**Minerals Management Service**

**Interim Policy Document**

**Effective Date:** November 17, 2007 **IPD No. 08-02**

**Program:** Offshore Minerals Management

**Title:** Coastal Impact Assistance Program (CIAP)

**Originating Office:** Environmental Division, Offshore Minerals
Management

**1. Purpose.** This Interim Policy Document (IPD) establishes policy
and responsibilities for the Minerals Management Service's (MMS) Coastal
Impact Assistance Program (CIAP). It sets overall national policy and
establishes headquarters' and regional responsibility for program
implementation and management.

**2. Objectives.** CIAP will implement a noncompetitive grants program
to disburse congressionally approved funds to eligible producing States
and Coastal Political Subdivisions (CPS's) for one or more of the
authorized uses.

The MMS is authorized to disburse \$250 million annually for fiscal
years 2007 through 2010 to 6 coastal States (Alabama, Alaska,
California, Louisiana, Mississippi, and Texas) and 67 eligible CPS's
(counties, parishes, boroughs) within those States. To receive CIAP
funds, States are required to submit a CIAP Plan that MMS must approve
prior to disbursing any funds. States must submit Plans no later than
July 1, 2008. After a Plan has been approved by MMS, eligible recipients
within the State may submit grant applications for projects identified
in the Plan.

**3.** **Authority.** Section 384 of the Energy Policy Act of 2005
(Public Law 109-58) created the CIAP by amending Section 31 of the Outer
Continental Shelf Lands Act (43 U.S.C. § 1356a; Appendix A). Under the
provisions of the Energy Policy Act, the authority and responsibility
for the management of CIAP is vested in the Secretary of the Department
of the Interior (Secretary). The Secretary has delegated this authority
and responsibility to MMS.

**4. References.**

A. Department and Office of Management and Budget Grant Requirements

-   43 CFR Part 12 Administrative and Audit Requirements and Cost
    Principles for Assistance Programs

-   2 CFR Part 225 Cost Principles for State, Local, and Indian Tribal
    Governments

-   OMB Circular A-133, *Audits of States, Local Governments, and
    Non-Profit Organizations*

B. Department Hearings and Appeals Procedures (43 CFR Part 4)

**5. Definitions.**

A. Coastal Impact Assistance Program (CIAP) is the program authorized by
Section 384 of the Energy Policy Act of 2005 (Public Law 109-58) that
shall disburse \$250 million for each fiscal year 2007 through 2010 to
eligible producing States and their eligible CPS's.

B. CIAP Allocations to producing States are based on the proportion of
qualified Outer Continental Shelf (OCS) revenues generated offshore the
individual State to the total qualified OCS revenues from all States.
The Act requires a minimum of 1 percent to each State and 35 percent of
each State's share shall be allocated directly to its CPS's.

C. Producing State (State) is a coastal State eligible to receive CIAP
allocations. States eligible to receive allocations are Alabama, Alaska,
California, Louisiana, Mississippi, and Texas.

D. Coastal Political Subdivision (CPS) is a county, borough, parish,
immediately below the level of State government, within the State's
coastal zone, that is eligible to receive CIAP allocations.

E. Authorized Uses are the five purposes under the Act on which CIAP
allotments may be expended:

-   Projects and activities for the conservation, protection, or
    restoration of coastal areas, including wetland;

-   Mitigation of damage to fish, wildlife, or natural resources;

-   Planning assistance and the administrative costs of complying with
    Section 384;

-   Implementation of a federally-approved marine, coastal, or
    comprehensive conservation management plan; and

-   Mitigation of the impact of OCS activities through funding or
    onshore infrastructure projects and public service needs.

F. Coastal Impact Assistance State Plan (Plan) is the document required
of a producing State to describe how the State and its CPS's intend to
expend their CIAP allocations. The State is to develop its Plan in
concert with its CPS's and submit the Plan to MMS.

G. Grant means an award of financial assistance by the Federal
Government to an eligible grantee.

H. Grant Application is the instrument used by the States and CPS's to
apply for approval of specific expenditure of funds and to receive
access to the allotted funds.

**6. Policy.** It is the policy of MMS, as administrator of the CIAP,
that:

A. CIAP funds are disbursed to States and CPS's in accordance with the
procedures and requirements of Section 384 of the Energy Policy Act and
MMS guidelines.

B. Plans and plan amendments are reviewed to ensure they meet the
requirements of the Energy Policy Act, including being consistent with
authorized uses under that Act.

C. CIAP projects are eligible for final funding approval by MMS after
they are submitted as grant applications and have gone through the grant
approval process.

D. Grant applications and grant amendments are reviewed to ensure they
comply with applicable Federal assistance statutes, regulations and
policies.

E. Performance and Financial Status Reports for approved CIAP projects
shall be required at least annually, and not more frequently than
quarterly, in accordance with 43 CFR § 12.80-12.81.

**7. Responsibilities.**

A. [Director of Minerals Management Service]{.underline} is responsible
for approving or disapproving State Plans.

B. [Associate Director, Administration and Budget (A&B)]{.underline} is
responsible for coordinating with the Associate Director, Offshore
Minerals Management, to ensure that appropriate resources are made
available and actions are taken within the office to meet the objectives
of the CIAP.

C. [Chief, Procurement Division, A&B]{.underline} is responsible for the
proper award and administration of the CIAP grants process, ensuring
that the appropriate resources are available to award and administer the
grants in a timely manner, and for appointing a Lead Contracting
Officer.

D. [Lead Contracting Officer, A&B]{.underline} is assigned as the
Procurement Division CIAP Team Lead and is responsible for overseeing
the proper award and administration of the CIAP grants by a team of
Contracting Officers, and for performing Grant Officer duties in the
FBMS (Federal Business Management System) eGrants system. The Lead
Contracting Officer is supervised by the Chief, Procurement Operations
Branch.

E. [Chief, Finance Division, A&B]{.underline} is responsible for
ensuring the transfer of CIAP funds from the U.S. Treasury to the MMS
CIAP account.

F. [Associate Director, Offshore Minerals Management (OMM)]{.underline}
is responsible for coordinating with the Associate Director,
Administration and Budget, to ensure that appropriate resources are made
available and actions are taken within the office to meet the objectives
of the CIAP.

G. [Budget Analyst, OMM]{.underline} is responsible for the annual
gathering of funding needs, requesting the appropriate allocation from
the Budget Division, and entering financial plans into FBMS (Federal
Business Management System) . 

H. [Chief, Environmental Division, OMM]{.underline} is responsible for
providing management guidance and direction to the CIAP team to ensure
that the program requirements of the CIAP are met; advocating the
interests of the CIAP before bureau management; coordinating with
headquarters and regional management to ensure MMS policies are carried
out; and appointing and supervising the CIAP National Coordinator.

I. [CIAP National Coordinator, OMM]{.underline} is responsible for
leading the development and implementation of the CIAP; coordinating
with the Chief, Environmental Division, and the CIAP team to ensure
proper administration of the CIAP; keeping Headquarters management and
the Regions informed of policies, procedures, and issues that may affect
the CIAP; alerting management and seeking timely resolution of problems
and issues that may arise at headquarters or in the Regions; and
appointing and supervising the CIAP Budget Analyst.

J. [CIAP Budget Analyst, OMM]{.underline} is responsible for performing
a full complement of budgetary functions and duties associated with all
phases of the budget process (e.g., formulation, justification,
presentation, and execution).

K. [Chief, Economics Division, OMM]{.underline} is responsible for the
calculation of the amount to be allocated to each producing State and
eligible CPS based upon allocation formulas prescribed by the Energy
Policy Act.

L. [Regional Director/Manager, OMM]{.underline} is responsible for
ensuring that the implementation of the CIAP in their respective Region
is consistent with the objectives of the Program and MMS policies and
for appointing the Regional Supervisor/Program Office Chief responsible
for administering the CIAP.

M. [Regional Supervisor/Program Office Chief, OMM]{.underline} is
responsible for ensuring that proper administration of the CIAP in their
respective Region; ensuring that proper priority and emphasis are placed
on the various elements of the program to meet the objectives of the
program; and appointing the Regional CIAP Representative, after
obtaining concurrence from his/her immediate supervisor.

N. [Regional CIAP Representatives, OMM]{.underline} are responsible for
working with the CIAP National Coordinator to develop and implement the
appropriate technical guidelines and policies necessary to implement the
CIAP; ensuring that the implementation of the CIAP in their respective
Region is consistent with the objectives of the program and MMS
policies, guidelines and standard operating procedures; and ensuring
that Project Officer efforts are consistent with the implementation of
the CIAP.

O. [Project Officer, OMM]{.underline} is responsible for coordinating
with the Regional CIAP Representative in the development and
implementation of the CIAP and ensuring that the implementation of the
CIAP in their respective Region is consistent with the technical
objectives of the program and MMS policies, guidelines, and standard
operating procedures.

**8. Procedures.** The operational controls, guidelines, and standard
operating procedures will be contained in a Guidebook, available from
the Office of Offshore Minerals Management, Coastal Impact Assistance
Program. The Guidebook is currently under development.

**9. Cancellation.** This IPD will remain in effect until incorporated
into the MMS Manual, cancelled, or superseded by another IPD.

Director