Which federal activities do states have regulatory control over according to the CZMA?

The correct answer highlights that states have regulatory control over federal military installations according to the Coastal Zone Management Act (CZMA). This act was designed to manage the nation's coastal resources and provides a framework for states to assert their interests in coastal development and activities, including those conducted by federal agencies.

Under the CZMA, states are encouraged to develop coastal management programs that not only cover state lands but also extend to federal activities that may affect the coastal environment. This means that while federal facilities like military installations operate under federal oversight, states can still require that these facilities comply with state coastal management plans. This allows states to influence the impact that federal operations have on coastal resources and to ensure that such activities align with their environmental goals.

The other options do not fall within the framework of the CZMA in the same manner. Private residential projects are typically regulated by state and local laws without specific regard to federal authority. State-funded recreational areas, while of local concern, are not under federal jurisdiction and do not involve the same level of oversight or regulatory control by the states concerning federal actions. Local government utilities function independently at the municipal level, focusing on service delivery rather than coastal resource management, hence they do not intersect with the intent of the CZMA.