590 



Pub. Law 94-370 - 10 - July 26, 1976 



"(4) Each coastal state shall use the proceeds of giants received 

 by it under this subsection for the following purposes (except that 

 priority shall be given to the use of such proceeds for the purpose 

 set forth in subparagraph (A) ) : 



"(A) The retirement of state and local bonds, if any, which 

 are guaranteed under subsection (d)(2); except that, if the 

 amount of such grants is insufficient to retire both state and local 

 bonds, priority shall be given to retiring local bonds. 



"(B) The study of, planning for, development of, and the 

 carrying out of projects and programs in such state which are — 

 "(i) necessary, because of the unavailability of adequate 

 financing under any other subsection, to provide new or 

 improved public facilities and public services which are 

 required as a direct result of new or expanded outer Conti- 

 nental Shelf energy activity; and 



"(ii) of a type approved by the Secretary as eligible for 

 grants under this paragraph, except that the Secretary may 

 not disapprove any project or program for highways and 

 secondary roads, docks, navigation aids, fire and police pro- 

 tection, water supply, waste collection and treatment 

 (including drainage), schools and education, and hospitals 

 and health care. 

 "(C) The prevention, reduction, or amelioration of any 

 unavoidable loss in such state's coastal zone of any valuable 

 environmental or recreational resource if such loss results from 

 coastal energy activity. 

 "(5) The Secretary, in a timely manner, shall determine that each 

 coastal state has expended or committed, and may determine that such 

 state will expend or commit, grants which such state has received 

 under this subsection in accordance with the purposes set forth in 

 paragraph (4). The United States shall be entitled to recover from 

 any coastal state an amount equal to any portion of any such grant 

 received by such state under this subsection which — 



"(A) is not expended or committed by such state before the 

 close of the fiscal year immediately following the fiscal year in 

 which the grant was disbursed, or 



"(B) is expended or committed by such state for any purpose 

 other than a purpose set forth in paragraph (4). 

 Before disbursing the proceeds of any grant under this subsection to 

 any coastal state, the Secretary shall require such state to provide 

 adequate assurances of being able to return to the United States any 

 amounts to which the preceding sentence may apply. 



"(c) The Secretary shall make grants to any coastal state if the Sec- 

 retary finds that the coastal zone of such state is being, or is likely to 

 be, significantly affected by the siting, construction, expansion, or oper- 

 ation of new or expanded energy facilities. Such grants shall be used 

 for the study of, and planning for (including, but not limited to, the 

 application of the planning process included in a management pro- 

 Ante p. 1015. grampursuant to section 305(b) (8)) any economic, social, or en viron- 



' ' mental consequence which has occurred, is occurring, or is likely to 



occur in such state's coastal zone as a result of the siting, construction, 

 expansion, or operation of such new or expanded energy facilities. 

 The amount of any such grant shall not exceed 80 per centum of the 

 cost of such study and planning. 

 Loans. "(d) (1) The Secretary shall make loans to any coastal state and to 



any unit of general purpose local government to assist such state or 

 unit to provide new or improved public facilities or public services, or 



90 STAT, 1022 



