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States' entitlements to OCS grants and the credit will "automatically" 

 be determined by formulas, the Secretary still will have the discretion 

 he needs, before disbursement, to assure that the proceeds of such as- 

 sistance will be expended for the proper purposes. 



Third, the program strikes a balance between Federal financial as- 

 sistance, on the one hand, and self-help on the other. The bulk of the 

 assistance in the form of loans and guarantees is limited to public 

 facilities and public services, and the environmental grants are limited 

 to unavoidable impacts— as defined in the bill — precisely so that 

 coastal State and local governments will look first to the private en- 

 ergy industry to ameliorate fiscal impacts and to protect the environ- 

 ment. The incentives to do so will not only be maintained by the pro- 

 gram, but enhanced because of the planning grants and improved 

 State coastal zone management planning capability. The program will 

 provide assistance when needed, however, and will assume the risk 

 concerning repayment of loans and guarantees from future tax 

 revenues. 



Last, for equity reasons, the program covers a limited range of 

 coastal energy impacts caused in the past, as well as future impacts. 

 Grant money can be used for restoring valuable environmental and 

 recreational resources first damaged prior to the bill's enactment, but 

 only if no remedy exists against the persons causing such damage. If 

 the program looked only to the future, it would be unfair to such 

 States as Louisiana, off whose shores OCS activity has been going on 

 for years — much of it prior to the heightened environmental con- 

 sciousness of today. 



The bill contains several other amendments, besides the coastal en- 

 ergy impact program, which are designed to further the effectiveness 

 of coastal zone management. These include — 



First, the establishment of additional requirements for State coastal 

 zone management programs concerning planning for energy facility 

 impacts, public access to public coastal areas, and shoreline erosion; 



Second, a new program of financial assistance for coastal States 

 which have already developed management programs which are in 

 compliance with the requirements of section 305(b) but which did not 

 yet qualify for approval and administrative grants under section ?06 ; 



Third, a new incentive for expediting determination of whether 

 particular offshore energy activity is consistent with a coastal State's 

 approved management program, on an overall plan basis rather than 

 on an individual license/permit by license/permit basis; 



Fourth, a new ])rovision under which the Congress grants its assent 

 to the formation of interstate compacts and to interstate agreements 

 for the development and administration of coordinated coastal zone 

 planning, policies, and programs and for the establishment of imnle- 

 menting instrumentalities or agencies, pursuant to which Federal fi- 

 nancial assistance will be provided ; 



Fifth, a new provision for research and training to suj^port coastal 

 zone management programs ; 



Sixth, an authorization for new matching grants to enable coastal 

 states to acouire access to public beaches and other public coastal areas 

 of value and to preserve islands, to help meet the growing need for 

 more recreational outlets in coastal areas; and 



