1026 



that the loss is not attributable legally to an identifiable person or 

 persons. 



JNIr. JoHXSTox. Is "valuable environmental or recreational resource" 

 to be given its broadest possible interpretation, with a view toward 

 protecting or restoring such resources ? 



Mr. HoLLiNGS. It would be the view of the conferees that the Secre- 

 tary apply such a broad definition to the term "loss" of such resources. 



Mr. JoiixsTox. For the purposes of the allotment to States under the 

 formula grant provision of section 308. is the production of crude or 

 natural gas and landed quantities of crude or natural gas, to be that 

 crude and natural gas produced from all federally leased acreage on 

 the Outer Continental Shelf adjacent to a particular coastal State, 

 regardless of the year in which the acreage was leased ? 



Mr. HoLLix'GS. It was the intention of the conferees that, in terms of 

 production elements of the formula, we meant that the production 

 would be from all acreage under Federal lease adjacent to such State, 



Mr. Joiix'STOx'. What does the term "new or expanded Outer Con- 

 tinental Shelf enerq;^^ activity" mean in section 308(b) (4) (B) (i) ? 



Mr. HoLLix'Gs. That term refers not only to activity on newly leased 

 acreage, but also to any new activity related to exploration, clevelop- 

 ment, or production on an existing lease, including, but not limited to, 

 new production facilities on an existing lease. 



Mr. JoHXSTOx'. For purposes of the act, what is meant by the term 

 "new employment" when applied to section 308(b) (2) (D) ? 



Mr. HoLLix^GS. As reflected in the statement of managei% on page 32, 

 the concept of "new employment" refers to "new workers." Some ex- 

 amples, in addition to that in the statement of managers, would include 

 the following : First, a new worker on a new facility on either an old 

 lease or a new lease, even though the new facility is in the same geo- 

 graphical area as the old facility ; second, a new job with the same com- 

 pany, so long as that new job is on a different facility, even though 

 there is no net increase in emnlovment by that company or in that 

 geographical area. We do not intend that each promotion be automa- 

 tically considered a "new worker." 



Mr. JoHNSTOx. For purposes of section 308(d) (1) loans, does "new 

 or improved public facilities" refer to those facilities needed to support 

 ongoing coastal energ\^ activity ? 



Mr. HoLLixGS. It is the intention of this provision that loan funds 

 be available to provide facilities required as a result of ongoing activ- 

 ities, including OCS activities. This would include, for example, 

 schools, hospitals, and renovations of same as necessary due to ongoing 

 coastal energy activity. 



Mr. JoHXSTOx. In section 308(b) (4) (B) (i), what is meant by the 

 term "unavailability of adequate financing under any other 

 subsection" ? 



Mr. HoLLixGS. I would refer my colleague to page 33 of the report 

 of the managers on the part of the House and the Senate, paragraph 2. 

 Moreover, if a State exhausts its line of credit under section 308(d), 

 such that such State can then apply for its allotments under section 

 308(b) for construction of public facilities, can such State use the 

 grant funds for the total cost of construction of a school, only 10 per- 

 cent of the need for which is attributable to "new or expanded" OCS 

 activities ? It is the intent of the legislation that the State transfer to 



