Federal Energy Impact Assistance

Comments were given on proposed legislation to provide for Federal assistance to mitigate energy impacts in all inland areas that are affected by energy development. Rapid and extensive development of energy resources can have profound socioeconomic and environmental effects on an area. Needs for housing, public facilities, and services often arise before adequate local funding is available. In the Rocky Mountain area, some of these needs are being fulfilled through Federal, State, and industrial assistance. The proposed legislation would substantialy expand the amount of Federal assistance available to energy-affected States and communities. Both bills would authorize a maximum of $1.5 billion for loan guarantees: S. 1699 would authorize appropriations to the Secretary of Agriculture and S. 1308 would authorize appropriations to the Secretary of Energy. The Congress needs current information on the kinds of needs not currently being met by existing Federal and State assistance programs, the magnitude of the problem, and determination as to where and to whom Federal moneys should be targeted. The Department of Agriculture has recently been given lead responsibility for a study of the interagency analysis of socioeconomic impacts. However, additional funds have not been provided for this study, and staffing levels for it are currently uncertain. Any legislation enacted by Congress should encourage States and individual communities to provide impact assistance on their own. Funds should generally be made available as loans or loan guarantees, and grants should be directed primarily toward financing the front-end planning needed to deal with energy impacts. The financing of front-end planning deserves special consideration, because many communities affected by energy development need funding to plan for energy development and cannot afford to wait for new revenues which follow such development.