623 



"(g) A coastal State which has experienced net adverse impacts iu its coastal 

 zone as a result of the development or production of energy resources or as a re- 

 sult of the location construction, expansion, or operation of energy facilities prior 

 to the date of enactment of this section is entitled to receive from the Secretary 

 grants or loans pursuant to subsections (a) and (b) of this section to the same 

 extent as if such net adverse impacts were experienced after the date of enact- 

 ment, and to the extent necessary to reduce or ameliorate or compensate for such 

 net adverse impacts, within the limit or available funds. This subsection shall 

 expire 5 years from the date of enactment of this section. 



"(h) All funds allocated to the Secretary for the purposes of this section 

 shall be deposited in a fund which shall be known as the Coastal Energy Facility 

 Impact Fund. This fund shall be administered and used by the Secretary as a 

 revolving fund for carrying out such purposes. General expenses of administering 

 this section may be charged to this fund. Moneys in this fund may be deposited 

 in interest-bearing accounts or invested in bonds or other obligations which are 

 guaranteed as to principal and interest by the United States. 



"(i) In calculating the amount of a grant or loan, the Secretary shall give 

 adequate consideration to the recommendations of a Coastal Impacts Review 

 Board. Such Board shall consist of two members designated by the Secretary, 

 one member designated by the Secretary of the Interior, and two members ap- 

 pointed by the President from a list of not less than six candidates submitted 

 to the President by the National Governors' Conference. Such Board shall recom- 

 mend the award of grants or loans upon a determination of net adverse impacts 

 and following the procedures and criteria set forth in this section. 



"(j) Nothing in this section shall be construed to modify or abrogate the con- 

 sistency requirements of section 307 of this Act. 



"(k) In addition to other financial assistance to the States provided under 

 this section, the Secretary shall make an automatic grant to each coastal State 

 which is, as of the first day of the fiscal year — 



"(1) adjacent to Outer Continental Shelf lands on which oil or natural gas 

 is being produced ; or 



"(2) permitting crude oil or natural gas to be landed in its coastal zone: Pro- 

 vided. That such crude oil or natural gas has been produced on adjacent Outer 

 Continental Shelf lands of such State or on Outer Continental Shelf lands which 

 are adjacent to another State and transported directly to such State. In the 

 event that a State is landing oil or natural gas produced adjacent to another 

 State, the landing State shall be eligible for grants under this subsection at a 

 rate half as great as that to which it would be eligible in any given year if the 

 oil were produced adjacent to the landing State. In the event that a State is 

 adjacent to Outer Continental Shelf lands where oil or natural gas is produced, 

 but such oil or natural gas is landed in another State, the adjacent State shall 

 be eligible for grants under this subsection at a rate half as gi-eat as that to 

 tvhich it would be eligible in any given year if the oil or natural gas produced 

 adjacent to that State were also landed in that State." 



Such States shall become eligible to receive such automatic grants in the first 

 year that the amount of such oil or natural gas landed in the State or produced 

 on Outer Continental Shelf lands ndjacent to the State (as determined by the 

 Secretary) exceeds a volume of 100,000 barrels per day of oil or an equivalent 

 volume of natural gas. The Secretary shall establish regulations to assure that 

 funds authorized by this subsection for grants to States shall be expended by 

 the States for the purpose of reducing or ameliorating adverse impacts result- 

 ing from the exploration for, or the development or production of, energy re- 

 sources or resulting from the location, construction, expansion or operation of 

 a related energy facility. Such funds not so expended shall be returned to the 

 Treasury. There are authorized to be appropriated for this purpose suflBcient 

 funds to provide such States with grants in the amount of 20 cents per barrel 

 during the first year. 1,5 cents per barrel during the second year. 10 cents per 

 barrel during the third year, and 8 cents per barrel during the fourth and all 

 succeeding years during which oil or gas is landed in such a State or produced 

 on Outer Continental Shelf lands adjacent to such a State: Provided (A) such 

 funds shall not exceed $.50,000,000 for the fiscal year ending .Tune 30, 1076; 

 .$12..500,000 for the fiscal quarter ending September .30. 1976; ,$.")0.000.000 for the 

 fiscal year ending September 30. 1977; and $.50,000,000 for the fiscal year ending 

 September 30, 1978; and (B) .such funds shall be limited to payments for the 

 first million barrels of oil (or its gas equivalent) per day per State for the 10 



