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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3641 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 3641

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

Mr. Whitehouse (for himself, Ms. Snowe, and Mr. Rockefeller) introduced 
the following bill; which was read twice and referred to the Committee 
                on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National Endowment 
for the Oceans Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Findings.
Sec. 4. Definitions.
Sec. 5. National Endowment for the Oceans.
Sec. 6. Eligible uses.
Sec. 7. Grant programs.
Sec. 8. Council.
Sec. 9. Annual report.

SEC. 2. PURPOSE.

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

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) Covering more than two-thirds of the Earth's surface, 
        the oceans and Great Lakes sustain a large part of Earth's 
        biodiversity, provide an important source of food and other 
        natural products, act as a frontier for scientific exploration, 
        are critical to national security and economic well-being, and 
        are a vital means of transportation.
            (2) The coastal regions of the United States have high 
        biological productivity and contribute approximately 50 percent 
        of the gross domestic product of the United States.
            (3) The oceans, coasts, and Great Lakes are susceptible to 
        change as a direct and indirect result of human activities, 
        which can inhibit ecosystem integrity and productivity, 
        biodiversity, environmental quality, national security, 
        economic competitiveness, availability of energy, resistance to 
        natural hazards, and transportation safety and efficiency.
            (4) Human pressure on ocean, coastal, and Great Lakes 
        resources is drastically increasing, with 50 percent of the 
        population of the United States living within 50 miles of the 
        coast and, if population trends continue as expected, coastal 
        development and urbanization impacts will present serious 
        challenges and increase our vulnerability to coastal hazards.
            (5) The oceans, coasts, and Great Lakes, and their 
        resources are held in trust for the people of the United States 
        by Federal, State, local, and tribal governments, and their 
        conservation will benefit present and future generations.
            (6) A variety of human activities have caused dramatic 
        declines in the health and productivity of ocean, coastal, and 
        Great Lakes ecosystems of the United States, including--
                    (A) chemical, nutrient, thermal, and biological 
                pollution, including introduction of invasive species, 
                and introduction of marine debris;
                    (B) unwise land use and coastal development;
                    (C) loss and degradation of habitat, including 
                upstream freshwater habitat for anadromous, diadromous, 
                and migratory fish species;
                    (D) overfishing and bycatch of nontarget marine 
                species; and
                    (E) global climate change and ocean acidification.
            (7) Activities harming ocean, coastal, and Great Lakes 
        ecosystems jeopardize the economies and social structure of 
        communities dependent on resources from such ecosystems.
            (8) While there is an abundance of Federal, State, local, 
        and tribal laws, government agencies, and programs designed to 
        study, observe, protect, and manage ocean, coastal, and Great 
        Lakes resources, activities thereunder are poorly coordinated 
        and do not constitute a unified and comprehensive public policy 
        to enhance understanding, protection, conservation, and 
        restoration of the oceans, coasts, and Great Lakes.
            (9) Improving and coordinating Federal governance will 
        require close partnership with States, taking into account 
        their public trust responsibilities, their economic and 
        ecological interests in ocean, coastal, and Great Lakes 
        resources, and the role of State and local governments in the 
        implementation of policies governing their use.
            (10) It is the continuing mission of the Federal Government 
        to create, foster, and maintain conditions, incentives, 
        policies, and programs that will ensure the sustainable and 
        effective conservation, management, and protection of the 
        oceans, coasts, and Great Lakes, including fostering greater 
        scientific understanding of these areas, in order to fulfill 
        the responsibility of each generation as trustee in protecting 
        such resources and ensuring their availability for future 
        generations.
            (11) The oceans, coasts, and Great Lakes of the United 
        States, and their resources are dependent upon and connected to 
        those of other countries throughout the world, and 
        collaboration with international bodies and governments will 
        help protect and manage our shared and linked marine ecosystems 
        and resources for the benefit of the world's population.
            (12) Programs that facilitate greater collaboration and 
        coordination among stakeholders and strengthen the relationship 
        between governmental and nongovernmental partners will support 
        our understanding of complex ecosystems and more effectively 
        leverage existing resources and expertise.
            (13) Supporting science, research, monitoring, modeling, 
        forecasting, exploration, and assessment will continually 
        improve the understanding of ocean, coastal, and Great Lakes 
        ecosystems.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Coastal population.--The term ``coastal population'' 
        means the population of all political subdivisions, as 
        determined by the most recent official data of the Census 
        Bureau, contained in whole or in part within the designated 
        coastal boundary of a State as defined in a State's coastal 
        zone management program under the Coastal Zone Management Act 
        of 1972 (16 U.S.C. 1451 et seq.) as of the date of enactment of 
        this Act.
            (2) Coastal state.--The term ``coastal State'' has the 
        meaning given the term ``coastal state'' in section 304 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
            (3) Council.--The term ``Council'' means the National 
        Endowment for the Oceans Council established under section 8.
            (4) Endowment.--The term ``Endowment'' means the National 
        Endowment for the Oceans established under section 5.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (6) Local government.--The term ``local government'' means 
        a political subdivision all or part of which is within a 
        coastal zone (as defined in section 304 of the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1453)).
            (7) Regional planning body.--The term ``regional planning 
        body'' means a regional entity that includes representatives of 
        Federal and State agencies and, if applicable, Indian tribes 
        and indigenous community representatives, with jurisdictional 
        responsibilities or other interests (such as resource 
        management, science, homeland and national security, 
        transportation, and public health) for the development and 
        implementation of regional coordination and planning to 
        understand, protect, maintain, and restore ocean, coastal, and 
        Great Lakes ecosystems.
            (8) Secretary.--Except as otherwise specifically provided, 
        the term ``Secretary'' means the Secretary of Commerce.
            (9) Tidal shoreline.--The term ``tidal shoreline'' has the 
        meaning given that term pursuant to section 923.110(c)(2)(i) of 
        title 15, Code of Federal Regulations.

SEC. 5. NATIONAL ENDOWMENT FOR THE OCEANS.

    (a) Establishment.--There is established in the Treasury of the 
United States a National Endowment for the Oceans, to be administered 
by the Secretary and available without further appropriation or fiscal 
year limitation, solely for use in accordance with the requirements 
established under this Act.
    (b) Funding.--
            (1) Interest on osltf investments.--Amounts credited to the 
        Oil Spill Liability Trust Fund under section 9602(b) of the 
        Internal Revenue Code of 1986 for any fiscal year beginning 
        after fiscal year 2011 in which the average daily balance of 
        the Fund is $1,500,000,000 or more shall, notwithstanding any 
        other provision of law to the contrary, be transferred to the 
        Endowment not later than 90 days after the last day of such 
        fiscal year.
            (2) Outer continental shelf lease revenue.--Section 8 of 
        the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 
        amended by adding at the end the following:
    ``(q) Deposits in the National Endowment for the Oceans.--Beginning 
with fiscal year 2011, the Secretary shall deposit 12.5 percent of the 
revenue generated under this section, excluding any revenue generated 
from Arctic drilling that begins after the date of the enactment of the 
National Endowment for the Oceans Act, in the National Endowment for 
the Oceans established by section 4(a) of the National Endowment for 
the Oceans Act.''.
            (3) Revenues from offshore renewable energy development.--
        Beginning with fiscal year 2011, the President shall ensure 
        that 12.5 percent of the revenue generated by offshore 
        renewable energy development, authorized or permitted under any 
        provision of law, is deposited in the Endowment.
            (4) Fines collected for violations of federal laws.--
        Beginning with fiscal year 2011, the President shall ensure 
        that a portion of fines paid to the United States for a 
        violation of Federal law that occurs in the exclusive economic 
        zone (as defined in section 107 of title 46, United States 
        Code) is deposited in the Endowment.
            (5) Investment of endowment amounts in interest-bearing 
        obligations.--The Secretary of the Treasury shall invest such a 
        portion of the amounts in the Endowment as are not required to 
        meet current withdrawals, as determined by the Secretary of the 
        Treasury, in interest-bearing obligations of the United States 
        in accordance with section 9602 of the Internal Revenue Code of 
        1986.
            (6) Authorization of appropriations.--Beginning with fiscal 
        year 2015, there is authorized to be appropriated to the 
        Endowment for any fiscal year in which the sum of the amounts 
        to be transferred to, and deposited in, the Endowment under 
        this subsection is estimated to be less than $100,000,000, an 
        amount equal to the difference between $100,000,000 and the 
        estimated amount of such transfers and deposits.
            (7) Savings provision.--Nothing in this section shall 
        decrease the amount any State may receive pursuant to section 
        8(g) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(g)) or section 105 of the Gulf of Mexico Energy Security 
        Act of 2006 (43 U.S.C. 1331 note).
    (c) Allocation.--Of the amounts deposited in the Endowment for each 
fiscal year--
            (1) at least 49 percent shall be used by the Secretary to 
        make grants to coastal States and affected Indian tribes under 
        section 7(a);
            (2) at least 19 percent shall be used by the Secretary to 
        make grants to regional planning bodies under section 7(b);
            (3) at least 29 percent shall be allocated by the Secretary 
        to the Ocean Resources Conservation and Assistance Grant 
        Program established by section 7(c); and
            (4) not more than 3 percent may be used for administrative 
        expenses to carry out the programs created under this Act.

SEC. 6. ELIGIBLE USES.

    (a) In General.--Amounts in the Endowment 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 ocean, coastal, and Great Lakes resources, including 
baseline scientific research, ocean observing, and other programs and 
activities carried out in coordination with Federal and State 
departments or agencies, that are consistent with Federal environmental 
laws and that avoid environmental degradation, including--
            (1) ocean, coastal, and Great Lakes restoration and 
        protection, including the protection of the environmental 
        integrity of such areas, and their related watersheds, 
        including efforts to adapt to and withstand the impacts of 
        global climate change;
            (2) restoration, protection, or maintenance of living 
        ocean, coastal, and Great Lakes resources and their habitats, 
        including marine protected areas and riparian migratory habitat 
        of coastal and marine species;
            (3) planning for and managing coastal development to 
        minimize the loss of life and property associated with global 
        climate change and the coastal hazards resulting from global 
        climate change;
            (4) analyses of current and anticipated climate change and 
        ocean acidification and assessment of potential actions to 
        minimize their harm to ocean, coastal, and Great Lakes 
        ecosystems;
            (5) analyses of, and planning for, current and anticipated 
        uses of ocean, coastal, and Great Lakes areas and 
        identification of areas most suitable for various types of 
        classes of activities and for restoration, protection, and 
        maintenance of ecosystem health and to reduce conflicts among 
        uses, reduce environmental impacts, facilitate compatible uses, 
        and preserve critical ecosystem services to meet economic, 
        environmental, security, and social objectives;
            (6) regional, subregional, and site-specific management 
        efforts designed to manage, protect, or restore ocean, coastal, 
        and Great Lakes resources and ecosystems;
            (7) research, assessment, monitoring, observation, 
        modeling, and sharing of information that contributes to the 
        understanding of ocean, coastal, and Great Lakes ecosystems and 
        supports the purposes of this Act;
            (8) efforts to better understand the processes that govern 
        the fate and transport of petroleum hydrocarbons released into 
        the marine environment from natural and anthropogenic sources, 
        including spills;
            (9) acquiring property or interests in property in coastal 
        and estuarine areas if obtaining such property is subject to 
        terms and conditions that will ensure it will be administered 
        to support the purposes of this Act; and
            (10) protection and relocation of critical coastal public 
        infrastructure affected by erosion, sea level rise, or impacts 
        of global climate change.
    (b) Requirement for State Matching Funds.--Any amount from the 
Endowment provided to fund a project described in paragraph (9) or (10) 
of subsection (a) may not exceed 50 percent of the total project cost 
and may only be provided if the State in which such project will be 
carried out provides the remainder of the total project cost.
    (c) Considerations for Great Lakes States.--Programs and activities 
funded in Great Lakes States shall also seek to attain the goals 
embodied in the Great Lakes Restoration Initiative Plan, the Great 
Lakes Regional Collaboration Strategy, the Great Lakes Water Quality 
Agreement, or other collaborative planning efforts of the Great Lakes 
Region.

SEC. 7. GRANT PROGRAMS.

    (a) Grants to Coastal States.--
            (1) In general.--Subject to paragraphs (2), (3), and (4), 
        the Secretary shall make grants of amounts allocated under 
        section 5(c)(1) to coastal States or affected Indian tribes, 
        based on the following formula:
                    (A) Fifty percent of the funds are allocated 
                equally among coastal States that have a coastal 
                management program approved under the Coastal Zone 
                Management Act of 1972 (16 U.S.C. 1451 et seq.).
                    (B) Twenty-five percent of the funds are allocated 
                on the basis of the ratio of tidal shoreline miles in a 
                coastal State to the tidal shoreline miles of all 
                coastal States.
                    (C) Twenty-five percent of the funds are allocated 
                on the basis of the ratio of coastal population density 
                of a coastal State to the coastal population density of 
                all coastal States.
            (2) Allocation to indian tribes.--Amounts allocated under 
        paragraph (1)(A) shall be allocated to affected Indian tribes 
        based on, and directly proportional to, any specific coastal 
        and ocean management authority granted to an affected tribe 
        pursuant to affirmation of a Federal reserved right.
            (3) Maximum allocation to states.--Notwithstanding 
        paragraph (1), not more than 10 percent of the total funds 
        distributed under this subsection may be allocated to any 
        single State. Any amount exceeding this limit shall be 
        redistributed among the remaining States according to the 
        formula established under paragraph (1).
            (4) Maximum allocation to certain geographic areas.--
                    (A) In general.--Notwithstanding paragraph (1), 
                each geographic area described in subparagraph (B) may 
                not receive more than 1 percent of the total funds 
                distributed under this subsection. Any amount exceeding 
                this limit shall be redistributed among the remaining 
                States according to the formula established under 
                paragraph (1).
                    (B) Geographic areas described.--The geographic 
                areas described in this subparagraph are the following:
                            (i) American Samoa.
                            (ii) The Commonwealth of the Northern 
                        Mariana Islands.
                            (iii) Guam.
                            (iv) Puerto Rico.
                            (v) The Virgin Islands.
            (5) Requirement to submit plans.--To be eligible to receive 
        a grant under this subsection, a coastal State or Indian tribe 
        shall submit, and the Secretary shall review--
                    (A) a 5-year plan, which shall include--
                            (i) a prioritized list of goals the coastal 
                        State or Indian tribe intends to achieve during 
                        the time period covered by the 5-year plan;
                            (ii) general descriptions of projects or 
                        activities, consistent with the eligible uses 
                        described in section 6, that could contribute 
                        to realization of such goals;
                            (iii) criteria to determine eligibility for 
                        entities which may receive grants under this 
                        program;
                            (iv) a description of the competitive 
                        process the coastal State or Indian tribe will 
                        use in allocating funds received from the 
                        Endowment; and
                            (v) a clearly defined application process 
                        requiring an applicant to show that--
                                    (I) its project or activity is 
                                consistent with the eligible uses of 
                                the Endowment; and
                                    (II) it has established and is 
                                capable of implementing measures to 
                                ensure the accurate accounting for an 
                                appropriate administration of funds 
                                received; and
                    (B) an annual work plan which shall include--
                            (i) a detailed, specific, prioritized list 
                        of projects or activities to be funded from the 
                        Endowment, and desired outcomes of those 
                        projects or activities;
                            (ii) for each project or activity, a 
                        description of how such project or activity is 
                        consistent with the eligible uses of the 
                        Endowment; and
                            (iii) for each project or activity, a 
                        schedule for completion and a description of 
                        how such project or activity helps achieve the 
                        goals established in its 5-year plan.
            (6) Opportunity for public comment.--In determining whether 
        to approve a plan described in paragraph (5)(A), the Secretary 
        shall provide opportunity for, and take into consideration, 
        public input and comment on the plan.
            (7) Approval procedure.--
                    (A) In general.--The Secretary shall notify a 
                coastal State or Indian tribe not later than 90 days 
                after receiving a 5-year plan or annual work plan that 
                the Secretary--
                            (i) approves the plan as submitted;
                            (ii) disapproves the plan as submitted; or
                            (iii) needs up to an additional 30 days to 
                        further review the plan.
                    (B) Disapproval.--If the Secretary disapproves a 
                proposed 5-year plan or annual work plan, the Secretary 
                shall provide notice of such disapproval to the 
                submitting coastal State or Indian tribe in writing, 
                and include in such notice the rationale for the 
                Secretary's decision. The submitting State shall 
                resubmit the plan to the Secretary not later than 30 
                days after receiving the notice of disapproval.
                    (C) Presumptive approval.--If the Secretary fails 
                to notify the coastal State or Indian tribe within 120 
                days after receiving a 5-year plan or annual work plan 
                that the Secretary approves or disapproves the plan, or 
                that the Secretary needs additional time for review, 
                the plan shall be deemed to have been approved.
    (b) Grants to Regional Planning Bodies.--
            (1) In general.--The Secretary shall use amounts allocated 
        under section 5(c)(2) to award grants to Regional Planning 
        Bodies to create and implement Regional Strategic Plans, as 
        described in this subsection.
            (2) Requirements for plan.--In order to be eligible to 
        receive a grant under this subsection, a Regional Planning Body 
        being considered for such a grant shall submit an application 
        that demonstrates how activities to be carried out with grant 
        funds would facilitate the creation or implementation of a 
        Regional Strategic Plan, as described in this subsection.
            (3) Regional strategic plan.--
                    (A) Requirement.--Not later than 5 years after 
                receiving a grant under this section, each Regional 
                Planning Body shall prepare and submit to the Secretary 
                for review, a Regional Strategic Plan.
                    (B) Contents.--Each Regional Strategic Plan 
                submitted under this paragraph shall--
                            (i) be based on initial assessments of--
                                    (I) the region's ocean, coastal, 
                                and Great Lakes ecosystem health 
                                determined through science-based 
                                ecosystem assessments and through 
                                monitoring, and forecasting physical, 
                                chemical, and biological ocean 
                                parameters;
                                    (II) the cultural and economic role 
                                of the ocean, coasts, or Great Lakes in 
                                the region; and
                                    (III) existing, emerging, and 
                                cumulative threats to ocean, coastal, 
                                and Great Lakes ecosystem health of the 
                                region;
                            (ii) specify essential areas within the 
                        ocean, coastal, or Great Lakes region;
                            (iii) describe short-term and long-term--
                                    (I) goals for improving ocean, 
                                coastal, and Great Lakes ecosystem 
                                health in the region covered by the 
                                Plan, and
                                    (II) indicators of improvements in 
                                economic sustainability in the region 
                                resulting from improved ecosystem 
                                health and enhanced collaboration and 
                                coordination among Federal and State 
                                agencies;
                            (iv) include recommendations for long-term 
                        observing and monitoring measures for the 
                        region covered by the Plan;
                            (v) identify Federal and State priority 
                        issues within the region covered by the Plan;
                            (vi) describe potential management 
                        solutions and policies to address the priority 
                        issues;
                            (vii) identify research, information, and 
                        data needed to carry out the Plan;
                            (viii) identify performance measures and 
                        benchmarks for purposes of clauses (ii) through 
                        (vi) to evaluate the Plan's effectiveness; and
                            (ix) define responsibilities and include an 
                        analysis of the gaps in authority, 
                        coordination, and resources, including funding, 
                        that must be filled in order to fully achieve 
                        those performance measures and benchmarks.
            (4) Public participation.--Each Regional Planning Body 
        shall provide adequate opportunities for public input during 
        the development of the Regional Strategic Plan for the region 
        and any revisions to such Plan.
            (5) Plan revision.--Each approved Regional Strategic Plan 
        shall be reviewed and revised by the appropriate Regional 
        Planning Body at least once every 5 years. The revised Plan 
        shall be submitted to the Secretary for review and approval 
        pursuant to paragraph (6).
            (6) Approval procedure.--
                    (A) In general.--Not later than 90 days after 
                receiving a Regional Strategic Plan from a Regional 
                Planning Body, the Secretary shall notify the Regional 
                Planning Body that the Secretary--
                            (i) approves the plan as submitted;
                            (ii) disapproves the plan as submitted; or
                            (iii) needs up to an additional 30 days to 
                        further review the plan.
                    (B) Disapproval.--If the Secretary disapproves a 
                proposed Regional Strategic Plan, the Secretary shall 
                provide notice of such disapproval to the submitting 
                Regional Planning Body in writing, and include in such 
                notice the rationale for the Secretary's decision. The 
                Regional Planning Body shall resubmit the Plan not 
                later than 30 days after receiving such notice and 
                rationale for initial disapproval.
                    (C) Presumptive approval.--If the Secretary fails 
                to notify the Regional Planning Body within 120 days 
                after receipt of a submitted Regional Strategic Plan 
                that the Secretary approves or disapproves the plan, or 
                that the Secretary needs additional time for review, 
                the plan shall be deemed to have been approved.
            (7) Opportunity for public comment.--In determining whether 
        to approve a Regional Strategic Plan under this subsection, the 
        Secretary shall provide opportunity for, and take into 
        consideration public input and comment on, the plans from 
        stakeholders and the general public.
    (c) National Grants for Oceans, Coasts, and Great Lakes.--
            (1) In general.--The Secretary may use amounts allocated 
        under section 5(c)(3) to make grants to support activities 
        consistent with section 6.
            (2) Criteria for entities.--The Secretary, in consultation 
        with the Council, shall establish criteria to determine the 
        type of entities eligible for grants under this subsection, 
        including--
                    (A) coastal State, noncoastal State, local, and 
                affected Indian tribal governments and agencies;
                    (B) regional agencies, associations, or 
                organizations other than regional planning bodies;
                    (C) fishery or wildlife management organizations;
                    (D) nonprofit organizations; and
                    (E) academic institutions.
            (3) Approval.--The Secretary shall--
                    (A) review the Council's recommendations submitted 
                under section 8(h);
                    (B) subject to approval, allocate amounts allocated 
                under section 5(c)(3) on the basis of the Council's 
                recommendations; and
                    (C) if the Secretary disapproves a grant 
                recommended by the Council, explain that disapproval in 
                writing.
    (d) Authority of the Secretary.--The Secretary, in consultation 
with the Secretary of the Interior, the Administrator of the 
Environmental Protection Agency, the Chair of the Council on 
Environmental Quality, the Director of the Office of Science and 
Technology Policy, and the Director of the National Science Foundation, 
shall establish and make available for public comment--
            (1) application and review procedures for the grant 
        programs described in subsections (a), (b), and (c), including 
        requirements ensuring any amounts provided pursuant to such 
        programs may only be used for an eligible use described under 
        section 6;
            (2) performance accountability and monitoring measures for 
        programs and activities receiving funding through the grant 
        programs described in subsections (a), (b), and (c);
            (3) procedures and methods to ensure accurate accounting 
        and appropriate administration for each of the grant programs 
        described in subsections (a), (b), and (c), including standards 
        of record-keeping;
            (4) procedures to carry out audits of the Endowment as 
        necessary, but not less frequently than once every 5 years; and
            (5) procedures to carry out audits of the recipients of 
        grants under subsection (a), (b), or (c), including States.

SEC. 8. COUNCIL.

    (a) Establishment.--The Secretary shall establish a National 
Endowment for the Oceans Council which shall consist of 7 members with 
expertise in the conservation and management of ocean, coastal, and 
Great Lakes ecosystems and marine resources.
    (b) Membership; Appointment.--The members of the Council shall be 
as follows:
            (1) Two representatives of the National Oceanic and 
        Atmospheric Administration, appointed by the Administrator of 
        the National Oceanic and Atmospheric Administration.
            (2) One representative of the Office of Water of the 
        Environmental Protection Agency, appointed by the Administrator 
        of the Environmental Protection Agency.
            (3) One representative of the United States Fish and 
        Wildlife Service, appointed by the Director of the United 
        States Fish and Wildlife Service.
            (4) One representative of the National Science Foundation, 
        appointed by the Director of the National Science Foundation.
            (5) One representative of the Council on Environmental 
        Quality, appointed by the Chair of the Council on Environmental 
        Quality.
            (6) One representative of the United States Geological 
        Survey, appointed by the Director of the United States 
        Geological Survey.
    (c) Term; Vacancy.--
            (1) Term.--The term of office of a member of the Council is 
        5 years, except that--
                    (A) of the members initially appointed under 
                subsection (b)(1), 1 shall be appointed for a term of 4 
                years;
                    (B) the member initially appointed under paragraphs 
                (2), (3), and (4) of subsection (b) shall be appointed 
                for a term of 3 years; and
                    (C) the member initially appointed under subsection 
                (b)(5), shall be appointed for a term of 4 years.
            (2) Vacancy.--Whenever a vacancy occurs among members of 
        the Council, the Secretary, or the head of the appropriate 
        agency shall appoint an individual to fill that vacancy for the 
        remainder of the applicable term.
    (d) Chair.--
            (1) In general.--The Council shall elect a chair from among 
        its members.
            (2) Term.--The chair shall serve for a 3-year term, except 
        that the first chair may be elected for a term of less than 3 
        years, as determined by the Council.
    (e) Quorum.--Five members of the Council shall constitute a quorum 
for the transaction of business.
    (f) Meetings.--
            (1) In general.--The Council shall meet at the call of the 
        chair, but in no case less frequently than twice each year.
            (2) Public access.--Meetings of the Council shall be open 
        to the public, and the chair shall take appropriate steps to 
        provide adequate notice to the public of the time and place of 
        such meetings.
            (3) Failure to attend.--If a Council member misses 3 
        consecutively scheduled meetings, the Secretary may revoke that 
        member's appointment to the Council.
    (g) Staff.--
            (1) Employment.--The Secretary may employ and fix the 
        compensation of staff, as the Council determines necessary, to 
        carry out such duties as the Council may require and, with 
        assistance from the National Oceanic and Atmospheric 
        Administration, facilitate consideration of grant applications 
        and otherwise assist the Council in carrying out its 
        responsibilities.
            (2) Pay and benefits.--The pay and benefits of the staff 
        shall be derived from amounts available from the Endowment for 
        administrative costs subject to section 5(c)(4).
            (3) Status as federal employees.--
                    (A) In general.--Except as provided in subparagraph 
                (B), employees of the Council shall be considered 
                Federal employees only for purposes of--
                            (i) injury compensation as provided in 
                        chapter 81 of title 5, United States Code, and 
                        tort claims liability under chapter 171 of 
                        title 28, United States Code;
                            (ii) the Ethics in Government Act of 1978 
                        (5 U.S.C. App.) and the provisions of chapter 
                        11 of title 18, United States Code; and
                            (iii) any other statute or regulation 
                        governing the conduct of Federal employees.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                section 208(a) of title 18, United States Code, shall 
                not apply to such an individual if, after review of the 
                financial disclosure report filed by the individual 
                pursuant to the Ethics in Government Act of 1978 (5 
                U.S.C. App.), the Secretary, or the Secretary's 
                designee, certifies in writing that the need for the 
                individual's services outweighs the potential for a 
                conflict of interest created by the financial interest 
                involved.
    (h) Functions.--The Council shall--
            (1) receive and review, according to procedures established 
        under section 7(d)(1), applications for grants under 
        subsections (b) and (c) of section 7; and
            (2) submit to the Secretary a list of recommended 
        applications for such grants, consistent with existing Federal 
        ocean policy and criteria established under this Act, and 
        include--
                    (A) a recommended priority order for funding such 
                applications;
                    (B) the amount of the grant each such application 
                should receive; and
                    (C) any specific requirements, conditions, or 
                limitations for such an application recommended for 
                funding under this Act.
    (i) Advisory Panel.--In reviewing applications for grants under 
subsections (b) and (c) of section 7, the Council shall establish an 
external review process through working groups or by other means, 
including consultation with persons representing--
            (1) a balanced and diverse range of ocean, coastal, and 
        Great Lakes dependent industries;
            (2) a balanced and diverse range of regions;
            (3) representatives of nonprofit conservation organizations 
        with a mission that includes the conservation and protection of 
        living marine resources and their habitats; and
            (4) representatives of academia with strong scientific or 
        technical credentials and experience in marine science or 
        policy.

SEC. 9. ANNUAL REPORT.

    (a) Requirement for Annual Report.--Beginning with fiscal year 
2012, not later than 60 days after the end of each fiscal year, the 
Secretary shall submit a report on the operation of the Endowment 
during the fiscal year to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Natural Resources of 
the House of Representatives.
    (b) Content.--Each annual report submitted under subsection (a) for 
a fiscal year shall include--
            (1) a statement of the amounts deposited in the Endowment 
        and the balance remaining in the Endowment at the end of the 
        fiscal year;
            (2) a description of the expenditures made from the 
        Endowment for the fiscal year, including the purpose of the 
        expenditures; and
            (3) recommendations for additional authority necessary to 
        fulfill the purpose of the Endowment.
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