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life of the energy facility or resource development activity. During the 

 first 5 years after approval of the bill, States which have experienced 

 net adverse impacts prior to enactment may also receive grants and/or 

 loans from the Coastal Energy Facility Impact Fund. 



States must participate in a coastal zone management program, 

 either under sections 305 or 306 of the Coastal Zone Management Act 

 or under State auspices, to be eligible to receive grants or loans from 

 the Coastal Energy Facility Impact Fimd. In addition, to receive 

 funds other than planning funds. States must demonstrate to the sat- 

 isfaction of the Secretary of Commerce that they have experienced or 

 will experience temporary adverse impacts or net adverse impacts. 

 Finally, States must satisfy the Secretary that the funds will be used 

 in a manner consistent with their coastal zone management programs. 

 In making grants or loans, the Secretary is to consider the recommen- 

 dations of a joint Federal-State Coastal Impacts Review Board. 



In addition to the Coastal Energy Facility Impact Fund, two other 

 provisions in the bill will also help the States in planning for and 

 coping with the coastal impacts of energy development and energy 

 facilities. The bill provides for automatic grants to be given to any 

 State which is actually landing OCS oil or natural gas in its coastal 

 zone, or which is adjacent to OCS lands where oil or natural gas in its 

 coastal zone, or which is adjacent to OCS lands where oil or natural 

 gas is being produced. Although the grants come from the General 

 Treasury, and not from OCS revenues, the formula for calculating 

 the amount of the grant is tied to the number of barrels of oil (or the 

 natural gas equivalent) which are produced on adjacent OCS lands 

 and/or landed in the State. These automatic grants must be used to 

 ameliorate adverse impacts of energy resource development or 

 related energ}^ facilities. 



The bill also provides a Fedeial guarantee for State or local govern- 

 ment bonds issued to pay for measures needed to reduce, ameliorate or 

 compensate for the adverse coastal impacts of OCS resource develop- 

 ment. Additionally, the bill adds the word "lease'' to section 307 of the 

 Act, clarifying the applicability of the '"Federal consistency provision 

 to OCS leasing; this means that Federal leases must be consistent with 

 approved coastal zone management programs of the affected States. 



Other sections of the bill provide funds for research and training 

 assistance to coastal States ; for interstate compacts or other entities to 

 facilitate interstate coordination of coastal zone management policies 

 and programs; for land acquisition to encourage access to public 

 beaches and preservation of islands; and for increased development 

 and implementation grants under sections 305 and 306 of the act. The 

 Federal share of coastal zone management (CZM) funding under 

 these sections would rise from the present 66% percent to 80 percent. 

 The Office of Coastal Zone Management would be directed by a new 

 Associate Administrator of the National Oceanic and Atmospheric 

 Administration (NOAA) appointed by the President with the advice 

 and consent of the Senate. 



Background and Need 



Several recent events, such as the energy crisis, passage of pollution 

 control legislation, and land use conflicts in the coastal zone, have 



