((a))

((1)) The obligations of any coastal state or unit of general purpose local government to repay loans made pursuant to this section as in effect before , and any repayment schedule established pursuant to this chapter as in effect before , are not altered by any provision of this chapter. Such loans shall be repaid under authority of this subsection and the Secretary may issue regulations governing such repayment. If the Secretary finds that any coastal state or unit of local government is unable to meet its obligations pursuant to this subsection because the actual increases in employment and related population resulting from coastal energy activity and the facilities associated with such activity do not provide adequate revenues to enable such State or unit to meet such obligations in accordance with the appropriate repayment schedule, the Secretary shall, after review of the information submitted by such State or unit, take any of the following actions:

((A)) Modify the terms and conditions of such loan.

((B)) Refinance the loan.

((C)) Recommend to the Congress that legislation be enacted to forgive the loan.

((2)) Loan repayments made pursuant to this subsection shall be retained by the Secretary as offsetting collections, and shall be deposited into the Coastal Zone Management Fund established under subsection (b).

((b))

((1)) The Secretary shall establish and maintain a fund, to be known as the “Coastal Zone Management Fund”, which shall consist of amounts retained and deposited into the Fund under subsection (a) and fees deposited into the Fund under .

((2)) Subject to amounts provided in appropriation Acts, amounts in the Fund shall be available to the Secretary for use for the following:

((A)) Expenses incident to the administration of this chapter, in an amount not to exceed for each of fiscal years 1997, 1998, and 1999 the higher of—

((i)) $4,000,000; or

((ii)) 8 percent of the total amount appropriated under this chapter for the fiscal year.

((B)) After use under subparagraph (A)—

((i)) projects to address management issues which are regional in scope, including interstate projects;

((ii)) demonstration projects which have high potential for improving coastal zone management, especially at the local level;

((iii)) emergency grants to State coastal zone management agencies to address unforeseen or disaster-related circumstances;

((iv)) appropriate awards recognizing excellence in coastal zone management as provided in ; and

((v)) to provide financial support to coastal states for use for investigating and applying the public trust doctrine to implement State management programs approved under .