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determine that each coastal state has expended or 

 committed, and may determine that such state 

 will expend or commit, grants which such state 

 has received under this subsection in accordance 

 with the purposes set forth in paragraph (4). The 

 United States shall be entitled to recover from 

 any coastal state an amount equal to any portion 

 of any such grant received by such state under 

 this subsection which — 



(A) is not expended or committed by such 

 state before the close of the fiscal year immedi- 

 ately following the fiscal year in which the grant 

 was disbursed, or 



(B) is expended or committed by such state 

 for any purpose other than a purpose set forth 

 in paragraph (4) . 



Before disbursing the proceeds of any grant under 

 this subsection to any coastal state, the Secretary 

 shall require such state to provide adequate assur- 

 ances of being able to return to the United States 

 any amounts to which the preceding sentence may 

 apply. 



(c) The Secretary shall make grants to any 

 coastal state if the Secretary finds that the coastal 

 zone of such state is being, or is likely to be, signifi- 

 cantly affected by the siting, construction, expan- 

 -sion, or operation of new or expanded energy fa- 

 cilities. Such grants shall be used for the study of, 

 and planning for (including, but not limited to, the 

 application of the planning process included in a 

 management program pursuant to section 1454 

 (b) (8) ) any economic, social, or environmental 

 consequence which has occurred, is occurring, or is 

 likely to occur in such state's coastal zone as a re- 

 sult of the siting, construction, expansion, or opera- 

 tion of such new or expanded energy facilities. The 

 amount of any such grant shall not exceed 80 per 

 centum of the cost of such study and planning. 



(d)(1) The Secretary shall make loans to any 

 coastal state and to any unit of general purpose 

 local government to assist such state or unit to 

 provide new or improved public facilities or public 

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

 coastal energy activity. Such loans shall be made 

 solely pursuant to this title, and no such loan shall 

 require as a condition thereof that any such state 

 or luiit pledge its full faith and credit to the repay- 

 ment thereof. No loans shall be made under this 

 paragraph after September 30, 1986. 



( 2 ) The Secretary shall, subject to the provisions 

 of subsection (f ) , guarantee, or enter into commit- 

 ments to guarantee, the payment of interest on, 

 and the principal amount of, any bond or other 

 evidence of indebtedness if it is issued by a coastal 

 state or a unit of general purpose local government 

 for the purpose of providing new or improved public 

 facilities or public services, or both, which are re- 

 quired as a result of a coastal energy activity. 



(3) If the Secretary finds that any coastal state 

 or unit of general purpose local government is un- 

 able to meet its obligations pursuant to a loan or 

 guarantee made under paragraph (1) or (2) be- 

 cause the actual increases in employment and re- 

 lated EKjpulation resulting from coastal energy 



activity and the facilities associated with such 

 activity do not provide adequate revenues to en- 

 able such state or unit to meet such obligations in 

 accordance with the appropriate repayment sched- 

 ule, the Secretary shall, after review of the infor- 

 mation submitted by such state or unit pursuant to 

 subsection (e)(3), take any of the following 

 actions : 



(A) Modify appropriately the terms and con- 

 ditions of such loan or guarantee. 



(B) Refinance such loan. 



(C) Make a supplemental loan to such state 

 or unit the proceeds of which shall be applied to 

 the payment of principal and interest due under 

 such loan or guarantee. 



(D) Make a grant to such state or unit the 

 proceeds of which shall be applied to the pay- 

 ment of principal and interest due under such 

 loan or guarantee. 



Notwithstanding the preceding sentence, if the 

 Secretary — 



(i) has taken action under subparagraph (A), 

 (B) , or (C) with respect to any loan or guarantee 

 made under paragraph (1) or (2), and 



(ii) finds that additional action under sub- 

 paragraph (A), (B), or (C) will not enable such 

 state or unit to meet, within a reasonable time, its 

 obligations under such loan or guarantee and any 

 additional obligations related to such loan or 

 guarantee; 

 the Secretary shall make a grant or grants imder 

 subparagraph (D) to such state or unit in an 

 amount sufficient to enable such state or unit to 

 meet such outstanding obligations. 



(4) The Secretary shall make grants to any 

 coasted state to enable such state to prevent, re- 

 duce, or ameliorate any unavoidable loss in such 

 state's coastal zone of any valuable environmental 

 or recreational resource, if such loss results from 

 coastal energy activity, if the Secretary finds that 

 such state has not received amounts under subsec- 

 tion (b) which are sufficient to prevent, reduce, or 

 ameliorate such loss. 



(e) Rules and regulations with respect to the 

 following matters shall be promulgated by the 

 Secretary as soon as practicable, but not later than 

 270 days after the date of the enactment of this 

 section : 



(1) A formula and procedures for apportion- 

 ing equitably, among the coastal states, the 

 amounts which are available for the provision of 

 financial assistance under subsection (d). Such 

 formula shall be based on, and limited to, the 

 following factors: 



(A) The number of additional individuals 

 who are expected to become employed in new 

 or expanded coastal energy activity, and the 

 related new population, who reside in the re- 

 spective coastal states. 



(B) The standardized unit costs (as deter- 

 mined by the Secretary by rule), in the rele- 

 vant regions of such states, for new or im- 

 proved public facilities and public services 

 which are required as a result of such expected 

 employment and the related new population. 



