943 



57 



Subsection (b) (1) authorizes the Secretary to make grants to coastal 

 states for up to 80 percent of the cost of studying and planning for 

 the social, economic and environmental consequences of energy facili- 

 ties located in or which significantly affect the coastal zone. It is the 

 intent of the Committee that these planning grants should supplement 

 the states' section 305 efforts including those devoted to the develop- 

 ment of an energy facility process which is required under a new 

 provision in H.R. 3981. The Committee is aware that there is an im- 

 portant distinction between the development of an energy facility 

 "planning process'', as required under new section 305(b)(8), the 

 application of that process for evaluation of specific energy facility 

 proposals, and the formulation of a long-term energy facility siting 

 plan. It is the latter two for which section 308(b)(1) funds are 

 intended although such evaluation and long-term plans will result 

 from the "process" provided for earlier. Also, these planning efforts 

 are to be addressed to all the facilities specified in the definition of 

 "energy facilities" under section 304 (k) and are not to be restricted to 

 those facilities enumerated in the definition of Outer Continental 

 Shelf energy activity (section 304(j)) or Coastal Energy Activity 

 (section 304 (o)). 



Paragraph (2) of section 308(b) authorizes the Secretary to make 

 80 percent grants to a coastal state whose coastal zone has suffered, or 

 will suffer, net adverse impacts resulting from coastal energy activity. 

 Reference should be made to the discussions of these key definitions 

 (304 (n) and (o) ) above. The grants are to be used to reduce or 

 ameliorate such net adverse impacts. 



The phrase "has suffered" implies that coastal states which have 

 experienced net adverse impacts in their coastal zones as a result 

 of coastal energy activity prior to the date of enactment of this sec- 

 tion are entitled to receive section 308 (b) grants for those past impacts. 

 Although this was the intent of the Committee, it was also felt that 

 the Secretaiy should, in the regulations governing this subsection, 

 establish an equitable retroactive time limit for such grants. It is 

 recommended, that a reasonable timeframe would be in the range of 

 three-five years and would correspond to an applicable provision 

 in the Senate bill, S. 586. The difficulty in obtaining accurate data 

 beyond such a period would appear to make these net adverse impact 

 calculations suspect. 



Section 308(c) includes a specification of some of the factors which 

 are to be included in the Department of Commerce's regulations. 



Paragraphs (3) (A) and (D) of subsection (c) are factors essen- 

 tially corresponding to two dimensions of the net adverse impact 

 definition. Subparagraph (A) requires the Secretary to consider 

 the offsetting })enefits to a state's coastal zone from a coastal energy 

 activity. "Offsetting benefits", it should be recalled, mean benefits 

 directly offsetting costs. 



Subparagraph (D) requires, in the calculation of net adverse im- 

 pacts, the consideration of other federal funds which are available 

 for the reduction or amelioration of net adverse impacts. Thus any 

 funds available to coastal states or their local governments under 

 other federal assistance statutes, as well as monies received under the 

 OCS payments provision in section 308(a), are to be considered in 

 determining the amount of an impact grant. Clearly, a state cannot 



