6^11 



On page 28, between lines 7 and 8, insert the following new subsection and 

 redesignate accordingly : 



"(1) Any funds provided to any State under this section not expended in 

 accordance" with the purposes authorized herein shall be returned to the Treasury 

 by such State." 



Mr. Johnston. Mr. President, this amendment represents the fruit 

 of many hours of neirotiation and discussion between the Committee 

 on Interior and Insular Ail'airs and the Committee on Commerce to 

 try to meld the results of our tv;o bills, one dealing with coastal zone 

 management and one dealing with the Outer Continental Shelf. Both 

 bills recognize that there are inii3acts to the adjacent coastal States. 



The jurisdiction and the concern of the Coastal Zone Management 

 Act and, in turn, of the Commerce Committee, is somewhat broader 

 than that of the Interior Committee since our jurisdiction is limited to 

 the Outer Continental Shelf. 



In any event, Mr. President, what this amendment does is it deals 

 with part of the funds that are to be authorized under the instant 

 legislation. 



What it says is that we will have a fund of not to exceed $100 niil- 

 lion, that that fund will be distributed to States which have either 

 production adjacent to that State or have oil first landed in that State, 

 and provides that that State shall be compensated at the rate specified 

 in the bill. 



There is a sliding scale of specification of impact, wdiichis in the 

 first year of the bilHO cents per barrel, 15 cents per barrel or its equiv- 

 alent in natural gas during tlie second year, 10 cents per barrel or its 

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

 during the fourth or all succeeding years, again with two limitations : 

 first, that the total amount distributed under this formula may not ex- 

 ceed $100 million or $'25 million for the transition quarter and, fur- 

 ther, provided that no State may receive more than the equivalent of 

 11/2 million barrels of oil a day. Both oil and natural gas in its equiv- 

 alency are recognized under this bill. 



The bill also provides, Mr. President, that when a State is eligible 

 for this money that the money shall be paid, first, to retire locally is- 

 sued bonds previously approved by the Secretary of Commerce and 

 authorized to be issued under section 316 of the act, second, to retire 

 State issued bonds again which were previously authorized by the 

 Secretary of Commerce and issued pursuant to section 316 of the act, 

 and, third, to compensate the State for projects undertaken or for 

 monies expended by the States and resulting from the location, con- 

 struction, expansion, or operation of any related enei'gy facility and/ 

 or for projects designed to provide new and additional public fi'cilities 

 and public services which are related to such exploration, develop- 

 ment, production, location construction, expansion, or operation of 

 offshore mineral activities. 



What we have, Mr. President, is a carefully worked out formula by 

 which adjacent coastal States shall receive money for projects when 

 such projects are to })e used to reliexe the effects of drilling and pro- 

 duction in the Outer C^ontinental Shelf. 



Other concerns are dealt with in this bill which are the fruit solely 

 of the work of the Committee on Commerce and relate to other energy- 

 related facilities i\i6 well as Outer Continental Shelf activities. But this 



