767 



41 



loans. This provision places the burden of going forward on the State 

 to establish eligibility including requiring it to provide all necessary 

 information required by the Secretary for calculation of the amount 

 of loan or grant. In addition, a finding is to be made that the State 

 applying for a grant or loan has demonstrated, and provided adequate 

 assurances, that the proceeds of the grant or loan will be used for the 

 intended purpose which shall be consistent with the Coastal Zone Man- 

 agement Act. 



Section 308 (e) makes further provisions concerning the methods and 

 procedures for grants and loans under this section. The Secretary is to 

 issue, within 180 days after approval of the act, regulations for such 

 grants and loans including for eligibility and for determination of 

 amounts. 



The regulations are to specify how the Secretary will determine 

 whether a State's coastal zone has been, or is likely to be, adversely 

 impacted including determinations of "net adverse impacts" and "tem- 

 porarv' adverse impacts." The Connnitte3 foresees that these regula- 

 tions will establish those matters which a State applying for a grant 

 or loan will be expected to show and the manner in which those mat- 

 ters are to be established. The instances of impacts which have already 

 occurred are obviously the easiest to establish and evaluate. 



Where the impacts are believed likely to occur, the regulations will 

 probably provide several "points of beginning." For example, knowl- 

 edge of an energy facility being established in a given location for a 

 given purpose, knowledge of the probable existence of an energy re- 

 source together with knowledge of the demand therefor, and its avail- 

 ability, are potential "starting points." Wlien dealing with anticipated 

 adverse impacts, the regulations should take into account the necessary 

 leadtime for planning for, and dealing with, certain types of impacts as 

 opposed to the time involved with respect to commitments to construct 

 or operate an energy facility or carry out an energy activity. The goal 

 will be to produce the funds for the States when they will be needed 

 for the purposes intended but the Secretary will want to have as much 

 assurance as possible, with tlrat goal in mind, that the adverse im- 

 pacts are actually going to be experienced. This includes assurance 

 that the energy facility will be established or the energy activity will 

 be conducted. Once it is known to the maximum extent possible, that 

 an energy facility will be established, or an energy activity conducted, 

 the regulations will provide for the determination of types and de- 

 grees of adverse impacts reasonably to be expected from the facility 

 or activity and the types of benefits reasonably to be expected there- 

 from. After that, the regulations will provide a means for calculating 

 the monetary value of adverse impacts and benefits to that State from 

 said facility or activitv and a schedule for determining when those 

 costs and benefits will likely be experienced and the rate at which they 

 will likely be experienced. When tlie process is completed, the result 

 should be an approximation which will show whether the State is 

 likely to experience temporary net adverse impact.^, net adverse impacts 

 or net benefits and the value thereof. An alternative initial action for 

 which tlie regulations may provide is an initial temporary loan based 

 upon the existence, or anticipated existence, of any energv' facility or 

 activity M'ith anticipated temporary or net adverse impacts. Such a 

 temporary loan could be granted pending a subsecjuent reassessment 



