The Energy Policy Act of 2005 (Public Law 109-58) was signed into law by President Bush on August 8, 2005. Section 384 of the Act establishes the Coastal Impact Assistance Program (CIAP) which authorizes funds to be distributed to Outer Continental Shelf (OCS) oil and gas producing states to mitigate the impacts of OCS oil and gas activities.

Under the CIAP, the Secretary of the Interior is authorized to distribute to producing States and coastal political subdivisions $250 million for each of the fiscal years 2007 through 2010. This money will be shared among Alabama, Alaska, California, Louisiana, Mississippi, and Texas and will be allocated to each producing State and eligible coastal subdivision based upon allocation formulas prescribed by the Act. Pursuant to the Act, a producing State or coastal political subdivision (CPS) shall use all amounts received under this section for one or more of the following purposes:

	Projects and activities for the conservation, protection, or restoration of coastal areas, including wetland.
	Mitigation of damage to fish, wildlife, or natural resources.
	Planning assistance and the administrative costs of complying with this section.
	Implementation of a federally-approved marine, coastal or comprehensive conservation management plan.
	Mitigation of the impact of Outer Continental Shelf activities through funding of onshore infrastructure projects and public service needs.

Each eligible State will be allocated their share based on the State’s Qualified Outer Continental Shelf Revenue (QOCSR) generated off of its coast in proportion to total QOCSR generated off the coasts of all eligible States.

Allocations to States in FY 2007 and FY 2008 are based on FY 2006 QOCSR, and allocations to States in FY 2009 and FY 2010 are based on FY 2008 QOCSR. The allotment amounts will be available April 16, 2007 for FY 2007 and FY 2008. The allotment amounts for FY 2009 and FY 2010 will be available in mid April, 2009.

In the February 16, 2007 Continuing Resolution, Congress approved a three percent appropriation of the CIAP funds to be used by MMS to administer the CIAP program.

Only States that submit a coastal impact assistance state plan (Plan) that meets MMS approval will be eligible to receive CIAP funds. Plans must be developed in consultation with eligible CPSs. A Plan for at least the first year’s funds is to be submitted to MMS for approval by July 1, 2008. If a state cannot submit a Plan by that date, it should inform MMS of its good intent to do so. CIAP recipients with an approved Plan may submit grant applications for projects included in the Plan. The MMS will begin accepting grant applications in mid October, 2007. All announcements concerning CIAP grants will be available through the Grants.gov website.