963 

 77 



We recommend that none of these bills be enacted, since appropriate 

 action with respect to Outer Continental Shelf energy resources can 

 be taken under existing law. 



Our present energy needs require a strong program to develop the 

 oil and gas resources of the Outer Continental Shelf, where this can 

 be done with reasonable protection of environmental values and with- 

 out other seriously undesirable impacts. More specifically, we must 

 move ahead with exploration, leasing and production on those frontier 

 areas of the OCS where the environmental risks are acceptable. In 

 carrying out this program, we fully appreciate the need to meet the 

 legitimate concerns of affected individuals and organizations. The 

 program will be carried out in close cooperation with coastal States 

 m their planning for possible increased local development. 



I. THE BILLS 



E.R. 3981, the Coastal Zone Environment Act of 1975, is a bill "To 

 amend the Coastal Zone Management Act of 1972 to authorize and 

 assist the coastal States to study, plan for, manage, and control the 

 impact of energy resource development and production which affects 

 the coastal zone, and for other purposes." 



Its goal is to provide coastal States adequate assistance to study, 

 manage, and ameliorate any adverse consequences of energy facilities 

 siting and energy resource development or production which affects 

 directly or indirectly the coastal zone; to coordinate planning; and 

 to develop short term research capabilities in the coastal States. 



H.R. 3981 would require a Commerce Department annual report 

 to Congress which would include a description of economic, environ- 

 mental, and social impacts of facility siting and energy development 

 and production, and a description and evaluation of regional planning 

 mechanisms developed by coastal States. 



It also requires applicants for permits and leases to certify that their 

 conduct is consistent with any approved State management program. 



H.R. 3981 authorizes the Department to make 100 percent annual 

 grants for planning and control of economic, environmental, and social 

 harm to coastal States likely to be significantly and adversely impacted 

 by facility siting or energy development and production. The Etepart- 

 ment is to establish eligibility regulations for such grants, and to 

 coordinate grants with State coastal zone management programs. 

 Allocation of such grants to the States is required to be in proportion 

 to anticipated or actual adverse impacts of OCS leasing. States may 

 allocate a portion of such grants to political subdivisions or interstate 

 agencies. H.R. 3981 authorizes $200 million for fiscal year 1976 and 

 each four succeeding fiscal years. 



H.R. 3981 also provides for congressional authorization of binding 

 interstate compacts, but provides for Federal and public participation 

 in coordination. It authorizes grants up to 90 percent of such costs, 

 in the amount of $5 mill'on for fiscal year 1976 and each of the 

 succepdinfT three fiscal years for the program. 



H.R. 3981 also authorizes short-term research assistance to coastal 

 States for research by: a. providing payment to Federal agencies; 

 b. hiring of private contractors (consultants) ; c. direct grants of % 



