1076 

 26 



required in order to maximize, at the lowest reasonable cost to the 

 Federal taxpayer, the attainment of the national objective of energy 

 self-sufficiency, with respect to offshore oil and gas development, and to 

 assure that such development takes place in accordance with sound 

 enviroimiental principles. New section 308 of the Coastal Zone Man- 

 agement Act of 1972, which includes these provisions and which is en- 

 titled ''Coastal Energy Impact Program", sets forth and provides for 

 a flexible and coordinated approach to the respective responsibilities 

 of the Federal Government in providing, and the state and local gov- 

 ernments in using, Federal financial assistance required to meet state 

 and local needs resulting from new or expanded coastal energy ac- 

 tivity, and tailors the form of the assistance to the necessity therefor. 

 The conference substitute would provide for grants to state or local 

 governments to pay off loans or guaranteed indebtedness in those cases 

 where it can be clearly demonstrated to the Secretary that (1) 

 ordinai'y tax revenues will not meet the cost of providing required 

 new or improved public facilities and public services; (2) the pro- 

 jected revenues based on projected new employment and related popu- 

 lations and facilities fail to materialize in fact; or (3) the very 

 nature of the state or local need is so diffuse (i.e., planning) or 

 indirectly relatable (i.e., prevention, reduction, or amelioration of 

 unavoidable losses of valuable ecological and recreational resources) 

 to the usual revenue-collection mechanisms as to make repayment diffi- 

 cult or impossible to achieve or assure. Such grant shall be made 

 without any obligation other than that the proceeds in fact be ex- 

 pended for proper purposes. If costs can be recouped, however, 

 through such ordinary methods, the moneys involved could be used 

 again and again to meet the similar needs of other communities and 

 states. 



The provisions of new section 308 are set forth in detail below in 

 the section-by-section discussion of section 7 of the conference 

 substitute. 



The conference substitute also follows the Senate bill, the House 

 amendment, or both, in making a number of other changes in or modifi- 

 cations to the 1972 Act. These changes and modifications, which are 

 also discussed in detail below, include — 



(1) the establishment of three additional requirements for 

 state coastal zone management programs ; 



(2) 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 

 do not vet qualify for approval and administrative grants under 

 section 306; 



(3) a new incentive for an expeditious 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; 



(4) a new provision under which the Congress grants its assent 

 to the formation of interstate compacts and to interstate agree- 

 ments for the development and administration of coordinated 

 coastal zone planning, policies, and programs and for the estab- 

 lishment of implementing instrumentalities or agencies, pursuant 

 to wliich Federal financial assistance will be provided; 



