929 

 43 



be protected from the adverse effects of coastal energy activity and 

 that comparable replacement areas will be provided for areas un- 

 avoidably damaged. 



The "benefits" would be the same as those explicated above. It should 

 be noted that additional state and local revenues which accrue from 

 taxes because of coastal energy activity may not be sufficient to pro- 

 vide the funds necessary for restoration or replacement of ecological 

 or recreational resources. In the absence of other federal funds, in- 

 cluding the OCS payments, to cover these "costs" a net adverse im- 

 pact would result. If only part of the restoration or replacement costs 

 are covered by other federal programs or the OCS payments, the resid- 

 ual "costs" would also be considered net adverse impacts. 



Finally, it should be noted that subsection (n) is the definition of 

 a concept which has been included in H.R. 3981 to assist the Secretary 

 of Commerce in drafting regulations pursuant to this bill. For pur- 

 poses of administering the impact grants authorized in section 308 

 (b), however, the definition of net adverse impacts should be read 

 onlv in conjunction with the administrative criteria specified in sec- 

 tion 308(c). 



The final new definition, subsection (o), defines "coastal energy 

 activity". Coastal Energy Activity is distinct from "Outer Continen- 

 tal Shelf Energy Activity" (defined in subsection 304(j)) in that it 

 is broader and contains most OCS-related activity within it. Subsec- 

 tion (o) is applicable to the impact grants authorized under subsection 

 308(b) and to other appropriate subsections providing the details for 

 the administration of those grants. 



"Coastal Energy Activity" means those activities and associated 

 facilities that are necessarily located in or are likely to affect sig- 

 nificantly the coastal zone of a state. They are limited to three par- 

 ticular types of energy activities and certain specified supporting 

 equipment and facilities which are included. If a particular facility 

 is not enumerated in the list, it is not to he included within the defin- 

 tion unless the coastal state affected determines that the facility has to 

 be located and operated in its coastal zone because of teclinical require- 

 ments which would make such a siting unavoidable. 



The second type of energy facility included relates to the transporta- 

 tion of liquefied natural gas (LXG), coal, or oil (whether from the 

 OCS or not). Specifically, vessel loading docks, terminals, and storage 

 facilities required to transport these energy sources are contained 

 witliin the definition as well as conversion facilities necessarily asso- 

 ciated with LXG processing. Finally, deepwater ports and those facili- 

 ties directly associated with such ports are included. The ports are 

 defined in the Deepwater Ports Act of 1974 (P.L. 93-627) ; conse- 

 quently, they include only those located beycmd state waters. Asso- 

 ciated facilities including pipelines, pumping stations, service plat- 

 forms, mooring buoys, and similar appurtenances located seaward of 

 the high water mark are also included within the definition and would 

 be located in a state's coastal zone. 



It lias been noted above ^ that the concept of "coastal energy activ- 

 ity" is based on the premise that the activity involved is in the national 

 interest and that the state is facilitating that interest by permitting 



^ See Summary of Key Provisions, page 17. 



