768 



42 



and the appraisal of later developed facts which will produce a deter- 

 mination of whether the loan should be extended, or otherwise modi- 

 fied, or converted to an outright grant. 



By way of guidance, the Committee intends to include in "net ad- 

 verse impacts" or "costs" and in "net benefits" and "benefits," the 

 monetary value of effects of energy facilities and activities even though 

 each such effect may not require, or permit, an actual expenditure, or 

 receipt of, money. However, where funds are paid to coastal States 

 by way of grants or loans, the coastal State is required to use those 

 funds for the purposes of this act. If the nature and extent of that 

 particular damage cannot be fully ameliorated by the expenditure of 

 the funds loaned or granted as a result of that impact, the coastal 

 State nevertheless should expend the funds received as a result of that 

 advei-se impact for a project with a purpose consistent with the Act. 



"Net benefits" or "benefits" to a coastal State include, for example, 

 such matters as increasing the value of its tax base or increasing its 

 potential revenues by way of special taxes, licenses or permits or, in the 

 receipt of shares of the revenues produced. 



Section 308(e) (2) pertains to planning grants under subsection (a) 

 and provides that the regulations shall provide the States with a 

 general range of the types of activities for which funds will be pro- 

 vided under that subsection. 



Section 308(e) (3) (B) provides that the regulations shall establish 

 guidelines and procedures for evaluating projects coastal States deter- 

 mine are most needed for which grants and loans are requested under 

 subsection (b) . The emphasis this provision provides is that the coastal 

 States shall determine for themselves which projects are most needed 

 by them when submitting their requests subject, of course, to review 

 and approval. 



The Committee intends that the entire Federal establishment will 

 provide such assistance as may be requested by the Secretary of Com- 

 merce (through NOAA) in order to assist the development of the 

 regulations for loans and grants under this section. The Comptroller 

 General shall provide advice to the Secretary (NOAA) with respect 

 to the requirement which he believes necessary to fulfill his obligations 

 under section 308(e) (5) as well as such other assistance as may be 

 requested by the Secretary (NOAA) in developing the regulations for 

 these grants and loans. 



Section 308(e) (6) stipulates that the Secretary (NOAA) shall con- 

 sult with appropriate Federal agencies in developing the regulations 

 and, as noted earlier, when requested that these agencies shall provide 

 actual assistance. Also, to be consulted are appropriate State and local 

 governments, appropriate commercial and industrial organizations, 

 appropriate public and private groups or any other appropriate orga- 

 nization with knowledge or concerns regarding net adverse impacts 

 which may be associated with the energy facilities and activities to 

 which such regulations pertain. The Committee specifically notes that 

 it has provided a 6-month period of time to develop the regulations 

 required to implement this section due to the complexity of the regula- 

 tions to be developed. The Secretary of Con)merce (NOAA) and oth- 

 ers with duties with respect thereto, however, are expected to begin 

 inmiediately after signature of the bill into law, to begin to develop 

 these regulations and to devote maximum effort thereto. The requests 



