771 



45 



each of the fiscal years until September 30, 1978. Thereafter, for 10 

 years the authorization shall be sufficient to provide grants at the rates 

 previously stated, which shall be limited to the first million barrels 

 I)er each State. 



Grants under this subsection shall be calculated on the basis of that 

 State's previous volume but in all cases the regulations shall provide 

 for adjustments based upon the actual production and actual landings. 



It is further provided in this subsection that coastal States receiving 

 these automatic grants shall use them initially to retire State and local 

 bonds guaranteed pureuant to section 319 of the CZM Act as added by 

 S. 586. If the grants are insufficient to retire both State and local bonds, 

 the local bonds shall be retired firet. 



Section 308(7) constitutes the ap])ropriation authorization provision 

 for the "coastal energy facility impact fund'' and the sum of $250 

 million is authorized for the fiscal year which ends June 30, 1976, the 

 sum of $75 million, for the transitional quarter (required to adjust 

 the Federal fiscal year) which ends September 30, 1976, and the sum 

 of $250 million for each of the 2 succeeding fiscal years. 



In other words, the authorization is for $250 million for each of 

 the 3 fiscal years after this bill becomes law. It is further provided 

 that no more than 20 percent of the total amount appropriated for such 

 fund for each year, that is $50 million, should be used for planning 

 and study grants under subsection (a). While the language used in- 

 serts an upper limit only, the intent of the committee is that such 

 grants be made and that the use of 20 percent of the appropriated 

 funds for this purpose appears to be the proper allocation of such 

 funds. 



No division of funds between those for grants and those for loans 

 pursuant to subsection (b) is provided but this Committee intends 

 to maintain close oversight of the operation of the CZM Act, as 

 amended and will give careful attention to this aspect as well. 



The Committee is convinced that the present existing and potential 

 impacts of energy facilities upon the coastal zone will require the 

 full amount authorized but the Committee's oversight function will 

 also include a review of the adequacy of the authorization provided. 

 The Committee believes that this expenditure will promote the reali- 

 zation of a key national goal, the development of domestic energy 

 sources. These funds could be pivotal to the success of that effort. It 

 is essential that the coastal zone be protected, and the existing mecha- 

 nism of the Coastal Zone Management Act is the best possible means 

 of protection from adverse impacts of energy development. These 

 funds are people related funds and will benefit the vast majority of 

 the people in this country who live in the coastal zone. Of course, to 

 the extent that these funds make it possible and practical to provide 

 energy all of the people of the Nation will benefit. 



Secfloii 309. 



This new section is entitled "Interstate Coordination Grants to 

 States." 



Se^-tion 309(a) encourage-s the coastal States to coordinate coastal 

 zone planning in areas which are contiguous to areas within the coastal 

 zone of other States and to study, plan, and/or implement unified 

 coastal zone policies for such areas. This may be done through inter- 

 state agi-eements or compacts. 



