the 
        environment;
          (32) the term `Gulf Coast ecosystem' means--
                  (A) in the Gulf Coast States, the coastal 
                zones (as that term is defined in section 304 
                of the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1453), except that, in this section, the 
                term `coastal zones' includes land within the 
                coastal zones that is held in trust by, or the 
                use of which is by law subject solely to the 
                discretion of, the Federal Government or 
                officers or agents of the Federal Government) 
                that border the Gulf of Mexico;
                  (B) any adjacent land, water, and watersheds, 
                that are within 25 miles of the coastal zones 
                described in subparagraph (A) of the Gulf Coast 
                States; and
                  (C) all Federal waters in the Gulf of Mexico;
          (33) the term `Gulf Coast State' means any of the 
        States of Alabama, Florida, Louisiana, Mississippi, and 
        Texas; and
          (34) the term `Trust Fund' means the Gulf Coast 
        Restoration Trust Fund established pursuant to section 
        3 of the Resources and Ecosystems Sustainability, 
        Tourist Opportunities, and Revived Economies of the 
        Gulf Coast States Act of 2011.

           *       *       *       *       *       *       *

  (s) The Oil Spill Liability Trust Fund established under 
section 9509 of the Internal Revenue Code of 1986 (26 U.S.C. 
9509) shall be available to carry out subsections (b), (c), 
(d), (j), and (l) as those subsections apply to discharges, and 
substantial threats of discharges, of oil. Any amounts received 
by the United States under this section shall be deposited in 
the Oil Spill Liability Trust Fund except as provided in 
subsection (t).
  (t) Gulf Coast Restoration and Recovery.--
          (1) State allocation and expenditures.--
                  (A) In general.--Of the total amounts made 
                available in any fiscal year from the Trust 
                Fund, 35 percent shall be available, in 
                accordance with the requirements of this 
                section, to the Gulf Coast States in equal 
                shares for expenditure for ecological and 
                economic restoration of the Gulf Coast 
                ecosystem in accordance with this subsection.
                  (B) Use of funds.--
                          (i) Eligible activities.--Amounts 
                        provided to the Gulf States under this 
                        subsection may only be used to carry 
                        out 1 or more of the following 
                        activities:
                                  (I) Coastal restoration 
                                projects and activities, 
                                including conservation and 
                                coastal land acquisition.
                                  (II) Mitigation of damage to, 
                                and restoration of, fish, 
                                wildlife, or natural resources.
                                  (III) Implementation of a 
                                federally approved marine, 
                                coastal, or comprehensive 
                                conservation management plan, 
                                including fisheries monitoring.
                                  (IV) Programs to promote 
                                tourism in a Gulf Coast State, 
                                including recreational fishing.
                                  (V) Programs to promote the 
                                consumption of seafood produced 
                                from the Gulf Coast ecosystem.
                                  (VI) Programs to promote 
                                education regarding the natural 
                                resources of the Gulf Coast 
                                ecosystem.
                                  (VII) Planning assistance.
                                  (VIII) Workforce development 
                                and job creation.
                                  (IX) Improvements to or upon 
                                State parks located in coastal 
                                areas affected by the Deepwater 
                                Horizon oil spill.
                                  (X) Mitigation of the 
                                ecological and economic impact 
                                of outer Continental Shelf 
                                activities and the impacts of 
                                the Deepwater Horizon oil spill 
                                or promotion of the long-term 
                                ecological or economic recovery 
                                of the Gulf Coast ecosystem 
                                through the funding of 
                                infrastructure projects.
                                  (XI) Coastal flood protection 
                                and infrastructure directly 
                                affected by coastal wetland 
                                losses, beach erosion, or the 
                                impacts of the Deepwater 
                                Horizon oil spill.
                                  (XII) Administrative costs of 
                                complying with this subsection.
                          (ii) Limitation.--
                                  (I) In general.--Of the 
                                amounts received by a Gulf 
                                State under this subsection not 
                                more than 3 percent may be used 
                                for administrative costs 
                                eligible under clause (i)(XII).
                                  (II) Prohibition on use for 
                                imported seafood.--None of the 
                                funds made available under this 
                                subsection shall be used for 
                                any program to support or 
                                promote imported seafood or any 
                                seafood product that is not 
                                harvested from the Gulf Coast 
                                ecosystem.
                  (C) Coastal political subdivisions.--
                          (i) In general.--In the case of a 
                        State where the coastal zone includes 
                        the entire State--
                                  (I) 75 percent of funding 
                                shall be provided to the 8 
                                disproportionally affected 
                                counties impacted by the 
                                Deepwater Horizon Oil Spill; 
                                and
                                  (II) 25 percent shall be 
                                provided to 
                                nondisproportionately impacted 
                                counties within the State.
                          (ii) Louisiana.--Of the total amounts 
                        made available to the State of 
                        Louisiana under this paragraph:
                                  (I) 70 percent shall be 
                                provided directly to the State 
                                in accordance with this 
                                subsection.
                                  (II) 30 percent shall be 
                                provided directly to parishes 
                                in the coastal zone (as defined 
                                in section 304 of the Coastal 
                                Zone Management Act of 1972 (16 
                                U.S.C. 1453)) of the State of 
                                Louisiana according to the 
                                following weighted formula:
                                          (aa) 40 percent based 
                                        on the weighted average 
                                        of miles of the parish 
                                        shoreline oiled.
                                          (bb) 40 percent based 
                                        on the weighted average 
                                        of the population of 
                                        the parish.
                                          (cc) 20 percent based 
                                        on the weighted average 
                                        of the land mass of the 
                                        parish.
                          (iii) Conditions.--
                                  (I) Land use plan.--As a 
                                condition of receiving amounts 
                                allocated under clause (ii), 
                                the chief executive of the 
                                eligible parish shall certify 
                                to the Governor of the State 
                                that the parish has completed a 
                                comprehensive land use plan.
                                  (II) Other conditions.--A 
                                coastal political subdivision 
                                receiving funding under this 
                                subsection shall meet all of 
                                the conditions in subparagraph 
                                (D).
                  (D) Conditions.--As a condition of receiving 
                amounts from the Trust Fund, a Gulf Coast 
                State, including the entities described in 
                subparagraph (E), or a coastal political 
                subdivision shall--
                          (i) agree to meet such conditions, 
                        including audit requirements, as the 
                        Secretary of the Treasury determines 
                        necessary to ensure that amounts 
                        disbursed from the Trust Fund will be 
                        used in accordance with this 
                        subsection;
                          (ii) certify in such form and in such 
                        manner as the Secretary of the Treasury 
                        determines necessary that the project 
                        or program for which the Gulf Coast 
                        State or coastal political subdivision 
                        is requesting amounts--
                                  (I) is designed to restore 
                                and protect the natural 
                                resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, coastal 
                                wetlands, or economy of the 
                                Gulf Coast;
                                  (II) carries out 1 or more of 
                                the activities described in 
                                subparagraph (B)(i);
                                  (III) was selected based on 
                                meaningful input from the 
                                public, including broad-based 
                                participation from individuals, 
                                businesses, and nonprofit 
                                organizations; and
                                  (IV) in the case of a natural 
                                resource protection or 
                                restoration project, is based 
                                on the best available science;
                          (iii) certify that the project or 
                        program and the awarding of a contract 
                        for the expenditure of amounts received 
                        under this subsection are consistent 
                        with the standard procurement rules and 
                        regulations governing a comparable 
                        project or program in that State, 
                        including all applicable competitive 
                        bidding and audit requirements; and
                          (iv) develop and submit a multiyear 
                        implementation plan for use of those 
                        funds.
                  (E) Approval by state entity, task force, or 
                agency.--The following Gulf Coast State 
                entities, task forces, or agencies shall carry 
                out the duties of a Gulf Coast State pursuant 
                to this paragraph:
                          (i) Alabama.--
                                  (I) In general.--In the State 
                                of Alabama, the Alabama Gulf 
                                Coast Recovery Council, which 
                                shall be comprised of only the 
                                following:
                                          (aa) The Governor of 
                                        Alabama, who shall also 
                                        serve as Chairperson 
                                        and preside over the 
                                        meetings of the Alabama 
                                        Gulf Coast Recovery 
                                        Council.
                                          (bb) The Director of 
                                        the Alabama State Port 
                                        Authority, who shall 
                                        also serve as Vice 
                                        Chairperson and preside 
                                        over the meetings of 
                                        the Alabama Gulf Coast 
                                        Recovery Council in the 
                                        absence of the 
                                        Chairperson.
                                          (cc) The Chairman of 
                                        the Baldwin County 
                                        Commission.
                                          (dd) The President of 
                                        the Mobile County 
                                        Commission.
                                          (ee) The Mayor of the 
                                        city of Bayou La Batre.
                                          (ff) The Mayor of the 
                                        town of Dauphin Island.
                                          (gg) The Mayor of the 
                                        city of Fairhope.
                                          (hh) The Mayor of the 
                                        city of Gulf Shores.
                                          (ii) The Mayor of the 
                                        city of Mobile.
                                          (jj) The Mayor of the 
                                        city of Orange Beach.
                                  (II) Vote.--Each member of 
                                the Alabama Gulf Coast Recovery 
                                Council shall be entitled to 1 
                                vote.
                                  (III) Majority vote.--All 
                                decisions of the Alabama Gulf 
                                Coast Recovery Council shall be 
                                made by majority vote.
                          (ii) Louisiana.--In the State of 
                        Louisiana, the Coastal Protection and 
                        Restoration Authority of Louisiana.
                          (iii) Mississippi.--In the State of 
                        Mississippi, the Mississippi Department 
                        of Environmental Quality.
                  (F) Compliance with eligible activities.--If 
                the Secretary of the Treasury determines that 
                an expenditure by a Gulf Coast State or coastal 
                political subdivision of amounts made available 
                under this subsection does not meet 1 of the 
                activities described in subparagraph (B)(i), 
                the Secretary shall make no additional amounts 
                from the Trust Fund available to that Gulf 
                Coast State or coastal political subdivision 
                until such time as an amount equal to the 
                amount expended for the unauthorized use--
                          (i) has been deposited by the Gulf 
                        Coast State or coastal political 
                        subdivision in the Trust Fund; or
                          (ii) has been authorized by the 
                        Secretary of the Treasury for 
                        expenditure by the Gulf Coast State or 
                        coastal political subdivision for a 
                        project or program that meets the 
                        requirements of this subsection.
                  (G) Compliance with conditions.--If the 
                Secretary of the Treasury determines that a 
                Gulf Coast State or coastal political 
                subdivision does not meet the requirements of 
                this subsection, including the conditions of 
                subparagraph (D), where applicable, the 
                Secretary of the Treasury shall make no amounts 
                from the Trust Fund available to that Gulf 
                Coast State or coastal political subdivision 
                until all conditions of this subsection are 
                met.
                  (H) Public input.--In meeting any condition 
                of this subsection, a Gulf Coast State may use 
                an appropriate procedure for public 
                consultation in that Gulf Coast State, 
                including consulting with 1 or more established 
                task forces or other entities, to develop 
                recommendations for proposed projects and 
                programs that would restore and protect the 
                natural resources, ecosystems, fisheries, 
                marine and wildlife habitats, beaches, coastal 
                wetlands, and economy of the Gulf Coast.
                  (I) Previously approved projects and 
                programs.--A Gulf Coast State or coastal 
                political subdivision shall be considered to 
                have met the conditions of subparagraph (D) for 
                a specific project or program if, before the 
                date of enactment of the Resources and 
                Ecosystems Sustainability, Tourist 
                Opportunities, and Revived Economies of the 
                Gulf Coast States Act of 2011--
                          (i) the Gulf Coast State or coastal 
                        political subdivision has established 
                        conditions for carrying out projects 
                        and programs that are substantively the 
                        same as the conditions described in 
                        subparagraph (D); and
                          (ii) the applicable project or 
                        program carries out 1 or more of the 
                        activities described in subparagraph 
                        (B)(ii).
                  (J) Consultation with council.--In carrying 
                out this subsection, each Gulf Coast State 
                shall seek the input of the Chairperson of the 
                Council to identify large-scale projects that 
                may be jointly supported by that Gulf Coast 
                State and by the Council pursuant to the 
                Comprehensive Plan with amounts provided under 
                this subsection.
                  (K) Non-federal matching funds.--
                          (i) In general.--A Gulf Coast State 
                        or coastal political subdivision may 
                        use, in whole or in part, amounts made 
                        available to that Gulf Coast State from 
                        the Trust Fund to satisfy the non-
                        Federal share of the cost of any 
                        project or program authorized by 
                        Federal law that meets the eligible use 
                        requirements under subparagraph (B)(i).
                          (ii) Effect on other funds.--The use 
                        of funds made available from the Trust 
                        Fund to satisfy the non-Federal share 
                        of the cost of a project or program 
                        that meets the requirements of clause 
                        (i) shall not affect the priority in 
                        which other Federal funds are allocated 
                        or awarded.
                  (L) Local preference.--In awarding contracts 
                to carry out a project or program under this 
                subsection, a Gulf Coast State or coastal 
                political subdivision may give a preference to 
                individuals and companies that reside in, are 
                headquartered in, or are principally engaged in 
                business in, a Gulf Coast State.
                  (M) Unused funds.--Any Funds not identified 
                in an implementation plan by a State or coastal 
                political subdivision in accordance with 
                subparagraph (D)(iv) shall remain in the Trust 
                Fund until such time as the State or coastal 
                political subdivision to which the funds have 
                been allocated develops and submits a plan 
                identifying uses for those funds in accordance 
                with subparagraph (D)(iv).
                  (N) Judicial review.--If the Secretary of the 
                Treasury determines that a Gulf Coast State or 
                coastal political subdivision does not meet the 
                requirements of this subsection, including the 
                conditions of subparagraph (D), the Gulf Coast 
                State or coastal political subdivision may 
                obtain expedited judicial review within 90 days 
                of that decision in a district court of the 
                United States, of appropriate jurisdiction and 
                venue, that is located within the State seeking 
                such review.
          (2) Council establishment and allocation.--
                  (A) In general.--Of the total amount made 
                available in any fiscal year from the Trust 
                Fund, 60 percent shall be disbursed to the 
                Council to carry out the Comprehensive Plan.
                  (B) Council expenditures.--
                          (i) In general.--In accordance with 
                        this paragraph, the Council shall 
                        expend funds made available from the 
                        Trust Fund to undertake projects and 
                        programs that would restore and protect 
                        the natural resources, ecosystems, 
                        fisheries, marine and wildlife 
                        habitats, beaches, coastal wetlands, 
                        and economy of the Gulf Coast.
                          (ii) Allocation and expenditure 
                        procedures.--The Secretary of the 
                        Treasury shall develop such conditions, 
                        including audit requirements, as the 
                        Secretary of the Treasury determines 
                        necessary to ensure that amounts 
                        disbursed from the Trust Fund to the 
                        Council to implement the Comprehensive 
                        Plan will be used in accordance with 
                        this paragraph.
                          (iii) Administrative expenses.--Of 
                        the amounts received by the Council 
                        under this subsection, not more than 3 
                        percent may be used for administrative 
                        expenses, including staff.
                  (C) Gulf coast ecosystem restoration 
                council.--
                          (i) Establishment.--There is 
                        established as an independent entity in 
                        the Federal Government a council to be 
                        known as the `Gulf Coast Ecosystem 
                        Restoration Council'.
                          (ii) Membership.--The Council shall 
                        consist of the following members, or in 
                        the case of a Federal agency, a 
                        designee at the level of the Assistant 
                        Secretary or the equivalent:
                                  (I) The Chair of the Council 
                                on Environmental Quality.
                                  (II) The Secretary of the 
                                Interior.
                                  (III) The Secretary of the 
                                Army.
                                  (IV) The Secretary of 
                                Commerce.
                                  (V) The Administrator of the 
                                Environmental Protection 
                                Agency.
                                  (VI) The Secretary of 
                                Agriculture.
                                  (VII) The head of the 
                                department in which the Coast 
                                Guard is operating.
                                  (VIII) The Governor of the 
                                State of Alabama.
                                  (IX) The Governor of the 
                                State of Florida.
                                  (X) The Governor of the State 
                                of Louisiana.
                                  (XI) The Governor of the 
                                State of Mississippi.
                                  (XII) The Governor of the 
                                State of Texas.
                          (iii) Alternate.--A Governor 
                        appointed to the Council by the 
                        President may designate an alternate to 
                        represent the Governor on the Council 
                        and vote on behalf of the Governor.
                          (iv) Chairperson.--From among the 
                        Federal agency members of the Council, 
                        the representatives of States on the 
                        Council shall select, and the President 
                        shall appoint, 1 Federal member to 
                        serve as Chairperson of the Council.
                          (v) Presidential appointment.--All 
                        Council members shall be appointed by 
                        the President.
                          (vi) Council actions.--
                                  (I) In general.--Subject to 
                                subclause (IV), significant 
                                actions by the Council shall 
                                require the affirmative vote of 
                                the Federal Chairperson and a 
                                majority of the State members 
                                to be effective.
                                  (II) Inclusions.--Significant 
                                actions include but are not 
                                limited to--
                                          (aa) approval of a 
                                        Comprehensive Plan and 
                                        future revisions to a 
                                        Comprehensive Plan;
                                          (bb) approval of 
                                        State plans pursuant to 
                                        paragraph (3)(B)(iii); 
                                        and
                                          (cc) approval of 
                                        reports to Congress 
                                        pursuant to clause 
                                        (vii)(X).
                                  (III) Quorum.--A quorum of 
                                State members shall be required 
                                to be present for the Council 
                                to take any significant action.
                                  (IV) Affirmative vote 
                                requirement deemed met.--For 
                                approval of State plans 
                                pursuant to paragraph 
                                (3)(B)(iv), the certification 
                                by a State member of the 
                                Council that the plan satisfies 
                                all requirements of clauses (i) 
                                and (ii) of paragraphs (3)(B), 
                                when joined by an affirmative 
                                vote of the Federal Chairperson 
                                of the Council, is deemed to 
                                satisfy the requirements for 
                                affirmative votes under 
                                subclause (I).
                                  (V) Public transparency.--
                                Appropriate actions of the 
                                Council, including votes on 
                                significant actions and 
                                associated deliberations, shall 
                                be made available to the 
                                public.
                          (vii) Duties of council.--The Council 
                        shall--
                                  (I) develop the Comprehensive 
                                Plan, and future revisions to 
                                the Comprehensive Plan;
                                  (II) identify as soon as 
                                practicable the projects that--
                                          (aa) have been 
                                        authorized prior to the 
                                        date of enactment of 
                                        this subsection but not 
                                        yet commenced; and
                                          (bb) if implemented 
                                        quickly, would restore 
                                        and protect the natural 
                                        resources, ecosystems, 
                                        fisheries, marine and 
                                        wildlife habitats, 
                                        beaches, barrier 
                                        islands, dunes, and 
                                        coastal wetlands of the 
                                        Gulf Coast ecosystem;
                                  (III) coordinate the 
                                development of consistent 
                                policies, strategies, plans, 
                                and activities by Federal 
                                agencies, State and local 
                                governments, and private sector 
                                entities for addressing the 
                                restoration and protection of 
                                the Gulf Coast ecosystem;
                                  (IV) establish such other 
                                advisory committee or 
                                committees as may be necessary 
                                to assist the Council, 
                                including a scientific advisory 
                                committee and a committee to 
                                advise the Council on public 
                                policy issues;
                                  (V) coordinate scientific and 
                                other research associated with 
                                restoration of the Gulf Coast 
                                ecosystem, including research, 
                                observation, and monitoring 
                                carried out pursuant to section 
                                5 of the Resources and 
                                Ecosystems Sustainability, 
                                Tourist Opportunities, and 
                                Revived Economies of the Gulf 
                                Coast States Act of 2011;
                                  (VI) seek to ensure that all 
                                policies, strategies, plans, 
                                and activities for addressing 
                                the restoration of the Gulf 
                                Coast ecosystem are based on 
                                the best available physical, 
                                ecological, and economic data;
                                  (VII) make recommendations to 
                                address the particular needs of 
                                especially economically and 
                                socially vulnerable 
                                populations;
                                  (VIII) develop standard terms 
                                to include in contracts for 
                                projects and programs awarded 
                                pursuant to the Comprehensive 
                                Plan that provide a preference 
                                to individuals and companies 
                                that reside in, are 
                                headquartered in, or are 
                                principally engaged in business 
                                in, a Gulf Coast State;
                                  (IX) prepare an integrated 
                                financial plan and 
                                recommendations for coordinated 
                                budget requests for the amounts 
                                proposed to be expended by the 
                                Federal agencies represented on 
                                the Council for projects and 
                                programs in the Gulf Coast 
                                States;
                                  (X) submit to Congress an 
                                annual report that--
                                          (aa) summarizes the 
                                        policies, strategies, 
                                        plans, and activities 
                                        for addressing the 
                                        restoration and 
                                        protection of the Gulf 
                                        Coast ecosystem;
                                          (bb) describes the 
                                        projects and programs 
                                        being implemented to 
                                        restore and protect the 
                                        Gulf Coast ecosystem; 
                                        and
                                          (cc) makes such 
                                        recommendations to 
                                        Congress for 
                                        modifications of 
                                        existing laws as the 
                                        Council determines 
                                        necessary to implement 
                                        the Comprehensive Plan; 
                                        and
                                  (XI) submit to Congress a 
                                final report on the date on 
                                which all funds made available 
                                to the Council are expended.
                          (viii) Application of federal 
                        advisory committee act.--The Council, 
                        or any other advisory committee 
                        established under this subsection, 
                        shall not be considered an advisory 
                        committee under the Federal Advisory 
                        Committee Act (5 U.S.C. App.).
                  (D) Comprehensive plan.--
                          (i) Proposed plan.--
                                  (I) In general.--Not later 
                                than 180 days after the date of 
                                enactment of the Resources and 
                                Ecosystems Sustainability, 
                                Tourist Opportunities, and 
                                Revived Economies of the Gulf 
                                Coast States Act of 2011, the 
                                Chairperson, on behalf of the 
                                Council, shall publish a 
                                proposed plan to restore and 
                                protect the natural resources, 
                                ecosystems, fisheries, marine 
                                and wildlife habitats, beaches, 
                                and coastal wetlands of the 
                                Gulf Coast ecosystem.
                                  (II) Contents.--The proposed 
                                plan described in subclause (I) 
                                shall include and incorporate 
                                the findings and information 
                                prepared by the President's 
                                Gulf Coast Restoration Task 
                                Force.
                          (ii) Publication.--
                                  (I) Initial plan.--Not later 
                                than 1 year after date of 
                                enactment of the Resources and 
                                Ecosystems Sustainability, 
                                Tourist Opportunities, and 
                                Revived Economies of the Gulf 
                                Coast States Act of 2011 and 
                                after notice and opportunity 
                                for public comment, the 
                                Chairperson, on behalf of the 
                                Council and after approval by 
                                the Council, shall publish in 
                                the Federal Register the 
                                initial Comprehensive Plan to 
                                restore and protect the natural 
                                resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, and coastal 
                                wetlands of the Gulf Coast 
                                ecosystem.
                                  (II) Cooperation with gulf 
                                coast restoration task force.--
                                The Council shall develop the 
                                initial Comprehensive Plan in 
                                close coordination with the 
                                President's Gulf Coast 
                                Restoration Task Force.
                                  (III) Considerations.--In 
                                developing the initial 
                                Comprehensive Plan and 
                                subsequent updates, the Council 
                                shall consider all relevant 
                                findings, reports, or research 
                                prepared or funded by a center 
                                of excellence or the Gulf 
                                Fisheries and Ecosystem 
                                Endowment established pursuant 
                                to the Gulf Coast Ecosystem 
                                Restoration Science, 
                                Monitoring, and Technology 
                                Program under section 5 of the 
                                Resources and Ecosystems 
                                Sustainability, Tourist 
                                Opportunities, and Revived 
                                Economies of the Gulf Coast 
                                States Act of 2011.
                                  (IV) Contents.--The initial 
                                Comprehensive Plan shall 
                                include--
                                          (aa) such provisions 
                                        as are necessary to 
                                        fully incorporate in 
                                        the Comprehensive Plan 
                                        the strategy, projects, 
                                        and programs 
                                        recommended by the 
                                        President's Gulf Coast 
                                        Restoration Task Force;
                                          (bb) a list of any 
                                        project or program 
                                        authorized prior to the 
                                        date of enactment of 
                                        this subsection but not 
                                        yet commenced, the 
                                        completion of which 
                                        would further the 
                                        purposes and goals of 
                                        this subsection and of 
                                        the Resources and 
                                        Ecosystems 
                                        Sustainability, Tourist 
                                        Opportunities, and 
                                        Revived Economies of 
                                        the Gulf Coast States 
                                        Act of 2011;
                                          (cc) a description of 
                                        the manner in which 
                                        amounts from the Trust 
                                        Fund projected to be 
                                        made available to the 
                                        Council for the 
                                        succeeding 10 years 
                                        will be allocated; and
                                          (dd) subject to 
                                        available funding in 
                                        accordance with clause 
                                        (iii), a prioritized 
                                        list of specific 
                                        projects and programs 
                                        to be funded and 
                                        carried out during the 
                                        3-year period 
                                        immediately following 
                                        the date of publication 
                                        of the initial 
                                        Comprehensive Plan, 
                                        including a table that 
                                        illustrates the 
                                        distribution of 
                                        projects and programs 
                                        by Gulf Coast State.
                                  (V) Plan updates.--The 
                                Council shall update--
                                          (aa) the 
                                        Comprehensive Plan 
                                        every 5 years in a 
                                        manner comparable to 
                                        the manner established 
                                        in this subsection for 
                                        each 5-year period for 
                                        which amounts are 
                                        expected to be made 
                                        available to the Gulf 
                                        Coast States from the 
                                        Trust Fund; and
                                          (bb) the 3-year list 
                                        of projects and 
                                        programs described in 
                                        subclause (IV)(dd) 
                                        annually.
                          (iii) Restoration priorities.--Except 
                        for projects and programs described in 
                        subclause (IV)(bb), in selecting 
                        projects and programs to include on the 
                        3-year list described in subclause 
                        (IV)(dd), based on the best available 
                        science, the Council shall give highest 
                        priority to projects that address 1 or 
                        more of the following criteria:
                                  (I) Projects that are 
                                projected to make the greatest 
                                contribution to restoring and 
                                protecting the natural 
                                resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, and coastal 
                                wetlands of the Gulf Coast 
                                ecosystem, without regard to 
                                geographic location.
                                  (II) Large-scale projects and 
                                programs that are projected to 
                                substantially contribute to 
                                restoring and protecting the 
                                natural resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, and coastal 
                                wetlands of the Gulf Coast 
                                ecosystem.
                                  (III) Projects contained in 
                                existing Gulf Coast State 
                                comprehensive plans for the 
                                restoration and protection of 
                                natural resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, and coastal 
                                wetlands of the Gulf Coast 
                                ecosystem.
                                  (IV) Projects that restore 
                                long-term resiliency of the 
                                natural resources, ecosystems, 
                                fisheries, marine and wildlife 
                                habitats, beaches, and coastal 
                                wetlands most impacted by the 
                                Deepwater Horizon oil spill.
                  (E) Implementation.--
                          (i) In general.--The Council, acting 
                        through the member agencies and Gulf 
                        Coast States, shall expend funds made 
                        available from the Trust Fund to carry 
                        out projects and programs adopted in 
                        the Comprehensive Plan.
                          (ii) Administrative responsibility.--
                                  (I) In general.--Primary 
                                authority and responsibility 
                                for each project and program 
                                included in the Comprehensive 
                                Plan shall be assigned by the 
                                Council to a Gulf Coast State 
                                represented on the Council or a 
                                Federal agency.
                                  (II) Transfer of amounts.--
                                Amounts necessary to carry out 
                                each project or program 
                                included in the Comprehensive 
                                Plan shall be transferred by 
                                the Secretary of the Treasury 
                                from the Trust Fund to that 
                                Federal agency or Gulf Coast 
                                State as the project or program 
                                is implemented, subject to such 
                                conditions as the Secretary of 
                                the Treasury, in consultation 
                                with the Secretary of the 
                                Interior and the Secretary of 
                                Commerce, established pursuant 
                                to section 3 of the Resources 
                                and Ecosystems Sustainability, 
                                Tourist Opportunities, and 
                                Revived Economies of the Gulf 
                                Coast States Act of 2011.
                          (iii) Cost sharing.--
                                  (I) In general.--A Gulf Coast 
                                State or coastal political 
                                subdivision may use, in whole 
                                or in part, amounts made 
                                available to that Gulf Coast 
                                State or coastal political 
                                subdivision from the Trust Fund 
                                to satisfy the non-Federal 
                                share of the cost of carrying a 
                                project or program that--
                                          (aa) is authorized by 
                                        other Federal law; and
                                          (bb) meets the 
                                        criteria of 
                                        subparagraph (D).
                                  (II) Inclusion in 
                                comprehensive plan.--A project 
                                or program described in 
                                subclause (I) that meets the 
                                criteria for inclusion in the 
                                Comprehensive Plan described in 
                                subparagraph (D) shall be 
                                selected and adopted by the 
                                Council as part of the 
                                Comprehensive Plan in the 
                                manner described in 
                                subparagraph (D).
                  (F) Coordination.--The Council and the 
                Federal members of the Council may develop 
                Memorandums of Understanding establishing 
                integrated funding and implementation plans 
                among the member agencies and authorities.
                  (G) Termination.--The Council shall terminate 
                on the date on which the report described in 
                subparagraph (C)(vii)(XI) is submitted to 
                Congress.
          (3) Oil spill restoration impact allocation.--
                  (A) In general.--Except as provided in 
                paragraph (4), of the total amount made 
                available to the Council under paragraph (2) in 
                any fiscal year from the Trust Fund, 50 percent 
                shall be disbursed by the Council as follows:
                          (i) Formula.--Subject to subparagraph 
                        (B), for each Gulf Coast State, the 
                        amount disbursed under this paragraph 
                        shall be based on a formula established 
                        by the Council by regulation that is 
                        based on a weighted average of the 
                        following criteria:
                                  (I) 40 percent based on the 
                                proportionate number of miles 
                                of shoreline in each Gulf Coast 
                                State that experienced oiling 
                                as of April 10, 2011, compared 
                                to the total number of miles of 
                                shoreline that experienced 
                                oiling as a result of the 
                                Deepwater Horizon oil spill.
                                  (II) 40 percent based on the 
                                inverse proportion of the 
                                average distance from the 
                                Deepwater Horizon oil rig to 
                                the nearest and farthest point 
                                of the shoreline that 
                                experienced oiling of each Gulf 
                                Coast State.
                                  (III) 20 percent based on the 
                                average population in the 2010 
                                decennial census of coastal 
                                counties bordering the Gulf of 
                                Mexico within each Gulf Coast 
                                State.
                          (ii) Minimum allocation.--The amount 
                        disbursed to a Gulf Coast State for 
                        each fiscal year under clause (i) shall 
                        be at least 5 percent of the total 
                        amounts made available under this 
                        paragraph.
                  (B) Approval of projects and programs.--
                          (i) In general.--The Council shall 
                        disburse amounts to the respective Gulf 
                        Coast States in accordance with the 
                        formula developed under subparagraph 
                        (A) for projects, programs, and 
                        activities that will improve the 
                        ecosystems or economy of the Gulf 
                        Coast, subject to the condition that 
                        each Gulf Coast State submits a plan 
                        for the expenditure of amounts 
                        disbursed under this paragraph which 
                        meet the following criteria:
                                  (I) All projects, programs, 
                                and activities included in that 
                                plan are eligible activities 
                                pursuant to paragraph 
                                (1)(B)(i).
                                  (II) The projects, programs, 
                                and activities included in that 
                                plan contribute to the overall 
                                economic and ecological 
                                recovery of the Gulf Coast.
                                  (III) The plan takes into 
                                consideration the Comprehensive 
                                Plan and is consistent with its 
                                goals and objectives, as 
                                described in paragraph 
                                (2)(B)(i).
                          (ii) Funding.--
                                  (I) In general.--Except as 
                                provided in subclause (II), the 
                                plan described in clause (i) 
                                may use not more than 25 
                                percent of the funding made 
                                available for infrastructure 
                                projects eligible under 
                                subclauses (X) and (XI) of 
                                paragraph (1)(B)(i).
                                  (II) Exception.--The plan 
                                described in clause (i) may 
                                propose to use more than 25 
                                percent of the funding made 
                                available for infrastructure 
                                projects eligible under 
                                subclauses (X) and (XI) of 
                                paragraph (1)(B)(i) if the plan 
                                certifies that--
                                          (aa) ecosystem 
                                        restoration needs in 
                                        the State will be 
                                        addressed by the 
                                        projects in the 
                                        proposed plan; and
                                          (bb) additional 
                                        investment in 
                                        infrastructure is 
                                        required to mitigate 
                                        the impacts of the 
                                        Deepwater Horizon Oil 
                                        Spill to the ecosystem 
                                        or economy.
                          (iii) Development.--The plan 
                        described in clause (i) shall be 
                        developed by--
                                  (I) in the State of Alabama, 
                                the Alabama Gulf Coast Recovery 
                                Council established under 
                                paragraph (1)(E)(i);
                                  (II) in the State of Florida, 
                                a consortia of local political 
                                subdivisions that includes at 
                                least 1 representative of each 
                                disproportionally affected 
                                county;
                                  (III) in the State of 
                                Louisiana, the Coastal 
                                Protection and Restoration 
                                Authority of Louisiana;
                                  (IV) in the State of 
                                Mississippi, the Office of the 
                                Governor or an appointee of the 
                                Office of the Governor; and
                                  (V) in the State of Texas, 
                                the Office of the Governor or 
                                an appointee of the Office of 
                                the Governor.
                          (iv) Approval.--Not later than 60 
                        days after the date on which a plan is 
                        submitted under clause (i), the Council 
                        shall approve or disapprove the plan 
                        based on the conditions of clause (i).
                  (C) Disapproval.--If the Council disapproves 
                a plan pursuant to subparagraph (B)(iv), the 
                Council shall--
                          (i) provide the reasons for 
                        disapproval in writing; and
                          (ii) consult with the State to 
                        address any identified deficiencies 
                        with the State plan.
                  (D) Failure to submit adequate plan.--If a 
                State fails to submit an adequate plan under 
                this subsection, any funds made available under 
                this subsection shall remain in the Trust Fund 
                until such date as a plan is submitted and 
                approved pursuant to this subsection.
                  (E) Judicial review.--If the Council fails to 
                approve or take action within 60 days on a plan 
                described in subparagraph (B)(iv), the State 
                may obtain expedited judicial review within 90 
                days of that decision in a district court of 
                the United States, of appropriate jurisdiction 
                and venue, that is located within the State 
                seeking such review.
          (4) Authorization of interest transfers.--
                  (A) In general.--Of the total amount made 
                available in any fiscal year from the Trust 
                Fund, an amount equal to the interest earned by 
                the Trust Fund and proceeds from investments 
                made by the Trust Fund in the preceding fiscal 
                year--
                          (i) 50 percent shall be transferred 
                        to the National Endowment for Oceans in 
                        subparagraph (B); and
                          (ii) 50 percent shall be transferred 
                        to the Gulf of Mexico Research 
                        Endowment in subparagraph (C).
                  (B) National endowment for the oceans.--
                          (i) Establishment.--
                                  (I) In general.--There is 
                                established in the Treasury of 
                                the United States a trust fund 
                                to be known as the `National 
                                Endowment for the Oceans', 
                                consisting of such amounts as 
                                may be appropriated or credited 
                                to the National Endowment for 
                                the Oceans.
                                  (II) Investment.--Amounts in 
                                the National Endowment for the 
                                Oceans shall be invested in 
                                accordance with section 9602 of 
                                the Internal Revenue Code of 
                                1986, and any interest on, and 
                                proceeds from, any such 
                                investment shall be available 
                                for expenditure in accordance 
                                with this subparagraph.
                          (ii) Trustee.--The trustee for the 
                        National Endowment for the Oceans shall 
                        be the Secretary of Commerce.
                          (iii) Allocation of funds.--
                                  (I) In general.--Each fiscal 
                                year, the Secretary shall 
                                allocate, at a minimum, an 
                                amount equal to the interest 
                                earned by the National 
                                Endowment for the Oceans in the 
                                preceding fiscal year, and may 
                                distribute an amount equal to 
                                up to 10 percent of the total 
                                amounts in the National 
                                Endowment for the Oceans--
                                          (aa) to allocate 
                                        funding to coastal 
                                        states (as defined in 
                                        section 304 of the 
                                        Marine Resources and 
                                        Engineering Development 
                                        Act of 1966 (16 U.S.C. 
                                        1453)) and affected 
                                        Indian tribes;
                                          (bb) to make grants 
                                        to regional ocean and 
                                        coastal planning 
                                        bodies; and
                                          (cc) to develop and 
                                        implement a National 
                                        Grant Program for 
                                        Oceans and Coastal 
                                        Waters.
                                  (II) Program adjustments.--
                                Each fiscal year where the 
                                amount described in 
                                subparagraph (A)(i) does not 
                                exceed $100,000,000, the 
                                Secretary may elect to fund 
                                only the grant program 
                                established in subclause 
                                (I)(cc).
                          (iv) Eligible activities.--Funds 
                        deposited in the National Endowment for 
                        the Oceans may be allocated by the 
                        Secretary only to fund grants for 
                        programs and activities intended to 
                        restore, protect, maintain, or 
                        understand living marine resources and 
                        their habitats and resources in ocean 
                        and coastal waters (as defined in 
                        section 304 of the Marine Resources and 
                        Engineering Development Act of 1966 (16 
                        U.S.C. 1453)), including baseline 
                        scientific research, ocean observing, 
                        and other programs and activities 
                        carried out in coordination with 
                        Federal and State departments or 
                        agencies, that are consistent with 
                        Federal environmental laws and that 
                        avoid environmental degradation.
                          (v) Application.--To be eligible to 
                        receive a grant under clause (iii)(I), 
                        an entity shall submit to the Secretary 
                        an application at such time, in such 
                        manner, and containing such information 
                        as the Secretary determines to be 
                        appropriate.
                          (vi) Funding for coastal states.--The 
                        Secretary shall allocate funding among 
                        States as follows:
                                  (I) 50 percent of the funds 
                                shall be allocated equally 
                                among coastal States.
                                  (II) 25 percent of the funds 
                                shall be allocated based on 
                                tidal shoreline miles.
                                  (III) 25 percent of the funds 
                                shall be allocated based on the 
                                coastal population density of a 
                                coastal State.
                                  (IV) No State shall be 
                                allocated more than 10 percent 
                                of the total amount of funds 
                                available for allocation among 
                                coastal States for any fiscal 
                                year.
                                  (V) No territory shall be 
                                allocated more than 1 percent 
                                of the total amount of funds 
                                available for allocation among 
                                coastal States for any fiscal 
                                year.
                  (C) Gulf of mexico research endowment.--
                          (i) In general.--There is established 
                        in the Treasury of the United States a 
                        trust fund to be known as the `Gulf of 
                        Mexico Research Endowment', to be 
                        administered by the Secretary of 
                        Commerce, solely for use in providing 
                        long-term funding in accordance with 
                        section 5 of the Resources and 
                        Ecosystems Sustainability, Tourist 
                        Opportunities, and Revived Economies of 
                        the Gulf Coast States Act of 2011.
                          (ii) Investment.--Amounts in the Gulf 
                        of Mexico Research Endowment shall be 
                        invested in accordance with section 
                        9602 of the Internal Revenue Code of 
                        1986, and, after adjustment for 
                        inflation so as to maintain the value 
                        of the principal, any interest on, and 
                        proceeds from, any such investment 
                        shall be available for expenditure and 
                        shall be allocated in equal portions to 
                        the Gulf Coast Ecosystem Restoration 
                        Science, Monitoring, and Technology 
                        Program and Fisheries Endowment 
                        established in section 5 of the 
                        Resources and Ecosystems 
                        Sustainability, Tourist Opportunities, 
                        and Revived Economies of the Gulf Coast 
                        States Act of 2011.

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