1083 



33 



application to any other law or treaty of the United States, either 

 retrospectively or prospectively. 



Paragraph (4) of this subsection follows paragraph (4) of the cor- 

 responding House subsection and the opening provisions of the corre- 

 sponding Senate subsection in setting forth the purposes for which 

 the proceeds of formula grants are to be used (with priority to be given 

 to tne use of such proceeds for the retirement of state and local bonds) . 

 the purposes are — 



(1) the retirement of state and local bonds, if any, which are 

 guaranteed under subsection (d) (2) (and if the amount is insuffi- 

 cient to retire both state and local bonds, priority shall be given to 

 retiring local bonds) ; 



(2) the study of, planning for, development of, and the carry- 

 ing out of projects and programs in such state which are (A) nec- 

 essary, because of the unavailability of adequate financing under 

 any other subsection, to provide new or improved public facilities 

 and public services that are required as a direct result of new or 

 expanded outer Continental Shelf energy activity; and (B) 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, navi- 

 gation aids, fire and police protection, water supply, waste collec- 

 tion and treatment (including drainage), schools and education, 

 and hospitals and health care ; and 



(3) the prevention, reduction, or amelioration of any unavoid- 

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

 or recreational resource Avhere such loss results from coastal en- 

 ergy activity. 



Formula grants could indeed be used for "bricks and mortar", for en- 

 vironmental problems, for planning, etc., but in the case of public fa- 

 cilities and public services referred to in paragraph (2), the coastal 

 states would have to turn first to the loan and guarantee provisions 

 under subsection (d) ; and if such loans and guarantees are not avail- 

 able because apportionments to such states from, or sums in, the Fund 

 are insufficient, if the amount of such loans or guarantees, if available, 

 is not adequate, or if such states could not qualify for assistance under 

 subsection (d) , then they could tap their allocations for formula grants. 



Paragraph (5) follows new section 308(a) (5) of the House amend- 

 ment and new section 308(e) of the Senate bill by providing that the 

 Secretary, in a timely manner, shall determine that each coastal state 

 has expended or committed, and may determine that such state will 

 expend or commit, grants which such state has received under this 

 subsection in accordance with the purposes set forth in paragraph (4). 

 The United States would 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 (A) 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 (B) is expended or 

 committed by such state for any purpose other than a purpose set forth 

 in paragraph (4). 



The conference substitute further provides that before disbursing 

 the proceeds of any grant under this subsection to any coastal state. 



