621 



COASTAL ENEEGT FACILITY IMPACT PKOGRAM 



"Sec. 308. (a) The Secretary is authorized to make a grant to a coastal State, 

 if he determines that such State's coastal zone has been, or is likely to be, im- 

 pacted by the exploration for, or the development or production of, energy re- 

 sources or by the location, construction, expansion, or operation of an energy 

 facility. Such a grant shall be for the purpose of enabling such coastal State to 

 study and plan for the economic, environmental, and social consequences which 

 are likely to result in such coastal zone from exploration for and development 

 or production of such energy resources or from the location, construction, expan- 

 sion, or operation of such an energy facility. The amount of such a grant may 

 equal up to 100 percent of the cost of such study and plan, to the extent of avail- 

 able funds. 



"'(b) The Secretary is authorized to make a loan and/or a grant to a coastal 

 State, if he determines, pursuant to subsections (d) and (e) of this section, that 

 such State's coastal zone has been or is likely to be adversely impacted by ex- 

 ploration for or by development or production of energy resources or by the 

 location, construction, expansion, or operation of an energy facility, if such ad- 

 verse impact will result as a consequence of a license, lease, easement, or per- 

 mit issued or granted by the Federal Government which permits — 



"(1) the exploration for, or the drilling, mining, removal, or extraction of, 

 energy resources ; 



"(2) the siting, location, construction, expansion, or operation of energy 

 facilities by a lessee, licensee, or permittee ; or 



"(3) the siting, location, construction, expansion, or operation of energy facili- 

 ties by or for the United States Government. 



Tlie proceeds of such a loan or grant shall be used for — 



"(A) projects which are designed to reduce, ameliorate, or compensate for 

 the net adverse impacts ; and or 



"(B) projects which are designed to provide new or additional public facili- 

 ties and public services which are made necessary, directly or indirectly, by the 

 location, construction, expansion, or operation of such an energy facility or energy 

 resource exploration, development or production. 



The amount of such a loan or grant may equal up to 100 percent of the cost 

 of such a project, to the extent of available funds. 



"(c) (1) The Secretary may make a grant to a coastal State for a purpose 

 specified in subsection (b) of this section, if he determines that such State will 

 suffer net adverse impacts in its coastal zone, as a result of exploration for, or 

 development and production of, energy resources ; as a result of the location, 

 construction, expansion, or operation of an energy facility over the course of 

 the projected or anticipated useful life of such energy facility ; or as a result 

 of exploration, development, or production activity. 



"(2) The Secretary may make a loan to a coastal State for a purpose specified 

 in subsection (b) of this section, if the Secretary determines that such State will 

 experience temporary adverse impacts as a result of exploration for, or develop- 

 ment or production of, energy resources or as a result of the location, construction, 

 expansion, or operation of an energy facility if such facility or such energy 

 resource exploration, development or production is expected to produce net bene- 

 fits for such State over the course of its projected or anticipated useful life. No 

 such loan, including any renewal or extension of a loan, shall be made for a period 

 exceeding 40 years. The Secretary shall from time to time establish the interest 

 rate or rates at which loans shall be made under this subsection, but such 

 rate shall not exceed an annual percentage rate of 7 percent. The borrower shall 

 pay such fees and other charges as the Secretary may require. The Secretary 

 may waive repayment of all or any part of a loan made under this subsection, 

 including interest, if the State involved demonstrates, to the satisfaction of the 

 Sec-retary, that due to a change in circumstances there are anticipated or result- 

 ant net adverse impacts over the life of an energy facility or energy resource ex- 

 ploration, development or production which would qualify the State for a grant 

 pursuant to paragraph (1) of this subsection. 



"(d) The Secretary shall, by regulations promulgated in accordance with sec- 

 tion 5i>3 of title 5, United States Code, establish requirement for grant and loan 

 eligibility pursuant to this section. Such requirements shall include criteria, 

 which may include a formula, for calculating the amount of a grant or loan based 

 upon tlie difference, to the State involved between the benefits and the costs which 



