960 



74 



development and production, (b) by making more specific the appli- 

 cation of the Federal consistency provision of the Coastal Zone Man- 

 agement Act to Outer Continental Shelf (OCS) oil and gas develop- 

 ment activities, (c) by providing financial incentives to encourage 

 interstate cooperation and coordination in coastal zone management, 

 (d) by providing financial assistance for short-term research and the 

 training of coastal zone personnel, and (e) by providing financial aid 

 for increasing beach access as well as the preservation of beaches and 

 islands. 



The Department of Commerce recommends against enactment of 

 H.R. 3981. The Department is concerned about the onshore impacts of 

 OCS development and is currently awaiting Administration studies of 

 the advisability of some kind of Federal assistance to enable States to 

 ameliorate such impact. The Department believes that the beach access 

 and beach and island preservation provisions are unnecessary at the 

 present time. 



We support the consideration the Administration is giving to the 

 question of providing assistance to the states in ameliorating tfhe ad- 

 verse impact of the siting of energy related facilities, such as those 

 connected with the development of OCS oil and gas resources. We rec- 

 ognize State concerns which lead to some of the proposals for coastal 

 impact funds and the apprehension of State governments about im- 

 pacts generated from OCS activity is quite understandable. 



The Administration is currently studying proposals to assist States 

 to plan for and ameliorate onshore effects of offshore oil and gas ex- 

 ploration and development. These proposals range from revenue-shar- 

 ing plans to direct impact payments. Given the complexity of these 

 issues and the various interrelationships involved, the Department 

 feels that the Administration studies should be completed before any 

 legislative changes are forthcoming. Consequently, we do not support 

 such changes at this time. 



The Department does not agree with Sections 6(a) of the proposed 

 legislation, which would amend Section 305 of the Coastal Zone Man- 

 agement Act, in effect, making program development grants available 

 to the States to 1980. We feel stronglv that States must have adequate 

 incentives to move from the planning to the implementation stage on 

 a timely basis. Given the critical nature of coastal zone management 

 problems today, and especially those associated with OCS develop- 

 ment, it is not desirable to stretch out State program development acti- 

 vities to 1980. 



The Department of Commerce questions at this time the necessity 

 for including the provision calling for a plan for protecting the access 

 to public beaches and the protection of islands. 



We have been advised by the Office of Management and Buderet that 

 there is no obi'ection to the submission of this report to the Congress 

 from the standpoint of the Administration's position. 

 Sincerely, 



Bernard V. Barrette, 

 Deputy General Counsel. 



