1061 

 11 



"(6^) For purposes of making caJcidatlons under this suhsection^ the 

 trmisitlonal quarter heghinlng July i, 1076^ and ending September 30, 

 1976\ shall be ineJudcd within the fiscal year ending June 30, 1976. 



"(4) Each coastal state shidl use the p>roceeds of grants received 

 by it under this subsection for the following purposes {except that 

 prionty shall be given to the use of such proceeds for the purpose 

 set forth in subparagraph {A')): 



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

 are guaranteed under subsection {d){2); except that, if the 

 amount of such grants is iiisiifflcient to retire both state and local 

 bonds, priority shall be given to retiring local bonds. 



"(5) The study of, planning for, development of, ami the 

 carrying out of projects and programs in such state which are — 

 "(^) necessary, because of the unavailability of adequate fi- 

 nancing under any other suhsection, to provide new or im- 

 proved public facilities and public services ivhich are reciuired 

 as a direct result of new or expanded outer Continental Shelf 

 energy activity ; and 



^^(ii) of a type approved by the Secretary as eligible for 

 grants under this paragraph, except that the Secretary may 

 not disapprove any project or program for highways and 

 secondary roads, docks, iiavigation aids, fire and police pro- 

 tection, water supply, waste collection and treatment (in- 

 cluding drainage), schools and education, and hospitals and 

 health cai^e. 

 " (6^) The prrevention, reduction, or amelioration of any unavoid- 

 able loss in such state's coastal zone of any valuable environmental 

 or recreational resource if such loss residts from coastal energy 

 activity. 

 "(6) The Secretary, in a timely manner, shall determine that each 

 coastal state has expended or committed, and may deteyvnine that such 

 state ivill expetul or commit, grants which such state has received un- 

 der this subsection in accordance ivifh the purposes set forth in para- 

 graph (4). The United States shall be entitled to recover from- any 

 coastal state an amount equal to any portion of any such grant received 

 by such state under this subsection which — 



"(^) is not expended or committed by such state before the 

 close of the fiscal year immediately following the fiscal year in 

 which the grant was disbursed., or 



"(5) is expended or committed by such state for any purpose 

 other than a. purpose set forth in paragraph (4) • 

 Before disbursing the proceeds of any grant under this subsection to 

 any coastal state, the Secretam/ shall require such state to provide ade- 

 quate assurances of being able to retuim to the United States any 

 amounts to ivhich the preceding sentence may apply. 



"(c) The Secretary shall make grants to any coastal state if the Sec- 

 retary fuels that the coastal zone of such state is being, or is likely to 

 be, significantly affected by the 'siting, construction, expansion, or op- 

 eration of new or expended eneray facilities. Such grants shall be used 

 for the study of. and planning for [includinq, but not limited, to, the 

 application of the plannina process included in a management pro- 

 gram pnrsnant to section S05(b) (8). any economic, social, or environ- 

 mental consequence which has occurred, is occurinq, or m likely to oc- 

 cur in such state's coastal zone as a result of the siting, construction, 



