927 

 41 



of the states. Section 306(c) (8) of the Act is amended by adding the 

 requirement that in considering the national interest in the planning 

 for and siting of such facilities as energy facilities, a coastal state 

 must give consideration to any energy plan or program developed 

 by an interstate entity which is established by section 309. Section 

 308(b) (1) authorizes planning grants to the states to study and plan 

 for the socio-economic and evironmental effects of energy facilities 

 which are located or operated in or which will significantly affe«.t 

 the coastal zone. Finally, Section 318 (Limitations) restricts any 

 Federal official from interceding in state land or wat«r use decisions 

 including but not limited to the siting of energy facilities. 



Two types of energy facilities are contained within this new defi- 

 nition. First are those which are or will be directly used in activities 

 designed to extract and produce oil and gas resources. Second are 

 facilities which are or will be used "primarily for" the manufacture 

 or production of facilities which wnll be "directly involved" in oil 

 and gas extraction and development activities. A number of such 

 facilities are enumerated in the definition but the enumeration is not 

 exclusive. 



Through the rules and regulations promulgated to carry out these 

 amendments, the Secretary of Commerce should establish more specific 

 criteria on how such terms as "used primarily" and "directly used" 

 will be implemented. It is the intent of the Committee that the energy 

 facilities included within the definition should be those which are 

 actually engaged in oil and gas extraction, conversion, storage, trans- 

 fer, processing, or transporting. Additionally, the facilities used for 

 the manufacture production or assembly of equipment directly in- 

 volved in energy resource extraction or production must affect a "sub- 

 stantial" geographical area or large numbers of people. Again, the 

 precise determination of this must be made in the Commerce Depart- 

 ment's regulations. If a facility is only partially used for the purposes 

 stated in the definition, proportional calcuations about the impact of 

 such a facility should be made in the determination of a grant under 

 section 308(b). 



New subsection (1) defines "public facilities and public services." 

 Direct reference to public facilities and public services is found in 

 the definition of "net adveree impacts" in section 304 (n) , the automatic 

 OCS payments in section 308(a) (4) (A) and (B), and in the state 

 and local bond guarantee provision in section 319(b). By reference, 

 the provision of these facilities and services is included within the 

 subparagraph authorizing the allocation of OCS payments to local 

 governments in section 308(a)(7), the impact grants based on net 

 adverse impacts authorized in section 308(b) (2), and the allocation 

 of such impact grants to local governments in section 308(f). 



The definition means any services or facilities financed either en- 

 tirely or partially by state and local governments. A number of such 

 facilities and services are enumerated but the list is not exclusive. Other 

 facilities and services, for example those related to environmental 

 consequences of energy activity, are to be included if they are neces- 

 sitated by population increases resulting from energy resource extrac- 

 tion or production activity or required to facilitate energy resource 

 development. 



