1023 



Seventh, authorization of appropriations for the next 4 years of the 

 Nation's coastal zone management effort. 



The bill, in addition — 



First, creates the new Office of Associate Administrator for Coastal 

 Zone Management within the National Oceanic and Atmospheric Ad- 

 ministration who shall administer the provisions of the 1972 act, in- 

 cluding amendments of this conference substitute; 



Second, authorizes four special positions to the extent necessary for 

 administration of the amendments made by this legislation; and 



Third, directs the Secretary of Commerce to review^ all aspects of 

 the molluscan shellfish industry and to evaluate the impact on that 

 industry of Federal law concerning water quality, and to report 

 thereon to the Congress by April 30, 1977. 



On Thursday, the conferees met for the final time and accepted an 

 amendment to section 308(b) (4) (B) (i) which would insert the fol- 

 lowing after the word "necessary" : 



", because of the unavailability of adequate financing under any other sub- 

 section," 



This would mean that formula grants could indeed be used for so- 

 called "bricks and mortar,'' for environmental problems, and for plan- 

 ning and bond repayment. But in the case of "bricks and mortar" proj- 

 ects for public facilities and public services required by new or ex- 

 panded OCS activity, the States and local governments would have to 

 turn first to the loan and guarantee provisions, and if funds were un- 

 available, then they could tap their allocations in their accounts under 

 the formula grant provision. 



It w^ould be my interpretation, moreover, that in those cases where 

 there are insurmountable problems which would prevent States or 

 local governments from utilizing the aid offered by the fund, then the 

 Secretary should permit these governments to utilize the formula grant 

 program for such purposes. 



Concerning the provision of financial assistance for public services, 

 section 308(e) (4) calls upon the Secretary to establish requirements, 

 terms, and conditions on the loans and guarantees of subsection (d) 

 "to assure that the proceeds thereof may not be used to provide public 

 services for an unreasonable length of time." The intent here is that 

 loans and guarantees are not to be used to continue financing public 

 services or the operating costs of public facilities used by coastal en- 

 ergy activity, employees and related population once tax revenues 

 start accruing to the impacted coastal State or local government from 

 such employees, related population, and activity which are sufficient 

 to pay for the services and the operating costs of the facilities. 



The same restriction is intended to apply to the use of section 308 (b) 

 formula grants under section 308(b)(4)(B) for financing public 

 services and the operation of public facilities. Proposed "projects and 

 programs" for public services and the operation of facilities are ob- 

 viously not "necessary" once the OCS activity, employees, and related 

 l^opulation are providing adequate tax revenues to tlie impacted coastal 

 State or local government for the services and operation of facilities 

 which tlie employees and population use. Hence such projects and pro- 

 grams, when ordinary tax revenues will suffice, are not intended to be 

 a proper purpose for the expenditure of the formula grants. 



