765 



39 



These grants and loans are to be used by the States for carrying 

 out projects which (A) reduce, ameliorate, or compensate for, the net 

 adverse impacts in the coastal zone of such activities and facilities 

 and (B) provide public facilities and public services made necessary, 

 either directly, or indirectly by such activity and facilities. These 

 grants and loans may equal 100 percent of the costs of the projects, 

 depending on the funds available. The costs of the projects include the 

 actual expenses of accomplishing the said reduction, amelioration, 

 compensation and provision of public facilities and services. In both 

 cases, the loans or grants should not be for costs not attributable to the 

 energy facility or resource development. For example, a public facility 

 which responds in part to advei'se impacts from an enei'gy facility and 

 responds in part to unrelated needs, would be funded only in propor- 

 tional part under this subsection. 



The grants and loans authorized by tliis subsection are not intended 

 to be used in lieu of funds available from those wjio are liable for 

 specific damages whicli result from the location, construction, or ex- 

 pansion of an energy facility or from the exploration for, develop- 

 ment of or production of energy resources. 



Section 308 (c) (1) pertains only to the grants which are authorized 

 by subsection (b). Such grants may be made only if the Secretary 

 of Commerce (through NOAA) determines, pursuant to subsections 

 (d) and (e), that the coastal State will suffer net adveree impacts 

 in its coastal zone as a result of the energy facilities and activities 

 designated in subsection (b). The period against which the said net 

 adverse impact is to be judged is specified as the period of the useful 

 life of such facility or the period of such exploration, development or 

 production activity. 



Section 308(c) (2) pertains only to the loans which are authorized 

 by subsection (b). Such loans are to be made in lieu of grants when 

 the Secretary of Commerce (through XOAA) determines, pursuant 

 to subsections (d) and (e), that the coastal State will experience tem- 

 porary net adverse impacts as a result of the energy facilities and ac- 

 tivities designated in subsection (b) but that over the period of the 

 useful life of the facility or activity, it is expected to bring net benefits 

 to that coastal State. The maximum period for which any such loan 

 may be granted is 40 years and the Secretary (through NOAA) is to 

 establish the interest rates at which such loans will be granted, not to 

 exceed an annual percentage rate of 7 percent, and other conditions of 

 such loans. He is additionally authorized to forgive any loan, or part 

 of a loan, if the borrowing State demonstrates to his satisfaction that 

 there has been a change of circumstances (the Committee also intends 

 to include better knowledge of the circumstances originally known) 

 so that there are resultant or anticipated, net adverse impacts, rather 

 than benefits, which would qualify that coastal State for a grant under 

 section 308(c) (1). In such cases, the forgiven loans will be regarded as 

 grants to the State under this section 808(c) (1). 



Repayment of loans should be geared to the time when the State 

 is expected to begin to experience the net benefits from the facility or 

 ac*^ivitv and on m i-epavment sc''edule which is related to the expected 

 value of the net benefits reecived or experienced. It is the Conunittee's 

 intent that the Secretary's authority under the act includes the author- 

 ity to readjust the time period for repayment of the loan (within the 



