Establishes in the Treasury a trust fund to be known as the National Endowment for the Oceans (NEO) to: (1) allocate funding to coastal states and affected Indian tribes, (2) make grants to regional ocean and coastal planning bodies, and (3) develop and implement a National Grant Program for Oceans and Coastal Waters.
Directs the Secretary of Commerce to serve as trustee.
Requires that funds be allocated by the Secretary only to fund grants for programs and activities to restore, protect, maintain, or understand living marine resources and their habitats and resources in ocean and coastal waters, including baseline scientific research, ocean observing, and other programs and activities carried out in coordination with federal and state agencies, that are consistent with federal environmental laws and that avoid environmental degradation.
Directs the Secretary to allocate from the amounts to be distributed among states each fiscal year: (1) 50% equally among coastal states, (2) 25% based on tidal shoreline miles, and (3) 25% based on the coastal population density of a coastal state. Limits the percentage of total funds that a state or territory may receive in any fiscal year.
Requires, upon the establishment of a Gulf Coast Restoration Trust Fund, that specified interest and investment proceeds from such Fund be transferred to the NEO.