222 



Accordingly, we favor the approach embodied in S. 992, which in- 

 corporates provisions for the protection of the coastal and estuarine 

 areas into its more comprehensive scheme. At the same time, we recog- 

 nize that the coastal zone is an area of special concern, where prompt 

 and effective action is required. Heavy pressures for further develop- 

 ment, coupled with the fragility of coastal and estuarine areas, make 

 it imperative that we move immediately to protect these areas. The 

 system authorized by S. 992 will permit a high priority for coastal 

 zone planning within its larger context of land-use plamiing and pro- 

 grams. We therefore urge prompt congressional approval of S. 992. 



The Office of Management and Budget has advised that there is no 

 objection to the presentation of this report from the standpoint of the 

 Administration's program. 



Sincerely, 



WlLX,IAM D. RUCKELSHATJS, 



Administrator. 



Comptroller General of the United States, 



Washington^ D.C.^ September 26, 1969. 

 B-167694. 



Hon. Warren G. Magntjson, 

 Chairman, Committee on Gom/merce, 

 U.S. Senate, Washington, D.C. 



Dear Mr. Chairman : Reference is made to your letter of August 11, 

 1969, requesting our comments on S. 2802. 



The bill would amend Public Law 89^54, as amended (33 U.S.C. 

 1101 et seq., by adding thereto a new title III which would provide 

 financial assistance to coastal authorities for establishing and imple- 

 menting coastal management programs, and a new title IV which 

 would provide for a special fund in the Treasury to be known as the 

 "Marine Resources Fund." 



We have no special information concerning the desirability of the 

 proposed legislation and accordingly, we make no recommendation as 

 to the merits of the bill. However, we offer the following comments for 

 your consideration. 



Sections 301(a) and 305 (a) and (b) authorize the Coimcil to make 

 grants to coastal authorities for the purpose of developing a longrange 

 master plan and implementing a development program, and to enter 

 into agreements with coastal authorities to underwrite by guaranty 

 thereof, bond issues or loans for the purpose of land acquisition or land 

 and water development and restoration projects. 



The proposed legislation contains no criteria as to when or under 

 what circumstances each type of financial assistance should be utilized. 

 The Congress maj?- wish to consider the advisability of including cri- 

 teria which would provide that grants be made only in those instances 

 where a finding has been made by the Council that the applicant for 

 financial assistance does not have sufficient financial resources to per- 

 mit the undertaking of a project with bond or loan financing. Also, 

 we note that section 305(b) does not specifically state whether pay- 

 ments on defaulted bonds or loans are to be made from the Marine 

 Resources Fund or from funds otherwise appropriated. 



Section 312(a) contains what appears to be an unrealistic require- 

 ment for a report to the Congress not later than January 1 of each 

 year on the administration of the title for the preceding calendar 



