640 



"(k) The Secretary shall, in addition to any financial assistance provided 

 to, or available to, coastal States pursuant to any other subsection of this sec- 

 tion, distribute grants annually in accordance with the provisions of this sub- 

 section. The moneys received under this subsection shall be expended by each 

 State receiving such grants solely for the purpose of reducing or ameliorating 

 adverse impacts resulting from the exploration for, or the development or pro- 

 duction of, energy resources or resulting from the location, construction, 

 expansion, or operation of a related energy facility and/or for projects designed 

 to provide new or additional public facilities and public services which are related 

 to such exploration, development, production, location, construction, expansion, 

 or operation, except that such grants shall initially be designated by each receiv- 

 ing State to retire State and local bonds, if any, which are guaranteed under 

 section 316 of this Act : Provided, That, if the amount of such grants is insulfl- 

 cient to retire both State and local bonds, priority shall be given to retiring local 

 bonds. 



Sub.1ect to the foregoing expenditure requirements, each coastal State shall 

 be entitled to receive a grant under his subsection if such State is, on 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: 

 Provided, 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 sub- 

 section 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 great as that to which 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 adjacent to the State (as deter- 

 mined by the Secretary) exceeds a volume of 100,000 barrels per day of oil or 

 an equivalent volume of natural gas. There are authorized to be appropriated for 

 this purpose sufiicient funds to provide such States with grants in the amount of 

 20 cents per barrel or its equivalent during the first year, 15 cents per barrel 

 or its equivalent during the second year, 10 cents per barrel or its equivalent 

 during the third year, and 8 cents per barrel or its equivalent 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, 

 That (A) such funds shall not exceed $100,000,000 for the fiscal year ending June 

 30, 1976; $25,000,000 for the fiscal quarter ending September 30, 1976: $100,- 

 000,000 for the fiscal year ending Septemlser 30, 1977 ; and $100,000,000 for the 

 fiscal year ending September 3. 1978 ; and ( B ) such funds shall be limited to 

 payments for the first one and one-half million barrels of oil (or its gas equiva- 

 lent) per day per State for the 10 succeeding fiscal years. The amount of such 

 grant to each such State in any given year shall be calculated on the basis of the 

 previous year's volume of oil or natural gas landed in the State or produced ad- 

 jacent to the State. For the purposes of this section, one barrel of crude oil equals 

 6,000 cubic feet of natural gas. 



On page 28, line 10, strike out "$250,000,000" and insert in lieu thereof 

 "$200,000,000". 



On paare 28, line 11, strike out "$75,000,000" and insert in lieu thereof 

 "$50,000,000". 



On iiape 28. line 12 through 13, strike out "$250,000,000" and insert in lieu 

 thereof "$200,000,000". 



On page 28, line 14, strike out "$250,000,000" and insert in lieu thereof 

 "$200,000,000". 



On page 28, line 17, strike out "20" and insert in lieu thereof "25". 



On page 28, lines 12 through 13, strike out "not to exceed $50,000,000 per 

 year,". 



