939 



53 



of some as to the Committee's intent. It is to put these doubts at rest 

 that this section has been inchided in H.R. 3981. 



This provision of the orginial Act is one of the principal incentives 

 for the states and local governments to take part in the Coastal Zone 

 Management Program. One major encouragement has been the belief 

 that in the future, the impacts which flow from federal Outer Con- 

 tinental Shelf leasing will have to conform to state and local prescrip- 

 tions about the best location for energy support and industrial 

 facilities. 



The Committee believes it would break faith with the states not to 

 state plainly its clear intent to include major federal actions as Outer 

 Continental Shelf leasing under the "federal consistency" section. 



Redesigrudion of existing sections 



(16) This provision redesignates existing sections of the Act m 

 order to accommodate the addition of three new sections contained in 

 H.R. 3981, new sections 308 through 310. 



Coastal energy (wtvvity impact program 



(17) Section 308 establishes the Coastal Energy Activity Impact 

 Program. The broad guidelines of this program and some of the back- 

 ground of the Committee's deliberations on this subject have been dis- 

 cussed in the summary section and in the treatment of the applicable 

 definitions in this section. 



This section contains two of the three provisions designed to pro- 

 vide federal assistance to coastal states for their role in the Nation's 

 development of its increasingly important energy policy. The third 

 section is the provision for the federal guarantee of state and local 

 bonds issued for OCS-related projects and programs. This part, sec- 

 tion 319, will be discussed later. 



Subsection (a) of section 308 is a seven paragraph provision which 

 establishes the bill's OCS program. In a somewhat different form, this 

 subsection represents what the Oceanography Subcommittee approved 

 as the bill's entire "Coastal States Impact Fund." This particular ap- 

 proach emerged from those Members who were concerned about the ad- 

 visability and also the ability of the Secretary of Commerce to quan- 

 tify "net adverse impacts" and from those who felt that a broader pro- 

 gram could lead to the "inducement" of unnecessary energy facilities 

 in the coastal zone. Full Committee action resulted in a combination of 

 this OCS allocation formula approach with the impact grants provided 

 in subsection (b) of this section. 



Paragraph (1) of subsection (a) mandates the Secretary of Com- 

 merce to make annual payments to each coastal state which experiences 

 at least one of six specified levels of OCS activity. These levels of OCS 

 activity are, in effect, the ingredients of a six-part proportional for- 

 mula based on each state's level of OCS activity compared to such 

 activity nationwide in any given fiscal year. The average of these six 

 ratios would determine the proportion of the total amount appropri- 

 ated by Congress allocated to an individual coastal state in any one 

 year. The six criteria are as follows : 



(A) The proportion of outer continental shelf acreage leased 

 adjacent to each state versus the total OCS acreage leased in 

 each year. 



