972 



86 



of life and property at sea. However, so far as these objectives are con- 

 cerned, we believe that they can be ac<:omplished under existing 

 authority. 



The Administration is presently drafting its own proposal in the 

 area of oil spill liability and is studying the need for, and possible 

 alternative approaches to providing, impact assistance for coastal 

 jurisdictions affected by Outer Continental Shelf oil and gas activities. 

 Therefore, we will defer our comments on those aspects of the bills 

 until the Administration's positions are finalized. 



This Department is concerned that any new legislation providing 

 for the development of energy resources on the Outer Continental 

 Shelf recognize the expertise of the Coast Guard and retain the respon- 

 sibilities and authorities currently vested in this Department. These 

 areas include the promulgation and enforcement of res:ulations for 

 fire prevention on vessels and other maritime-related safety interests ; 

 casualty investigation and inspection of facilities; the investigation, 

 reporting, containment, and removal of oil spills; the development 

 and maintenance of aids to navigation and safe vessel traffic systems ; 

 and the research and development necessary to carry out these func- 

 tions. We feel that the knowledge and expertise gained in these and 

 related areas by the Coast Guard should be recognized and retained 

 in any new legislation designed to expand these regulatory functions 

 on the Outer Continental Shelf. 



However, since the authority already exists for the safe develop- 

 ment and regulation of energy resources on the Outer Continental 

 Shelf, we see no need for additional detailed legislation at this time 

 (as distinguished from liability and impact assistance legislation). 



With respect to Title III of H.R. 2772, we note that the substance of 

 proposed sections 301(a) and 301(b) has already been enacted as 

 sections 21(b) and 21(c) of the Deepwater Port Act of 1974. 



The Office of Management and Budget has advised that, from the 

 standpoint of the Administration's program, there is no objection to 

 the submission of this report for the consideration of the Committee. 

 Sincerely, 



Rodney E. Eyster, 



General Counsel. 



The General Counsel of the Treasury, 



Washington, B.C., July 18, 1976. 

 Hon. Leonor K. Sullivan, 



Chairman, Com/mittee on Merchant Marine and Fisheries, 

 House of Representatives, 

 Washi/ngton, D.C. 



Dear Madam Chairman : Reference is made to your request for the 

 views of this Department on H.R. 1776, H.R. 3637, H.R. 3981, and 

 H.R. 4413, bills to amend the Coastal Zone Management Act of 1972, 

 in order to authorize financial assistance to coastal States. 



The bills would authorize the Secretary of Commerce to make grants 

 to coastal States out of a special Federal fund for planning, construc- 

 tion of public facilities, and provision of public services to ameliorate 

 presumed adverse impacts from the development of offshore energy 

 resources along the Outer Continental Shelf (OCS). The need for the 



