1084 



34 



the Secretary shall require such state to provide adequate assurances 

 of being able to return to the United States any amounts to which the 

 preceding sentence may apply. 



Subsection (c) of the conference substitute follows new section 308 

 (a) of the Senate bill and new section 308(b) (1) of the House amend- 

 ment in providing for the making of planning grants to the coastal 

 states for use by them (or by localities through required suballocation 

 under subsection (g) (2) ) in studying and planning for any economic, 

 social, or environmental consequence Avhich has occurred, is occurring, 

 or is likely to occur in the coastal zone from the siting, construction, 

 expansion, or operation of new or expanded energy facilities. The 

 maximum Federal share of such a grant may not, as under the House 

 amendment, exceed 80 per centum of the cost of such study and 

 planning. 



Subsection (d) follows (1) new section 308 (b) and (c)(1) of the 

 Senate bill and new section 308(b) (2) in providing for grants; (2) 

 new section 308 (b) and (c) (2) of the Senate bill in providing for 

 loans; and (3) new section 319 of the Senate bill and new section 319 

 of the House amendment in providing for guarantees of state and local 

 bonds and other evidences of indebtedness, as part of the coastal en- 

 ergy impact program. Paragraph ( 1 ) provides for the making of loans 

 to coastal states and units of general purpose local government to 

 assist such states or units to provide new or improved public facilities 

 or public services, or both, which are required as a result of coastal 

 energy activity. Such loans will be subject to various prerequisites, 

 terms, conditions, and requirements under regulations which are re- 

 quired to be issued under subsection (e) (as to security, repayment 

 schedule and other submissions, maximum interest rate, etc.) and may 

 be subject to regulations issued under section 317 (as redesignated) 

 of the 1972 Act as amended by the conference substitute, except that 

 such loan shall be made solely pursuant to this title, and no such loan 

 shall require, as a condition thereof, that a state or local unit pledge 

 its full faith and credit to repayment. 



Paragraph (2) provides for the guaranteeing of bonds or other evi- 

 dences of indebtedness issued by coastal states or units of general pur- 

 pose local government for the purpose of providing new or improved 

 public facilities or public services, or both, which are required as a re- 

 sult of coastal energy activity. The prerequisites, terms and conditions, 

 requirements, and procedures with respect to such guaranteed bonds 

 and other evidences of indebtedness and the obligation of the United 

 States in the event of default are set forth in subsection (f) of new 

 section 308. 



If the Secretary finds that any coastal state or unit of general pur- 

 pose local government is unable to meet its obligations pursuant to a 

 loan under a paragraph (1) or a guarantee under paragraph (2), be- 

 cause the actual new increases in employment and related population 

 resulting from coastal energy activity and facilities associated there- 

 with do not provide adequate revenues to enable such state or unit 

 to meet those obligations in accordance with the repayment schedule 

 submitted, reviewed, and approved pursuant subsection (e)(3), the 

 Secretary is required to provide relief as specified in paragraph (3). 

 The Secretary shall (1) modify appropriately the terms and condi- 



