788 



62 



"(1) The regulations shall specify the means and criteria by 

 which the Secretary shall determine whether a State's coastal zone 

 has been, or is likely to be, adversely impacted, as defined in this 

 section, and the means and criteria by which 'net adverse impacts' 

 and 'temporary adverse impacts' will be determined. 



"(2) Regulations for grants pursuant to subsection (a) of this 

 section for studying and planning, shall include appropriate 

 criteria for the activities for which funds will be provided under 

 such subsection, including a general range of activities for which 

 a coastal State may request funds. 



" (3) Regulations for grants and/or loans for projects pursuant 

 to subsections (b) and (c) of this section shall specify criteria 

 for determining — 



"(A) the amounts which will be provided for such proj- 

 ects ; and 



"(B) guidelines and procedures for evaluating those proj- 

 ects which each coastal State considers to be most needed. 

 "(4) Regulations for loans shall provide for such security as 

 the Secretary deems necessary, if any, to protect the interests of 

 the United States and for such terms and conditions as give assur- 

 ance that such loans will be repaid within the time fixed. 



"(5) In all cases, each recipient of financial assistance under 

 this section shall keep such records as the Secretary shall pre- 

 scribe, including records which fully disclose the amount and dis- 

 position by such recipient of the proceeds of such assistance, the 

 total cost of the project or undertaking in connection with which 

 such assistance was given or used, and such other records as will 

 facilitate an effective audit. The Secretary and the Comptroller 

 General of the United States, or any of their duly authorized 

 representatives, shall until the expiration of 3 years after the 

 completion of the project or undertaking involved (or repay- 

 ment of a loan, in such cases) have access for the purpose of audit 

 and examination to any books, documents, papers, and records of 

 such recipients which, in the opinion of the Secretary or the 

 Comptroller General may be related or pertinent to any financial 

 assistance received pursuant to this section. 



" (6) In developing regulations under this section, the Secretary 

 shall consult with the appropriate Federal agencies, with repre- 

 sentatives of appropriate State and local governments, commer- 

 cial and industrial organizations, public and private groups, and 

 any other appropriate organizations with knowledge or concerns 

 regarding net adverse impacts that may be associated with the 

 energy facilities affecting the coastal zone. 

 "(f) A coastal State may, for the purpose of carrying out the provi- 

 sions of this section and with the approval of the Secretary, allocate 

 all or a portion of any grant or loan received under this section to (1) 

 a local government; (2) an areawide agency designated under section 

 204 of the Demonstration Cities and Metropolitan Development Act 

 of 1966; (3) a regional agency; or (4) an interstate agency. 



"(g) A coastal State which has experienced net adverse impacts in 

 its coastal zone as a result of the development or production of energy 

 resources or as a result of the location construction, expansion, or opera- 



