Sen. Daniel K. Inouye, D-Hawai'i, the bill's sponsor and chairman of the committee, called coral reef preservation "vital" to national interests, especially for fishing, tourism and coastal communities.

"Coral reef-related services and resources are worth billions of dollars each year to the U.S. economy and economies worldwide," he said.

Coral reefs are critical for Hawai'i, which is host to more than 410,000 acres of living reef around the main islands alone, Inouye said.

The bill, which would reauthorize a law enacted seven years ago, would make it illegal to damage corals. It would exempt scientific research, fishing, emergency responses and other activities authorized by federal and state laws.

The proposal also would create criminal and civil penalties for damaging or destroying coral reefs. While reefs in National Marine Sanctuaries already have legal protection, there is none available for reefs outside those boundaries.

The House passed a similar bill last week on a voice vote, but that bill didn't include the penalty provisions.

Inouye said he hopes the civil penalties, which would finance a special fund for repairing damage to coral reefs, will help move the bill through the Senate.

In May, the Bush administration called for greater protection of coral reefs, saying nearly 25 percent of the world's reefs are at risk of collapsing from man-made pressures. Nearly 20 percent have been destroyed already.

Administration officials commended the Commerce Committee in a letter Monday for its efforts to "significantly strengthen the protection of U.S. coral reefs."

The bill would give the National Oceanic and Atmospheric Administration more authority to deal with ships that run aground on coral reefs and remove abandoned fishing gear and other discarded items.