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Coastal Zone Management Act Amendments of 1976 

 statement by the president on signing s. 586 into law. july 2 6, 19 7 6 



I am pleased to sign into law today S. 586, the Coastal Zone Manage- 

 ment Act Amendments of 1976. This legislation fills a critical need 

 in the development of our domestic energy resources and the improved 

 management of the Nation's valuable coastal zones. 



The bill recognizes a national responsibility to assist coastal States 

 and communities that will be aftected by the accelerated exploration 

 and production of oil and gas from the Federal Outer Continental 

 Shelf. It incorporates for coastal States the principal elements of 

 the Energy Development Impact Assistance Program, which I recom- 

 mended to Congress in February of this year. 



Specially, the bill creates a Coastal Energy Impact Program with 

 an authorization level of $1.2 billion over the next 10 years. The 

 principal form of the assistance will be loans and loan guarantees to 

 assist communities in developing the additional public facilities needed 

 to cope with the expanding population associated with new OCS 

 and coastal-dependent energy activities. In addition. Federal grants 

 are authorized to assist States and communities in planning for these 

 impacts, in ameliorating unavoidable environmental losses, and in 

 providing public facilities and public services for limited time periods 

 to the extent adequate credit under the bill is available. 



The legislation has been carefully designed to insure that Federal 

 assistance is limited to those situations where the assistance is needed, 

 and only for those specified projects or activities directly related to 

 increased coastal energy activity. Clearly, the national taxpayer should 

 not be asked to underwrite costs normally covered by ordinary State 

 and local taxes ; similarly, the energy industry should bear its normal 

 tax load and the usual costs of doing business. 



Under the bill, loans and loan guarantees will be provided for public 

 facilities needed because of new or expanded coastal energy activity 

 in recognition that such facilities would normally be financed through 

 State and local bonding. Grants for public facilities can only be used 

 if the Secretary of Commerce finds that the loans and loan guaran- 

 tees are not available. Grants may also be used for planning and for 

 the prevention, reduction, or amelioration of unavoidable environ- 

 mental losses, if the Secretary determines that the loss is not attribut- 

 able to, or assessable against, any specific person and cannot be paid 

 for through other Federal programs. 



The bill also appropriately limits the extent to which the Federal 

 Government will become involved in decisions that should be made 

 at State and local levels. The individual States and localities will de- 

 termine whether their principal need is for schools, roads, hospitals, 

 new parks, or other similar facilities. The Secretary of Commerce 

 will have responsibilities which are limited to those areas where Fed- 

 eral involvement is necessary. 



Prior to the disbursement of funds, the Secretary of Commerce 

 must make certain that States which are entitled to receive loans or 

 grants will expend or commit the proceeds in accordance with au- 

 thorized ])urposes, and that Federal loan grants will Jiot subsidize 

 public services for an unreasonable length of time. The Secretary 



