851 



"(F) the proportion which the onshore capital investment which is made dur- 

 ing that year in snch state and which is required to directly support outer 

 Continental Shelf energy activities bears to the total of all such onshore capital 

 investment made in all coastal states during that year. 



"(2) For purposes of calculating the proportions set forth in paragraph (1) 

 of this subsection, 'the outer Continental Shelf lands which are adjacent to such 

 state, shall be the portion of the outer Continental Shelf lying on that state's 

 side of extended seaward boundaries determined as follows : (A) In the absence 

 of seaward lateral boundaries, or any portion thereof clearly defined or fixed by 

 interstate compacts, agreements, or judicial decree (if entered into, agreed to, 

 or issued before the effective date of this paragraph), the boundaries shall be 

 that portion of the outer Continental Shelf which would lie on that state's side 

 of lateral marine boundaries as determined by the application of the principles of 

 the Convention on the Territorial Sea and the Contiguous Zone. (B) If seaward 

 lateral boundaries have been clearly defined or fixed by interstate compacts, 

 agreements, or judicial decree (if entered into, agreed to, or issued before the 

 effective date of this paragraph), such boundaries shall be extended on the basis 

 of the principles of delimitation used to establish them. 



"(3) Tlie Secretary shall have the respon.sibility for the compilation, evalua- 

 tion, and calculation of all relevant data required to determine the amount 

 of the payments authorized by this sub.section and shall, by regulations promul- 

 gated in accordance with section 553 of title 5, United States Code, set forth the 

 niethod by which collection and evaluation of such data shall be made. In 

 compiling and evaluating sucli data, tlie Secretary may require the assistance of 

 any relevant Federal or State agency. In calculating the proportions set forth 

 in pragrapli (1) of this sul)section. payments made for any fiscal year shall be 

 based on data from the immediately preceding fiscal year, and data from the 

 transitional quarter beginning ,Tuly 1, 1976. and ending September 30, 1976, shall 

 be included in the data from the fiscal year ending .lune 30, 1976. 



■'(4) Eacli coastal state receiving payments under tliis subsection shall use the 

 moneys for the following purposes and in the following order of priority: 



"(A) Tlie retirement of state and local bonds, if any, which are guaranteed 

 under section 319 of this title which were issued for projects or programs de- 

 signed to provide revenues which are to be used to provide public services and 

 public facilities which are made necessary by outer Continental Shelf Energy 

 activity : except that, if the amount of such payments is insuflSeient to retire 

 botli state and local bonds, priority shall be given to retiring local bonds. 



"(B) The study of, planning for, development of, and tlie carrying out of 

 projects or programs which are designed to provide new or additional public 

 facilities or public services required as a direct result of outer Continental 

 Shelf energy activity. 



"(C) the reduction or amelioration of any unavoidable loss of unique or unusu- 

 ally valuable ecological or recreational resources resulting from outer Con- 

 tinental Shelf activity. 



"(5) It shall be the responsibility of the Secretary to determine annually if 

 svich coastal state has expended or committed funds in acordance with the pur- 

 poses authorized herein by utilizing procedures pursuant to section 313 of this 

 title. The United States shall be entitled to recover from any coastal state that 

 portion of any payment received by such state under this subsection which — 



"(A) is not expended by such state before the close of the fiscal year immedi- 

 ately following the fiscal year in which the payment was disbursed, or; 



"(B) is expended or committed by such state for any purposes other than a 

 purpose set forth in paragraph (4) of this subsection. 



"(6) For purposes of this subsection, there are hereby authorized to be ap- 

 propriated funds not to exceed .$50.000,f)00 for the fiscal year ending Septem- 

 ber 30. 1977 ; .$50,000,000 for the fiscal year ending September 30, 1978 ; $75,000,000 

 for the fiscal year ending September 30, 1979; .$100,000,000 for the fiscal year 

 ending September 30, 1980; and .$125,000,000 for the fiscal vear ending Septem- 

 l)er30. 1981. 



•'(7) It is the intent of Congress that each state receiving payments under 

 this subsecti(m shall, to the maximum extent practicable, allocate all or a por- 

 tion of such payments to local governments thereof and that .such allocation 

 shall be on a basis which is proportional to the extent to which local govern- 

 ments require assistance for purposes as provided in paragraph (4) of this 

 su))section. In addition, any coastal state may, for the purposes of carrying out 

 the provisions of this sub.section and with the approval of the Secretary, allocate 



