tion 307(c)(3)(b)). The effect of the 1976 amend- 
ments was to expedite the determination of 
“consistency” by requiring a certification of con- 
sistency with State coastal zone management pro- 
grams by the lease holder for any exploration, 
development, or production plan in the OCS. Con- 
currence by the State within 6 months is required, 
subject to an override by the Secretary of Commerce 
for national security reasons or based on a finding 
of substantial compliance with the objectives of the 
Act. If the State’s objections are sustained, a revised 
OCS plan must be submitted under an abbreviated 
review schedule. If certification of consistency is 
accepted by the State without objection or if a 
State’s objection is overridden by the Secretary of 
Commerce, any activity described in detail in the 
exploration, development, or production plan, and 
conducted in accordance with the plan can be 
carried out without further consideration by the 
State. 
From the standpoint of the States and local com- 
munities, the detail of information in the OCS plans 
is key. If extensive, the State and communities can 
prepare to deal with the anticipated impacts. If in- 
formation is sketchy, approval may be given to open- 
ended documents and control over the later imple- 
mentation effectively waived once consistency is 
agreed to by the States. The Department of the In- 
terior has attempted to deal with this potential prob- 
lem in its regulations.*’ 
Amendments to the Outer Continental Shelf 
Lands Act of 1953, being considered by Congress, 
clarify the relationship between coastal States and 
the Department of the Interior, which is the offshore 
licensing agent. 
Coastal Energy Impact Program 
Acceleration of OCS oil and gas development in 
the face of rapidly increasing oil imports has 
prompted the coastal States to seek additional funds 
from the Federal Government. The Coastal Zone 
Management Act Amendments of 1976 established 
a program of grants, loans, and bond guarantees 
under Section 308 of the CZMA. To qualify, States 
must be receiving Section 305 (development) or 306 
(administrative) grants, or, in the Secretary of Com- 
merce’s opinion, be developing a management pro- 
gram “consistent with the policies and objectives 
of the Act (Sec. 303).” 
Two interlocking forms of assistance are provided 
through the program: (1) a 10-Year, $800 million 
Coastal Energy Impact Fund, and (2) formula grants 
authorized at $50 million a year for 8 years. 
Coastal Energy Impact Fund 
This is a revolving fund established under Section 
37 See 30 Code of Federal Regulations Section 250.34 and 
30 CFR Part 252. 
308(c) and (d) and is the primary source of assist- 
ance to coastal States and local governments affected 
by new or expanded coastal-dependent energy activ- 
ity. The Fund is disbursed in five modes: ** 
e Loans to assist in providing new or improved pub- 
lic facilities and services made necessary by 
coastal energy activities; 
@ Guarantee of bonds issued by a coastal State or 
locality to obtain funds to provide new or im- 
proved public facilities and services required by 
coastal energy activities; 
® Repayment grants to meet credit assistance obliga- 
tions under a loan or bond guarantee in cases 
where the coastal energy activity involved failed 
to provide adequate revenues to offset the indebt- 
edness. 
® Grants if a State suffers loss of valuable environ- 
mental or recreational resources as a result of 
coastal energy activities, the cost of which cannot 
be attributed to or assessed against any identifi- 
able source and cannot be paid for through other 
Federal programs; and 
® Grants to study and plan for economic, social, and 
environmental consequences resulting from the 
siting, construction, and operation of new or ex- 
panded energy facilities in the coastal zone. 
The U.S. Secretary of Commerce must allocate 
funds for loans and bond guarantees among the 
States according to: (1) employment and related 
population attracted to the State by new coastal 
energy activities and (2) standardized unit costs for 
public facilities and services. 
Annual Formula Grants to Coastal States 
Each State’s formula grant is based upon the fol- 
lowing proportion calculated from data of the pre- 
vious fiscal year: 
© OCS acreage newly-leased adjacent to a coastal 
State relative to the total OCS acreage newly- 
leased (one-third); 
e Volume of oil and natural gas produced adjacent 
to the State relative to the total volume produced 
on the OCS (one-sixth); 
© Volume of OCS oil and gas first landed in a State 
relative to all OCS oil and natural gas landed in 
all coastal States (one-sixth); and 
e Number of individuals in new OCS-related em- 
loyment relative to the total number of individuals 
who obtain new OCS-related employment in ail 
coastal States (one-third). 
The use of formula grants is restricted to: (1) 
retirement of State and local bond guarantees where 
there is an inability to repay, (2) prevention, reduc- 
_tion, or amelioration of unavoidable loss of a valu- 
able ecological resource as a result of an energy 
38 No more than $50 million of the total $800 million can be 
expended for planning and environmental grants. 
IV-12 
