# Presentation: 370378

## The Energy Policy Act of 2005

- Coastal Impact Assistance Program

-        OCS Policy            Committee Meeting
- February 21-22, 2007

**Notes:**
The purpose of today’s presentation:
Review the basics of the statute language

The program and processes MMS has developed

Summary of  status of the program

## Mandate: Disburse to 6 eligible producing States and 67 Coastal Political Subdivisions (CPS’s) $250M for each Fiscal Year (FY) 2007–2010

**Mandate: Disburse to 6 eligible producing States and 67 Coastal Political Subdivisions (CPS’s) $250M for each Fiscal Year (FY) 2007–2010**
**Secretary of the Interior delegated authority and responsibility to the Minerals Management Service**
**Eligible Producing States:**
**AL, AK, CA, LA, MS, and TX**
**Eligible CPS’s:**
**AL (2); AK (8); CA (17); LA (19); MS (3); TX (18)**

**Notes:**
EPAct of 2005 was signed August 8, 2005

STAFF: 1 National Coordinator; 3 Regional staff in GOM; 1 in California; 1 in Alaska; 1 Grant Manager; 
Hiring grant officers???

MMS – has moved 2007 $250 million into treasury account

Allocations based on Qualified OCS Revenues Ratio
FY07 & FY08 – based on FY06 QOCSR (available April 15, 2007)
FY09 & FY10 – based on FY08 QOCSR (available April 15, 2009)
Minimum of 1% ($2.5M) to each State; 65% of allocation to State; 35% to CPS’s

Producing State - with a coastal seaward boundary within 200 nautical miles of the geographic center of a leased tract within any area of the Continental shelf.
Coastal Political Subdivision (CPS) - of a coastal state, any part of which is within the coastal zone and not more than 200 nautical miles etc.
Qualified OCS Revenues (QOCSR) - includes bonus bids, rents, royalties, net profit share payments, and any late-payment interest from natural gas and oil leases

CPS distribution based on: lease revenue; distance from each lease; population, and miles of coastline

## Authorized Uses of Funds

**Authorized Uses of Funds**
**1. Projects and activities for the conservation, protection, or restoration of coastal areas, including wetland.**
**2. Mitigation of damage to fish, wildlife, or natural resources.**
**3. Planning assistance and the administrative cost of complying with CIAP. ****(23% yearly limit)**
**4. Implementation of a federally-approved marine, coastal, or comprehensive conservation management plan.**
**5. Mitigation of the impact of OCS activities through funding of onshore infrastructure and public service needs. ****(23% yearly limit)**

**Notes:**
Directly benefit an authorized use of coastal conservation, restora6tion or mitigation.

Cannot use to:
support litigation
fund publicity or lobbying efforts to influence Congressional or Executive Branch

Not more than 23% of a State or CPS’s allocation for any 1 FY shall be used for: 
Category 3 & 5

Projects may be outside of but benefit coastal zone

## CIAP is a 2- Phased Process

**CIAP is a 2- Phased Process**
**Phase 1: Submit Coastal Impact Assistance State **_**Plan**_
**	****	****	**
**State submits draft Plan**
**	****MMS reviews for clarity, content, quality**
**State submits final Plan**
**	****MMS has 20 days to review for completeness**
**	****If complete - MMS has 90 to approve or disapprove**
**	****If approved – State and CPS’ are eligible to**** ****submit grant ****	****applications**
**	****If disapproved – State must resubmit Plan**

**Notes:**
A state and its CPSs work together with the public and appropriate federal agencies to develop a state plan.

Concurrently MMS is working with the state – attending public meetings to guide the development of a plan ; advise on where projects will not meet an authorized use, and assure the involvement of appropriate agencies for early awareness and concurrence.

## Plan Components:

**Plan Components:**
**Designated State Agency & Contact**
**Designated CPS Contact**
**Governor’s Certification of Public Participation**
**Coordination with Other Federal Resources and Programs**
**Implementation Program**
**List of Proposed Projects and Descriptions**

**Notes:**
Again MMS worked with States prior to the CR to guide the states and CPSs in providing to MMS for review Plans that are well written, with comprehensible implementation plans:

Good involvement of the public and relevant federal agencies;

And each grant is clearly supporting one of the 5 authorized uses.

## Phase 2: Submit Grant Application

_**Phase 2: Submit Grant Application**_
- State submits plan to MMS
** **
- MMS conducts concurrent reviews by
- 	Project Officer-program and technical review
- 	Grant Officer – business and financial reviews
- 	Solicitor – process being developed
- Approval:
- 	Award grant – project begins/draw down of funds

**Notes:**
Grant Process – Developing
Submit Grant Applications - Spring 2007
4 yr grant; 1 yr no cost extension
States & CPS’s may issue sub-grants (must name);
May incur costs after Aug 8, 2005 if meets Act & guidelines
CIAP funds in Treasury Acct; no interests to States
Cannot Cost Share or Match of Funds use unless other agency allows

Grant Officer Review:
statutes; business side: budget; personnel; capabilities

Project Officer Review:
statutes; technical & budget; NEPA
Compliance with Federal, State, and Local Authorities
Environmental Review: submit Form & analysis w/grant (Programmatic EA); MMS will verify each project’s compliance with NEPA; MMS will not disburse funds until NEPA satisfied
Consistency for Federal Assistance - CZMA (Subpart F): Each State’s coastal agency shall review the application for Federal assistance (grant) to determine if consistent with its CZMP

## How will MMS track CIAP Funds?

**How will MMS track CIAP Funds?**
**Monitoring:**
**  ***** **Conduct “risk” estimate evaluation
-   Review *annual performance & financial reports
-   Telephone calls
-   Monthly withdrawal reviews – of the Automatic   	Standard Application for Payments (ASAP) (by 3 	offices)
-   Site visits
-   Audits

**Notes:**

Conduct a Business and Administration Capabilities check to evaluate which recipients may be less experienced in managing and reporting on ASAP – 

Project officers, Grant officers and staff in finance will have the capabilities and will be required to review draw downs and payments – confirm appropriate disbursement of Funds 

## Timeline

**Timeline**
**February 16**** – ****post grant officer vacancy announcements**
**Mid-April – finalize Environmental Assessment on Program**
**April 15, 2007 – complete allotment calculations**
**mid-May  – hire grant officers**
**mid-October , 2007 – accept grant applications**