842 



The intensive effort that will be launched to develop our petroleum 

 and natural gas resources on the Outer Continental Shelf holds out 

 great promise for our entire country. But it also holds out the prospect 

 of great peril to the coastal regions of the Nation. 



The need for onshore support facilities will grow rapidly as this 

 development proceeds, as will the need for docking facilities, deep- 

 water ports and liquefied natural gas. 



We imust allow rationality and a sense of priorities to influence the 

 decisions that will be made in the not-too-distant future. By strength- 

 ening the Coastal Zone Management Act to provide additional tools 

 for the States to meet this new energy challenge, Congress can achieve 

 that delicate balance between energy resource development and coastal 

 preservation and protection. 



But, clearly time is of the essence. 



The legislation before us today addresses itself to the coastal energy 

 problem in tAvo major ways : 



First, in the area of planning, the legislation asks coastal States to 

 establish an energy facility planning process as part of their present 

 program development work. Also, planning for specific energy facil- 

 ities which may be located in the coastal zone — planning to reduce the 

 possible socioeconomic and environmental effects from the location or 

 operation of those facilities — is funded with 80 percent Federal grants. 



Second, Federal financial assistance for the negative impact of OCS 

 and other coastal related energy activities is provided through a two- 

 part coastal energy activity impact program. 



Affected coastal States experiencing certain levels of OCS activity 

 resulting in the requirement for additional public service or public 

 facilities will be assisted through an annual payment program based 

 on a simple formula which will reduce administrative staffing require- 

 ments to a minimum. The OCS payments will go to coastal States in 

 proportion to the level of offshore activity they are experiencing. 



The other part of the program provide for 80 percent grants to 

 coastal States if they can demonstrate that they have suffered or are 

 suffering net adverse impacts from energy activity which is coastal- 

 dependent. 



H.R. 3981 also contains other significant changes to the Coastal 

 Zone Management Act, including the extension of existing authoriza- 

 tions; the raising of the Federal share of the program development 

 and administrative grants from 66% to 80 percent ; the establishement 

 of Federal and State coastal research and training programs; the in- 

 clusion of beach access and beach protection planning processes; the 

 increased encouragement of interstate coordination in coastal-related 

 policies ; the addition of a shoreline erosion control planning process ; 

 and the establishment of a new, interim phase between program de- 

 velopment and administration grants to give States time to enact 

 needed legislation or to assure local implementation. 



Mr. Chairman, this legislative response to our compeling energy 

 and environmental challenges of the Outer Continental Shelf deserves 

 the full support of mv colleagues. 



^Vliile we work to insure a more secure energy future for America, 

 we must also insure tliat our precious coastal resources are protected 

 for future venerations of Americans. 



