[House Report 116-295]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-295
======================================================================
KEEP AMERICA'S WATERFRONTS WORKING ACT
_______
November 15, 2019.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Grijalva, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 3596]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 3596) to amend the Coastal Zone Management Act
of 1972 to establish a Working Waterfront Task Force and a
working waterfronts grant program, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Keep America's Waterfronts Working
Act''.
SEC. 2. WORKING WATERFRONTS GRANT PROGRAM.
The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is
amended by adding at the end the following:
``SEC. 320. WORKING WATERFRONTS GRANT PROGRAM.
``(a) Working Waterfront Task Force.--
``(1) Establishment and functions.--The Secretary of Commerce
shall establish a task force to work directly with coastal
States, user groups, and coastal stakeholders to identify and
address critical needs with respect to working waterfronts.
``(2) Membership.--The members of the task force shall be
appointed by the Secretary of Commerce, and shall include--
``(A) experts in the unique economic, social,
cultural, ecological, geographic, and resource concerns
of working waterfronts; and
``(B) representatives from the National Oceanic and
Atmospheric Administration's Office of Coastal
Management, the United States Fish and Wildlife
Service, the Department of Agriculture, the
Environmental Protection Agency, the United States
Geological Survey, the Navy, the National Marine
Fisheries Service, the Economic Development Agency, and
such other Federal agencies as the Secretary considers
appropriate.
``(3) Functions.--The task force shall--
``(A) identify and prioritize critical needs with
respect to working waterfronts in States that have a
management program approved by the Secretary of
Commerce pursuant to section 306, in the areas of--
``(i) economic and cultural importance of
working waterfronts to communities;
``(ii) changing environments and threats
working waterfronts face from environment
changes, trade barriers, sea level rise,
extreme weather events, ocean acidification,
and harmful algal blooms; and
``(iii) identifying working waterfronts and
highlighting them within communities;
``(B) outline options, in coordination with coastal
States and local stakeholders, to address such critical
needs, including adaptation and mitigation where
applicable;
``(C) identify Federal agencies that are responsible
under existing law for addressing such critical needs;
and
``(D) recommend Federal agencies best suited to
address any critical needs for which no agency is
responsible under existing law.
``(4) Information to be considered.--In identifying and
prioritizing policy gaps pursuant to paragraph (3), the task
force shall consider the findings and recommendations contained
in section VI of the report entitled `The Sustainable Working
Waterfronts Toolkit: Final Report', dated March 2013.
``(5) Report.--Not later than 18 months after the date of the
enactment of this section, the task force shall submit a report
to Congress on its findings.
``(6) Implementation.--The head of each Federal agency
identified in the report pursuant to paragraph (3)(C) shall
take such action as is necessary to implement the
recommendations contained in the report by not later than 1
year after the date of the issuance of the report.
``(b) Working Waterfront Grant Program.--
``(1) The Secretary shall establish a Working Waterfront
Grant Program, in cooperation with appropriate State, regional,
and other units of government, under which the Secretary may
make a grant to any coastal State for the purpose of
implementing a working waterfront plan approved by the
Secretary under subsection (c).
``(2) Subject to the availability of appropriations, the
Secretary shall award matching grants under the Working
Waterfronts Grant Program to coastal States with approved
working waterfront plans through a regionally equitable,
competitive funding process in accordance with the following:
``(A) The Governor, or the lead agency designated by
the Governor for coordinating the implementation of
this section, where appropriate in consultation with
the appropriate local government, shall determine that
the application is consistent with the State's or
territory's approved coastal zone plan, program, and
policies prior to submission to the Secretary.
``(B) In developing guidelines under this section,
the Secretary shall consult with coastal States, other
Federal agencies, and other interested stakeholders
with expertise in working waterfront planning.
``(C) Coastal States may allocate grants to local
governments, agencies, or nongovernmental organizations
eligible for assistance under this section.
``(3) In awarding a grant to a coastal State, the Secretary
shall consider--
``(A) the economic, cultural, and historical
significance of working waterfront to the coastal
State;
``(B) the demonstrated working waterfront needs of
the coastal State as outlined by a working waterfront
plan approved for the coastal State under subsection
(c), and the value of the proposed project for the
implementation of such plan;
``(C) the ability to successfully leverage funds
among participating entities, including Federal
programs, regional organizations, State and other
government units, landowners, corporations, or private
organizations;
``(D) the potential for rapid turnover in the
ownership of working waterfront in the coastal State,
and where applicable the need for coastal States to
respond quickly when properties in existing or
potential working waterfront areas or public access
areas as identified in the working waterfront plan
submitted by the coastal State come under threat or
become available; and
``(E) the impact of the working waterfront plan
approved for the coastal State under subsection (c) on
the coastal ecosystem and the users of the coastal
ecosystem.
``(4) The Secretary shall approve or reject an application
for such a grant within 60 days after receiving an application
for the grant.
``(c) Working Waterfront Plans.--
``(1) To be eligible for a grant under subsection (b), a
coastal State must submit and have approved by the Secretary a
comprehensive working waterfront plan in accordance with this
subsection, or be in the process of developing such a plan and
have an established working waterfront program at the State or
local level, or the Secretary determines that an existing
coastal land use plan for that State is in accordance with this
subsection.
``(2) Such plan--
``(A) must provide for preservation and expansion of
access to coastal waters to persons engaged in
commercial fishing, recreational fishing and boating
businesses, aquaculture, boatbuilding, or other water-
dependent, coastal-related business;
``(B) shall include one or more of--
``(i) an assessment of the economic, social,
cultural, and historic value of working
waterfront to the coastal State;
``(ii) a description of relevant State and
local laws and regulations affecting working
waterfront in the geographic areas identified
in the working waterfront plan;
``(iii) identification of geographic areas
where working waterfronts are currently under
threat of conversion to uses incompatible with
commercial and recreational fishing,
recreational fishing and boating businesses,
aquaculture, boatbuilding, or other water-
dependent, coastal-related business, and the
level of that threat;
``(iv) identification of geographic areas
with a historic connection to working
waterfronts where working waterfronts are not
currently available, and, where appropriate, an
assessment of the environmental impacts of any
expansion or new development of working
waterfronts on the coastal ecosystem;
``(v) identification of other working
waterfront needs including improvements to
existing working waterfronts and working
waterfront areas;
``(vi) a strategic and prioritized plan for
the preservation, expansion, and improvement of
working waterfronts in the coastal State;
``(vii) for areas identified under clauses
(iii), (iv), (v), and (vi), identification of
current availability and potential for
expansion of public access to coastal waters;
``(viii) a description of the degree of
community support for such strategic plan; and
``(ix) a contingency plan for properties that
revert to the coastal State pursuant to
determinations made by the coastal State under
subsection (g)(4)(C);
``(C) may include detailed environmental impacts on
working waterfronts, including hazards, sea level rise,
inundation exposure, and other resiliency issues;
``(D) may be part of the management program approved
under section 306;
``(E) shall utilize to the maximum extent practicable
existing information contained in relevant surveys,
plans, or other strategies to fulfill the information
requirements under this paragraph; and
``(F) shall incorporate the policies and regulations
adopted by communities under local working waterfront
plans or strategies in existence before the date of the
enactment of this section.
``(3) A working waterfront plan--
``(A) shall be effective for purposes of this section
for the 5-year period beginning on the date it is
approved by the Secretary;
``(B) must be updated and re-approved by the
Secretary before the end of such period; and
``(C) shall be complimentary to and incorporate the
policies and objectives of regional or local working
waterfront plans as in effect before the date of
enactment of this section or as subsequently revised.
``(4) The Secretary may--
``(A) award planning grants to coastal States for the
purpose of developing or revising comprehensive working
waterfront plans; and
``(B) award grants consistent with the purposes of
this section to States undertaking the working
waterfront planning process under this section, for the
purpose of preserving and protecting working
waterfronts during such process.
``(5) Any coastal State applying for a working waterfront
grant under this title shall--
``(A) develop a working waterfront plan, using a
process that involves the public and those with an
interest in the coastal zone;
``(B) coordinate development and implementation of
such a plan with other coastal management programs,
regulations, and activities of the coastal State; and
``(C) if the coastal State allows qualified holders
(other than the coastal State) to enter into working
waterfront covenants, provide as part of the working
waterfront plan under this subsection a mechanism or
procedure to ensure that the qualified holders are
complying their duties to enforce the working
waterfront covenant.
``(d) Uses, Terms, and Conditions.--
``(1) Each grant made by the Secretary under this section
shall be subject to such terms and conditions as may be
appropriate to ensure that the grant is used for purposes
consistent with this section.
``(2) A grant under this section may be used--
``(A) to acquire a working waterfront, or an interest
in a working waterfront;
``(B) to make improvements to a working waterfront,
including the construction or repair of wharfs, boat
ramps, or related facilities; or
``(C) for necessary climate adaptation mitigation.
``(e) Public Access Requirement.--A working waterfront project funded
by grants made under this section must provide for expansion,
improvement, or preservation of reasonable and appropriate public
access to coastal waters at or in the vicinity of a working waterfront,
except for commercial fishing or other industrial access points where
the coastal State determines that public access would be unsafe.
``(f) Limitations.--
``(1) Except as provided in paragraph (2), a grant awarded
under this section may be used to purchase working waterfront
or an interest in working waterfront, including an easement,
only from a willing seller and at fair market value.
``(2) A grant awarded under this section may be used to
acquire working waterfront or an interest in working waterfront
at less than fair market value only if the owner certifies to
the Secretary that the sale is being entered into willingly and
without coercion.
``(3) No Federal, State, or local entity may exercise the
power of eminent domain to secure title to any property or
facilities in connection with a project carried out under this
section.
``(g) Allocation of Grants to Local Governments and Other Entities.--
``(1) The Secretary shall encourage coastal States to broadly
allocate amounts received as grants under this section among
working waterfronts identified in working waterfront plans
approved under subsection (c).
``(2) Subject to the approval of the Secretary, a coastal
State may, as part of an approved working waterfront plan,
designate as a qualified holder any unit of State or local
government or nongovernmental organization, if the coastal
State is ultimately responsible for ensuring that the property
will be managed in a manner that is consistent with the
purposes for which the land entered into the program.
``(3) A coastal State or a qualified holder designated by a
coastal State may allocate to a unit of local government,
nongovernmental organization, fishing cooperative, or other
entity, a portion of any grant made under this section for the
purpose of carrying out this section, except that such an
allocation shall not relieve the coastal State of the
responsibility for ensuring that any funds so allocated are
applied in furtherance of the coastal State's approved working
waterfront plan.
``(4) A qualified holder may hold title to or interest in
property acquired under this section, except that--
``(A) all persons holding title to or interest in
working waterfront affected by a grant under this
section, including a qualified holder, private citizen,
private business, nonprofit organization, fishing
cooperative, or other entity, shall enter into a
working waterfront covenant;
``(B) such covenant shall be held by the coastal
State or a qualified holder designated under paragraph
(2);
``(C) if the coastal State determines, on the record
after an opportunity for a hearing, that the working
waterfront covenant has been violated--
``(i) all right, title, and interest in and
to the working waterfront covered by such
covenant shall, except as provided in
subparagraph (D), revert to the coastal State;
and
``(ii) the coastal State shall have the right
of immediate entry onto the working waterfront;
``(D) if a coastal State makes a determination under
subparagraph (C), the coastal State may convey or
authorize the qualified holder to convey the working
waterfront or interest in working waterfront to another
qualified holder; and
``(E) nothing in this subsection waives any legal
requirement under any Federal or State law.
``(h) Matching Contributions.--
``(1) Except as provided in paragraph (2), the Secretary
shall require that each coastal State that receives a grant
under this section, or a qualified holder designated by that
coastal State under subsection (g), shall provide matching
funds in an amount equal to at least 25 percent of the total
cost of the project carried out with the grant.
``(2) The Secretary may waive the application of paragraph
(1) for any qualified holder that is an underserved community,
a community that has an inability to draw on other sources of
funding because of the small population or low income of the
community, or for other reasons the Secretary considers
appropriate.
``(3) A local community designated as a qualified holder
under subsection (g) may utilize funds or other in-kind
contributions donated by a nongovernmental partner to satisfy
the matching funds requirement under this subsection.
``(4) As a condition of receipt of a grant under this
section, the Secretary shall require that a coastal State
provide to the Secretary such assurances as the Secretary
determines are sufficient to demonstrate that the share of the
cost of each eligible project that is not funded by the grant
awarded under this section has been secured.
``(5) If financial assistance under this section represents
only a portion of the total cost of a project, funding from
other Federal sources may be applied to the cost of the
project. Each portion shall be subject to match requirements
under the applicable provision of law.
``(6) The Secretary shall treat as non-Federal match the
value of a working waterfront or interest in a working
waterfront, including conservation and other easements, that is
held in perpetuity by a qualified holder, if the working
waterfront or interest is identified in the application for the
grant and acquired by the qualified holder within 3 years of
the grant award date, or within 3 years after the submission of
the application and before the end of the grant award period.
Such value shall be determined by an appraisal performed at
such time before the award of the grant as the Secretary
considers appropriate.
``(7) The Secretary shall treat as non-Federal match the
costs associated with acquisition of a working waterfront or an
interest in a working waterfront, and the costs of restoration,
enhancement, or other improvement to a working waterfront, if
the activities are identified in the project application and
the costs are incurred within the period of the grant award,
or, for working waterfront described in paragraph (6), within
the same time limits described in that paragraph. These costs
may include either cash or in-kind contributions.
``(i) Limit on Administrative Costs.--No more than 5 percent of the
funds made available to the Secretary under this section may be used by
the Secretary for planning or administration of the program under this
section.
``(j) Other Technical and Financial Assistance.--
``(1) Up to 5 percent of the funds appropriated under this
section may be used by the Secretary for purposes of providing
technical assistance as described in this subsection.
``(2) The Secretary shall--
``(A) provide technical assistance to coastal States
and local governments in identifying and obtaining
other sources of available Federal technical and
financial assistance for the development and revision
of a working waterfront plan and the implementation of
an approved working waterfront plan;
``(B) provide technical assistance to States and
local governments for the development, implementation,
and revision of comprehensive working waterfront plans,
which may include, subject to the availability of
appropriations, planning grants and assistance, pilot
projects, feasibility studies, research, and other
projects necessary to further the purposes of this
section;
``(C) assist States in developing other tools to
protect working waterfronts;
``(D) collect and disseminate to States guidance for
best storm water management practices in regards to
working waterfronts;
``(E) provide technical assistance to States and
local governments on integrating resilience planning
into working waterfront preservation efforts; and
``(F) collect and disseminate best practices on
working waterfronts and resilience planning.
``(k) Reports.--
``(1) The Secretary shall--
``(A) develop performance measures to evaluate and
report on the effectiveness of the program under this
section in accomplishing the purpose of this section;
and
``(B) submit to Congress a biennial report that
includes such evaluations, an account of all
expenditures, and descriptions of all projects carried
out using grants awarded under this section.
``(2) The Secretary may submit the biennial report under
paragraph (1)(B) by including it in the biennial report
required under section 316.
``(l) Definitions.--In this section:
``(1) The term `qualified holder' means a coastal State or a
unit of local or coastal State government or a non-State
organization designated by a coastal State under subsection
(g).
``(2) The term `Secretary' means the Secretary, acting
through the National Oceanic and Atmospheric Administration.
``(3) The term `working waterfront' means real property
(including support structures over water and other facilities)
that provides access to coastal waters to persons engaged in
commercial and recreational fishing, recreational fishing and
boating businesses, boatbuilding, aquaculture, or other water-
dependent, coastal-related business and is used for, or that
supports, commercial and recreational fishing, recreational
fishing and boating businesses, boatbuilding, aquaculture, or
other water-dependent, coastal-related business.
``(4) The term `working waterfront covenant' means an
agreement in recordable form between the owner of working
waterfront and one or more qualified holders, that provides
such assurances as the Secretary may require that--
``(A) the title to or interest in the working
waterfront will be held by a grant recipient or
qualified holder in perpetuity, except as provided in
subparagraph (C);
``(B) the working waterfront will be managed in a
manner that is consistent with the purposes for which
the property is acquired pursuant to this section, and
the property will not be converted to any use that is
inconsistent with the purpose of this section;
``(C) if the title to or interest in the working
waterfront is sold or otherwise exchanged--
``(i) all working waterfront owners and
qualified holders involved in such sale or
exchange shall accede to such agreement; and
``(ii) funds equal to the fair market value
of the working waterfront or interest in
working waterfront shall be paid to the
Secretary by parties to the sale or exchange,
and such funds shall, at the discretion of the
Secretary, be paid to the coastal State in
which the working waterfront is located for use
in the implementation of the working waterfront
plan of the State approved by the Secretary
under this section; and
``(D) such covenant is subject to enforcement and
oversight by the coastal State or by another person as
determined appropriate by the Secretary.
``(m) Authorization of Appropriations.--There is authorized to be
appropriated to the Grant Program $12,000,000.''.
SEC. 3. WORKING WATERFRONTS PRESERVATION FUND; GRANTS.
The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is
further amended by adding at the end the following:
``SEC. 321. WORKING WATERFRONTS PRESERVATION LOAN FUND.
``(a) Fund.--There is established in the Treasury a separate account
that shall be known as the `Working Waterfronts Preservation Loan Fund'
(in this section referred to as the `Fund').
``(b) Use.--
``(1) Subject to the availability of appropriations, amounts
in the Fund may be used by the Secretary to make loans to
coastal States for the purpose of implementing a working
waterfront plan approved by the Secretary under section 320(c)
through preservation, improvement, restoration, rehabilitation,
acquisition of working waterfront properties under criteria
established by the Secretary.
``(2) Upon enactment of this section, the Secretary of
Commerce shall conduct a feasibility study on the
administration of the development and management of a Working
Waterfronts Preservation Loan Fund.
``(3) Upon the completion of the study under paragraph (2),
the Secretary shall establish a fund in accordance with the
results of that study, and establish such criteria as
referenced in subsection (c) in consultation with States that
have a management program approved by the Secretary of Commerce
pursuant to section 306 and local government coastal management
programs.
``(c) Award Criteria.--The Secretary shall award loans under this
section through a regionally equitable, competitive funding process,
and in accordance with the following:
``(1) The Governor, or the lead agency designated by the
Governor for coordinating the implementation of this section,
where appropriate in consultation with the appropriate local
government, shall determine that an application for a loan is
consistent with the State's approved coastal zone plan,
program, and policies prior to submission to the Secretary.
``(2) In developing guidelines under this section, the
Secretary shall consult with coastal States, other Federal
agencies, and other interested stakeholders with expertise in
working waterfront planning.
``(3) Coastal States may allocate amounts loaned under this
section to local governments, agencies, or nongovernmental
organizations eligible for loans under this section.
``(4) In awarding a loan for activities in a coastal State,
the Secretary shall consider--
``(A) the economic and cultural significance of
working waterfront to the coastal State;
``(B) the demonstrated working waterfront needs of
the coastal State as outlined by a working waterfront
plan approved for the coastal State under section
320(c), and the value of the proposed loan for the
implementation of such plan;
``(C) the ability to successfully leverage loan funds
among participating entities, including Federal
programs, regional organizations, State and other
government units, landowners, corporations, or private
organizations;
``(D) the potential for rapid turnover in the
ownership of working waterfront in the coastal State,
and where applicable the need for coastal States to
respond quickly when properties in existing or
potential working waterfront areas or public access
areas as identified in the working waterfront plan
submitted by the coastal State come under threat or
become available;
``(E) the impact of the loan on the coastal ecosystem
and the users of the coastal ecosystem; and
``(F) the extent of the historic connection between
working waterfronts for which the loan will be used and
the local communities within the coastal State.
``(d) Loan Amount and Terms.--
``(1) The amount of a loan under this section--
``(A) shall be not less than $100,000; and
``(B) shall not exceed 15 percent of the amount in
the Fund as of July 1 of the fiscal year in which the
loan is made.
``(2) The interest rate for a loan under this section shall
not exceed 4 percent.
``(3) The repayment term for a loan under this section shall
not exceed 20 years.
``(e) Deadline for Approval.--The Secretary shall approve or reject
an application for a loan under this section within 60 days after
receiving an application for the loan.
``(f) Limit on Administrative Costs.--No more than 5 percent of the
funds made available to the Secretary under this section may be used by
the Secretary for planning or administration of the program under this
section.
``(g) Definitions.--The definitions in section 320(l) shall apply to
this section.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Fund $12,000,000.''.
Purpose of the Bill
The purpose of H.R. 3596 is to amend the Coastal Zone
Management Act of 1972 to establish a Working Waterfront Task
Force and a working waterfronts grant program, and for other
purposes.
Background and Need for Legislation
Working waterfronts are waterfront property,
infrastructure, and waterways that provide access to coastal
waters for people in commercial and recreational fishing
businesses, boatbuilding, aquaculture, or other water-dependent
activities. Working waterfronts may include ports, small
recreational boat harbors, fishing docks, and other places that
provide access to coastal waters. Nationally, coastal
activities account for over 100,000 businesses that employ more
than 2 million full and part-time employees and contribute over
$200 billion to GDP (roughly 3.4 percent of total GDP and 4.85
percent of total employment).\1\
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\1\Sustainable Working Waterfronts Toolkit: Final Report. March
2013. Island Institute, Maine Sea Grant, National Sea Grant Law Center,
Coastal Enterprises Inc., Florida Sea Grant, Virginia Sea Grant,
University of Mass. Boston. https://digitalcommons.library.umaine.edu/
cgi/viewcontent.cgi?article=1062&context=seagrant_pub.
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There is currently no federal program to preserve or
improve working waterfronts. Yet, working waterfronts are
essential for fishing, shipping, and coastal tourism
industries. Despite their economic value, working waterfronts
are facing numerous threats, including pressure from competing
land use plans, aging infrastructure, changing regulations,
coastal hazards, and environmental impacts from climate
change.\2\
---------------------------------------------------------------------------
\2\Ibid.
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The Keep America's Waterfronts Working Act amends the
Coastal Zone Management Act (CZMA) to provide a grant program
and loan program for coastal communities to develop and
implement their working waterfront plans.
Committee Action
H.R. 3596 was introduced on June 28, 2019, by
Representative Chellie Pingree (D-ME). The bill was referred
solely to the Committee on Natural Resources, and within the
Committee to the Subcommittee on Water, Oceans, and Wildlife.
On July 25, 2019, the Subcommittee held a hearing on the bill.
On September 25, 2019, the Natural Resources Committee met to
consider the bill. The Subcommittee was discharged by unanimous
consent. Chair Raul Grijalva (D-AZ) offered an amendment in the
nature of a substitute. Representative Joe Cunningham (D-SC)
and Representative Garret Graves (R-LA) offered an amendment
#1. The amendment passed by voice vote. The amendment in the
nature of a substitute offered by Chair Grijalva was adopted by
voice vote as amended. No additional amendments were offered,
and the bill, as amended, was adopted and ordered favorably
reported to the House of Representatives by a roll call vote of
22 yeas and 13 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Hearings
For the purposes of section 103(i) of H. Res. 6 of the
116th Congress--the following hearing was used to develop or
consider H.R. 3596: legislative hearing by the Subcommittee on
Water, Oceans, and Wildlife held on July 25, 2019.
Section-by-Section Analysis
Section 2. This section amends the CZMA to establish a
working waterfronts grant program to preserve and protect
coastal access for water-dependent commercial activities. The
bill requires the Secretary of Commerce to establish a Working
Waterfront Task Force (Task Force) made up of experts with
expertise in economics, social, and cultural concerns, and
ecological, geographic, and natural resource values of working
waterfronts, in addition to representatives from across
relevant federal agencies. The Task Force identifies working
waterfronts within communities and their critical needs related
to their economic and cultural importance, threats from trade
barriers, sea level rise, extreme weather, ocean acidification,
and harmful algal blooms. The Task Force provides their
findings and recommendations to Congress.
This section also authorizes NOAA to award grants to
develop and implement working waterfront plans. Plans are
developed with public input and include economic, social,
cultural, and historic value assessments; plans for
preservation, expansion, and improvement of waterfronts;
identification of areas where waterfronts are under threat of
conversion; and identification of where working waterfronts
could be expanded. Working waterfront plans last for five years
after approval by the Secretary. States are authorized to
allocate grants to eligible local governments, agencies, or
NGOs. Grants can be used to acquire a working waterfront, make
improvements to working waterfronts, or for necessary climate
adaptation mitigation, but all funded projects must provide for
expansion, improvement, or preservation of public access to
coastal waters.
Section 3. This section amends the CZMA to establish the
Working Waterfronts Preservation Loan Fund, which makes loans
available to coastal states to implement their working
waterfront plan. Funding would be awarded though a regionally
equitable competition process considering the economic and
cultural significance of the working waterfront, the
demonstrated needs of the working waterfront, the ability to
leverage funds, the impact of the loan on the coastal community
and ecosystem, and the potential for rapid turnover of
ownership of the working waterfront. The bill authorizes $12
million to carry out this section.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 1, 2019.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3596, the Keep
America's Waterfronts Working Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sofia Guo.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 3596 would require the Secretary of Commerce, in
consultation with coastal States, regional governments, and
coastal property owners, to establish a task force to identify
the needs of working waterfronts (as defined in the bill) and
to implement improvement plans. The bill would authorize the
appropriation of $12 million for a grant program and $12
million to cover the subsidy costs for loans to assist those
waterfronts. Under the bill, the Secretary would be responsible
for various reporting, implementation, and technical assistance
requirements with regard to each program.
The bill does not specify the years for the authorized
appropriation so CBO has assumed that all of the authorizations
would be for 2020. Assuming appropriation of the authorized
amounts, and based on historical spending patterns for similar
programs, CBO estimates that implementing H.R. 3596 would cost
$23 million over the 2020-2024 period. The costs of the
legislation (detailed in Table 1) fall within budget function
300 (natural resources and environment).
TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3596
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------
2020 2021 2022 2023 2024 2020-2024
----------------------------------------------------------------------------------------------------------------
Authorization........................................... 24 0 0 0 0 24
Estimated Outlays....................................... 1 13 5 3 1 23
----------------------------------------------------------------------------------------------------------------
The CBO staff contact for this estimate is Sofia Guo. The
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goals and
objectives of this bill are to amend the Coastal Zone
Management Act of 1972 to establish a Working Waterfront Task
Force and a working waterfronts grant program.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Unfunded Mandates Reform Act Statement
This bill contains no unfunded mandates.
Federal Advisory Committee Act Statement
The bill requires the Secretary of Commerce to establish a
Working Waterfront Task Force. In reporting the bill favorably
to the House of Representatives, the Committee on Natural
Resources finds that the functions of the proposed Task Force
authorized in this bill are not already being performed by one
or more agencies or by an advisory committee already in
existence. The Committee finds that the Task Force's functions
would be better performed by the proposed Task Force than by
one or more agencies or an existing advisory committee.
Existing Programs
This bill does not establish or reauthorize a program of
the federal government known to be duplicative of another
program. Such program was not included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139. The Working Waterfront Grant
Program established by the bill is related and complementary
to, but not duplicative of, the following programs identified
in the most recent Catalog of Federal Domestic Assistance
published pursuant to 31 U.S.C. Sec. 6104: Coastal Zone
Management Administration Awards (CFDA No. 11.419), Sea Grant
Support (CFDA No. 11.417), Coastal Zone Management Estuarine
Research Reserves (CFDA No. 11.420), Office for Coastal
Management (CFDA No. 11.473), and Coral Reef Conservation
Program (CFDA No. 11.482).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local, or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
COASTAL ZONE MANAGEMENT ACT OF 1972
* * * * * * *
SEC. 320. WORKING WATERFRONTS GRANT PROGRAM.
(a) Working Waterfront Task Force.--
(1) Establishment and functions.--The Secretary of
Commerce shall establish a task force to work directly
with coastal States, user groups, and coastal
stakeholders to identify and address critical needs
with respect to working waterfronts.
(2) Membership.--The members of the task force shall
be appointed by the Secretary of Commerce, and shall
include--
(A) experts in the unique economic, social,
cultural, ecological, geographic, and resource
concerns of working waterfronts; and
(B) representatives from the National Oceanic
and Atmospheric Administration's Office of
Coastal Management, the United States Fish and
Wildlife Service, the Department of
Agriculture, the Environmental Protection
Agency, the United States Geological Survey,
the Navy, the National Marine Fisheries
Service, the Economic Development Agency, and
such other Federal agencies as the Secretary
considers appropriate.
(3) Functions.--The task force shall--
(A) identify and prioritize critical needs
with respect to working waterfronts in States
that have a management program approved by the
Secretary of Commerce pursuant to section 306,
in the areas of--
(i) economic and cultural importance
of working waterfronts to communities;
(ii) changing environments and
threats working waterfronts face from
environment changes, trade barriers,
sea level rise, extreme weather events,
ocean acidification, and harmful algal
blooms; and
(iii) identifying working waterfronts
and highlighting them within
communities;
(B) outline options, in coordination with
coastal States and local stakeholders, to
address such critical needs, including
adaptation and mitigation where applicable;
(C) identify Federal agencies that are
responsible under existing law for addressing
such critical needs; and
(D) recommend Federal agencies best suited to
address any critical needs for which no agency
is responsible under existing law.
(4) Information to be considered.--In identifying and
prioritizing policy gaps pursuant to paragraph (3), the
task force shall consider the findings and
recommendations contained in section VI of the report
entitled ``The Sustainable Working Waterfronts Toolkit:
Final Report'', dated March 2013.
(5) Report.--Not later than 18 months after the date
of the enactment of this section, the task force shall
submit a report to Congress on its findings.
(6) Implementation.--The head of each Federal agency
identified in the report pursuant to paragraph (3)(C)
shall take such action as is necessary to implement the
recommendations contained in the report by not later
than 1 year after the date of the issuance of the
report.
(b) Working Waterfront Grant Program.--
(1) The Secretary shall establish a Working
Waterfront Grant Program, in cooperation with
appropriate State, regional, and other units of
government, under which the Secretary may make a grant
to any coastal State for the purpose of implementing a
working waterfront plan approved by the Secretary under
subsection (c).
(2) Subject to the availability of appropriations,
the Secretary shall award matching grants under the
Working Waterfronts Grant Program to coastal States
with approved working waterfront plans through a
regionally equitable, competitive funding process in
accordance with the following:
(A) The Governor, or the lead agency
designated by the Governor for coordinating the
implementation of this section, where
appropriate in consultation with the
appropriate local government, shall determine
that the application is consistent with the
State's or territory's approved coastal zone
plan, program, and policies prior to submission
to the Secretary.
(B) In developing guidelines under this
section, the Secretary shall consult with
coastal States, other Federal agencies, and
other interested stakeholders with expertise in
working waterfront planning.
(C) Coastal States may allocate grants to
local governments, agencies, or nongovernmental
organizations eligible for assistance under
this section.
(3) In awarding a grant to a coastal State, the
Secretary shall consider--
(A) the economic, cultural, and historical
significance of working waterfront to the
coastal State;
(B) the demonstrated working waterfront needs
of the coastal State as outlined by a working
waterfront plan approved for the coastal State
under subsection (c), and the value of the
proposed project for the implementation of such
plan;
(C) the ability to successfully leverage
funds among participating entities, including
Federal programs, regional organizations, State
and other government units, landowners,
corporations, or private organizations;
(D) the potential for rapid turnover in the
ownership of working waterfront in the coastal
State, and where applicable the need for
coastal States to respond quickly when
properties in existing or potential working
waterfront areas or public access areas as
identified in the working waterfront plan
submitted by the coastal State come under
threat or become available; and
(E) the impact of the working waterfront plan
approved for the coastal State under subsection
(c) on the coastal ecosystem and the users of
the coastal ecosystem.
(4) The Secretary shall approve or reject an
application for such a grant within 60 days after
receiving an application for the grant.
(c) Working Waterfront Plans.--
(1) To be eligible for a grant under subsection (b),
a coastal State must submit and have approved by the
Secretary a comprehensive working waterfront plan in
accordance with this subsection, or be in the process
of developing such a plan and have an established
working waterfront program at the State or local level,
or the Secretary determines that an existing coastal
land use plan for that State is in accordance with this
subsection.
(2) Such plan--
(A) must provide for preservation and
expansion of access to coastal waters to
persons engaged in commercial fishing,
recreational fishing and boating businesses,
aquaculture, boatbuilding, or other water-
dependent, coastal-related business;
(B) shall include one or more of--
(i) an assessment of the economic,
social, cultural, and historic value of
working waterfront to the coastal
State;
(ii) a description of relevant State
and local laws and regulations
affecting working waterfront in the
geographic areas identified in the
working waterfront plan;
(iii) identification of geographic
areas where working waterfronts are
currently under threat of conversion to
uses incompatible with commercial and
recreational fishing, recreational
fishing and boating businesses,
aquaculture, boatbuilding, or other
water-dependent, coastal-related
business, and the level of that threat;
(iv) identification of geographic
areas with a historic connection to
working waterfronts where working
waterfronts are not currently
available, and, where appropriate, an
assessment of the environmental impacts
of any expansion or new development of
working waterfronts on the coastal
ecosystem;
(v) identification of other working
waterfront needs including improvements
to existing working waterfronts and
working waterfront areas;
(vi) a strategic and prioritized plan
for the preservation, expansion, and
improvement of working waterfronts in
the coastal State;
(vii) for areas identified under
clauses (iii), (iv), (v), and (vi),
identification of current availability
and potential for expansion of public
access to coastal waters;
(viii) a description of the degree of
community support for such strategic
plan; and
(ix) a contingency plan for
properties that revert to the coastal
State pursuant to determinations made
by the coastal State under subsection
(g)(4)(C);
(C) may include detailed environmental
impacts on working waterfronts, including
hazards, sea level rise, inundation exposure,
and other resiliency issues;
(D) may be part of the management program
approved under section 306;
(E) shall utilize to the maximum extent
practicable existing information contained in
relevant surveys, plans, or other strategies to
fulfill the information requirements under this
paragraph; and
(F) shall incorporate the policies and
regulations adopted by communities under local
working waterfront plans or strategies in
existence before the date of the enactment of
this section.
(3) A working waterfront plan--
(A) shall be effective for purposes of this
section for the 5-year period beginning on the
date it is approved by the Secretary;
(B) must be updated and re-approved by the
Secretary before the end of such period; and
(C) shall be complimentary to and incorporate
the policies and objectives of regional or
local working waterfront plans as in effect
before the date of enactment of this section or
as subsequently revised.
(4) The Secretary may--
(A) award planning grants to coastal States
for the purpose of developing or revising
comprehensive working waterfront plans; and
(B) award grants consistent with the purposes
of this section to States undertaking the
working waterfront planning process under this
section, for the purpose of preserving and
protecting working waterfronts during such
process.
(5) Any coastal State applying for a working
waterfront grant under this title shall--
(A) develop a working waterfront plan, using
a process that involves the public and those
with an interest in the coastal zone;
(B) coordinate development and implementation
of such a plan with other coastal management
programs, regulations, and activities of the
coastal State; and
(C) if the coastal State allows qualified
holders (other than the coastal State) to enter
into working waterfront covenants, provide as
part of the working waterfront plan under this
subsection a mechanism or procedure to ensure
that the qualified holders are complying their
duties to enforce the working waterfront
covenant.
(d) Uses, Terms, and Conditions.--
(1) Each grant made by the Secretary under this
section shall be subject to such terms and conditions
as may be appropriate to ensure that the grant is used
for purposes consistent with this section.
(2) A grant under this section may be used--
(A) to acquire a working waterfront, or an
interest in a working waterfront;
(B) to make improvements to a working
waterfront, including the construction or
repair of wharfs, boat ramps, or related
facilities; or
(C) for necessary climate adaptation
mitigation.
(e) Public Access Requirement.--A working waterfront project
funded by grants made under this section must provide for
expansion, improvement, or preservation of reasonable and
appropriate public access to coastal waters at or in the
vicinity of a working waterfront, except for commercial fishing
or other industrial access points where the coastal State
determines that public access would be unsafe.
(f) Limitations.--
(1) Except as provided in paragraph (2), a grant
awarded under this section may be used to purchase
working waterfront or an interest in working
waterfront, including an easement, only from a willing
seller and at fair market value.
(2) A grant awarded under this section may be used to
acquire working waterfront or an interest in working
waterfront at less than fair market value only if the
owner certifies to the Secretary that the sale is being
entered into willingly and without coercion.
(3) No Federal, State, or local entity may exercise
the power of eminent domain to secure title to any
property or facilities in connection with a project
carried out under this section.
(g) Allocation of Grants to Local Governments and Other
Entities.--
(1) The Secretary shall encourage coastal States to
broadly allocate amounts received as grants under this
section among working waterfronts identified in working
waterfront plans approved under subsection (c).
(2) Subject to the approval of the Secretary, a
coastal State may, as part of an approved working
waterfront plan, designate as a qualified holder any
unit of State or local government or nongovernmental
organization, if the coastal State is ultimately
responsible for ensuring that the property will be
managed in a manner that is consistent with the
purposes for which the land entered into the program.
(3) A coastal State or a qualified holder designated
by a coastal State may allocate to a unit of local
government, nongovernmental organization, fishing
cooperative, or other entity, a portion of any grant
made under this section for the purpose of carrying out
this section, except that such an allocation shall not
relieve the coastal State of the responsibility for
ensuring that any funds so allocated are applied in
furtherance of the coastal State's approved working
waterfront plan.
(4) A qualified holder may hold title to or interest
in property acquired under this section, except that--
(A) all persons holding title to or interest
in working waterfront affected by a grant under
this section, including a qualified holder,
private citizen, private business, nonprofit
organization, fishing cooperative, or other
entity, shall enter into a working waterfront
covenant;
(B) such covenant shall be held by the
coastal State or a qualified holder designated
under paragraph (2);
(C) if the coastal State determines, on the
record after an opportunity for a hearing, that
the working waterfront covenant has been
violated--
(i) all right, title, and interest in
and to the working waterfront covered
by such covenant shall, except as
provided in subparagraph (D), revert to
the coastal State; and
(ii) the coastal State shall have the
right of immediate entry onto the
working waterfront;
(D) if a coastal State makes a determination
under subparagraph (C), the coastal State may
convey or authorize the qualified holder to
convey the working waterfront or interest in
working waterfront to another qualified holder;
and
(E) nothing in this subsection waives any
legal requirement under any Federal or State
law.
(h) Matching Contributions.--
(1) Except as provided in paragraph (2), the
Secretary shall require that each coastal State that
receives a grant under this section, or a qualified
holder designated by that coastal State under
subsection (g), shall provide matching funds in an
amount equal to at least 25 percent of the total cost
of the project carried out with the grant.
(2) The Secretary may waive the application of
paragraph (1) for any qualified holder that is an
underserved community, a community that has an
inability to draw on other sources of funding because
of the small population or low income of the community,
or for other reasons the Secretary considers
appropriate.
(3) A local community designated as a qualified
holder under subsection (g) may utilize funds or other
in-kind contributions donated by a nongovernmental
partner to satisfy the matching funds requirement under
this subsection.
(4) As a condition of receipt of a grant under this
section, the Secretary shall require that a coastal
State provide to the Secretary such assurances as the
Secretary determines are sufficient to demonstrate that
the share of the cost of each eligible project that is
not funded by the grant awarded under this section has
been secured.
(5) If financial assistance under this section
represents only a portion of the total cost of a
project, funding from other Federal sources may be
applied to the cost of the project. Each portion shall
be subject to match requirements under the applicable
provision of law.
(6) The Secretary shall treat as non-Federal match
the value of a working waterfront or interest in a
working waterfront, including conservation and other
easements, that is held in perpetuity by a qualified
holder, if the working waterfront or interest is
identified in the application for the grant and
acquired by the qualified holder within 3 years of the
grant award date, or within 3 years after the
submission of the application and before the end of the
grant award period. Such value shall be determined by
an appraisal performed at such time before the award of
the grant as the Secretary considers appropriate.
(7) The Secretary shall treat as non-Federal match
the costs associated with acquisition of a working
waterfront or an interest in a working waterfront, and
the costs of restoration, enhancement, or other
improvement to a working waterfront, if the activities
are identified in the project application and the costs
are incurred within the period of the grant award, or,
for working waterfront described in paragraph (6),
within the same time limits described in that
paragraph. These costs may include either cash or in-
kind contributions.
(i) Limit on Administrative Costs.--No more than 5 percent of
the funds made available to the Secretary under this section
may be used by the Secretary for planning or administration of
the program under this section.
(j) Other Technical and Financial Assistance.--
(1) Up to 5 percent of the funds appropriated under
this section may be used by the Secretary for purposes
of providing technical assistance as described in this
subsection.
(2) The Secretary shall--
(A) provide technical assistance to coastal
States and local governments in identifying and
obtaining other sources of available Federal
technical and financial assistance for the
development and revision of a working
waterfront plan and the implementation of an
approved working waterfront plan;
(B) provide technical assistance to States
and local governments for the development,
implementation, and revision of comprehensive
working waterfront plans, which may include,
subject to the availability of appropriations,
planning grants and assistance, pilot projects,
feasibility studies, research, and other
projects necessary to further the purposes of
this section;
(C) assist States in developing other tools
to protect working waterfronts;
(D) collect and disseminate to States
guidance for best storm water management
practices in regards to working waterfronts;
(E) provide technical assistance to States
and local governments on integrating resilience
planning into working waterfront preservation
efforts; and
(F) collect and disseminate best practices on
working waterfronts and resilience planning.
(k) Reports.--
(1) The Secretary shall--
(A) develop performance measures to evaluate
and report on the effectiveness of the program
under this section in accomplishing the purpose
of this section; and
(B) submit to Congress a biennial report that
includes such evaluations, an account of all
expenditures, and descriptions of all projects
carried out using grants awarded under this
section.
(2) The Secretary may submit the biennial report
under paragraph (1)(B) by including it in the biennial
report required under section 316.
(l) Definitions.--In this section:
(1) The term ``qualified holder'' means a coastal
State or a unit of local or coastal State government or
a non-State organization designated by a coastal State
under subsection (g).
(2) The term ``Secretary'' means the Secretary,
acting through the National Oceanic and Atmospheric
Administration.
(3) The term ``working waterfront'' means real
property (including support structures over water and
other facilities) that provides access to coastal
waters to persons engaged in commercial and
recreational fishing, recreational fishing and boating
businesses, boatbuilding, aquaculture, or other water-
dependent, coastal-related business and is used for, or
that supports, commercial and recreational fishing,
recreational fishing and boating businesses,
boatbuilding, aquaculture, or other water-dependent,
coastal-related business.
(4) The term ``working waterfront covenant'' means an
agreement in recordable form between the owner of
working waterfront and one or more qualified holders,
that provides such assurances as the Secretary may
require that--
(A) the title to or interest in the working
waterfront will be held by a grant recipient or
qualified holder in perpetuity, except as
provided in subparagraph (C);
(B) the working waterfront will be managed in
a manner that is consistent with the purposes
for which the property is acquired pursuant to
this section, and the property will not be
converted to any use that is inconsistent with
the purpose of this section;
(C) if the title to or interest in the
working waterfront is sold or otherwise
exchanged--
(i) all working waterfront owners and
qualified holders involved in such sale
or exchange shall accede to such
agreement; and
(ii) funds equal to the fair market
value of the working waterfront or
interest in working waterfront shall be
paid to the Secretary by parties to the
sale or exchange, and such funds shall,
at the discretion of the Secretary, be
paid to the coastal State in which the
working waterfront is located for use
in the implementation of the working
waterfront plan of the State approved
by the Secretary under this section;
and
(D) such covenant is subject to enforcement
and oversight by the coastal State or by
another person as determined appropriate by the
Secretary.
(m) Authorization of Appropriations.--There is authorized to
be appropriated to the Grant Program $12,000,000.
SEC. 321. WORKING WATERFRONTS PRESERVATION LOAN FUND.
(a) Fund.--There is established in the Treasury a separate
account that shall be known as the ``Working Waterfronts
Preservation Loan Fund'' (in this section referred to as the
``Fund'').
(b) Use.--
(1) Subject to the availability of appropriations,
amounts in the Fund may be used by the Secretary to
make loans to coastal States for the purpose of
implementing a working waterfront plan approved by the
Secretary under section 320(c) through preservation,
improvement, restoration, rehabilitation, acquisition
of working waterfront properties under criteria
established by the Secretary.
(2) Upon enactment of this section, the Secretary of
Commerce shall conduct a feasibility study on the
administration of the development and management of a
Working Waterfronts Preservation Loan Fund.
(3) Upon the completion of the study under paragraph
(2), the Secretary shall establish a fund in accordance
with the results of that study, and establish such
criteria as referenced in subsection (c) in
consultation with States that have a management program
approved by the Secretary of Commerce pursuant to
section 306 and local government coastal management
programs.
(c) Award Criteria.--The Secretary shall award loans under
this section through a regionally equitable, competitive
funding process, and in accordance with the following:
(1) The Governor, or the lead agency designated by
the Governor for coordinating the implementation of
this section, where appropriate in consultation with
the appropriate local government, shall determine that
an application for a loan is consistent with the
State's approved coastal zone plan, program, and
policies prior to submission to the Secretary.
(2) In developing guidelines under this section, the
Secretary shall consult with coastal States, other
Federal agencies, and other interested stakeholders
with expertise in working waterfront planning.
(3) Coastal States may allocate amounts loaned under
this section to local governments, agencies, or
nongovernmental organizations eligible for loans under
this section.
(4) In awarding a loan for activities in a coastal
State, the Secretary shall consider--
(A) the economic and cultural significance of
working waterfront to the coastal State;
(B) the demonstrated working waterfront needs
of the coastal State as outlined by a working
waterfront plan approved for the coastal State
under section 320(c), and the value of the
proposed loan for the implementation of such
plan;
(C) the ability to successfully leverage loan
funds among participating entities, including
Federal programs, regional organizations, State
and other government units, landowners,
corporations, or private organizations;
(D) the potential for rapid turnover in the
ownership of working waterfront in the coastal
State, and where applicable the need for
coastal States to respond quickly when
properties in existing or potential working
waterfront areas or public access areas as
identified in the working waterfront plan
submitted by the coastal State come under
threat or become available;
(E) the impact of the loan on the coastal
ecosystem and the users of the coastal
ecosystem; and
(F) the extent of the historic connection
between working waterfronts for which the loan
will be used and the local communities within
the coastal State.
(d) Loan Amount and Terms.--
(1) The amount of a loan under this section--
(A) shall be not less than $100,000; and
(B) shall not exceed 15 percent of the amount
in the Fund as of July 1 of the fiscal year in
which the loan is made.
(2) The interest rate for a loan under this section
shall not exceed 4 percent.
(3) The repayment term for a loan under this section
shall not exceed 20 years.
(e) Deadline for Approval.--The Secretary shall approve or
reject an application for a loan under this section within 60
days after receiving an application for the loan.
(f) Limit on Administrative Costs.--No more than 5 percent of
the funds made available to the Secretary under this section
may be used by the Secretary for planning or administration of
the program under this section.
(g) Definitions.--The definitions in section 320(l) shall
apply to this section.
(h) Authorization of Appropriations.--There is authorized to
be appropriated to the Fund $12,000,000.
DISSENTING VIEWS
H.R. 3596 is yet another attempt to ``fix'' the Coastal
Zone Management Act (CZMA) by solving a problem that doesn't
exists. This bill would establish a working waterfront task
force, grant program, and preservation loan fund program to
``preserve and protect'' water-dependent commercial activities.
Yet, as the National Oceanic and Atmospheric Administration's
(NOAA) witness, Rear Admiral Gallaudet, stated at the hearing
on this bill, ``Under the CZMA, coastal states have the
discretion to use funding for many of the purposes that would
be addressed by the Working Waterfronts Grant Program proposed
in H.R. 3596.''\1\
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\1\Written Testimony by RDML Tim Gallaudet, Deputy NOAA
Administrator, Hearing July 25, 2019.
---------------------------------------------------------------------------
Congress enacted the CZMA to ``preserve, protect, develop,
and where possible, to restore or enhance the resources of the
nation's coastal zone.''\2\ The CZMA program is experiencing
death by a thousand cuts with the new Democrat-let majority.
Over the past few months four bills have moved out of the
Natural Resources Committee that are purported to ``improve''
the CZMA program. Yet, in many cases they are duplicative or go
beyond NOAA's core mission area. H.R. 3596 is no different.
According to NOAA's testimony, the agency has concerns over
managing another loan program and also highlighted a key
problem, repayment, stating, ``securing repayment of the loans
such as those proposed through the Working Waterfronts
Preservation Loan Fund, can be challenging. The Coastal Energy
Impact Program (CEIP) was a loan and grant program authorized
under the CZMA to help states and communities impacted by
energy production. Despite NOAA's continued efforts to recover
funds, five loans are still outstanding. The proposed repayment
term of twenty years and the potential for turnover in the
ownership of working waterfront properties may preclude the
timely repayment of loans.''\3\
---------------------------------------------------------------------------
\2\16 USC 1452
\3\Written Testimony by RDML Tim Gallaudet, Deputy NOAA
Administrator, Hearing July 25, 2019.
---------------------------------------------------------------------------
This bill asks the American public to front the cost of
these loans and carry the liability of default, a liability
that according to NOAA's testimony will likely end in no
repayments. For these reasons, we oppose this legislation.
Rob Bishop.
Jody B. Hice.
[all]