Federal Energy Impact Assistance

A recent GAO report dealt with the socioeconomic impacts resulting from energy development in the Rocky Mountain area. S. 1493, the Energy Impact Assistance Act of 1978, would provide for federal assistance to mitigate energy impacts both in this area and other affected areas of the Nation. The Rocky Mountain area contains about 95 percent of the Nation's uranium, 90 percent of its oil shale, and 41 percent of its coal. Energy resource development affects an area because of the growth of new towns, population increases, and increased needs for housing, public facilities, and services. The federal government is providing assistance to offset these impacts in the form of grants, loans, federal mineral lease royalties, and annual payments. However, coordination among agencies administering these assistance programs has been inadequate. Increased assistance to the Rocky Mountain area has not been demonstrated and may not help the affected areas unless the distribution of funds by states is improved. The President has announced a 5-year program to help inland states, communities, and Indian tribes in planning to meet the effects of energy resource development. This program is reflected in recommendations by providing for: (1) participation at different governmental and tribal levels in decisionmaking; (2) development of preliminary and detailed plans on an areawide basis; (3) a systematic approach for approving and updating plans; (4) early availability of funds for planning; (5) federal/state cost sharing; and (6) a focal point for coordination.