1085 

 35 



tions of the loan or guarantee involved so that such state or unit may 

 meet its obligations as so modified; (2) refinance the loan involved so 

 that the payment obligations can be met; (3) make a supplemental 

 loan whose proceeds are to be applied to the payment of the outstand- 

 ing obligation; or (4) make a grant whose proceeds are to be applied 

 to the payment of the outstanding obligations. If the Secretary 

 has taken one of the first three courses of action but finds pur- 

 suant to the criteria and procedures of subsection (e) (3) that addi- 

 tional action under these three courses will not enable the state or unit 

 involved to meet all its outstanding obligations resulting from the loan 

 or guarantee, within a reasonable period of time, then the Secretary 

 shall make a grant to such state or unit in an amount sufficient to en- 

 able it to meet such obligations. Assistance under this paragraph is in- 

 tended to be granted automatically when these conditions exist, as 

 soon as the inability of the coastal state or local unit to meet its repay- 

 ment obligations under paragraph ( 1 ) loan or under the indebtedness 

 guaranteed under paragraph (2) is apparent. 



Paragraph (4) provides for grants to coastal states to enable them 

 to prevent, reduce, or ameliorate any unavoidable loss of a valuable 

 environmental or recreational resource described in subsection (b) 

 (4) (C) if and to the extent that the state involved has not received 

 amounts under subsection (b) which are sufficient to prevent, reduce, 

 or ameliorate such loss. This provision, which follows new section 

 308(b)(2) and the definition of net adverse impacts in new section 

 304 (n) (2) of the House amendment, is the one situation in which 

 assistance under subsection (b) is primary. The term ''valuable", 

 for purposes of this paragraph and of subsection (b)(4)(C), does 

 not refer solely to economic value, but includes value to the eco- 

 system and for recreational purposes, and any other present and 

 futui'e value. If such a loss "results" from coastal energy activity, 

 such funds may be used for the reduction or amelioration of any 

 present consequence of such activity, regardless of the date of such 

 activity or the date on which such consequence was first suffered, as 

 well as for the })revention of similar such losses which may otherwise 

 occur in the future. 



Subsection (e) sets a time limitation on the issuance of certain rules 

 and regulations by the Secretary. The rules and regulations described 

 in this subsection must be promulgated within 270 days after the date 

 of enactment of new section 308. This subsection follows new section 

 308(e) as added by the Senate bill. The rules and regulations required 

 within this time period include (1) a formula and procedures for al- 

 locating each coastal state's share of amounts appropriated and avail- 

 able in the fund for such purpose; (2) criteria under which the Sec- 

 retary shall review each coastal state's compliance with the require- 

 ments of subsection (g) (2) ; (3) criteria and procedures for evaluat- 

 ing the extent to which any subsection (d) (1) or (2) loan or guaran- 

 tee can be repaid tlie applicable state's or unit's ordinary methods and 

 rates for generating tax revenues (which shall include the submission 

 of si)ecified information and materials, including a populations state- 

 ment, description, tax projeciion, and a proposed repayment sched- 

 ule) ; (4) I'equirements, terms, and conditions which may be imposed 



