766 



40 



40-year maximum), and the repayment schedule (inchidin^ amounts 

 of payments) in accordance with the actual experience of the State 

 in realizing the net benefits, but the States are expected to do their 

 part in seeino; to it that the benefits are realized, includinfr the time of 

 realization. The loan instrument, or conditions accompanying the loan, 

 and the recriilations are expected to provide reasonable advance notice 

 to the borrowing State together with an opportunity for a hearing and 

 other equitable provisions in the event of any acceleration of repay- 

 ment of the loan including increases in amounts of periodic payments. 

 The loan insti'ument, and/or regulations, shall also provide the pro- 

 cedures whereby a State may request the said conversion of a loan, or 

 part of a loan, to a grant, the said extension of a loan or the said reduc- 

 tion in payments. 



Section 308(d) provides that the Secretary (through NOA A) shall 

 promulgate regulations which establish the eligibility requirements for 

 grants and loans under this section. Such requirements may include a 

 formula for calculating the amount of the loan or grant based upon the 

 difference between the benefits and the costs which are attributable to 

 the facility or activities involved in the event of grants or loans under 

 308(b). 



The Committee does not intend that the coastal States necessarily 

 be the recipients of a multiplicity of separate grants and loans under 

 308 (b) , each relating to separate energy facilities and activities. To the 

 maximum extent, the Secretary of (^ommerce (through NOAA) and 

 the States shall endeavor to combine and consolidate such section 

 308(b) loans and grants including the setoff of net benefits against 

 net adverse impacts. 



Paragraphs (1), (2), and (3) of subsection (d) set forth certain 

 findings which must be made prior to making loans and grants to 

 coastal States under section 308 (b) . The State must be receiving grants 

 under section 305 or section 306 of the act or it must be otherwise 

 engaged in the development of a coastal zone management program, 

 as set forth in section 305, in a manner consistent with the goals and 

 objectives of the Act. In the latter case, and in the case of States 

 receiving section 305 grants, it is provided that the Secretary (through 

 NOAA) must also find that the States are making satisfactory prog- 

 ress toward the development of an approvable coastal zone manage- 

 ment program. It is therefore not necessary that a State actually be 

 receiving either section 305 grants or section 306 irrants for it to be 

 eligible for loans and grants under this section. The committee does 

 believe it is necessary that the State be developing a coastal zone pro- 

 gram consistent with the act and making progress toward achieving it 

 for the reason that the grants and loans under section 308 should be 

 used as part of a comprehensive State coastal zone management effort. 

 The benefits to the States, and the Nation, from operating this coastal 

 energy facility impact program as part of the Coastal Zone Manage- 

 ment Act, and the State program ])ursuant tliereto, are much greater 

 than if these funds were provided to the States independently and 

 without such requirements. It assures that full value will be received 

 from the money expended. 



The State nuist also demonstrate to the satisfaction of the Secretary 

 of Commerce (through NOAA) that it will suffer, or is likely to 

 suffer, the net adverse impacts required for eligibility for grants and 



