892 

 6 



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 guaran- 

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

 designed to provide revenues which are to be used to provide public serv- 

 ices and public facilities which are made necessary by outer Continental 

 Shelf energy activity ; except that, if the amount of such payments is in- 

 sufficient 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 Con- 

 tinental Shelf energy activity. 



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

 unusually valuable ecological or recreational resources resulting from outer 

 ■Continental Shelf activity. 

 "(5) It shall be the responsibility of the Secretary to determine annually 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 first 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 ap- 

 propriated 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 

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

 ber 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 portion 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 puriK)ses as provided in paragraph (4) of this subsection. In addi- 

 tion, any coastal state may, for the purposes of carrying out the provisions of 

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

 of any grant received under this subsection to (A) any area wide agency desig- 

 nated under section 204 of the Demonstration Cities and Metropolitan Develop- 

 ment Act of 1966, (B) any regional agency, or (C) any interstate agency. No pro- 

 vision in this subsection shall relieve any state of the responsibility for insuring 

 that any funds allocated 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 r^ulations 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 requirements for grant eligibility 

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



