620 



The "Federal consistency"' provisions of the act would be clarified 

 by stating explicitly that its terms apply to all Federal "licenses, leases, 

 or permits." Inclusion of the word "lease" is new. 



The bill provides in section 308 for a Coastal Energy Facility Im- 

 pact Fund of $250 million annually, giving the States 100 percent 

 funding to plan for and cope with existing or potential net adverse im- 

 pacts or temporary adverse imj)acts of exploration for or development 

 and production of energy resources, and/or the location, construction, 

 expansion, or operation of an energy facility requiring a Federal 

 permit. 



The funds are to be used for two purposes : 



First, grants for enabling such coastal State to study and plan for 

 economic, environmental, and social impacts — up to 20 percent of the 

 amount in the fimd — and, second, loans or grants for "reducing, ame- 

 liorating, or compensating for the net adverse impact * * *," and/or 

 "providing public facilities and public services made necessary, di- 

 rectly or indirectly" by energy facility or resource development. Out- 

 right grants may be made when States can show to the satisfaction of 

 the Secretary of Commerce that they will experience net adverse im- 

 pacts over tlie entire life of a facility or resource development activity. 

 Where negative impacts are likely to he temporary — essentially "front 

 end" problems until new tax revenues cover them — loans could be made. 

 If impacts expected to be tem]:)orary actually turn out to be permanent, 

 the loans could be forgiven. States may pass on part or all of their 

 funds to local, regional, or interstate governmental entities. 



States must meet three requirements to be eligible for grants or loans 

 from the Coastal Energy Facility Impact Fund. First, they must be 

 participating in a coastal zone management program, by receiving 

 a development grant and by making good progress under section 30.5, 

 by having such a program under State auspicies, or by having a pro- 

 gram approved by the Secretary of Commerce. Second, they must make 

 a satisfactory showing of need, based on actual or anticipated impacts. 

 Third, they must indicate to the Secretary's satisfaction that they 

 will use the funds in a manner that is consistent with their coastal zone 

 management programs. These restrictions are designed to prevent the 

 new funds from resulting in unplanned, adverse, incompatible impacts 

 of their own. 



The Secretary of Commerce is directed to promulgate regulations 

 within 180 davs of enactment, specifying criteria for determining: a 

 State's eligibility for grants or loans from the impact fund. In develop- 

 ing regulations, the Secretary is to consult with appropriate Federal 

 officials. State and local governments, industry organizations, and pub- 

 lic and private groups. 



In making determinations about specific grant or loan applications, 

 the Secretary is directed to consider the i-ecommendations of a Federal - 

 State Coastal Impacts Review Board, which is established by this 

 legislation. 



In addition to the coastal energy facility impact fund, the bill 

 also provides for automatic grants to be given to any State which is 

 actually landing OCS oil or natural gas in its coastal zone, or which is 

 adjacent to OCS lands where oil or natural gas is being produced. 

 Although the grants come from the General Treasury, and not from 



