875 



portion of any grant received under this subsection to (A) any areawide agency 

 designated under section 204 of llie Demonstration Cities and Metropolitan De- 

 velopment Act of 1966, (B) any regional agency, or (C) any interstate agency. 

 No provision in this subsection shall relieve any state of the responsibility for 

 insuring that any funds allocate<l to any local government or other agency shall 

 be applied in furtherance of the purposes of this subsection. 



"(b) (1) The Secretary may make grants to any coastal state if he determines 

 that such state's coastal zone is being, or is likely to be, impacted by the location, 

 construction, expansion, or operation of energy facilities in, or which significantly 

 affect its coastal zone. Such grants shall be for the purpose of enabling such 

 coastal state to study and plan for the economic, social, and environmental con- 

 sequences which are resulting or are likely to result in its coastal zone from 

 such energy facilities. The amount of any such grant may equal up to 80 per 

 centum of the cost of such study or plan, to the extent of available funds. 



"(2) The Secretary may make grants to any coastal state if he is satisfied, 

 pursuant to regulations and criteria to be promulgated according to subsection 

 (c) of this section, that such state's coastal zone has suffered, or will suffer, net 

 adverse impacts from any coastal energy activity. Such grants shall be used for, 

 and may equal up to 80 per centum of the cost of carrying out projects, programs, 

 or other purposes which are designed to reduce or ameliorate any net adverse 

 impacts resulting from coastal energy activity. 



"(c) Within one hundred and eighty days after the effective date of this sec- 

 tion, the Secretary shall, by regulations promulgated in accordance with section 

 553 of title 5, United States Code, establish rtquirements for grant eligibility 

 under subsection (b) of this section. Such regulations shall — • 



"(1) include appropriate criteria for determining the amount of a grant and 

 the general range of studying and planning activities for which grants will be 

 provided under subsection (b)(1) of this section ; 



"(2) specify the means and criteria by which the Secretary shall determine 

 whether a state's coastal zone has, or will suffer, net adverse impacts ; 



"(3) include criteria for calculating the amount of a grant under subsection 

 (b) (2) of this section, which criteria shall include consideration of — 



"(A) offsetting benefits to the state's coastal zone or a political subdivision 

 thereof, including but not limited to increased revenues, 



"(B) the state's overall efforts to reduce or ameliorate net adverse impacts, 

 including but not limited to, the state's effort to insure that persons whose 

 coastal energy activity is directly responsible for net adverse impacts in the 

 state's coastal zone are required, to the maximum extent practicable, to reduce 

 or ameliorate such net adverse impacts, 



"(C) the state's consideration of alternative sites for the coastal energy activity 

 which would minimize net adverse impacts ; and 



"(D) the availablity of Federal funds pursuant to other statutes, regulations, 

 and programs, and under subsection (a) of this section, which may be used in 

 whole or in part to reduce or ameliorate net adverse impacts of coastal energy 

 activity ; 



In developing regulations under this section, the Secretary shall consult with 

 the appropriate Federal agencies, which upon request, shall assist the Secretary 

 in the formulation of the regulations under this subsection on a nonreimbui'sable 

 basis; with representatives of appropriate state and local governments; with 

 commercial, industrial, and environmental organizations ; with public and private 

 groups ; and with any other appropriate organizations and persons with knowl- 

 edge or concerns regarding adverse impacts and benefits that may affect the 

 coastal zone. 



"(d) All funds appropriated to carry out the purposes of subsection (b) of 

 this section shall be deposited in a fund which shall be known as the Coastal 

 Energy Activity Impact Fund. The fund shall be administered and used by the 

 Secretary as a revolving fund for carrying out such purposes. General expenses 

 of administering this section may be charged to the fund. Moneys in the fund 

 may be deposited in interest-bearing accounts or invested in bonds or other 

 obligations which are guaranteed as to principal and interest to the United 

 States. 



"(e) There are hereby authorized to l>e appropriated to the Coastal Energy 

 Activity Impact Fund such sums not to exceed .$125,000,000 for the fiscal year 

 ending September .30, 1077, and for each of the next four succeeding fiscal years, 

 as may be necessary, which shall remain available until expended. 



