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TO: BOARD OF SUPERVISORS County
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FROM: DENNIS M. BARRY, AICP
COMMUNITY DEVELOPMENT DIRECTOR
DATE: April 3, 2001
SUBJECT: Coastal Impact Assistance Program
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
AUTHORIZE the Community Development Director to submit to the California Resources
Agency a draft expenditure plan for new revenues due the County from the Coastal Impact
Assistance Program approved by Congress in 2000. REFER the matter of finalizing the
expenditure plan to the Transportation Water and Infrastructure Committee and request a
report back to the Board on or before May 1, 2001.
FISCAL IMPACT
The Coastal Impact Assistance Program provides new revenues to the County. The County's
administrative costs of expending these new funds will be deducted from the C1AP revenues.
BACKGROUND/REASONS FOR RECOMMENDATIONS
As a part of FY2001 Budget Act, Congress authorized a new program called the Coastal Impact
Assistance Program (CTAP). This program directs a portion of offshore oil lease revenues to coastal
states to assist in mitigating the impacts of offshore oil production. 35% of the funding for each
state is passed on to coastal counties, including Contra Costa County. Congress allocated $150
million nationwide for FY2001. California's share is roughly estimated to be $18 million, so coastal
counties should collectively receive about$6.3 million. No estimates have been provided to date on
how much each County will get. Such estimates are expected in early April (the best estimate we
could obtain from state and federal staff was tens of thousands to hundreds of thousands). The
attached memo and other materials from California Secretary for Resources Mary Nichols provide
additional background on the CIAP and how funds may be spent. /�,
CONTINUED ON ATTACHMENT: X YES SIGNATURE v -
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_/RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMI EE
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SIGNATURE (S):
ACTION OF Br ON Apr i 1 3 . 2001 APPROVED AS RECOMMENDED xx OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
xx UNANIMOUS (ABSENT - - - ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE
ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE
SHOWN.
Contact: John Kopchik (925) 335-1227 ATTESTED April 3 . 2001
cc: Co elo ) JOHN SWEETEN, CLERK OF
ounty Administrator BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Public Works
WAPersonal\John maKdapboapH101.doc BY �"" '" , DEPUTY
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Report on Coastal Impact Assistance Program
April 3, 2001
Page 2of2
The attached materials describe the formula for allocating funds among coastal counties,
stating that it will be based on three variables: 1) length of shoreline, 2) population, and 3)
distance to off-shore oil leases. We understand that the legislation enacted a slightly
different formula for California—a formula advocated by Congressman Miller which also
considers distance to oil refineries. We have pursued this matter with Congressional staff
and staff at appropriate state and federal agencies, and all parties now recognize that oil
refineries are to be part of the formula.
If the County is to receive its share of the CIAP money, we will need to act very quickly.
The state conducted outreach to Counties in February, but needs to receive draft spending
plans from Counties by April 6, before we receive an estimate on how much money to
expect. Final plans are due May 4. Given these constraints, we propose the following
process:
1) Consistent with requirements and goals of the CIAP as described in the attached
materials, we request Board authorization to submit a draft expenditure plan to the
Resources Agency in the form they provide and consistent with the following:
a) CIAP funds due to the County should be spent to enhance and protect natural
resources along the shoreline and coastal watersheds of Contra Costa County.
These funds should also promote public access to these resources.
b) As additional planning and study would help to identify and prioritize specific
projects in the shoreline area, and because the small amount of funds we may
receive may not be adequate to fund tangible acquisition, restoration, or public
access development, the initial increment of funds should be used to fund a
study of resource protection, resource enhancement, and public access
opportunities in the shoreline area.
c) Should the County receive more funds than are required for the study, such
funds should be used for specifc acquisition, restoration, and public access
projects identified by the study.
2) Refer this matter to the Transportation, Water, and Infrastructure Committee for
more detailed discussion and to help guide development of the final plan. Request
a report back to the Board by May 1.
Attachments:
• January 31 memo from Secretary Nichols
• CIAP timeline
• CIAP Mission and Goals
• CIAP Overview
W:\Personal\John main\ciapboapr!101.doc
To: Attached List of Local Governments
(Attachment 1)
From: Mary Nichols, Secretary for Resources
Re: Notice of Meeting - February 13, 2001
Coastal Impact Assistance Program
Date: January 31, 2001
Congress recently authorized the new Coastal Impact Assistance Program (CTAP)
pursuant to §903 of the Commerce, State, Justice FY2001 budget act to assist coastal
states in mitigating the impacts from Outer Continental Shelf (OCS) oil and gas
production. Under this program, Congress has appropriated $.150,000,000 in fiscal year
2001 to seven coastal states which include Alaska, California, Texas, Louisiana,
Mississippi, Alabama, and Florida.
California's share of funds from this program has not yet been fully calculated, but initial
estimates (which are subject to change) place the figure at approximately $18 million.
Pursuant to the legislation, 35% of each state's funding allocation will be dispersed to
"coastal political subdivisions" based on a formula taking into account each
subdivision's population, shoreline mileage, and distance from leased tracts. The
eligible "coastal political subdivisions" in California are included on the attached list of
addressees to this memorandum.
The CIAP requires states to develop plans that describe how the money would be spent
within the uses identified in the legislation. The Resources Agency will be coordinating
the development and submittal of California's plan. The plan must be submitted to the
National Oceanic and Atmospheric Administration (NOAA) by July 1,2001, and NOAA
has 90 days from receipt to complete its review. All funding requests from coastal
political subdivisions must be included in the plan submitted to NOAA to be eligible for
funding. To expedite disbursement of funds, NOAA recommends that the plan be
written and submitted in sufficient detail to serve as a grant application. We have
attached a set of briefing papers (Attachments 2 and 3) prepared by NOAA to provide
you with as much information as possible in preparation for this meeting.
We have an extremely tight time period to complete the required plan. We would like to
discuss the development of this plan, and the participation of each coastal political
subdivision, at a meeting to be held at 2:30 P.M. February 13, 2001 in the Resources
Agency Conference Room (Room 1305). If you cannot attend the meeting in person,
we will provide conference line for you (or your representative) to use to call in. Please
let Chris Potter of my staff know if you can participate in this meeting or have any
questions about the subject matter. He can be reached by e-mail at
chrisp@resources.ca.gov or by phone at (916)654-0536.
Coastal Impact Assistance Program
Resources Agency and Counties
Timeline — 2/22/01
April 6th — Full proposals due at Resources Agency (in form
for report)
April 16th — Resources Agency responds to counties
May 4th — Revised proposals due (if revisions necessary)
May 18th — Resources Agency completes changes and
releases draft report for public review and comment.
June 11th — Resources Agency holds public workshop on
report (Sacramento)
June 29th — Resources Agency mails final report to NOAA
Coastal Impact Assistance Program
Mission and Goals
Each state or local project will need to be consistent with the following mission and goals.
MISSION
To ensure comprehensive and coordinated management, conservation and
enhancement of California's ocean and coastal resources for their intrinsic value and
for the benefit of current and future generations.
GOALS: Four goals have been established by the State of California to achieve this
mission.
Goal 1: Stewardship. To assess, conserve, and manage California's ocean resources
and the ecosystem that supports those resources.
Goal 2: Economic Sustainability. To encourage environmentally sound, sustainable,
and economically beneficial ocean resource development activities.
Goal 3: Research, Education and Technology. To advance research, educational
programs, and technology developments to meet future needs and uses of the ocean.
Goal 4: Jurisdiction and Ownership. To maximize California's interests within State
Tidelands, the Territorial Sea, and the Exclusive Economic Zone.
Coastal Impact Assistance Program
Overview
Summary
Congress authorized the new Coastal Impact Assistance Program(CLAP)under§903 of the Commerce,State,
Justice FY2001 appropriations act to assist states in mitigating the impacts from Outer Continental Shelf(OCS)oil
and gas production. Congress appropriated$150,000,000 in fiscal year 2001 to seven coastal states--Alaska,
California,Texas,Louisiana,Mississippi,Alabama,and Florida--to implement this program. Funds will be
expended according to Coastal Impact Assistance Plans developed by the states.
The National Ocean Service(NOS)within the National Oceanic and Atmospheric Administration(NOAA)has
been charged with implementing this program at the federal level. This entails developing program guidance,
reviewing and approving state plans,and administering the funds.
Requirements
NOAA must develop allocation formulas based on the legislation to disburse the funds to the seven states and up to
150 coastal political subdivisions. Information needed for the formulas include:coastal population for the coastal
political subdivisions,coastline miles of the coastal political subdivisions,OCS revenues,and distance from OCS
lease tracts.
The states must develop Coastal Impact Assistance Plans and submit.them to NOAA by July 1,2001 detailing
how they will spend the funds,based on requirements in the legislation. NOAA has 90 days to approve or
disapprove the plans.
NOAAINOS Goals
• Work with states to ensure that legislative and coastal resource management objectives are met
• Achieve effective state Coastal Impact Assistance Plans
• Minimize administrative burden in allocating and disbursing the funds
Key Issues
• Identifying state partners and resources for program administration
• Developing allocation formulas(Separate one pager attached)
• Assisting states in completing Coastal Impact Assistance Plans (Separate one pager attached)
• Finalizing payment mechanism--focus on most efficient option
• Defining responsibilities under NEPA, ESA,and EFH
• Developing outreach/communications plan/activities
Next Steps
• Work with the Minerals Management Service to gather data and develop allocation formulas
• Identify state leads
• Develop program guidance
• Clarify responsibilities under other statutes(e.g.,NEPA,ESA)
Coastal Impact Assistance Program
State Coastal Impact Assistance Plans
Plait Development
States must develop Coastal Impact Assistance Plans to be eligible for CIAP funding. States must submit the
plans to NOS by July 1,2001. The plans must describe how each state and coastal political subdivision will expend
its funds. Authorized uses of funds include:
wetland protection,conservation,and restoration;
implementation of Federally approved management plans;
mitigating impacts of OCS activities;
administrative costs of the program;
oil spill removal and contingency planning;
uses set forth in new section 32(c)(4)of the OCSLA(43 U.S.C. 1331 et seq.)including:
resource conservation;research; assessment;water quality activities; watershed protection;
erosion control,and others.
NOS will issue additional guidance on the contents of the plans and eligible uses.
Plan Review
NOS will review and approve or disapprove the plans within 90 days of receipt. NOS will review the plans for
completeness as detailed in§903(d)(2)and for consistency with the authorized uses of funds detailed in §903(c). If
NOS does not approve a plan,that state's funds would be allocated to the other states,unless NOS finds the state is
making a good faith effort to develop an approvable plan. After plan approval,NOS must monitor plan
implementation. If NOS finds that any state or local expenditure is not consistent with the uses specified in the law,
NOS shall direct those funds to be repaid or obligated for authorized uses.
Key IssueVDeeisions .
• Scope of guidance on state plans
• Reviewing and approving state plans and disbursing the funds may trigger environmental reviews under the
National Environmental Policy Act and Endangered Species Act
Next Steps
January 2001 Develop draft guidance for plan completion and provide to states
February 2001 Elicit state comments-potential Gulf and West coast one day workshops
March 2001 Issue final guidance for plans.
July 1,2001 States submit plans to NOS.
October 1, 2001 Latest date for completing NOS review of state plans.
Coastal Impact Assistance Program
Allocation of Funds
Requirements
CLAP funds are to be allocated via a formula specified in §903(c)of the legislation. Sixty percent of the total
funding will be divided evenly among the seven Producing Coastal States. Forty percent will be divided among the
states based on a formula taking into account each state's share of the qualified OCS revenues. Where two or more
states are within 200 miles of a leased tract,the distance between the states and the leased tracts will be used to
apportion the revenues.
Once the state allocations are made, 35 percent of each state's allocation funds will be disbursed to coastal
political subdivisions based on a formula taking into account each subdivision's population,shoreline mileage,and
distance from leased tracts. Counties,parishes,or equivalent units of government lying all or in part within state
coastal zones as defined by section 304(1)of the Coastal Zone Management Act of 1972,as amended(CZMA),'are
considered coastal political subdivisions eligible for funding. We have approximately 150 eligible local
jurisdictions. A preliminary list is attached.
Information needed for the formulas includes:population of the coastal political subdivisions; coastline miles of the
coastal political subdivisions;OCS revenues on an individual lease basis(approximately 7,000-8,000 leases);and
distance from OCS leased tracts to state/county boundaries. NOS has met with MMS to discuss the information
needs,and technical staff from both agencies will share resources to develop the allocation formulas.
Key Issues/Decisions
• Finalize list of eligible political subdivisions.
• Develop allocations-The allocation among the seven states is straight forward. The statute requires the
use of OCS production data through December 31,2000. These numbers will not be finalized until March
or April. There is an existing model for making the state-level funding allocations,and we should be able
to provide preliminary estimates for each state in advance of determining specific amounts. Local
governments receive 35 percent of the state allocation. Calculating these allocations is a data and labor
intensive task.
Next Steps
January 2001 Develop state-level funding estimates.
January 2001 Meet with technical staff of NOS and MMS to review data types and formula
development.
January 2001 Provide draft list of eligible local governments and estimated total funding to
states.
April 15,2001 Target date for state and local allocations.