1097 



that the affected coastal States would, in fact, receive funds on an 

 annual basis and the only Secretarial discretion would occur after 

 the funds were committed or expended. At that point, the respective 

 State must show that it had expended or committed the funds received 

 for one of the purposes as set forth in the bill. This particular section 

 of the legislation is consistent with the basic principles advocated by 

 myself and the other House conferees. 



Unfortunately, just hours before the conference report was to be 

 filed, a change was made in the formula grants section by a 4 to 3 

 vote of the House conferees. This change, had the effect of inserting a 

 major discretionary element into an otherwise stratightforward and 

 uncomplicated grant provision. 



I feel that we have, in effect, robbed the coastal States of the one 

 previously attractive feature which they overwhelmingly supported. 

 Prior to the change, the States could have expended the funds received 

 if they had a demonstrated need for public facilities and services 

 which were required as a result of OCS development. Now they can 

 only spend these funds if the Secretary fii^t determines that other 

 loan or guarantee options are not available to them. The loan and 

 guarantee provisions in this bill are full of all sorts of terms and con- 

 ditions to be established by the Secretary of Commerce in order to es- 

 tablish eligibility standards for State applicants. By tying the formula 

 grants to the loan section, we have effectively turned the automatic 

 grants into a discretionary pot — to be administered by the Secretary 

 at his pleasure. This is a much different approach from that which 

 the Committee on Merchant Marine and Fisheries adopted, and I am 

 sorely disappointed with those House conferees who decided to with- 

 draw their support for our originally agreed upon concept. If this 

 bill becomes law, I will be closely watching the administration of this 

 energy impact program within the Commerce Department. The pro- 

 mulgation of the rules and regulations which are now necessary to 

 properly complement this program could make-or-break the impact 

 assistance scheme which has been devised. I have been assured by 

 Secretary Richardson that this program will be administered in a 

 manner which will adequately assist the affected coastal States. This 

 impact program can wor-k if the Secretary does not promulgate overly 

 restrictive rules and regulations — and I am hopeful that this will be 

 the case. 



Even though I have reservations concerning the total impact pro- 

 gram, I feel that the conference substitute is woi-thy of support. We 

 have amended the original Coastal Zone Management Act to assist 

 States in the development and implementation of their i-espective 

 coastal management program, and we have done so in a comprehensive 

 and responsible manner. 



Most of the coastal States are well on their way in the initial devel- 

 opment process and the additional elements included in this bill will 

 provide the necessary Iwost to encourage and assist these States in 

 their efforts. 



I believe that this l)ill re]:)i-esents a very significant and important 

 action ])y this Congress. Tliere has been much rhetoi'ic during this 

 past session concerning the best ways to deal with our Nation's on- 

 going energy crisis, but nothing much has been done to tackle the 

 ])roblems head on. With the passage of this bill, this Congress will 



