720 



pensate for such net adverse impacts, within the limits of available funds. This 

 subsection shall expire 5 years from the date of enactment of this section. 



"(h) All funds allocated, to the Secretary for the purposes of this section, 

 except those funds made available pursuant to subsection (k) shall be deposited 

 in a fund which shall be known as the Coastal Energy Facility Impact Fund. 

 This fund shall be administered and used by the Secretary as a revolving fund 

 for carrying out such purposes. General expenses of administering this section 

 may be charged to this fund. Moneys in this fund may be deposited in interest- 

 bearing accounts or invested in bonds or other obligations which are guaranteed 

 as to principal and interest by the United States. 



"(i) In calculating the amount of a grant or loan, the Secretary shall give 

 adequate consideration to the recommendations of a Coastal Impacts Review 

 Board. Such Board shall consist of two members designated by the Secretary, 

 one member designated by the Secretary of the Interior, one member designated 

 by the Council on Environmental Quality, and four members appointed by the 

 President as designated by the National Governors Conference. Such Board shall 

 recommend the award of grants or loans upon a determination of net adverse 

 impacts and following the procedures and criteria set forth in this section. 



"(j) Nothing in this section shall be construed to modify or abrogate the 

 consistency requirements of section 307 of this Act. 



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

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

 distribute grants annually in accordance with the provisions of this subsection. 

 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 production of, 

 energy resources or resulting from the location, construction, expansion, or op- 

 eration 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 ex- 

 ploration, development, production, location, construction, expansion, or opera- 

 tion, except that such grants shall initially be designated by each receiving 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 insuflScient to re- 

 tire both State and local bonds, priority shall be given to retiring local bonds. 

 Subject to the foregoing expenditure requirements, each coastal State shall be 

 entitled to receive a grant under this 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 subsection 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 determined 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 

 suflScient 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 September 30, 1977 ; and $100,000,000 for the fiscal year ending Septem- 



