622 



are attributable to the exploration for or development and production of energy 

 resources or to the location, construction, expansion, or operation of an energy 

 facility. Such regulations shall provide that a State is eligible for a grant or 

 loan upon a finding by the Secretary that such State — 



"(1) is receiving a program development grant under section 305 of this 

 title or is engaged in such program development in a manner consistent with the 

 goals and objectives of this Act, as determined by the Secretary, and is making 

 satisfactory progress, as determined by the Secretary, toward the development 

 of a coastal zone management program, or that it has an approved such pro- 

 gram pursuant to section 306 of this title ; 



"(2) has demonstrated to the satisfaction of the Secretary that it has suffered, 

 or is likely to suffer, net adverse impacts, according to the criteria or formula 

 promulgated by the Secretary, and has provided all information required by the 

 Secretary to calculate the amount of the grant or loan ; and 



"(3) has demonstrated to the satisfaction of the Secretary and has provided 

 adequate assurances that the proceeds of such grant or loan will be used in a man- 

 ner that will be consistent with the coastal zone management program being 

 developed by it, or with its approved program, pursuant to section 305 or 306 

 of this title, respectively. 



"(e) Within 180 days after approval of this Act, the Secretary shall issue regu- 

 lations prescribing criteria in accordance with this Act for determining the 

 eligibility of a coastal State for grants pursuant to subsections (a), (b), and 

 (c) (1) of this section, and regulations for determining the amount of such 

 grant or loan, in accordance with the following provisions : 



"(1) The regulations shall specify the means and criteria by which the Sec- 

 retary shall determine whether a State's coastal zone has been, or is likely to be, 

 adversely impacted, as defined in this section, and the means and criteria by 

 which 'net adverse impacts' and 'temporary adverse impacts' will be determined. 



"(2) Regulations for grants pursuant to subsection (a) of this section for 

 studying and planning, shall include appropriate criteria for the activities for 

 which funds will be provided under such subsection, including a general range 

 of activities for which a coastal State may request funds. 



"(3) Regulations for grants and/or loans for projects pursuant to subsections 

 (b) and (c) of this section shall specify criteria for determining — 



" ( A) the amounts which will be provided for such projects : and 



"(B) guidelines and procedures for evaluating those projects which each 

 coastal State considers to be most needed. 



"(4) Regulations for loans shall provide for such security as the Secretary 

 deems necessary, if any, to protect the interests of the United States and for 

 such terms and conditions as give assurance that such loans will be repaid 

 vdthin the time fixed. 



"(5) In all cases, each recipient of financial assistance under this section 

 shall keep such records as the Secretary shall prescribe, including records which 

 fully disclose the amount and disposition 'by such recipient of the proceeds of 

 such assistance, the total cost of the project or undertaking in connection with 

 which such assistance was given or used, and such other records as will facili- 

 tate an effective audit. The Secretary and the Comptroller General of the United 

 States, or any of their duly authorized representatives, shall until the ex- 

 piration of 3 years after the completion of the project or undertaking involved 

 (or repayment of a loan, in such cases) have access for the purpose of audit and 

 examination to any books, documents, papers, and records of such recipients 

 which, in the opinion of the Secretary or the Comptroller General may be related 

 or pertinent to any financial assistance received pursuant to this section. 



"(6) In developing regulations under this section, the Secretary shall con- 

 sult with the appropriate Federal agencies, with representatives of appropriate 

 State and local governments, commercial and industrial organizations, public and 

 private groups, and any other appropriate organizations with knowledge or 

 concerns regarding net adverse impacts that may be associated with the energy 

 facilities affecting the coastal zone. 



"(f) A coastal State may, for the purpose of carrying out the provisions of 

 this section and with the approval of the Secretary, allocate all or a portion of 

 any grant or loan received under this section to (1) a local government; (2) 

 an areawide agency designated under section 204 of the Demonstration Cities 

 and Metropolitan Development Act of 1966; (3) a regional agency; or (4) an in- 

 terstate agency. 



