718 



operation of such an energy facility. The amount of such a grant may equal up to 

 100 percent of the cost of such study and plan, to the extent of available funds. 



"(b) The Secretary is authorized to make a loan and/or a grant to a coastal 

 State, if he determines, pursuant to subsections (d) and (e) of this section, that 

 such State's coastal zone has been or is likely to be adversely impacted by ex- 

 ploration for or by development or production of energy resources or by the lo- 

 cation, construction, expansion, or operation of an energy facility, if such adverse 

 impact will result as a consequence of a license, lease, easement, or permit issued 

 or granted by the Federal Government which permits — 



"(1) the exploration for, or the drilling, mining, removal, or extraction of, 

 energy resources ; 



"(2) the sitting, location, construction, expansion, or operation of energy facil- 

 ities by a lessee, licensee, or permittee ; or 



"(3) the siting, location, construction, expansion, or operation of energy facili- 

 ties by or for the United States Government. 



The proceeds of such a loan or grant shall be used for — 



"(A) projects vi'hich are designed to reduce, ameliorate, or compensate for the 

 net adverse impacts ; and/or 



"(B) projects which are designed to provote new or additional public facilities 

 and public services which are made necessary, directly or indirectly, by the loca- 

 tion, construction, expansion, or operation of such an energy facility or energy 

 resource exploration, de\ elopment or production. 



The amount of such a loan or grant may equal up to 100 percent of the cost of such 

 a project, to the extent of available funds. 



"(c) (1) The Secretary may make a grant to a coastal State for a purpose speci- 

 fied in subsection (b) of this section, if he determines that such State will suffer 

 net adverse impacts in its coastal zone, as a result of exploration for, or develop- 

 ment and production of, energy resources ; as a result of the location, construc- 

 tion, expansion, or operation of an energy facility over the course of the projected 

 or anticipated useful life of such energy facility ; or as a result of exploration, 

 development, or production activity. 



"(2) The Secretary may make a loan to a coastal State for a purpose specified 

 in subsection (b) of this section, if the Secretary determines that such State 

 will experience temporary adverse impacts as a result of exploration for, develop- 

 ment or production of, energy resources or as a result of the location, construc- 

 tion, expansion, or operation of an energy facility if such facility or such energy 

 resource exploration, development or production is expected to produce net bene- 

 fits for such State over the course of its projected or anticipated useful life. 

 No such loan, including any renewal or extension of a loan, shall be made for a 

 period exceeding 40 years. The Secretary shall from time to time establish the 

 interest rate or rates at which loans shall be made under this subsection, but 

 such rate shall not exceed an anniial percentage rate of 7 percent. The borrower 

 shall pay such fees and other charges as the Secretary may require. The Secretary 

 may waive repayment of all or any part of a loan made under this subsection, 

 including interest, if the State involved demonstrates, to the satisfaction of the 

 Secretary, that due to a change in circumstances there are anticipated or result- 

 ant net adverse impacts over the life of an energy facility or energy resource 

 exploration, development or production which would qualify the State for a grant 

 pursuant to paragraph (1) of this subsection. 



"(d) The Secretary shall, by regulations promulgated in accordance with sec- 

 tion 553 of title 5, United States Code, establish requirements for grant and 

 loan eligibility pursuant to this section. Such requirements shall include criteria, 

 which may include a formula, for calculating the amount of a grant or loan based 

 upon the difference, to the State involved, between the benefits and the costs which 

 are attributable to the exploration for or development and production of energy 

 resources or to the location, construction, expansion or operation of an energy 

 facility. Such criteria shall insure that grants and loans under this section re- 

 lating to impacts resulting from the exploration, development and production, and 

 related energy facilities shall receive first priority among competing applications. 

 Such regulations shall provide that a State is eligible for a grant or loan upon a 

 finding by the Secretary that such State — 



"(1) is receiving a program development grant under section 305 of this title 

 or is ensaced in such program development in a manner consistent with the goals 

 and objectives of this Act, as determined by the Secretary, and is making satis- 

 factory progress, as determined by the Secretary, toward the development of a 



