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Coastal Zone Management Act
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Coastal Zone Management Act
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Vernon C. Loen and Charles Leppert Files
Vernon Loen's and Charles Leppert's General Subject Files
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Environmental protection
Energy policy
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The original documents are located in Box 4, folder "Coastal Zone Management Act" of
the Loen and Leppert Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 4 of the Loen and Leppert Files at the Gerald R. Ford Presidential Library
10-6-75
Memo to file
Fram:
Clearles Lexpet Jr.
that today with Reps helpe &
Treen m Countal Zone
aucendurents X Treen propose to obtain
administration approval of an unjast
and promoun
The Meeting cannto no resolition
& beth Nutchell (OMB) t Hugher (Dot)ex-
flawed the administration position in
trying to work out an querall approach
which Pupper Treen liked + ther conflish
that exated with the bell in the adtive
Des Commuttee L the Countal fore Regard
bill. Deppert
to Matchell that Treen be fiver a FORD dropling
service for her problem.
GERALD LIBRARY
MEMORANDUM
OF CALL
TO:
Neta
YOU WERE CALLED BY-
YOU WERE VIDITED
RALE BY- FORD LIBIRANT
Fran
(Organization)
Mr. Mitchells office 3184
PHONE NO.
PLEASE CALL
CODE/EXT.
WILL CALL AGAIN
IS WAITING TO SEE YOU
RETURNED YOUR CALL
WISHES AN APPOINTMENT
mr. MESSAGE mitchello suggests the following
he invited to the meeting monday.
Sam fausner Juthill Commerce (Bell Hom)
Eric or John Hill - FEA
Roy Hugher - Interior
Bruce Pasternah
RECEIVED BY
DATE 10/3
TIME
nd
6:45
STANDARD FORM 63
GPO :1969-c48-16-80341-1 332-389
63-108
REVISED AUGUST 1967
GSA FPMR (41 CFR) 101-11.6
10-1-75
neta:
Please call Rep: Treen
t Ruppe to see what time t
place
they both can meet with
X 395
3184
Inj Nitchelle of OMB - others
Frant
advise
from ther Administration an
Friday 10-3-75 on Monday
10-6-75.
Once Puper - Treen fine you
the
date time & place Care Jew
Mutchel & tell him t them his
people there Let the know w lter
date, time F place of the meeting
Th
Chas.
marihelen
Horneman = Treen X4031
FORD is LIBRARY 077839
monday
/00 1:30
Ruppe
I
Kathleen *4735
203 Cannon =
monday
Bef 10-
has brunch 11:45 hr
1-130 gen
2-230 open aft. 4pm
RED TAG
October 2. 1975
MEMORANDUM FOR:
JIM MITCHELL
THRU:
MAX L. FRIEDERSDORF
VERN LOEN
FROM:
CHARLES LEPPERT, JR.
SUBJECT:
Constal Zene Management Act
Amendments
Attached is a copy of H. R. 3981, the bill the Subcommittee on
Oceanography of the House Merchant Marine and Fisheries
Committee will begin marking up on Thursday, October 2.
I am trying to set up a meeting with Representative Ruppe and
Treen as Dave Treen has requested. As soon as I have the date,
time and place I will be in touch with you or my secretary will
netify you of the date, time and place.
Attachment
FORD is LIBRARY GERALD
Coastal zone Injust
is
FORD
GERALD
LIBRARY
THE WHITE HOUSE
WASHINGTON
10-8-75
Neta
The attached was
taken up on the mts.
w/ Rupper & Two on
10-6-75. OMB trying
together w/ all Minasty
to get quetter meeting
nebas of Cute Clean Th
Charlie
Called Geo. Humphreys office about the letter
from Repr. of the Comte on Merchant Marine
and Fisheries re coastal zone management
legislation.
Humphreys' office said that they would have an
answer from the Agency the beginning of next wk.
I called Wayne Smith and told him this and he
laughed.
He said that some of the Congressmen - namely
Murphy, Mosher, Forsythe and Ruppe have been
trying at various times to get the info from Interior
and Commerce. Neither Agency has gotten back to
them with any info.
When Sec. Morton was before the Comte the
Comte asked him what position the Admin. was
taking on this and he said he would find out and
get back to them and he hasn't.
Smith said this a major energy matter and they
would like to know what is wanted prior to their
making any decisions so we can work together to
put out legislation acceptable to both sides but
they are not getting any cooperation from us.
Yesterday, Sec. Morton, for the first time, had
some people in his office in an attempt to review
the issues and come to some decision.
Smith said that they want to avoid a veto up there
and would welcome some info now so we could
resolve differences and come up with something
acceptable.
FORD
Neta
9/19/75
MEMORANDUM
OF CALL
TO:
Deo
Humphreyans
C.C.
YOU WERE CALLED BY-
YOU
OF (Organization)
Wollyne Smith be
WERE VISITED week is neth
House Merchant marine
PLEASE CALL
PHONE CODE/EXT. NO. 225-3347
WILL CALL AGAIN
IS WAITING TO SEE YOU
RETURNED YOUR CALL
WISHES AN APPOINTMENT
MESSAGE
meric
markip 9/29/46
Re: Communmental Malles
Ltaq 811 to find ant position
as Coastal 30mg mymt compensation
Christie Valentine
RECEIVED BY
G.
DATE
RALD GERALD LIBRA R. FORD
TIME
9-10
3,58
STANDARD FORM 63
GPO :1909-o48-16-80341-1 382-889
63-108
REVISED AUGUST 1967
GSA FPMR (41 CFR) 101-11.6
August 5, 1975
Dear Chuck:
Thank you for the August 1 letter to the President
in which you joined with other Minority Members of
the Committee on Merchant Marine and Fisheries to
outline the status of coastal zone management
legislation.
We have noted your request for consultations with
the Administration prior to the mark-up schedule
for early September. I wish to assure you that I
shall call your letter to the President's attention
at the earliest opportunity. In addition, copies
will be shared with the appropriate members of the
staff.
with kindest regards,
Sincerely,
Vernon C. Loen
Deputy Assistant
to the President
FORD VIBRARY
The Honorable Charles A. Mosher
House of Representatives
Washington, D.C. 20515
VCL:EF:VO:rg
bcc: w/incoming to James Cannon for further action.
bcc: w/incoming to Alan Kranowitz, OMB, for your information.
Pat me Kee
Jenn X 6515
NINET Y-FOURTH CONGRESS
CHIEF COUNSEL
ERNEST J. CORY
LEONOR K. (MRS. JOHN a.) SULLIVAN, MO., CHAIRMAN
TEOMAS L. ASHLEY. OHIO
PHILIP E. RUPPE, MICH.
CHIEF CLERK
J4HN D. DINGELL, MICH.
CHARLES A. MOSHER, OHIO
FRANCES STILL
THOMAS N. DOWNING. VA.
PAUL N. MC CLOSKEY, JR., CALIF.
PAUL G. ROGERS, FLA.
GENE SNYDER, KY.
U.S. House of Representatives
MINORITY COUNSEL
JOHN M. MURPHY, N.Y.
EDWIN B. FORSYTHE, N.J.
WALTER B. JONES, N.C.
PIERRE S. (PETE) PONT, DEL
Committee on
RICHARD H, SHA
ROBERT L. LEGGETT. CALIF.
DAVID c. TREEN. LA.
MARIO BIAGGI, N.Y.
JOEL PRITCHARD, WASH.
Merchant Marine and Fisheries
GLENN M. ANDERSON. CALIF.
DON YOUNG. ALASKA
E (KIKA) DE LA GARZA. TEX.
ROBERT E. SAUMAN. MD.
RALPH H. METCALFE. 1LL.
NORMAN F. LENT. N.Y.
Room 1334, Longloorth House Office Suilbing
JOHN B. BREAUX, LA.
MATTHEW 3. RINALDO. N.J.
FRED B. ROONEY, PA.
DAVID F. EMERY, MAINE
Washington, D.C. 20515
PAUL S. SARBANES, MO.
80 GINN. GA.
GERRY E. STUDDS, MASS.
DAVID R. BOWEN, MISS.
JOSHUA EILBERG, PA.
RON DE LUGO, V.I.
per
CARROLL HUSBAND. JR., KY.
DON BONKER, WASH.
LCS AUCOIN, OREG.
NORMAN E. D'AMOURS, N.H.
JERRY M. PATTERSON. CALIF.
August 1, 1975.
LEO c. ZEFERETTI, N.Y.
JAMES L. OBERSTAR, MINN.
The Honorable Gerald R. Ford,
President of the United States,
The White House,
Washington, D. C.
me
Dear Mr. President:
As you are aware, the House is presently considering
coastal zone management legislation before the Committee
on Merchant Marine and Fisheries.
H.R. 3981, 1776, 4300, 6090 et al. contain amendments to
the Coastal Zone Management Act of 1972, which are designed
to enable the coastal states to plan for and accommodate
expanded oil and gas operations. This type of measure could
also demonstrate to the states the federal government's
appreciation of the significant problems they will have to
face as a result of Outer Continental Shelf resource develop-
ment and provide financial assistance to help mitigate
resultant impacts.
Since the measures before us are energy-related, we believe
that they deserve special consideration as a part of your
efforts to make the United States less dependent on foreign
sources of crude oil. While some of these coastal zone bills
would result in significant federal expenditures, they could
also satisfy the State's concerns so that an accelerated
leasing program can go forward.
FORD is LIBRARY
The Honorable Gerald R. Ford.
Page 2.
The revenues accruing from these lease sales, as well as the
royalties from oil and gas production, could match these
expenditures many times over.
A number of us believe that this type of legislation or an
acceptable alternative plan is needed to properly address the
many problems facing our coastal states. Our nation cannot
afford to further delay our energy development program.
We seek your assistance in accomplishing this objective. We
urge you to formulate a decisive and constructive position
on these bills at this time, or to present your desired
alternatives, so that we can work together in developing a
satisfactory solution to the present delays in developing our
potential OCS resources.
Now that the Senate has passed S. 586, the burden is on us to
develop a feasible plan to deal with the oil and gas develop-
ment issue. Our Committee will be taking up these coastal
zone matters in mark-up shortly after we reconvene in September.
We have continually been told by your representatives that the
entire subject of compensation to the coastal states is under
consideration and that a decision would be forthcoming. The
time is fast approaching when some hard and fast decisions must
be made, and we are hopeful that you can offer your views to
us prior to mid-September.
We would be pleased to meet with you or your staff to work out
acceptable provisions of this legislation so that Congress and
the Administration can go forward together to solve this vital
national problem.
Sincerely,
Rugge
Philip E. Ruppe,
Ranking Minority Member,
Committee on Merchant
FORD is LIBRARY OFRALD
Marine and Fisheries.
The Honorable Gerald R. Ford.
Page 3.
A Allison United Den your
Charles A. Mosher, M. C.
Don Young, M. C.
Gdu Edwin B. Forsythe, Dytho M. C.
Bob
Robert E. Bauman, MAC.
VormanF. Lent
Pierre S. du Pont, M. C.
Norman F. Lent, M/C.
Newa C Treen
Matt Binaldo
David C. Treen, M. C.
Matthew J. Rinaldo, M. C.
Jarl Joel Pritchard, M. C.
LIBRARY GERALD ? FORD
RED TAG
February 16, 1976
MEMORANDUM FOR:
JIM MITCHELL
THRU:
MAX L. FRIEDERSDORF
VERN LOEN
FROM:
CHARLES LEPPERT, JR.
SUBJECT:
Coastal Zeas Management Act
Amendments
Attached is the substitute amendment effered by Representatives
Murphy and duPont to the Coastal Zene Management Act which was
adopted by the House Merchant Marise and Fisheries Committee.
I thought this may be of interest to you for our meeting with Repre-
sentatives duPent and Treen on Wednesday, February 18, 1976 at
3 p.m. in Reem 127 Cannon House Office Building.
Attachment
FORD is LIBRARY 938870
JOHN M. MURPHY
COMMITTEES:
17TH NEW YORK
INTERSTATE AND FOREIGN
COMMERCE
MERCHANT MARINE AND
WASHINGTON OFFICE:
FISHERIES
SUITE 2187
RAYBURN HOUSE OFFICE BUILDING
Congress of the United States
CHAIRMAN:
WASHINGTON, D.C. 20515
SUBCOMMITTEE ON OCEANOGRAPHY
TELEPHONE: (202) 225-3371
House of Representatives
ADMINISTRATIVE ASSISTANTS:
CHARLES F. BOYLE, SR.
STATEN ISLAND OFFICE:
ROOM 107
Washington, D.C. 20515
JANE H. NACKE
RITA Y. RUSSO
GENERAL POST OFFICE
550 MANOR ROAD
February 2, 1976
MANHATTAN OFFICE:
STATEN ISLAND, N.Y. 10314
ROOM 1643
TELEPHONE: (212) 981-9800
26 FEDERAL PLAZA
NEW YORK, NEW YORK 10007
TELEPHONE: (212) 264-9335
TO: Members, Merchant Marine and Fisheries Committee
FROM: John M. Murphy and Pierre duPont
Attached is a slightly "revised" version of our substitute
amendment to Section 308 of H.R. 3981. This is the amendment which
will be considered at our mark-up session on February 4.
Essentially, the new version is simply a perfection of our
earlier amendment and represents a tightening of language and logic.
No major substantive changes have been made.
Because the substitute amendment will still be considered
in toto on Wednesday, we have not incorporated the amendments to it
which the Committee adopted on January 29. Consequently, the amend-
ments proposed by Mr. Breaux to the definition of adjacency and to
the authorization level of the OCS payments sections, which were
approved by the Committee, do not appear in this new draft.
Amendments to our substitute amendment, which are to be
considered by the Committee, will be coordinated with any new line
or page numbers on the attached version.
THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS
(COMMITTEE PRINT)
February 2, 1976
94th Congress
2nd Session
H.R. 3981
IN THE HOUSE OF REPRESENTATIVES
February 2, 1976
Ordered to lie on the table and to be printed.
AMENDMENTS
Intended to be proposed by Mr. Murphy of New York and Mr. duPont to
H.R. 3981 (Committee Print), a bill to amend the Coastal Zone
Management Act of 1972 to authorize and assist the coastal States
to study, plan for, manage, and control the impact of energy
resource development and production which affects the coastal zone,
and for other purposes, viz:
Insert on page 12, line 12, 'Outer Continental Shelf after "(j).
Add, after page 14, line 8, the following:
"(n) 'Net adverse impacts' means the consequences of a coastal energy
activity which are determined by the Secretary to be economically or
environmentally costly to a State's coastal zone or political
subdivision thereof, when weighed against the benefits of a coastal
energy activity which directly offset such costly consequences according
to the criteria as determined in accordance with section 308 (c) of
this title. Such impacts may include, but are not limited to --
"(1) rapid and significant population changes requiring expenditures
for public facilities and public services which cannot be financed
entirely through usual and reasonable means of generating State and
local revenues, or through availability of Federal funds including
those authorized by this title;
(2) unavoidable loss of unique or unusually valuable ecological
or recreational resources when such loss cannot be replaced or
restored through usual and reasonable means of generating State and
local revenues, or through availability of Federal funds including
those authorized by this title.
"(o) 'Coastal energy activity' means any of. the following activities
if it is carried out in, or has a significant effect on, the coastal zone
of any State or States --
"(1) the exploration, development, production or transportation
of oil and gas resources from the Outer Continental Shelf and the
location, construction, expansion or operation of supporting equip-
ment and facilities limited to exploratory rigs and vessels;
production platforms; subsea completion systems; marine service and
supply bases for rigs, drill ships and supply vessels; pipelines,
pipe-laying vessels and pipe-line terminals, tanks receiving oil or
gas from the Outer Continental Shelf for temporary storage; vessel
loading docks and terminals used for the transportation of oil or
gas from the Outer Continental Shelf; and other facilities or
equipment made necessary by the foregoing or required for the removal
of the foregoing when such other facilities or equipment are
determined by the State affected to have technical requirements
which would make their location, construction, expansion, or
operation in the coastal zone unavoidable;
"(2) the location, construction, expansion, or operation of
vessel loading docks, terminals and storage facilities used for
the transportation of liquefied natural gas, coal, or oil or of
conversion or treatment facilities necessarily associated with the
processing of liquefied natural gas; or
"(3) the location, construction, expansion, or operation of
deepwater ports and directly associated facilities, as defined in
P.L. 93-627."
Delete all of Section 308, page 20, line 20 thru page 27, line 5, and
substitute in lieu thereof:
"COASTAL ENERGY ACTIVITY IMPACT PROGRAM
"Sec. 308 (a)(1) The Secretary shall make a payment for each fiscal
year to each coastal State in an amount which bears to the amount
appropriated for that fiscal year pursuant to paragraph (6) of this
subsection the same ratio as the number representing the average of the
following proportions (computed with regard to such State) bears to 100--
"(A) the proportion which the Outer Continental Shelf acreage
which is adjacent to such State and which is leased by the
Federal Government in that year bears to the total Outer
Continental Shelf acreage which is leased by the Federal
Government in that year;
"(B) the proportion which the number of exploration and
development wells adjacent to that State which are drilled in
that year on Outer Continental Shelf acreage leased by the
Federal Government bears to the total number of exploration
and development wells drilled in that year on Outer Continental
Shelf acreage leased by the Federal Government;
"(C) the proportion which the volume of oil and natural gas
produced in that year from Outer Continental Shelf acreage
which is adjacent to such State and which is leased by the
Federal Government bears to the total volume of oil and natural
gas produced in that year from Outer Continental Shelf lands
under Federal lease in that year;
"(D) the proportion which the volume of oil and natural gas
produced from Outer Continental Shelf acreage leased by the
Federal Government and first landed in such State in that year
bears to the total volume of oil and natural gas produced from
all Outer Continental Shelf acreage leased by the Federal
Government and first landed in the United States in that year;
"(E) the proportion which the number of individuals residing
in such State in that year who are employed directly in Quter
Continental Shelf energy activities by Outer Continental Shelf
lessees and their contractors and subcontractors bears to the
total number of individuals employed directly in Outer Continental
Shelf energy activities in that year by Outer Continental Shelf
lesses and their contractors and subcontractors; and
"(F) the proportion which the onshore capital investment
which is made during that year in such State and which is
required to directly support Outer Continental Shelf energy
activities bears to the total of all such onshore capital
investment made in all coastal States during that year.
"(2) For purposes of calculating the proportions set forth in
paragraph (1) of this subsection acreage or an exploratory or
development well located on the Outer Continental Shelf shall be
deemed to be 'adjacent' to a coastal State if the acreage or well
is closest to that State as determined by the measurement of a
straight line drawn between the center. point of the leased tract
in which the acreage is located, or of the exploratory or develop-
ment well, as the case may be, and the closest point to the tract
or exploratory or development well on the baseline from which the
territorial sea is measured.
"(3) The Secretary shall have the responsibility for the compilation,
evaluation, and calculation of all relevant data required to
determine the amount of the payments authorized by this subsection
and may, by regulations promulgated in accordance with section 553 of
title 5, United States Code, set forth the method by which collection
of such data shall be made. In compiling and evaluating such data,
the Secretary may require the assistance of any relevant Federal
or State agency. In calculating the proportions set forth in
paragraph (1) of this subsection, payments made for any fiscal year
shall be based on data from the immediately preceeding fiscal year.
for purposes of calculating such proportions, data from the transitional
quarter beginning July 1, 1976 and ending September 30, 1976, shall be
included in the data from the fiscal year ending June 30, 1976.
"(4) Each coastal State receiving payments under this subsection
shall use the monies for the following purposes and in the following
order of priority:
"(A) The retirement of State and local bonds, if any, which
are guaranteed under section 319 of this title which were
issued for projects or programs designed to reduce,
ameliorate or compensate for adverse impacts resulting from
Outer Continental Shelf energy activity; except that, if
the amount of such payments is insufficient to retire both state
and local bonds, priority shall be given to retiring local bonds;
"(B) The study of, planning for, development of, and the
carrying out of projects or programs which are designed to
provide new or additional public facilities or public services
required as a direct result of Outer Continental Shelf energy
activity.
"(C) The reduction or amelioration of any unavoidable loss of
unique or unusually valuable ecological or recreational resources
resulting from Outer Continental Shelf activity.
"(5) Monies provided to any coastal State under this subsection not
expended or committed in accordance with the purposes authorized herein
shall revert to the Treasury at the end of the fiscal year following
the fiscal year in which they are disbursed. It shall be the
responsibility of the Secretary to determine annually if such coastal!
state has expended or committed funds in accordance with the purposes
authorized herein by utilizing procedures pursuant to section 313
of this title.
"(6) For purposes of this subsection, there are hereby authorized
to be appropriated funds not to exceed $50,000,000 for the fiscal
year ending September 30, 1977; $50,000,000 for the fiscal year
ending September 30, 1978; $75,000,000 for the fiscal year ending
September 30, 1979, $100,000,000 for the fiscal year ending
September 30, 1980; and $125,000,000 for the fiscal year ending
September 30, 1981.
"(7) It is the intent of Congress that each State receiving payments
under this subsection shall, to the maximum extent practicable,
allocate all or a portion of such payment to any local government
thereof and that such allocation shall be on a basis which is.
proportional to the extent to which local governments require
assistance for purposes as provided in paragraph (4) of this sub-
section. In addition, any coastal State may, for the purposes of
carrying out the provisions of this subsection and with the approval
of the Secretary, allocate all or a portion of any grant received
under this subsection to (A) any areawide agency designated under
section 204 of the Demonstration Cities and Metropolitan Development
Act of 1966, (B) any regional agency, or (C) any interstate agency.
No provision in this subsection shall relieve any State of the
responsibility for insuring that any funds allocated to any local
government or other agency shall be applied in furtherance of the
purposes of this subsection.
"(b)(1) The Secretary may make grants to any coastal State if
he determines that such State's coastal zone is being, or is
likely to be, impacted by the location, construction, expansion or
operation of energy facilities in, or which significantly affect
its coastal zone. Such grants shall be for the purpose of enabling
such coastal State to study and plan for the economic, social and
environmental consequences which are resulting or are likely to
result in its coastal zone from such energy facilities. The amount
of any such grant may equal up to 80 percentum of the cost of such
study or plan, to the extent of available funds.
"(2) The Secretary may make grants to any coastal State if he is
satisfied, pursuant to regulations and criteria to be promulgated
according to subsection (c) of this section, that such State's
coastal zone has suffered, or will suffer, net adverse impacts from
any coastal energy activity. Such grants shall be used for, and
may equal up to 80 percentum of the cost of carrying out, projects,
programs or other purposes which are designed to reduce
or
ameliorate any net adverse impacts resulting from coastal
energy activity.
"(c) Within 180 days after the effective date of this section,
the Secretary shall, by regulations promulgated in accordance with
section 553 of title 5, United States Code, establish requirements
for grant eligibility under subsection (b) of this section. Such
regulations shall --
"(1) include appropriate criteria for determining the amount
of a grant and the general range of studying and planning
activities for which grants will be provided under subsection
(b) (1) of this section.
"(2) specify the means and criteria by which the Secretary shall
determine whether a State's coastal zone has, or will suffer net
adverse impacts;
"(3) include criteria for calculating the amount of a grant under
subsection (b)(2) of this section, which criteria shall include
consideration of --
"(A) offsetting benefits to the State's coastal zone or a
political subdivision thereof, including but not limited
to increased revenues,
"(B) the State's overall efforts to reduce or ameliorate
net adverse impacts, including but not limited to, the
State's effort to ensure that persons whose coastal energy
activity is directly responsible for net adverse impacts
in the State's coastal zone are required, to the maximum extent
practicable, to reduce or ameliorate such net adverse impacts,
"(c) the States consideration of alternative sites for the
coastal energy activity which would minimize net adverse
impacts; and
"(D) the availability of Federal funds pursuant to other
statutes, regulations, and programs, and under subsection (a)
of this section, which may be used in whole or in part to
reduce or ameliorate net adverse impacts of coastal energy
activity;
In developing regulations under this section, the Secretary shall
consult with the appropriate Federal agencies, which upon request,
shall assist the Secretary in the formulation of the regulations
under this subsection on a non-reimbursable basis; with representatives
of appropriate State and local governments; with commercial, industrial,
and environmental organizations; with public and private groups; and
with any other appropriate organizations and persons with knowledge
or concerns regarding adverse impacts and benefits that may affect
the coastal zone.
"(d) All funds appropriated to carry out the purposes of subsection
(b) of this section shall be deposited in a fund which shall be known
as the Coastal Energy Activity Impact Fund. - The fund shall be
administered and used by the Secretary as a revolving fund for carrying
out such purposes. General expenses of administering this section,
may be charged to the fund. Monies in the fund may be deposited in
interest-bearing accounts or invested in bonds or other obligations
which are guaranteed as to principal and interest to the United States.
"(e) There are hereby authorized to be appropriated to the
Coastal Energy Activity Impact Fund such sums not to exceed $125,000,000
for the fiscal year ending September 30, 1977, and for each of the
next four succeeding fiscal years, as may be necessary, which shall
remain available until expended.
"(f) It is the intent of Congress that each State receiving any grant
under paragraph (1) or (2) of subsection (b) of this section shall, to
the maximum extent practicable, allocate all or a portion of such grant
to any local government thereof which has suffered or may suffer net
adverse impacts resulting from coastal energy activities and such
allocation shall be on a basis which is proportional to the extent of such
net adverse impact. In addition, any coastal State may, for the purpose
of carrying out the provisions of subsection (b) of this section, with
the approval of the Secretary, allocate all or a portion of any grant
received to (1) any areawide agency designated under section 204 of the
Demonstration Cities and Metropolitan Development Act of 1966, (2) any
regional agency, or (3) any interstate agency. No provision in subsection
(b) of this section shall relieve a State of the responsibility for
insuring that any funds so allocated to any local government or any other
agency shall be applied in furtherance of the purposes of such subsection.
'(g) No coastal State is eligible to receive any payment under
subsection (a) of this section, or any grant under subsection (b) of this
section unless such State ---
"(1) is receiving a program development grant under section 305
of this title or is engaged in such program development in a manner
consistent with the goals and objectives of this title, as determined
by the Secretary, and is making satisfactory progress, as determined
by the Secretary, toward the development of a coastal zone management
program, or has such a program approved pursuant to section 306 of
this title; and
FORD
"(2) has demonstrated to the satisfaction of, and has provided
adequate assurances to, the Secretary that the proceeds of any
such payment or grant will be used in a manner consistent with the
coastal zone management program being developed by it, or with
its approved program, consistent with the goals and objectives
of this title.
Delete page 33, line 10 thru 15 and substitute in lieu thereof:
"(1) the sum of $24,000,000 for the fiscal year ending June 30, 1976,
$6,000,000 for the transitional fiscal quarter ending September 30, 1976,
and $24,000,000 for each of the three succeeding fiscal years, for
grants under section 305 of this title to remain available until
expended;"
On page 36, line 12, delete the word "net"; add the words "Outer
Continental Shelf" after the word "an"; add a period after the word
"activity"; and delete the word "regardless".
On page 36, delete all of lines 13 and 14.
On page 37, line 20, delete "(c)" and substitute in lieu thereof "(a)".
On page 38, line 2, delete "(c)" and substitute in lieu thereof "(a)".
On page 38, line 7, delete "(c)" and substitute in lieu thereof "(a)".
15)
Amendment to H.R. 3981,
As shown in Committee Print #2
Offered by Mr. Dingell
Page 36, strike out line 1 and all that follows through
line 10 on page 38, and insert in lieu thereof the following:
"State and Local Government Bond Guarantees
"Sec. 319. (a) The Secretary is authorized, in accordance with
such rules as he shall prescribe, to make commitments to guarantee and
to guarantee the payment of interest on and the principal balance of
bonds or other evidences of indebtedness issued by a coastal State
or unit of general purpose local government for the purpose specified
in subsection (b) of this section.
"(b) A bond or other evidence of indebtedness may be guaranteed
under this section only if it is issued by a coastal State or unit of
general purpose local government for the purpose of obtaining revenues
which are to be used to provide public services and public facilities
which are made necessary by outer Continental Shelf energy activities.
"(c) Bonds or other evidences of indebtedness guaranteed under
this section shall be guaranteed on such terms and conditions as the
Secretary shall prescribe, except that --
"(1) no guarantee shall be made unless the Secretary deter-
mines that the issuer of the evidence of indebtedness would not
be able to borrow sufficient revenues on reasonable terms and
conditions without the guarantee;
"(2) the guarantees shall provide for complete amortization
- 2 -
of the indebtedness within a period not to exceed 30 years;
"(3) the aggregate principal amount of the obligations
which may be guaranteed under this section on behalf of a
coastal State or a unit of general purpose local government and
outstanding at any one time may not exceed $20,000,000;
"(4) the aggregate principal amount of all the obligations
which may be guaranteed under this section and outstanding
at any one time may not exceed $200,000,000;
"(5) no guarantee shall be made unless the Secretary
determines that the bonds or other evidences of indebtedness
will -
"(A) be issued only to investors approved by, or
meeting requirements prescribed by, the Secretary, or,
if an offering to the public is contemplated, be under-
written upon terms and conditions approved by the Secretary;
"(B) bear interest at a rate satisfactory to the
Secretary;
"(C) contain or be subject to repayment, maturity,
and other provisions satisfactory to the Secretary; and
"(D) contain or be subject to provisions with respect
to the protection of the security interest of the United
States;
"(6) the approval of the Secretary of the Treasury shall
be required with respect to any guarantee made under this section,
except that the Secretary of the Treasury may waive this require-
ment with respect to the issuing of any such obligation when he
- 3 -
determines that such issuing does not have a significant impact
on the market for Federal Government and Federal Government-
guaranteed securities;
"(7) the Secretary determines that there is reasonable
assurance that the issuer of the evidence of indebtedness will be
able to make the payments of the principal of and interest on
such evidence of indebtedness; and
"(8) no guarantee shall be made after September 30, 1981.
"(d) (1) Prior to the time when the first bond or other
evidence of indebtedness is guaranteed under this section, the Secretary
shall publish in the Federal Register a list of the proposed terms and
conditions under which bonds and other evidences of indebtedness will
be guaranteed under this section. For at least 30 days following such
publication, the Secretary shall. receive, and give consideration to,
comments from the public concerning such terms and conditions. Follow-
ing this period, the Secretary shall publish in the Federal Register
a final list of the conditions under which bonds and other evidences of
indebtedness will be guaranteed under this section. The initial guarantee
made under this section may not be conducted until 30 days after the
final list of terms and conditions is published.
"(2) Prior to making any amendment to such final list of terms
and conditions, the Secretary shall publish such amendment in the
Federal Register and receive, and give consideration to, comments from
the public for at least 30 days following such publication. Following
this period, the Secretary shall publish in the Federal Register the
final form of the amendment, and such amendment shall not become effective
- 4 -
until 30 days after this publication.
"(e) The full faith and credit of the United States is pledged
to the payment of all guarantees made under this section with respect
to principal, interest, and any redemption premiums. Any such guarantee
made by the Secretary shall be conclusive evidence of the eligibility
of the obligation involved for such guarantee, and the validity of any
guarantee so made shall be incontestable in the hands of a holder of
the guaranteed obligation.
"(f) The Secretary shall prescribe and collect a fee in con-
nection with guarantees made under this section. This fee may not exceed
the amount which the Secretary estimates to be necessary to cover the
administrative costs of carrying out this section. Fees collected under
this subsection shall be deposited in the revolving fund established
under subsection (i).
"(g) With respect to any obligation guaranteed under this section,
the interest payment paid on such obligation and received by the purchaser
thereof (or his successor in interest) shall be included in gross income
for the purpose of chapter 1 of the Internal Revenue Code of 1954.
"(h) (1) Payments required to be made as a result of any guarantee
made under this section shall be made by the Secretary from funds which
may be appropriated to the revolving fund established by subsection. (i)
or from funds obtained from the Secretary of the Treasury and deposited
in such revolving fund pursuant to subsection (i) (2).
(2) If there is a default by a coastal State or unit of general
purpose local government in any payment of principal or interest due under
a bond or other evidence of indebtedness guaranteed by the Secretary under
- 5 -
this section, any holder of such bond or other evidence of indebtedness
may demand payment by the Secretary of the unpaid interest on and the
unpaid principal of such obligation as they become due. The Secretary,
after investigating the facts presented by the holder, shall pay to the
holder the amount which is due him, unless the Secretary finds that there
was no default by the coastal State or unit of general purpose local
government or that such default has been remedied. If the Secretary
makes a payment under this paragraph, the United States shall have a
right of reimbursement against the coastal State or unit of general purpose
local government for which the payment was made for the amount of such
payment plus interest at the prevailing current rate as determined by
the Secretary. If any revenue becomes due to such coastal State or
unit of general purpose local government under section 308(a) of this title,
the Secretary shall, in lieu of paying such coastal State or unit of
general purpose local government. such revenue, deposit such revenue in the
revolving fund established under subsection (i) until the right of reimburse-
ment has been satisfied.
"(3) The Attorney General shall, upon request of the Secretary,
take such action as may be appropriate to enforce any right accruing to
the United States as a result of the issuance of any guarantee under this
section. Any sum recovered pursuant to this paragraph shall be paid into the
revolving fund established by subsection (i).
"(i) (1). The Secretary shall establish a revolving fund to
provide for the timely payment of any liability incurred as a result
of guarantees made under this section, for the payment of costs of admin-
istering this section, and for the payment of obligations issued to the
- 6 -
Secretary of the Treasury under paragraph (2) of this subsection.
This revolving fund shall be comprised of - -
"(A) receipts from fees collected under this section;
"(B) recoveries under security, subrogation, and other
rights;
"(c) reimbursements, interest income, and any other
receipts obtained in connection with guarantees made under
this section;
"(D) proceeds of the obligations issued to the Secretary
of the Treasury pursuant to paragraph (2) of this subsection;
and
"(E) such sums as may be appropriated to carry out the
provisions of this section.
Funds in the revolving fund not currently needed for the purpose of
this section shall be kept on deposit or invested in obligations of the Unit
States or guaranteed thereby or in obligations, participation, or other
instruments which are lawful investments for fiduciary, trust, or public
funds.
"(2) The Secretary may, for the purpose of carrying out the
functions of this section, issue obligations to the Secretary of the
Treasury only to such extent or in such amounts as may be provided in
appropriation Acts. The obligations issued under this paragraph shall
have such maturities and bear such rate or rates of interest as shall
be determined by the Secretary of the Treasury. The Secretary of the
Treasury shall purchase any obligation so issued, and for that purpose
he is authorized to use as a public debt transaction the proceeds from
the sale of any security issued under the Second Liberty Bond Act, and
- 7 -
the purposes for which securities may be issued under that Act are
extended to include purchases of the obligations hereunder. Proceeds obtair
by the Secretary from the issuance of obligations under this paragraph
shall be deposited in the revolving fund established in paragraph (1).
"(3) There are authorized to be appropriated to the revolving
fund such sums as may be necessary to carry out the provisions of this
section.
"(j) No bond or other evidence of indebtedness shall be guaranteed
under this section unless the issuer of the evidence of indebtedness
and the person holding the note with respect to such evidence of
indebtedness permit the General Account Office to audit, under
rules prescribed by the Comptroller General of the United States,
all financial transactions of such issuer and holder which relate to
such evidence of indebtedness. The representatives of the General
Accounting Office shall have access to all books, accounts, reports,
files, and other records of such issuer and such holder insofar as any
such record pertains to financial transactions relating to the evidence
of indebtedness guaranteed under this section.
"(k) For purposes of this section, the term 'unit of general
purpose local government' shall mean any city, county, town, township,
parish, village, or other general purpose political subdivision of a
coastal State, if such general purpose political subdivision possesses
taxing powers and has responsibility for providing public facilities or publ
services to the community, as determined by the Secretary."
RED TAG
March 5, 1976
MEMORANDUM FOR:
JIM MITCHELL
THRU,
MAX L. FRIEDERSDORF
VERN LOEN
FROM:
CHARLES LEPPERT, JR.
SUBJECT:
HR 3981, Coastal Zone Management Act Amendments
HR 6218, Outer Continental Shelf Lands Act Amendments
HR 49 # Naval Petroleum Reserves Production Act
Attached per your request are copies of the above mentioned legislation.
HR 3981, the Coastal Zone Management Act Amendments of 1975, as reported
by the House Merchant Marine and Fisheries Committee is scheduled for
consideration by the House of Representatives on Wednesday, March 10, 1976.
As you are aware the impact aid provisions of this bill are important.
HR 6218, (Committee Print No. 2) the Outer Continental Shelf Lands Act
Amendments of 1976, is before the Ad Hee Select Committee on Outer Conti-
nental Shelf for mark-up. The mark-up has begun and they have completed
marking-up the first fifteen pages of HR 6218, Committee Print No. 2 as the
original text.
Rep. Fish (R-NY) has introduced a substitute to HR 6218. This substitute is
also attached along with section by section analyses of both bills and com-
parisons of both bills.
If possible, maybe Secretary Richardson can meet with Rep. Fish and get
him to withdraw his present substitute and introduce another substitute
containing the Administration impact aid provisions, It's worth a try and
then try to get a conference on this bill if it has the Administration impact
aid previsions and the Coastal Zone Management bills from the House and
Senate. If Secretary Richardson does meet with Rep. Fish then Rep. Forsythe
(NJ) should also be invited to that meeting.
Also attached is the unofficial print of the Naval Petroleum Reserves bill
as reported by the Conference Committee on Thursday, March 4. It is
anticipated that this conference report will come before the House of
Representatives late the week of March 8 or the following week.
GERELO FORD
UPDATE AS OF MARCH 10, 1976
H.R. 3981
COASTAL ZONE MANAGEMENT ACT AMENDMENTS
ADMINISTRATION VIEWS
The Administration is currently working with
Committee Members on Floor amendments toward an
energy development impact assistance package in the
coastal zone administered by the Secretary of
Commerce limited to no more than $1 billion at
any one time.
This package of amendments consists primarily of
loans and guarantees to provide front end money
for public facilities required as a result of
Federal energy development. The Administration
could also accept planning grants and limited
grants linked to OCS energy development to compensate
for previously incurred environmental impacts.
The Administration also wishes to eliminate from
H.R. 3981, among other things, provisions which
would tend to inhibit energy resource development
such as the provision requiring Federal lease
applicants to certify consistency with State
coastal zone management programs.
The Administration will not object to House passage
of H.R. 3981 provided the Administration's principal
objectives will be amenable to the Conference. The
Administration's position is contingent upon
adoption of appropriate House Floor amendments
which will make this possible.
FORD is LIBRARY QERALD
FOR IMMEDIATE RELEASE
JULY 20, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I am pleased to sign into law today S. 586, the
Coastal Zone Management Act Amendments of 1976. This
legislation fills a critical need in the development of
our domestic energy resources and the improved manage--
ment of the Nation's valuable coastal zones.
The bill recognizes a national responsibility to
assist coastal states and communities that will be affected
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 recommended
to Congress in February of this year.
Specifically the bill creates a Coastal Energy Impact
Program with an authorization level of $1.2 billion over
the next ten 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 proj
ects 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 pro-
vided 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 Secre-
tary of Commerce finds that the loans and loan guarantees
are not available. Grants may also be used for planning and
for the prevention, reduction, or amelioration of unavoidable
environmental losses if the Secretary determines that the
loss is not attributable 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 determine whether their principal
more
FORD
GERALS
LIBRARY
2
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
Federal 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 authorized purposes, and that Federal loan
grants will not subsidize public services for an unreasonable
length of time. The Secretary must also determine prior to
the disbursement of funds that particular environmental losses
cannot be attributed to identifiable persons, and that grants
for public facilities are used only to the extent that loans
or loan guarantee assistance is not available.
The Secretary of Commerce will act expeditiously to
implement the energy development impact provisions so that
we can accelerate OCS energy development to meet our Nation's
energy needs in an environmentally responsible manner and to
work closely with the thirty coastal States which are now
participating in the Coastal Zone Management Program.
It is appropriate that this new program, established
by this major innovative piece of legislation, is being
signed in the first year of our Nation's Third Century.
The issues of energy and our environment --- to which this
bill is directed - will surely be high on our Nation's
list of priority concerns throughout the decades ahead.
#####
DERALD FORD LIBRARY
FOR IMMEDIATE RELEASE
JULY 26, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
I am pleased to sign into law today S. 586, the
Coastal Zone Management Act Amendments of 1976. This
legislation fills a critical need in the development of
our domestic energy resources and the improved manage-
ment of the Nation's valuable coastal zones.
The bill recognizes a national responsibility to
assist coastal states and communities that will be affected
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 recommended
to Congress in February of this year.
Specifically the bill creates a Coastal Energy Impact
Program with an authorization level of $1.2 billion over
the next ten 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 proj
ects 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 pro-
vided 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 Secre
tary of Commerce finds that the loans and loan guarantees
are not available. Grants may also be used for planning and
for the prevention, reduction, or amelioration of unavoidable
environmental losses if the Secretary determines that the
loss is not attributable 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 determine whether their principal
more
2
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
Federal 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 authorized purposes, and that Federal loan
grants will not subsidize public services for an unreasonable
length of time. The Secretary must also determine prior to
the disbursement of funds that particular environmental losses
cannot be attributed to identifiable persons, and that grants
for public facilities are used only to the extent that loans
or loan guarantee assistance is not available.
The Secretary of Commerce will act expeditiously to
implement the energy development impact provisions so that
we can accelerate OCS energy development to meet our Nation's
energy needs in an environmentally responsible manner and to
work closely with the thirty coastal States which are now
participating in the Coastal Zone Management Program.
It is appropriate that this new program, established
by this major innovative piece of legislation, is being
signed in the first year of our Nation's Third Century.
The issues of energy and our environment - to which this
bill is directed will surely be high on our Nation's
list of priority concerns throughout the decades ahead.
#####
EMBARGOED FOR RELEASE
JULY 26, 1976
UNTIL 11:00 A.M. (EDT)
Office of the White House Press Secretary
THE WHITE HOUSE
FACT SHEET
COASTAL ZONE MANAGEMENT ACT
AMENDMENTS OF 1976 (s. 586)
The President today signed the Coastal Zone Management Act
Amendments of 1976 which authorize $1.6 billion for an
energy development impact assistance program for coastal
areas and for extending the scope of the existing Coastal
Zone Management Program.
BACKGROUND
In February 1976, the President proposed a program to assist
communities in both coastal and inland areas significantly
impacted by the development of Federally-owned energy
resources.
The Congress has passed amendments to the Coastal Zone Manage-
ment Act which include the principal elements of the President's
proposal for coastal zone areas impacted by certain major
energy development activities, including Outer Continental
Shelf (OCS) oil and gas development, deepwater ports and LNG
(liquified natural gas) facilities.
THE COASTAL ZONE MANAGEMENT ACT AMENDMENTS OF 1976 (S. 586)
The bill has three key features:
---
The current Coastal Zone Management Program is extended,
its requirements and authorities are expanded.
The requirement of the Coastal Zone Management Act of
1972 LESS that no Federal permits or licenses affecting
land or water use in the coastal zone can be granted
without State concurrence that the activity is con-
sistent with the State's Coastal Zone Management
Program - is expanded to cover exploration, development
and production plans for OCS energy activities. This
means that the consistency review will be directed to
major events in the OCS program rather than individual
leases and permits.
--
Two new kinds of impact assistance are added:
- $800 million is authorized for a ten-year revolving
Coastal Energy Impact Fund for loans and loan
guarantees to be allocated by formula with grants
for repayment if there is an inability to repay.
Up to $50 million in the Fund could also be used
at the Secretary's discretion for:
more
DERALD FORD LIBRARY
2
planning grants for the socio-economic or
environmental consequences of any new or
expanded energy facility in the Coastal Zone:
and
grants for unavoidable environmental losses
if a particular State's formula grants are
insufficient.
- $400 million ($50 million annually for eight
years) is authorized for OCS formula grants.
The eligible uses of these formula grants are
limited to:
retirement of guaranteed bonds, but only if
there is a showing of inability to repay
planning and provision of public facilities
and services, but only if loans and loan
guarantees are unavailable and
prevention or amelioration of unavoidable
environmental losses, but only those which
cannot be: (a) attributed to or assessed
against identifiable persons or (b) paid
for through other Federal programs.
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 nor..
mally 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 guarantees are not available.
Grants can also be used for planning of unavoidable environmental
losses, but only if the Secretary of Commerce determines that
the loss is not attributable to, or assessable against, any
specific individual and cannot be paid for through other Federal
programs.
# # #
GERALD FORD LIBRARY
EMBARGOED FOR RELEASE
JULY 26, 1976
UNTIL 11:00 A.M. (EDT)
Office of the White House Press Secretary
THE WHITE HOUSE
FACT SHEET
COASTAL ZONE MANAGEMENT ACT
AMENDMENTS OF 1976 (s. 586)
The President today signed the Coastal Zone Management Act
Amendments of 1976 which authorize $1.6 billion for an
energy development impact assistance program for coastal
areas and for extending the scope of the existing Coastal
Zone Management Program.
BACKGROUND
In February 1976, the President proposed a program to assist
communities in both coastal and inland areas significantly
impacted by the development of Federally-owned energy
resources.
The Congress has passed amendments to the Coastal Zone Manage-
ment Act which include the principal elements of the President's
proposal for coastal zone areas impacted by certain major
energy development activities, including Outer Continental
Shelf (OCS) oil and gas development, deepwater ports and LNG
(liquified natural gas) facilities.
THE COASTAL ZONE MANAGEMENT ACT AMENDMENTS OF 1976 (S. 586)
The bill has three key features:
-
The current Coastal Zone Management Program is extended,
its requirements and authorities are expanded.
The requirement of the Coastal Zone Management Act of
1972 - that no Federal permits or licenses affecting
land or water use in the coastal zone can be granted
without State concurrence that the activity is con-
sistent with the State's Coastal Zone Management
Program - is expanded to cover exploration, development
and production plans for OCS energy activities. This
means that the consistency review will be directed to
major events in the OCS program rather than individual
leases and permits.
Two new kinds of impact assistance are added:
N°W $800 million is authorized for a ten-year revolving
Coastal Energy Impact Fund for loans and loan
guarantees to be allocated by formula with grants
for repayment if there is an inability to repay.
Up to $50 million in the Fund could also be used
at the Secretary's discretion for:
more
2
planning grants for the socio-economic or
environmental consequences of any new or
expanded energy facility in the Coastal Zone:
and
grants for unavoidable environmental losses
if a particular State's formula grants are
insufficient.
- $400 million ($50 million annually for eight
years) is authorized for OCS formula grants.
The eligible uses of these formula grants are
limited to:
retirement of guaranteed bonds, but only if
there is a showing of inability to repay
planning and provision of public facilities
and services, but only if loans and loan
guarantees are unavailable and
prevention or amelioration of unavoidable
environmental losses, but only those which
cannot be: (a) attributed to or assessed
against identifiable persons or (b) paid
for through other Federal programs.
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 nor--
mally 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 guarantees are not available.
Grants can also be used for planning of unavoidable environmental
losses, but only if the Secretary of Commerce determines that
the loss is not attributable to, or assessable against, any
specific individual and cannot be paid for through other Federal
programs.
#
#
#
FOR IMMEDIATE RELEASE
JULY 26, 1976
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
THE WHITE HOUSE
REMARKS OF THE PRESIDENT
UPON SIGNING S. 586
TO IMPROVE COASTAL ZONE MANAGEMENT
IN THE UNITED STATES AND FOR OTHER PURPOSES
THE EAST GARDEN
11:15 A.M. EDT
Secretary Richardson, distinguished Members
of the House and the Senate, Frank Zarb, and guests:
It is a great privilege and pleasure to
have you all here this morning. And I especially
wish to thank the Members of the Congress for working
on this legislation and cooperating with the Administra-
tion in putting together what I think is very excellent
legislation.
I am here this morning with all of you to sign
into law the Coastal Zone Management Act Amendments of
1976. These amendments include many of the principal
elements of the proposal that I sent to the Congress in
February, which were designed to assist communities
significantly affected by the development of Federally
owned energy resources.
These amendments will provide a basis for
long-term planning by the coastal States so that they
can better balance the needs for energy development,
urban growth, of resource conservation, and recreational
use. These amendments also include a good balance
between Federal, State and local interests in the
very sensitive areas of coastal land and water uses
and energy development.
By creating a costal energy impact program
with funds of $1.2 billion over the next ten years,
we recognize a national responsibility to help
coastal States and communities that are affected
as we speed up exploration and production of oil and
gas from the Outer Continental Shelf.
At the same time, these amendments rightly
limit the extent to which the Federal Government will
become involved in decisions that should be made at
State and local levels. I see this bill as a very
encouraging sign for the future. First, because it
represents the kinds of progress that can be made
when the Congress and the Administration work
together--and I repeat what I said at the outset,
I am very grateful for the cooperation of both the
House and the Senate.
MORE
Page 2
And second, because it shows two issues
high on our national agenda -- the need for energy
and the need for environmental protection -- can
indeed be reconciled.
So, it is with pleasure that I have the
opportunity of signing this bill this morning and
thank all of you for coming on this fine day for a
rather historic occasion.
Thank you all very, very much.
END
(AT 11:19 A.M. EDT)