744 



18 



It is to meet these two essential needs — for planning and for coping 

 with impacts — that the Committee provides in S. 586 for the establish- 

 ment of a Coastal Energy Facility Impact Fmid. That fund, described 

 later, actually goes beyond OCS development impacts to cover sim- 

 ilar impacts from other energy-related activities in the coastal zone 

 such as deepwater ports, electric generating plants, oil refineries, and 

 the like, when these facilities are covered by Federal licensing or 

 permitting processes. 



On the issue of Federal-State relations regarding OCS exploration 

 and development, the National Advisory Committee on Oceans and 

 Atmosphere (NACOA) makes the following recommendations in its 

 draft 1975 report ^ to the President and to Congress : 



The Coastal Zone Management Act of 1972 should be 

 amended "* * * to assure reasonable State input to Outer 

 Continental Shelf development plans and production, to 

 expedite State management planning related to the conse- 

 quences of offshore oil and gas development, to assure that 

 proposed Outer Continental Shelf exploration and develop- 

 ment programs are fully consistent with State plans, and to 

 provide adequate information and technical data to assist 

 m coastal zone planning and decisionmaking." 



The Act should be further amended to "* * * authorize 

 and provide financial assistance to States to enable them to 

 study, assess, plan effectively with respect to the onshore 

 impact of Outer Continental Shelf oil and gas development 

 and to encourage interstate cooperation and regional 

 planning." 



This Presidential advisory panel, composed of leaders in business, 

 industiy, science, academia and State and local government, also states 

 in its draft report that — 



Significant initial costs will accrue to the States as a result 

 of the exploitation of oil and gas resources offshore. There are 

 "front end" costs associated with the activity required of the 

 State before lease sales take place and continuing through de- 

 velopment. Then, depending on the extent of the offshore ex- 

 ploration and production activity, new population groups may 

 be brought to relatively undeveloped areas with resultant 

 costs for roads, schools, police and fire services, water, sewer, 

 et cetera. These, too, are costs which are borne by State and 

 local governments. 



NACOA also notes that some, but not all, costs for such services 

 are likely to be recovered by reasonable and usual taxes, and that 

 States are justified in seeking Federal aid to offset the net adverse 

 costs. 



Virtually all coastal States — including those bordering on the Great 

 Lakes — face the prospect of continuing pressure for energ}' facilities 

 in or near their coastal zones in the future. Energy is needed where 

 people are, and people, increasingly, are in the coastal zone. As men- 



' "A Report to : The President and the Coneress," draft Forth Annual Report. Na- 

 tional Advisory Committee on Oceans and Atmosphere, June 6, 1975. 



