828 



The Ford Administration, long a foe of coastal state impact legislation, finally 

 made a move late in the game, and offered a $l-billion loan program (CZM, 18 

 & 11 Feb, 28 Jan), but a negative reaction from Democrats plus less-than-en- 

 thusiastic support from the Republican side of the aisle, has caused President 

 Ford to at least approve a negotiating posture. 



Correspondence between Commerce Secretary Elliot L. Richardson and Rep. 

 John Murphy (D-NY) and Rep. Pierre du Pont (R-DE) indicates the willing- 

 ness of the administration to accept H.R. 3981, as a coastal state bill only (with 

 the idea that a separate bill for energy facilities impacts for internal states 

 will be sent to Capitol Hill soon) ; Dept. of Commerce administration of the 

 act (as opposed to Interior Dept. administration), and an assistance package of 

 up to $850 million in loans and guarantees, plus $95 million in direct grants 

 to the states for use in planning for impacts (to be administered by the OflSce 

 of Coastal Zone Management), and up to $75 million to states which have 

 already incurred environmental impacts as a result of OCS energy development. 



CZM newsletter has learned that the oil industry does not oppose H.R. 3981, 

 although it will not actively seek its passage. Organizations of coastal states 

 generally support most of the language of the bill, and are solidly behind the 

 intent of the legislation. Environmentalists generally agree with the intent — 

 having achieved early in the legislative process the deletion of nuclear energy 

 (within the coastal zone on the landside or in the form of floating nuclear plants) 

 from the list of those energy forms whose impact would be recognized by the 

 act. The House legislation does specifically recognize some other forms of energy 

 than oil and gas from the Outer Continental Shelf, including deepwater ports, 

 and liquid natural gas and coal offloading facilities. Barbara Heller of the En- 

 vironmental Policy Center in Washington told CZM newsletter that her organi- 

 zation supports the hill reported out by the Merchant Marine Committee — "after 

 months of actively working for it." The White House's major points of con- 

 tention with the existing language may well fall by the wayside in the confer- 

 ence that will be set up to bring together the Senate and House versions of the 

 legislation. 



Mr. Ketchum. Mr. Chairman, will the gentleman yield? 

 Mr. Murphy of New York. I yield to the gentleman from California. 

 Mr. Ketchum. I thank the gentleman for yielding. 

 Mr. Chairman, I notice on page 22 the section dealing with serious 

 disagreement says: 



"(4) In case of serious disagreement between any Federal agency and the 

 state in the implementation of an approved state management program, the Sec- 

 retary, in cooperation with the Executive OflSce of the President, shall seek to 

 mediate the differences." 



Will the gentleman elaborate on that ? When we are going to medi- 

 ate the differences, does that mean people of the States are going to 

 have to haul all their stuff to Washington or Avill we go where the dis- 

 agreement is happening? 



Mr. Murphy of New York. It is generally provided in Federal law 

 and it is envisioned here that ayc are going to hold the hearings in the 

 counties or jurisdictions affected, and that is what we intended in this 

 provision. 



Mr. Ketchum. Let me tell the gentleman why this particular situa- 

 tion scares me. The Bakersfield City School District is under chal- 

 lenge by HEW and they have been holding hearings in the city of 

 Bakersfield for almost 6 months. Arbitrarily the trial judere just last 

 month decided he would move the hearings away from Bakersfield 

 on the ground that it would save the taxpayers money. Certainly it 

 will not save the taxpayers of Bakersfield money. 



I think our intent ought to be spelled out in this bill. Wlien a serious 

 disagreement occurs obviously the place to held the hearings is where 

 the disagreement is and where the people are who are involved in the 



