987 



101 



'paragraph {1) of this subsection^ payments made for any fiscal year 

 shall he based on data from the immediately preceding fiscal year, 

 and data from, the transitional quarter beginning July i, 1976, and 

 ending September 30, 1976, shall be included in the data from the 

 fiscal year ending June 30, 1976. 



(4) Each coastal state receiving payments under this subsection 

 shall use the moneys for the following purposes and in the folloiving 

 order of priority : 



(Jl) The retirement of state and local bonds, if any, which 

 are guaranteed under section 319 of this title which were issued 

 for projects or programs designed to provide revenues which are 

 to be vRpd to 'provide public services and public facilities which 

 are made necessary by outer Continental Shelf energy activity ; 

 except that, if the amount of such payments is ifisufjicient to retire 

 both state and local bonds, priority shall be given to retiring local 

 bonds. 



(B) The study of, planning for. developonent of. and the carry- 

 ing out of projects or programs tohich are designed to provide new 

 or additional public facilities err public services required as a di- 

 rect result of outer Continental Shelf energy activity. 



(C) the reduction or amelioration of any unavoidable l^ss of 

 unique, or unusually valuable ecoloqical or recreational resources 

 resulting from obiter Continental Shelf activity. 



{5) It shall be the responsibility of the Secretary to determine 

 annually if siich coastal state has expended or committed funds in 

 accordance with the purposes authorized herein by utilizing proce- 

 dures pursuant to section 313 of this title. The United States shall be 

 entitled to recover from any coastal state that portion of any payment 

 received by such state under this subsection which — 



{A) is not expended by such state before the close of the fiscal 

 year immediately following the fiscal year in which the payment 

 was disbursed, or; 



{B) is expended or committed by such state for any purposes 

 other than a purpose set forth in paragraph (4) of this subsection. 



(6) For purposes of this subsection., there are hereby authorized to 

 be appropHated funds not to exceed $50,000,000 for the fiscal year end- 

 ing September SO, 1977: $50,000,000 for the fiscal year ending Septem- 

 ber 30, 1978: $75/m,000 for the fiscal year ending Sept emher 30. 1979: 

 $100. 000 WO for the fiscal year ending September 30, 1980; and $125,- 

 000 WO for the, fiscal year ending September 30, 1981. 



(7) It is the intent of Congress that each state receiving payments 

 under this subsection shall, to the maximum extent practicable, allo- 

 cate all or a portion of such payments to local governments thereof and 

 that such allocation, shall be on a basis which is proportional to the ex- 

 tent to which local governments require assistance for purposes as 

 provided in paragraph (^) of this subsection. In addition, any coastal 

 state may, for the purposes of carririna out the provision's of this sub- 

 section and with the approval of the Secretan/, allocate all or portion 

 of any or ant received under this subsection to {A) any areaunde 

 aaency designated under section 20k of the Demonstration, Cities and 

 Nf^ropoTitan Development Act of 1966, {B) any regional aqencii, or 

 (C) any interstate agenci/. No provision in this subsection shall relieve 

 any state of the responsibility for insuring that any funds allocated to 



