901 



15 



work in the states, carried out under section 305 funding, and the ad- 

 ministration phase for completed state programs, funded under section 

 306, the Committee has introduced an interim "preliminary approval" 

 phase. During this period states could continue to receive matching 

 grants under section 305 while they are taking steps to put into place 

 the elements of their program not in effect. An example is where state 

 legislation is needed. The program design could include an outline of 

 the legislation a state needs in order to qualify for program approval ; 

 upon receiving the "preliminary approval" designation, the state would 

 work to enact that bill into law. Upon so doing, the program would 

 meet the requirements for final federal approval and entry into the 

 administration or operational phase under section 306. 



This new interim phase is felt to be an important modification in 

 the two-step process envisioned in the original Act which will prove to 

 be most helpful to a number of states. 



Under this int-erim phase, the Committee notes that it is permissible 

 for states to put into operation portions of the state program which are 

 complete and ready to be administered. Matching funds under section 

 305 could be used for this purpose in states whose programs meet the 

 requirements established in section 305(h) for "preliminary 

 approval." 



II. COASTAL ENERGY ACTIVITY IMPACT PROGRAM 



Soon after it became clear that this nation had to develop a long- 

 range energy policy to attain self sufficiency as rapidly as possible, the 

 Administration announced that one of the major programs designed to 

 obtain needed energy resources would be the accelerated Outer Con- 

 tinental Shelf oil and gas leasing plan. It was recognized that the 

 coastal states would bear the onshore burdens of such offshore explora- 

 tion and development. 



In addition to the expansion of the OCS leasing program, the na- 

 tion's energy requirements will result in a variety of other pressures on 

 the coasts. One estimate prepared for the Subcommittee on Oceano- 

 graphy by the National Ocean Policy Study of the U.S. Senate esti- 

 mated that the total investment in all types of energy facilities over 

 the next decade in the coastal zone wnll amount to 40 percent of a pro- 

 jected national total of $600 billion. 



This legislation provides for planning assistance to enable the states 

 and local communities to prepare for this massive investment. At the 

 same time, H.R. 3981 provides direct financial assistance only for those 

 types of energy facilities which, by their nature, must be situated in 

 the coasts. The Conmiittee did not want to provide assistance which 

 would amount to an inducement to locate in the coasts facilities which 

 could as readily be placed inland. 



H.R. 3981 deals wnth the potential impacts resulting from offshore 

 oil and gas activities and other energy activities in section 308 of the 

 bill which establishes a "Coastal Energy x\ctivity Impact Program." 



The impact program is essentially a four-step assistance scheme in- 

 corporating an automatic payment plan for Outer Continental Shelf 

 energy impacts, energy facility planning grants, a discretionary grant 



