874 



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

 during that year in such state and which is required to directly support outer 

 Continental Shelf energy activities hears 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 several lateral boundaries, or any portion thereto, 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) The Secretary shall have the responsibility for the compilation, evalua- 

 tion, and calculation of all relevant data requ-red to determine the amount of 

 the payments authorized by this subsection and shall, by regulations promulgated 

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

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

 evaluating such data, the Secretary may require the assistance of any relevant 

 Federal or State agency. In calculating the proportions set forth in paragraph 

 (1) of this subsection, payments made for any fiscal year shall be based on data 

 from the immediately preceding fiscal year, and data from the transitional 

 quarter beginning July 1, 1976, and ending September 30, 1976, shall be included 

 in the data from the fiscal year ending June 30, 1976. 



"(4) Each coastal state receiving payments under this subsection shall use the 

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



"(A) The 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 insuflScient to retire 

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



"(B) The study of, planning for, development of, and the 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 imavoidable loss of unique or un- 

 usually valuable ecological or recreational resources resulting from outer Con- 

 tinental Shelf activity. 



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

 such coastal state has expended or committed funds in accordance with the 

 purposes 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 im- 

 mediately 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 appro- 

 priated funds not to exceed $50,000,000 for the fiscal year ending September 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 end- 

 ing September 30, 1980 ; and $125,000,000 for the fiscal year ending September 30, 

 1981. 



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

 this subsection 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 governments 

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

 In addition, any coastal state may. for the purposes of carrying out the provi- 

 sions of this subsection and with the approval of the Secretary, allocate all or a 



