[Congressional Record Volume 152, Number 44 (Friday, April 7, 2006)]
[Senate]
[Pages S3380-S3381]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Ms. Collins):
  S. 2596. A bill to modify the boundaries for a certain empowerment 
zone designation; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today with Senator Collins to 
introduce legislation to help reverse the devastating population 
decline and economic distress that has plagued individuals and 
businesses in Aroostook County, the northernmost county in Maine. What 
the bill does is simple, it will bring all of Aroostook County under 
the Empowerment Zone (EZ) program. The legislation is identical to a 
bill that we introduced in the 108th Congress and was included in the 
FY 2004 Agriculture Appropriations bill in 2003 as passed by the 
Senate.
  To fully grasp the importance of this legislation, it is necessary to 
understand the unique situation facing the residents of Aroostook 
County. ``The County'', as it is called by Mainers, is a vast and 
remote region of Maine. As the northernmost county, it shares more of 
its border with Canada than its neighboring Maine counties. It has the 
distinction of being the largest county east of the Mississippi River. 
Its geographic isolation is even more acute when considering that the 
county's relatively small population of 73,000 people are scattered 
throughout 6,672 square miles of rural countryside. Aroostook County is 
home to 71 organized townships, as well as 125 unorganized townships 
much of which is forest land and wilderness.
  As profound as this geographic isolation may seem, it is the economic 
isolation and the recent out-migration that has had the most 
devastating impact on the region. The economy of northern Maine has a 
historical dependence upon its natural resources, particularly forestry 
and agriculture. While these industries served the region well in 
previous decades, and continue to form the underpinnings of the local 
economy, many of these sectors have experienced decline and can no 
longer provide the number and type of quality jobs that residents need.
  While officials in the region have put forward a Herculean effort to 
redevelop the region, with nearly 1,000 new jobs at the Loring Commerce 
Centre alone, Aroostook County is still experiencing a significant 
``job deficit'', and as a result continues to lose population at an 
alarming rate. Since its peak in 1960, northern Maine's population has 
declined by 30 percent. Unfortunately, the Main State Planning Office 
predicts that Aroostook County will continue losing population as more 
workers leave the area to seek opportunities and higher wages in 
southern Maine and the rest of New England.
  In January 2002, a portion of Aroostook County was one of two regions 
that received Empowerment Zone status from the USDA for out-migration. 
The entire county experienced an out-migration of 15 percent from 
86,936 in 1990 to 73,938 in 2000. Moreover, a shocking 40 percent of 15 
to 29-year-olds left during the last decade.
  The current zone boundaries were chosen based on the criteria that 
Empowerment Zones be no larger than 1,000 square miles, and have a 
maximum population of 30,000 for rural areas. The lines drawn for the 
Aroostook County Empowerment Zone were considered to be the most 
inclusive and reasonable given the constraints of the program. It 
should be noted as well that the boundaries were drawn based on the 
1990 census, making the data significantly outdated at the start and 
included the former Loring Air Force Base and its population of nearly 
8,000 people, which had closed nearly 8 years before the designation, 
taking its military and much of its civilian workforces with it. The 
Maine State Planning Office estimated that the base closure resulted in 
the loss of 3,494 jobs directly related to the base and

[[Page S3381]]

another 1,751 in associated industry sectors for a total loss of $106.9 
million annual payroll dollars.
  Some of the most distressed communities that have lost substantial 
population are not in the Empowerment Zone, and other communities like 
Houlton literally are divided simply by a road, having one business on 
the south side of the street with no Empowerment Zone designation look 
out their window to a neighboring business on the north side of the 
street with full Empowerment Zone benefits. The economic factors for 
these communities and for these neighbors are the same as those areas 
within the Empowerment Zone. This designation is not meant to cause 
divisiveness within communities, it is created to augment a partnership 
for growth and to level the playing field for all Aroostook County 
communities who have equally suffered through continuing out migration 
whether it be in Madawaska or Island Falls.
  The legislation I am introducing would provide economic development 
opportunities to all reaches of Aroostook County by extending 
Empowerment Zone status to the entire county. This inclusive approach 
recognizes that the economic decline and population out-migration are 
issues that the entire region must confront, and, as evidenced by their 
successful Round III EZ application, they are attempting to confront. I 
believe the challenges faced by Aroostook County are significant, but 
not insurmountable. This legislation would make great strides in 
improving the communities and business in northern Maine, and I urge my 
colleagues to support this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2596

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

     SECTION 1. MODIFICATION OF BOUNDARY OF AROOSTOOK COUNTY 
                   EMPOWERMENT ZONE.

       (a) In General.--The Aroostook County empowerment zone 
     shall include, in addition to the area designated as of the 
     date of the enactment of this Act, the remaining area of the 
     county not included in such designation, notwithstanding the 
     size requirement of section 1392(a)(3)(A) of the Internal 
     Revenue Code of 1986 and the population requirements of 
     section 1392(a)(1)(B) of such Code.
       (b) Effective Date.--Subsection (a) shall take effect as of 
     the effective date of the designation of the Aroostook County 
     empowerment zone by the Secretary of Agriculture.
  Ms. COLLINS. Mr. President, I am pleased to join my colleague, 
Senator Olympia Snowe, in introducing legislation that will modify the 
borders of the Aroostook County Empowerment Zone to include the entire 
county so that the benefits of Empowerment Zone designation can be 
fully realized in northern Maine.
  The Department of Agriculture's Empowerment Zone program addresses a 
comprehensive range of community challenges, including many that have 
traditionally received little Federal assistance, reflecting the fact 
that rural problems do not come in standardized packages but can vary 
widely from one place to another. The Empowerment Zone program 
represents a long-term partnership between the Federal Government and 
rural communities so that communities have enough time to implement 
projects to build the capacity to sustain their development beyond the 
term of the partnership. An Empowerment Zone designation gives 
designated regions potential access to millions of dollars in Federal 
grants for social services and community redevelopment as well as tax 
relief.
  Aroostook County is the largest county east of the Mississippi River. 
Yet, despite the impressive character and work ethic of its citizens, 
the county has fallen on hard times. The 2000 Census indicated a 15-
percent loss in population since 1990. Loring Air Force Base, which was 
closed in 1994, also caused an immediate out-migration of 8,500 people 
and a further out-migration of families and businesses that depended on 
Loring for their customer base.
  In response to these developments, the Northern Maine Development 
Commission and other economic development organizations, the private 
business sector, and community leaders in Aroostook have joined forces 
to stabilize, diversify, and grow the area's economy. They have 
attracted some new industries and jobs. As a native of Aroostook 
County, I can attest to the strong community support that will ensure a 
successful partnership with the U.S. Department of Agriculture.
  Designating this region of the United States as an Empowerment Zone 
will help ensure its future economic prosperity. However, the 
restriction that the Empowerment Zone be limited to 1,000 square miles 
prevents all of Aroostook's small rural communities from benefiting 
from this tremendous program. Aroostook covers some 6,672 square miles 
but has a population of only 74,000. Including all of the county in the 
Empowerment Zone will guarantee that parts of the county will not be 
left behind as economic prosperity returns to the area. It does little 
good to have a company move from one community to another within the 
county simply to take advantage of Empowerment Zone benefits.
  Senator Snowe and I introduced this legislation during the 108th 
Congress. In fact, we were successful in getting this legislation 
passed in the Senate by attaching it to the fiscal year 2004 
Agriculture Appropriations bill. Unfortunately, this language was 
removed during conference negotiations with the House. Senator Snowe 
and I remain committed to bringing the benefits of the Empowerment Zone 
designation to all of Aroostook County's residents and will work to 
pass this legislation in both Chambers during this Congress.
                                 ______