[Congressional Record Volume 147, Number 101 (Thursday, July 19, 2001)]
[Senate]
[Pages S7963-S7965]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself, Mr. Inhofe, Mr. Frist, and Mr. 
        McConnell):
  S. 1206. A bill to reauthorize the Appalachian Regional Development 
Act of 1965, and for other purposes; to the Committee on Environment 
and Public Works.
  Mr. VOINOVICH. Mr. President, I rise today, joined by my colleagues, 
Senator Bill Frist, Senator James Inhofe, and Senator Mitch McConnell, 
to introduce the Appalachian Regional Development Act Amendments of 
2001. Once enacted, our bill will reauthorize the Appalachian Regional 
Commission, ARC and create a specific initiative to help bridge the 
``digital divide'' between Appalachia and the rest of our nation.
  One of the honors that I have as a United States Senator is to serve 
as a member of the Subcommittee on Transportation and Infrastructure of 
the Environment and Public Works Committee. One of the reasons I am 
pleased to be on this subcommittee is the fact that it has oversight 
jurisdiction over the ARC. As a Senator who represents one of the 
thirteen States within the ARC, my membership on this subcommittee 
gives me a great opportunity to focus on issues of direct importance to 
this region of our Nation.
  In 1965, Congress established the ARC to help bring the Appalachian 
region of our Nation into the mainstream of the American economy. This 
region includes 406 counties in 13 States, including Ohio, and has a 
population of about 22 million people.
  The ARC is composed of the governors of the 13 Appalachian states and 
a Federal representative who is appointed by the President. The Federal 
representative serves as the Federal Co-Chairman with the governors 
electing one of their number to serve as the States' Co-Chairman. As a 
unique partnership between the Federal Government and these 13 States, 
the ARC runs programs in a wide range of activities, including highway 
construction, education and training, health care, housing, enterprise 
development, export promotion, telecommunications and technology, and 
water and sewer infrastructure. All of these activities help achieve a 
goal of a viable and self-sustaining regional economy.
  ARC's programs fall into two broad categories. The first is a 3,025-
mile corridor highway system to break the regional isolation created by 
mountainous terrain, thereby linking the Appalachian communities to 
national and international markets. Roughly 80 percent of the 
Appalachian Development Highway System is either completed or under 
construction.
  The second is an area development program to create a basis for 
sustained local economic growth. Ranging from water and sewer 
infrastructure to worker training to business financing and community 
leadership development, these projects provide Appalachian communities 
with the critical building blocks for future growth and development. 
The sweeping range of options allows governors and local officials to 
tailor the federal assistance to their individual needs.
  The ARC currently ranks all of the 406 counties in the Appalachian 
region, including the 29 counties in Ohio that are covered by the ARC, 
according to four categories: distressed, transitional, competitive, 
and attainment. These categories determine the extent for potential ARC 
support for specific projects. They also help ensure that support goes 
to the areas with the greatest need. Distressed countries are the most 
``at-risk,'' with unemployment at least 150 percent of the national 
average, a poverty rate of at least 150 percent of the national 
average, and a per capita market income of

[[Page S7964]]

no more than two-thirds of the national average. Generally, this means 
that a distressed county has an unemployment rate of greater than 7.4 
percent, a poverty rate of at least 19.7 percent, and a per capita 
income of less than $14,164. In fiscal year 2001, 114 counties, or 
roughly one-fourth of the counties in the ARC, have been classified as 
distressed. Ten of these counties are in Ohio.
  In order to undertake a wide variety of projects to help improve the 
region's economy, the ARC uses the Federal dollars it receives to 
leverage additional State and local funding. This successful 
partnership enables communities in Ohio and throughout Appalachia to 
have programs which help them to respond to a variety of grassroots 
needs. In Ohio, ARC funds support projects in five goal areas: skills 
and knowledge, physical infrastructure, community capacity, dynamic 
local economies, and health care. In rough figures, every ARC dollar 
Ohio received in fiscal year 2000 leveraged approximately $2.60 in 
additional federal, state and local funds. In fiscal year 2000, ARC 
provided approximately $4.7 million to fund non-highway projects in 
Ohio.
  As my colleagues are aware, the current authorization of the ARC will 
soon expire. In anticipation of the need for reauthorization 
legislation, I have been working since last year on putting together a 
bill that focuses on the issues that the ARC needs to address in the 
early part of the 21st century. One of the more productive activities I 
did in preparation for reauthorization was to conduct a Transportation 
and Infrastructure Subcommittee field hearing on the ARC at the Opera 
House in Nelsonville, OH, in August 2000. Following the hearing, I had 
the opportunity to tour the region to witness first-hand the beneficial 
impact of ARC-funded projects in the community.
  My objectives for both the field hearing and the tour were to obtain 
an overview of the importance of ARC programs to Appalachia, to closely 
examine the progress that has been made with respect to the 
implementation of these programs, and to identify the challenges that 
still must be overcome for the region to fully participate in our 
Nation's economy. Along with the poignant visual impact of my tour, the 
testimony I received from the impressive array of witnesses at this 
hearing provided valuable input that has been very helpful in drafting 
this legislation.
  Our legislation, the Appalachian Regional Development Act Amendments 
of 2001, would allow the ARC to continue its important work for the 
people of Appalachia. One of the most innovative aspects of our bill 
would establish a Telecommunications and Technology Initiative that 
would focus on providing training in new technologies; assisting local 
governments, businesses, schools, and hospitals in developing e-
commerce networks; and creating more jobs and business opportunities 
though access to telecommunications infrastructure.
  E-commerce is one of the largest factors driving our economy and any 
business that wants to successfully compete in today's technological 
revolution must have access to the Internet. By establishing a specific 
initiative under the ARC to help the people of Appalachia connect with 
today's technology, we are also helping Appalachian communities achieve 
the same quality of life that is available to the rest of the Nation.
  The bill also would increase the percentage of ARC funds required to 
be spent on activities or projects that benefit distressed counties or 
area. Right now, the requirement is set at 30 percent, and under our 
bill, it would increase to 50 percent. An analysis of fiscal year 1999 
and 2000 shows that the ARC already spends about half of its project 
funding on grants to Appalachia's poorest counties, therefore this 
provision simply codifies current practice.
  In addition, the bill would establish the ARC as the lead Federal 
agency in coordinating the economic development programs carried out by 
Federal agencies in the region through the establishment of an 
Interagency Coordinating Council on Appalachia. The Council would be 
established by the President and its membership composed of 
representatives of the Federal agencies that carry out economic 
development programs in the region.
  The bill also would change the non-federal match requirement for 
administrative grants to the region's Local Development Districts from 
50 percent to 25 percent for those Local Development Districts which 
include all or part of at least one distressed county. Local 
Development Districts are multi-county economic development planning 
agencies that work with local governments, non-profit organizations, 
and the private sector to determine local economic development needs 
and provide professional guidance for local economic development 
strategies. There are 71 Local Development Districts working with ARC 
in Appalachia.

  Additionally, the bill would authorize annual appropriations for the 
ARC for five years, beginning with $83 million in fiscal year 2002 and 
increasing by $3 million in each of fiscal years 2003 through 2006. Of 
the authorized amount, $10 million would be earmarked each fiscal year 
for the Telecommunications and Technology Initiative.
  For more than 35 years, the ARC has had a dramatic impact on the 
lives of the men and women who live in the Appalachian region of our 
Nation, helping to cut the region's poverty rate in half, lowering the 
infant mortality rate by two-thirds, doubling the percentage of high 
school graduates to where it is now slightly above the national 
average, slowing the region's out-migration, reducing unemployment 
rates, and narrowing the per capita income gap between Appalachia and 
the rest of the United States.
  Despite its successes to date, the ARC has not completed its mission 
in Appalachia. I know that there is a vast reserve of potential in 
Appalachia that is just waiting to be tapped, and I wholeheartedly 
agree with one of ARC's guiding principles that the most valuable 
investment that can be made in a region is in its people.
  The ARC is the type of Federal initiative that we should be 
encouraging. I urge my colleagues to join me in cosponsoring this 
legislation, and I urge its speedy consideration by the Senate.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1206

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Appalachian Regional 
     Development Act Amendments of 2001''.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to reauthorize the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.); and
       (2) to ensure that the people and businesses of the 
     Appalachian region have the knowledge, skills, and access to 
     telecommunication and technology services necessary to 
     compete in the knowledge-based economy of the United States.

     SEC. 3. FUNCTIONS OF THE COMMISSION.

       Section 102(a) of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended--
       (1) in paragraph (5), by inserting ``, and support,'' after 
     ``formation of'';
       (2) in paragraph (7), by striking ``and'' at the end;
       (3) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(9) seek to coordinate the economic development 
     activities of, and the use of economic development resources 
     by, Federal agencies in the region.''.

     SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPALACHIA.

       Section 104 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended--
       (1) by striking ``The President'' and inserting ``(a) In 
     General.--The President''; and
       (2) by adding at the end the following:
       ``(b) Interagency Coordinating Council on Appalachia.--
       ``(1) Establishment.--In carrying out subsection (a), the 
     President shall establish an interagency council to be known 
     as the `Interagency Coordinating Council on Appalachia'.
       ``(2) Membership.--The Council shall be composed of--
       ``(A) the Federal Cochairman, who shall serve as 
     Chairperson of the Council; and
       ``(B) representatives of Federal agencies that carry out 
     economic development programs in the region.''.

[[Page S7965]]

     SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

       Title II of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended by inserting after section 
     202 the following:

     ``SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.

       ``(a) In General.--The Commission may provide technical 
     assistance, make grants, enter into contracts, or otherwise 
     provide funds to persons or entities in the region for 
     projects--
       ``(1) to increase affordable access to advanced 
     telecommunications, entrepreneurship, and management 
     technologies or applications in the region;
       ``(2) to provide education and training in the use of 
     telecommunications and technology;
       ``(3) to develop programs to increase the readiness of 
     industry groups and businesses in the region to engage in 
     electronic commerce; or
       ``(4) to support entrepreneurial opportunities for 
     businesses in the information technology sector.
       ``(b) Source of Funding.--
       ``(1) In general.--Assistance under this section may be 
     provided--
       ``(A) exclusively from amounts made available to carry out 
     this section; or
       ``(B) from amounts made available to carry out this section 
     in combination with amounts made available under any other 
     Federal program or from any other source.
       ``(2) Federal share requirements specified in other laws.--
     Notwithstanding any provision of law limiting the Federal 
     share under any other Federal program, amounts made available 
     to carry out this section may be used to increase that 
     Federal share, as the Commission determines to be 
     appropriate.
       ``(c) Cost Sharing for Grants.--Not more than 50 percent 
     (or 80 percent in the case of a project to be carried out in 
     a county for which a distressed county designation is in 
     effect under section 226) of the costs of any activity 
     eligible for a grant under this section may be provided from 
     funds appropriated to carry out this section.''.

     SEC. 6. PROGRAM DEVELOPMENT CRITERIA.

       (a) Elimination of Growth Center Criteria.--Section 
     224(a)(1) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App.) is amended by striking ``in an area 
     determined by the State have a significant potential for 
     growth or''.
       (b) Assistance to Distressed Counties and Areas.--Section 
     224 of the Appalachian Regional Development Act of 1965 (40 
     U.S.C. App.) is amended by adding at the end the following:
       ``(d) Assistance to Distressed Counties and Areas.--For 
     each fiscal year, not less than 50 percent of the amount of 
     grant expenditures approved by the Commission shall support 
     activities or projects that benefit severely and persistently 
     distressed counties and areas.''.

     SEC. 7. GRANTS FOR ADMINISTRATIVE EXPENSES OF LOCAL 
                   DEVELOPMENT DISTRICTS.

       Section 302(a)(1)(A)(i) of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended by 
     inserting ``(or, at the discretion of the Commission, 75 
     percent of such expenses in the case of a local development 
     district that has a charter or authority that includes the 
     economic development of a county or part of a county for 
     which a distressed county designation is in effect under 
     section 226)'' after ``such expenses''.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       Section 401 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended to read as follows:

     ``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--In addition to amounts authorized by 
     section 201 and other amounts made available for the 
     Appalachian development highway system program, there are 
     authorized to be appropriated to the Commission to carry out 
     this Act--
       ``(1) $83,000,000 for fiscal year 2002;
       ``(2) $86,000,000 for fiscal year 2003;
       ``(3) $89,000,000 for fiscal year 2004;
       ``(4) $92,000,000 for fiscal year 2005; and
       ``(5) $95,000,000 for fiscal year 2006.
       ``(b) Telecommunications and Technology Initiative.--Of the 
     amounts made available under subsection (a), $10,000,000 for 
     each fiscal year shall be made available to carry out section 
     203.
       ``(c) Availability.--Sums made available under subsection 
     (a) shall remain available until expended.''.

     SEC. 9. TERMINATION.

       Section 405 of the Appalachian Regional Development Act of 
     1965 (40 U.S.C. App.) is amended by striking ``2001'' and 
     inserting ``2006''.

     SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Section 101(b) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended in the third sentence 
     by striking ``implementing investment program'' and inserting 
     ``strategy statement''.
       (b) Section 106(7) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended by striking 
     ``expiring no later than September 30, 2001''.
       (c) Sections 202, 214, and 302(a)(1)(C) of the Appalachian 
     Regional Development Act of 1965 (40 U.S.C. App.) are amended 
     by striking ``grant-in-aid programs'' each place it appears 
     and inserting ``grant programs''.
       (d) Section 202(a) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended in the second 
     sentence by striking ``title VI of the Public Health Service 
     Act (42 U.S.C. 291-291o), the Mental Retardation Facilities 
     and Community Mental Health Centers Construction Act of 1963 
     (77 Stat. 282),'' and inserting ``title VI of the Public 
     Health Service Act (42 U.S.C. 291 et seq.), the Developmental 
     Disabilities Assistance and Bill of Rights Act of 2000 (42 
     U.S.C. 15001 et seq.),''.
       (e) Section 207(a) of the Appalachian Regional Development 
     Act of 1965 (40 U.S.C. App.) is amended by striking ``section 
     221 of the National Housing Act, section 8 of the United 
     States Housing Act of 1937, section 515 of the Housing Act of 
     1949,'' and inserting ``section 221 of the National Housing 
     Act (12 U.S.C. 1715l), section 8 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f), section 515 of the Housing Act 
     of 1949 (42 U.S.C. 1485),''.
       (f) Section 214 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended--
       (1) in the section heading, by striking ``grant-in-aid'' 
     and inserting ``grant'';
       (2) in subsection (a)--
       (A) by striking ``grant-in-aid Act'' each place it appears 
     and inserting ``Act'';
       (B) in the first sentence, by striking ``grant-in-aid 
     Acts'' and inserting ``Acts'';
       (C) by striking ``grant-in-aid program'' each place it 
     appears and inserting ``grant program''; and
       (D) by striking the third sentence;
       (3) by striking subsection (c) and inserting the following:
       ``(c) Definition of Federal Grant Program.--
       ``(1) In general.--In this section, the term `Federal grant 
     program' means any Federal grant program authorized by this 
     Act or any other Act that provides assistance for--
       ``(A) the acquisition or development of land;
       ``(B) the construction or equipment of facilities; or
       ``(C) any other community or economic development or 
     economic adjustment activity.
       ``(2) Inclusions.--In this section, the term `Federal grant 
     program' includes a Federal grant program such as a Federal 
     grant program authorized by--
       ``(A) the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1921 et seq.);
       ``(B) the Land and Water Conservation Fund Act of 1965 (16 
     U.S.C. 460l-4 et seq.);
       ``(C) the Watershed Protection and Flood Prevention Act (16 
     U.S.C. 1001 et seq.);
       ``(D) the Carl D. Perkins Vocational and Technical 
     Education Act of 1998 (20 U.S.C. 2301 et seq.);
       ``(E) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(F) title VI of the Public Health Service Act (42 U.S.C. 
     291 et seq.);
       ``(G) sections 201 and 209 of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141, 3149);
       ``(H) title I of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5301 et seq.); or
       ``(I) part IV of title III of the Communications Act of 
     1934 (47 U.S.C. 390 et seq.).
       ``(3) Exclusions.--In this section, the term `Federal grant 
     program' does not include--
       ``(A) the program for construction of the Appalachian 
     development highway system authorized by section 201;
       ``(B) any program relating to highway or road construction 
     authorized by title 23, United States Code; or
       ``(C) any other program under this Act or any other Act to 
     the extent that a form of financial assistance other than a 
     grant is authorized.''; and
       (4) by striking subsection (d).
       (g) Section 224(a)(2) of the Appalachian Regional 
     Development Act of 1965 (40 U.S.C. App.) is amended by 
     striking ``relative per capita income'' and inserting ``per 
     capita market income''.
       (h) Section 225 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.)--
       (1) in subsection (a)(3), by striking ``development 
     program'' and inserting ``development strategies''; and
       (2) in subsection (c)(2), by striking ``development 
     programs'' and inserting ``development strategies''.
       (i) Section 303 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended--
       (1) in the section heading, by striking ``investment 
     programs'' and inserting ``strategy statements'';
       (2) in the first sentence, by striking ``implementing 
     investments programs'' and inserting ``strategy statements''; 
     and
       (3) by striking ``implementing investment program'' each 
     place it appears and inserting ``strategy statement''.
       (j) Section 403 of the Appalachian Regional Development Act 
     of 1965 (40 U.S.C. App.) is amended--
       (1) in the next-to-last undesignated paragraph, by striking 
     ``Committee on Public Works and Transportation'' and 
     inserting ``Committee on Transportation and Infrastructure''; 
     and
       (2) by striking the last undesignated paragraph.
                                 ______