G30 



OCS revenues in particular, the formula for calculating the amount of 

 the grant is tied to the number of barrels of oil — or the natural gas 

 equivalent — which are produced on adjacent OCS lands and/or landed 

 in the State. Like the grants and loans made from the coastal energy 

 facility impact fund, these automatic grants must be used to ameliorate 

 adverse impacts of energy resource development or related energy 

 facilities. 



The bill (S. 586) which the Commerce Committee has reported to 

 this body, unanimously, is a bill which has been developed to respond 

 to a clear need in the best possible manner based on exhaustive hear- 

 ings and studies of the subject. The knowledge of the Commerce Com- 

 mittee in this area is based upon years of working with all of the 

 management problems in the coastal zone. 



With much foresight, this body first passed, and the Congress en- 

 acted, the Coastal Zone IManagemcnt Act of 1972 for the puri^ose of pro- 

 viding a land and water use management mechanism, through the 

 States, for the Nation's coastal zone. In mandates appropriate attention 

 to plaiming for and protection of the coastal zone. 



The present bill, S. 586, builds on and utilizes this existing struc- 

 ture to, in effect, update it to assure that it responds to current prob- 

 lems. 



The main focus of this bill is to meet specifically, and deal with, the 

 multitude of problems being experienced, and expected to be experi- 

 enced, in the coastal zone as a result of energy facilities and the 

 search for, and production, of energy resources. By further providing 

 for these activities in this existing law, I believe that the nation 

 will be able to increase its domestic energy supply and capability 

 for the reason that we cannot undertalie efforts to do so without 

 being such that these activities proceed in an orderly and rationale 

 fashion which coincides with the coastal zone management programs 

 which each State develops to manage development of its coastal zone. 

 The President has also said this. 



S. 586 contains provisions extending and increasing the authori- 

 zations for the entire program, recognizing its growing importance 

 and its acceptance by all of the coastal States. The bill makes specific 

 what is otherwise generally implicit the many energy related provi- 

 sions of the Coastal Zone Management Act. 



The bill also sets up a specific method, under the Coastal Zone Man- 

 agement Act, to give to the coastal States the funds they need to 

 offset unreimbursed net adverse impacts which they may experience 

 as a result of having these energy facilities and activities in and near 

 their coastal zones. It takes into account the benefits which may accrue 

 to the State and only deals with the cases where there is a net adverse 

 impact. It is not simply a grant program. "Where there is question 

 concerning whether the net impacts will be adverse, the Secretarv^ of 

 Commerce will only make a loan to the State pending resolution 

 of that question. 



Up to 20 percent of the funds will be used for planning for the 

 impacts from such facilities and activities. 



Mr. President, everyone recognizes that the Nation is going to have 

 to pay a price to keep, and hopefully increase, its domestic energy 

 supplies and capabilities in lieu of much greater costs later on. I 



