647 



services before, or as, they were impacted rather than incur the impacts 

 and only be able to provide adequate facilities long after they were 

 needed. 



I have agreed to the compromise approach being offered today 

 because the Senator from South Carolina and the Senator from Alaska 

 assure me that it meets the legitimate needs of frontier area States for 

 front-end money. 



They assure me that the needs of frontier area States can be met 

 by loans under section 308(b) of S. 586 or federally guaranteed State 

 or local bonds pursuant to section 319. Once actual production takes 

 place, the automatic aid will be available to repay the loans or retire 

 the bonds. I am pleased that the compromise requires that the auto- 

 matic grants must be expended for the purpose of reducing or amelio- 

 rating adverse impacts. This requirement should eliminate any pos- 

 sibility that any State Avill receive a windfall. I am sure that all the 

 coastal States will make their views on this subject Imown prior to 

 any Senate-House conference so that if inequities may occur we will 

 have an opportunity to revise the distribution formula. 



Mr. President, with that understanding. I urge that the Senate 

 adopt the proposed amendment. 



]\ir. JoHNSTOisr. I move the adoption of my amendment. 



The Presiding Officer. Do the Senators yield back their time? 



Mr. Stevens. I have no request for further time. I yield back the 

 remainder of my time. 



Mr. HoLLiNGS. I yield back the remainder of my time. 



Mr. BuivrPERS. Mr. President, I have an unprinted amendment. 



The Presiding Officer. The question is on agreeing to the amend- 

 ment of the Senator from Louisiana. 



The amendment was agreed to. 



The Presiding Officer. Who yields time ? 



Mr. Jackson. I call up my amendment which is at the desk. 



The Presiding Officer. The clerk will state the amendment. 



The assistant legislative clerk read as follows : 



The Senator from Washington (Mr. Jackson) proposes an amendment on 

 page 37, line 11. strike "(a)". 



On page 37, lines 24 and 25, and page 38, lines 1 and 2, strike subsection (b) in 

 its entirety. 



The Presiding Officer. The Senator from Washington. 



Mr. Jackson. Mr. President, this subsection would provide that 

 any grant or loan made pursuant to S. 586 shall not be deemed a 

 "major Federal action" for the purpose of section 102(2) (C) of the 

 National Environmental Policy Act. Under this provision, therefore, 

 any grant or loan made by the Federal Government from the $250 

 million coastal energy facility impact fund for major construction 

 projects would be exempt from NEPA's requirement for preparation 

 of environmental impact statements. 



Mr. Presiflent, I have just received from the Executive Office of the 

 President, from the chairman of the Council on Environmental Qual- 

 ity, Mr. Eussell Peterso]!, a letter in opposition to tliis provision of the 

 bill. I wish to read the letter now from Governor Peterson, speaking 

 for the administration on this matter : 



05-319- 



