[Congressional Record (Bound Edition), Volume 154 (2008), Part 11]
[House]
[Pages 15027-15032]
[From the U.S. Government Publishing Office, www.gpo.gov]




        APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 2008

  Mr. SPACE. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 496) to reauthorize and improve the program authorized 
by the Appalachian Regional Development Act of 1965, as amended.
  The Clerk read the title of the Senate bill.
  The text of the Senate bill is as follows:

                                 S. 496

       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 2008''.

     SEC. 2. LIMITATION ON AVAILABLE AMOUNTS; MAXIMUM COMMISSION 
                   CONTRIBUTION.

       (a) Grants and Other Assistance.--Section 14321(a) of title 
     40, United States Code, is amended--
       (1) in paragraph (1)(A) by striking clause (i) and 
     inserting the following:
       ``(i) the amount of the grant shall not exceed--

       ``(I) 50 percent of administrative expenses;
       ``(II) at the discretion of the Commission, if the grant is 
     to a local development district that has a charter or 
     authority that includes the economic development of a county 
     or a part of a county for which a distressed county 
     designation is in effect under section 14526, 75 percent of 
     administrative expenses; or
       ``(III) at the discretion of the Commission, if the grant 
     is to a local development district that has a charter or 
     authority that includes the economic development of a county 
     or a part of a county for which an at-risk county designation 
     is in effect under section 14526, 70 percent of 
     administrative expenses;''; and

       (2) in paragraph (2) by striking subparagraph (A) and 
     inserting the following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     of the cost of any activity eligible for financial assistance 
     under this section, not more than--
       ``(i) 50 percent may be provided from amounts appropriated 
     to carry out this subtitle;
       ``(ii) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent may be provided from amounts 
     appropriated to carry out this subtitle; or
       ``(iii) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent may be provided from amounts 
     appropriated to carry out this subtitle.''.
       (b) Demonstration Health Projects.--Section 14502 of title 
     40, United States Code, is amended--
       (1) in subsection (d) by striking paragraph (2) and 
     inserting the following:
       ``(2) Limitation on available amounts.--Grants under this 
     section for the operation (including initial operating 
     amounts and operating deficits, which include the cost of 
     attracting, training, and retaining qualified personnel) of a 
     demonstration health project, whether or not constructed with 
     amounts authorized to be appropriated by this section, may be 
     made for up to--
       ``(A) 50 percent of the cost of that operation;
       ``(B) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent of the cost of that 
     operation; or
       ``(C) in the case of a project to be carried out for a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent of the cost of that 
     operation.''; and
       (2) in subsection (f)--
       (A) in paragraph (1) by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (B) by adding at the end the following:
       ``(3) At-risk counties.--The maximum Commission 
     contribution for a project to be carried out in a county for 
     which an at-risk county designation is in effect under 
     section 14526 may be increased to the lesser of--
       ``(A) 70 percent; or
       ``(B) the maximum Federal contribution percentage 
     authorized by this section.''.
       (c) Assistance for Proposed Low- and Middle-Income Housing 
     Projects.--Section

[[Page 15028]]

     14503 of title 40, United States Code, is amended--
       (1) in subsection (d) by striking paragraph (1) and 
     inserting the following:
       ``(1) Limitation on available amounts.--A loan under 
     subsection (b) for the cost of planning and obtaining 
     financing (including the cost of preliminary surveys and 
     analyses of market needs, preliminary site engineering and 
     architectural fees, site options, application and mortgage 
     commitment fees, legal fees, and construction loan fees and 
     discounts) of a project described in that subsection may be 
     made for up to--
       ``(A) 50 percent of that cost;
       ``(B) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent of that cost; or
       ``(C) in the case of a project to be carried out for a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent of that cost.''; and
       (2) in subsection (e) by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--A grant under this section for expenses 
     incidental to planning and obtaining financing for a project 
     under this section that the Secretary considers to be 
     unrecoverable from the proceeds of a permanent loan made to 
     finance the project shall--
       ``(A) not be made to an organization established for 
     profit; and
       ``(B) except as provided in paragraph (2), not exceed--
       ``(i) 50 percent of those expenses;
       ``(ii) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent of those expenses; or
       ``(iii) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent of those expenses.''.
       (d) Telecommunications and Technology Initiative.--Section 
     14504 of title 40, United States Code, is amended by striking 
     subsection (b) and inserting the following:
       ``(b) Limitation on Available Amounts.--Of the cost of any 
     activity eligible for a grant under this section, not more 
     than--
       ``(1) 50 percent may be provided from amounts appropriated 
     to carry out this section;
       ``(2) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent may be provided from amounts 
     appropriated to carry out this section; or
       ``(3) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent may be provided from amounts 
     appropriated to carry out this section.''.
       (e) Entrepreneurship Initiative.--Section 14505 of title 
     40, United States Code, is amended by striking subsection (c) 
     and inserting the following:
       ``(c) Limitation on Available Amounts.--Of the cost of any 
     activity eligible for a grant under this section, not more 
     than--
       ``(1) 50 percent may be provided from amounts appropriated 
     to carry out this section;
       ``(2) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent may be provided from amounts 
     appropriated to carry out this section; or
       ``(3) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent may be provided from amounts 
     appropriated to carry out this section.''.
       (f) Regional Skills Partnerships.--Section 14506 of title 
     40, United States Code, is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Limitation on Available Amounts.--Of the cost of any 
     activity eligible for a grant under this section, not more 
     than--
       ``(1) 50 percent may be provided from amounts appropriated 
     to carry out this section;
       ``(2) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent may be provided from amounts 
     appropriated to carry out this section; or
       ``(3) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent may be provided from amounts 
     appropriated to carry out this section.''.
       (g) Supplements to Federal Grant Programs.--Section 
     14507(g) of title 40, United States Code, is amended--
       (1) in paragraph (1) by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (2) by adding at the end the following:
       ``(3) At-risk counties.--The maximum Commission 
     contribution for a project to be carried out in a county for 
     which an at-risk county designation is in effect under 
     section 14526 may be increased to 70 percent.''.

     SEC. 3. ECONOMIC AND ENERGY DEVELOPMENT INITIATIVE.

       (a) In General.--Subchapter I of chapter 145 of subtitle IV 
     of title 40, United States Code, is amended by adding at the 
     end the following:

     ``Sec. 14508. Economic and energy development initiative

       ``(a) Projects To Be Assisted.--The Appalachian Regional 
     Commission may provide technical assistance, make grants, 
     enter into contracts, or otherwise provide amounts to persons 
     or entities in the Appalachian region for projects and 
     activities--
       ``(1) to promote energy efficiency in the Appalachian 
     region to enhance the economic competitiveness of the 
     Appalachian region;
       ``(2) to increase the use of renewable energy resources, 
     particularly biomass, in the Appalachian region to produce 
     alternative transportation fuels, electricity, and heat; and
       ``(3) to support the development of regional, conventional 
     energy resources to produce electricity and heat through 
     advanced technologies that achieve a substantial reduction in 
     emissions, including greenhouse gases, over the current 
     baseline.
       ``(b) Limitation on Available Amounts.--Of the cost of any 
     activity eligible for a grant under this section, not more 
     than--
       ``(1) 50 percent may be provided from amounts appropriated 
     to carry out this section;
       ``(2) in the case of a project to be carried out in a 
     county for which a distressed county designation is in effect 
     under section 14526, 80 percent may be provided from amounts 
     appropriated to carry out this section; or
       ``(3) in the case of a project to be carried out in a 
     county for which an at-risk county designation is in effect 
     under section 14526, 70 percent may be provided from amounts 
     appropriated to carry out this section.
       ``(c) Sources of Assistance.--Subject to subsection (b), 
     grants provided under this section may be provided from 
     amounts made available to carry out this section in 
     combination with amounts made available under other Federal 
     programs or from any other source.
       ``(d) Federal Share.--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 decides is 
     appropriate.''.
       (b) Conforming Amendment.--The analysis for chapter 145 of 
     title 40, United States Code, is amended by inserting after 
     the item relating to section 14507 the following:

``14508. Economic and energy development initiative.''.

     SEC. 4. DISTRESSED, AT-RISK, AND ECONOMICALLY STRONG 
                   COUNTIES.

       (a) Designation of At-Risk Counties.--Section 14526 of 
     title 40, United States Code, is amended--
       (1) in the section heading by inserting ``, at-risk,'' 
     after ``Distressed''; and
       (2) in subsection (a)(1)--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) in subparagraph (A) by striking ``and'' at the end; and
       (C) by inserting after subparagraph (A) the following:
       ``(B) designate as `at-risk counties' those counties in the 
     Appalachian region that are most at risk of becoming 
     economically distressed; and''.
       (b) Conforming Amendment.--The analysis for chapter 145 of 
     such title is amended by striking the item relating to 
     section 14526 and inserting the following:

``14526. Distressed, at-risk, and economically strong counties.''.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 14703(a) of title 40, United 
     States Code, is amended to read as follows:
       ``(a) In General.--In addition to amounts made available 
     under section 14501, there is authorized to be appropriated 
     to the Appalachian Regional Commission to carry out this 
     subtitle--
       ``(1) $87,000,000 for fiscal year 2008;
       ``(2) $100,000,000 for fiscal year 2009;
       ``(3) $105,000,000 for fiscal year 2010;
       ``(4) $108,000,000 for fiscal year 2011; and
       ``(5) $110,000,000 for fiscal year 2012.''.
       (b) Economic and Energy Development Initiative.--Section 
     14703(b) of such title is amended to read as follows:
       ``(b) Economic and Energy Development Initiative.--Of the 
     amounts made available under subsection (a), the following 
     amounts may be used to carry out section 14508--
       ``(1) $12,000,000 for fiscal year 2008;
       ``(2) $12,500,000 for fiscal year 2009;
       ``(3) $13,000,000 for fiscal year 2010;
       ``(4) $13,500,000 for fiscal year 2011; and
       ``(5) $14,000,000 for fiscal year 2012.''.
       (c) Allocation of Funds.--Section 14703 of such title is 
     amended by adding at the end the following:
       ``(d) Allocation of Funds.--Funds approved by the 
     Appalachian Regional Commission for a project in a State in 
     the Appalachian region pursuant to a congressional directive 
     shall be derived from the total amount allocated to the State 
     by the Appalachian Regional Commission from amounts 
     appropriated to carry out this subtitle.''.

     SEC. 6. TERMINATION.

       Section 14704 of title 40, United States Code, is amended 
     by striking ``2007'' and inserting ``2012''.

     SEC. 7. ADDITIONS TO APPALACHIAN REGION.

       (a) Kentucky.--Section 14102(a)(1)(C) of title 40, United 
     States Code, is amended--
       (1) by inserting ``Metcalfe,'' after ``Menifee,'';
       (2) by inserting ``Nicholas,'' after ``Morgan,''; and

[[Page 15029]]

       (3) by inserting ``Robertson,'' after ``Pulaski,''.
       (b) Ohio.--Section 14102(a)(1)(H) of such title is 
     amended--
       (1) by inserting ``Ashtabula,'' after ``Adams,'';
       (2) by inserting ``Mahoning,'' after ``Lawrence,''; and
       (3) by inserting ``Trumbull,'' after ``Scioto,''.
       (c) Tennessee.--Section 14102(a)(1)(K) of such title is 
     amended by inserting ``Lawrence, Lewis,'' after ``Knox,''.
       (d) Virginia.--Section 14102(a)(1)(L) of such title is 
     amended--
       (1) by inserting ``Henry,'' after ``Grayson,''; and
       (2) by inserting ``Patrick,'' after ``Montgomery,''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Space) and the gentlewoman from West Virginia (Mrs. Capito) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio.


                             General Leave

  Mr. SPACE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on S. 496.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. SPACE. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of S. 496, as amended, a bill 
to authorize appropriations for the Appalachian Regional Commission for 
5 years.
  As we all know, the ARC was established to address the unique 
problems faced by the isolated Appalachian region that separates it 
from the economic mainstream. Although this small, well-organized, and 
well-run agency has accomplished a great deal over its 35-year 
existence, much more needs to be done. For this reason I 
enthusiastically support the legislation and the continuation of the 
ARC.
  ARC programs affect 406 counties located in 13 States, including all 
of West Virginia and parts of Alabama, Georgia, Kentucky, Maryland, 
Mississippi, New York, North Carolina, Ohio, Pennsylvania, South 
Carolina, Tennessee, and Virginia. This region covers nearly 200,000 
square miles and contains approximately 22 million people. Using 
criteria based on national averages for income, unemployment, and 
poverty rates, the ARC administers its programs. Currently of ARC's 406 
counties, 114 are considered distressed.
  ARC'S decision making and service delivery is so efficient that the 
ARC served as a model for the Delta Regional Authority. The partnership 
between the Federal Government and the States rests on true shared 
decision making between the Federal co-chair and the States with 
funding decisions devolving back to the States. The ARC is successful 
because it responds to identified and agreed-upon needs and is 
extremely flexible in its approach. This bill also authorizes the 
designation of at-risk counties and identifies the percentage of funds 
for which these counties are eligible.
  The bill allows the ARC to continue its economic development 
activities. I want to thank Chairman Oberstar for including provisions 
I offered during the committee's markup to establish a new economic and 
energy development initiative. This provision authorizes $65 million 
over the next 5 years for projects that increase the use of renewable 
energy resources in the region to promote alternative transportation 
fuels, electricity, and heat.
  We all know that economies require energy and infrastructure to 
thrive. And I believe that alternative energy production will breathe 
life into the struggling areas of Appalachia. In addition to these 
potential alternative energy resources, the Appalachian region 
possesses an extensive industrial manufacturing base that is already 
engaged in some of these emerging energy technologies, particularly 
wind turbine components, solar components, photovoltaic panels, and 
biofuel plants.
  This provision will enable ARC to fund projects that utilize the 
region's natural resources in a positive way and to promote the 
development of renewable energy. We will be invigorating the economies 
of our Appalachian counties while working to gain energy independence.

                              {time}  1115

  That is a principle that all of us agree is important.
  Let me end by saying that what we're doing today is consistent with 
the forward-looking approach that President John Kennedy employed when 
he first created the Appalachian Regional Commission in the early 
1960s. After witnessing firsthand an Appalachia that was home to, in 
his words, ``hungry children, old people who cannot pay their doctors' 
bills, families forced to give up their farms,'' President Kennedy 
vowed to create a bold, new approach to ridding the region of poverty. 
Today we're attempting to carry on that legacy. We are boldly seeking 
to employ 21st-century technologies to bring economic development to a 
region that for decades has been underserved.
  I support this bill and urge my colleagues to join me in supporting 
this bill because it goes a long way to enabling the ARC to fulfill its 
mission.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
  I rise today in support of S. 496, the Appalachian Regional 
Development Act Amendments of 2008. I would like to thank Chairman 
Oberstar, Chairwoman Norton, Ranking Member Mica, Ranking Member Graves 
and also my colleague from Ohio, Representative Space, for their 
steadfast support of the Commission and for the people of Appalachia.
  As a Member of Congress from West Virginia, I can attest to the 
tremendous work the Appalachian Regional Commission, or the ARC as it 
is called, has done to bring clean water, safe roads, new jobs and a 
better quality of life to millions of people in the Appalachian region.
  Over the last few years, the ARC has made a number of investments in 
my district, including an economic development strategy and business 
incubator in Elkins, a child care facility in Moorefield, and the new 
Corridor H highway.
  The Appalachian Regional Development Act of 1965 established the ARC 
to promote regional coordination and develop projects that will trigger 
jobs, economic growth, and a better quality of life. The Commission is 
led by two co-chairmen. One is Presidentially appointed and Senate-
confirmed, and the other is selected by the Governors of the 
participating States. As my colleague mentioned, the Commission 
includes all or part of 13 States, including the entire State of West 
Virginia, parts of Tennessee, Ohio, Pennsylvania, New York and 
Mississippi. The House companion bill passed the House last year. The 
Senate bill we are considering today includes an amendment that 
reflects our agreement with the Senate on the differences.
  The bill reauthorizes the Commission for 5 years. In addition, the 
bill amends current law to allow the Commission to cover up to 70 
percent of costs for projects that address problems in communities at 
risk of becoming distressed in the region. These programs include 
infrastructure projects, demonstration health projects, housing 
projects and initiatives for telecommunications, technology and 
entrepreneurship.
  This bill also authorizes the creation, as my colleague mentioned, of 
the Economic and Energy Development Initiative, which I think is a 
great addition, which will provide grants to develop new alternatives 
for utilizing our vast conventional energy resources. I'm also pleased 
that this compromise includes language from the House bill which would 
discourage earmarking projects in future appropriation bills.
  Leveraging Federal funds in West Virginia and the other Appalachian 
States has helped dramatically improve our communities over the years. 
The investment has resulted in a reduction of poverty, the creation of 
jobs, and the improvement of health and education. We still have a ways 
to go. And that is why I think this bill is extremely important for 
reauthorization today.
  The work of the Commission is an example of the Federal and State 
partnership that has promoted economic

[[Page 15030]]

growth in needed areas and distressed areas of high unemployment and 
high poverty so that these communities can begin to prosper 
independently in the future.
  Thank you again. I urge my colleagues to support the bill.
  I reserve the balance of my time.
  Mr. SPACE. Mr. Speaker, at this time I yield 3 minutes to my friend 
and colleague from West Virginia, Congressman Rahall.
  Mr. RAHALL. I thank the gentleman from Ohio for yielding.
  I certainly want to commend him as well as our full committee 
chairman, Mr. Oberstar from Minnesota, for their invaluable work over 
the years that I have been in this body on the Appalachian Regional 
Commission. Their full committee chairman, Mr. Oberstar, is strongly in 
support of the Appalachian Regional Commission. He has been to our 
State of West Virginia and seen how important it is. And this bill 
certainly would not only extend the work of the Appalachian Regional 
Commission, but it would enhance that work.
  Throughout my career as a Member of this body, I have supported the 
work of ARC. West Virginia is the only State that has its entire 
borders within the jurisdiction of the Appalachian Regional Commission. 
We have seen firsthand how it has enabled struggling communities 
throughout West Virginia and the Appalachian region to provide economic 
opportunity and a renewed sense of hope to our citizens.
  I would like to point out specific provisions in this bill aimed at 
increasing American-made energy for America. We have spent weeks on 
this floor hearing about the need to increase domestic energy supplies 
by becoming even more beholden to Big Oil. But we have at our 
fingertips the chance to help forge a better solution.
  We possess the technological know-how to convert coal to 
environmentally advanced transportation fuels and electric power. This 
bill recognizes that and provides for an infusion of investment to help 
make that happen. A provision in this legislation, for example, would 
enable the ARC to make grants, provide technical assistance, enter into 
contracts and otherwise provide for projects that would increase the 
use of renewable energy, particularly biomass, in the Appalachian 
Region to produce alternative transportation fuels.
  This is extremely important in helping make a commercial coal-to-
liquids industry a reality in this country. The use of biomass with 
coal in the conversion process can sharply cut carbon emissions of 
coal-to-liquid fuels.
  A study provided by Princeton University found that by combining 30 
percent biomass with coal in the conversion process and capturing and 
sequestering the carbon dioxide, CTL fuel can be made cleaner than 
other conventional liquid fuels in use today. A second provision in the 
bill would provide support for the development of conventional energy 
resources, such as coal, to provide electricity using advanced 
greenhouse gas reduction technologies. More plainly, it would help to 
advance projects which would capture and store carbon emissions, a 
necessity to our continued use of coal and other fossil fuels 
throughout the foreseeable future.
  In this age of increasing energy need and growing carbon awareness, 
it makes sense that such an initiative would find a home in Appalachia, 
a region in which much of the economy is intertwined with coal. The 
development of CTL and the success of carbon capture and storage is 
vital to the Nation's quest for greater energy independence. CTL fuels 
will assure us of a readily usable, environmentally advanced 
alternative to current high-cost transportation fuels.
  The SPEAKER pro tempore. The time of the gentleman from West Virginia 
has expired.
  Mr. SPACE. I yield the gentleman 30 additional seconds.
  Mr. RAHALL. And they are strategically beneficial to our Defense 
Department, which is vigorously pursuing the growth of a domestic 
alternative fuels industry to make the fuels it needs to keep America 
secure.
  So I conclude with proud support of this bill to get our Nation 
beyond our reliance on foreign fuels and to get our people out from 
under the heavy hand of Big Oil.
  Again, I commend the gentleman from Ohio for his leadership on this 
issue.
  Mr. SPACE. I reserve my time.
  Mrs. CAPITO. I would like to yield such time as he may consume to my 
friend from Tennessee (Mr. Duncan).
  Mr. DUNCAN. Mr. Speaker, I thank the gentlewoman for yielding this 
time.
  I rise in support of this bill. I have seen over the years a great 
deal of good work that has gone on by the Appalachian Regional 
Commission and the projects it has funded in its 13-State region and 
especially in my home State of Tennessee where much of their activities 
have been concentrated.
  I read recently that two-thirds of the counties in the U.S. are 
losing population. That surprises people in my particular district 
because the Knoxville area has become one of the most popular places to 
move to in the whole country. But there are many counties in Tennessee 
and throughout the Appalachian region and many small towns and rural 
areas that are still struggling. Many of these small towns and rural 
areas are barely holding on.
  The previous speaker mentioned more energy production. We've got to 
have more production of oil in this country or we're going to put the 
final nail in the coffin of the small towns and the rural areas because 
those people as a rule have to drive further distances to go to work 
and to meet other needs.
  In addition, the Office of Surface Mining caused almost all the small 
coal companies in east Tennessee to go out of business. I was told at 
one time that in 1978 there were 157 small coal companies in east 
Tennessee, and now are there none. I have noticed over the years that 
most of these environmental radicals come from very wealthy and very 
upper-income families. And they have always wanted gas to go higher, 
and they have always opposed all types of energy production. Well maybe 
they can afford $5 and $6-per-gallon gasoline. But most lower and 
middle-income people in this country can't. It may be true that we 
can't drill our way out of the current crisis. But we also can't get 
out of the crisis that we're in on energy without having more drilling 
for oil in this country and more production of coal where it can be 
done in environmentally safe ways where it couldn't be done previously.
  So I agree with the previous speaker that we need more domestic 
energy production in this country to help the Appalachian Region and 
also to further the activities of the Appalachian Regional Commission.
  Mr. SPACE. Mr. Speaker, I yield myself 3 minutes.
  This bill helps rectify some of the injustices and inequities that 
exist in this country with respect to rural America and in particular 
rural Appalachian America. We who live in Appalachian America 
understand all too well that we suffer from disadvantages, access to 
education, access to health care and access to technology put us at a 
distinct disadvantage. With the price of gas now at $4 plus per gallon, 
we don't generally have public transportation. We generally have to 
drive farther to where we need to be, work, school and the doctor. The 
price of gas has just made this discrepancy all the more onerous and 
difficult for the folks of Appalachia to bear.
  Recently, I had the experience of visiting a food line in Zanesville, 
Ohio, and a food distribution line in Logan, Ohio, where lines of 
hungry people in Logan over 2 miles long, cars lined up on the side of 
the road waiting to participate in food drives. We're talking about 
people that have worked all their lives, senior citizens that can no 
longer afford to put food on the table. We're talking about young 
mothers who are working full time yet can't afford to feed their 
children. This bill will help address many of the inequities and 
injustice that John Kennedy identified in Appalachia in the early 
1960s.
  In many ways, those same injustices are still present, and these 
funds represent vital sources of funding for the

[[Page 15031]]

people that we represent, ``we'' being those of us from Appalachia.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I would like to yield 3 minutes to my 
colleague from Ohio (Mr. LaTourette).
  Mr. LaTOURETTE. I thank the gentlelady for yielding me time.
  Mr. Speaker, I rise in strong support of S. 496, the reauthorization 
of the Appalachian Regional Commission. While we would have enjoyed 
having the House bill on the floor, we appreciate very much having the 
Senate bill. I want to express my thanks during the first part of my 
remarks to the chairman of the full committee, Mr. Oberstar of 
Minnesota, for really making sure that this happened. I had the 
pleasure of being the chairman of this subcommittee in a couple of 
previous Congresses ago, and this is a difficult bill to navigate 
through the House and the Senate.
  And the fact that we're here today is a tribute to the leadership of 
the gentleman from Minnesota. I also thank the ranking member of the 
full committee, Mr. Mica of Florida. And I want to thank a colleague of 
mine from Ohio, because in this bill we have added three counties in 
Ohio to the 29 counties in Ohio already located within the ARC. And the 
last county was Columbiana County added in 1990. We now are adding in 
this bill Ashtabula, Trumbull and Mahoning Counties.
  And the fact that they're in the bill is not only a credit to Mr. 
Oberstar, Mr. Mica and the Transportation and Infrastructure Committee, 
but also to Mr. Tim Ryan, the Congressman from Youngstown, who shares 
at least two of those counties with me. And we saw the vital need to 
have them included in the ARC. And we're very grateful.
  On the Senate side we are grateful to Senator Voinovich for making 
sure these counties, despite the fact that we have been at this 5 
years, and every year we get the counties added in the bill, and then 
it goes over to the Senate and somebody has a goofy idea over there and 
they drop out. This year I'm grateful that Senator Voinovich and our 
colleagues in the House have maintained these three counties in the 
bill. And just the way when my friend and colleague from Ohio (Mr. 
Space) was speaking, we recognize the value of John Kennedy's vision 
when he dispatched folks to look at the conditions in Appalachia. And 
we've really moved light years from that.
  The ARC is a template for economic development in all of those 
regions. And we just want to be part of it. If you look at a map of the 
State of Ohio, the only sort of areas of white, and white being where 
there is no Regional Development Commission, Federal Commission, are 
the three counties that are being added today.

                              {time}  1130

  Just one example, Kinsman, Ohio, the home of Clarence Darrow, the 
famous orator and attorney, is looking at a major sewer project. We are 
working with the United States Department of Agriculture, but by being 
in the ARC, they will get extra points, extra opportunities to make 
that a reality. So when you are dealing with 300 landowners and a price 
tag of $20 million, the assessment isn't astronomical in terms of 
$70,000 or $80,000 just to hook up the water and sewer.
  So we are excited about this opportunity and very grateful that this 
bill has come to the floor in a way that adds these counties.
  I would say to Mr. Space that we are all suffering, rural America, 
suburban America, exurban America. I don't like to trumpet in a 
partisan fashion on the floor, but I will tell you the folks in my part 
of Ohio want us to do something. They have said enough arguing. You 
have a lot of brainy ideas in Washington, DC. It is time to stop 
favoring one group over the other. Let's bring it all together and 
let's talk about oil, let's talk about coal, let's talk about nuclear, 
let's talk about renewables, but get it done so I can put gas in my gas 
tank.
  Mr. SPACE. Mr. Speaker, I yield 3 minutes to the gentleman from 
Tennessee (Mr. Lincoln Davis).
  Mr. LINCOLN DAVIS of Tennessee. Mr. Speaker, I say thanks to my good 
friend from Ohio (Mr. Space) and others on the other side of the aisle 
who have taken it upon themselves to be sure that the ARC, the 
Appalachian Regional Commission, continues to exist.
  Appalachia has long been plagued by lack of job opportunities and 
high unemployment, resulting in low per capita income, educational 
deficiencies, and a dilapidated infrastructure.
  The Conference of Appalachian Governors was formed in 1960 to develop 
a regional approach to resolving these problems. In 1961 they brought 
their cause to President John F. Kennedy, known to have been moved by 
the poverty he saw during his campaign trips to West Virginia. At the 
time, one of every three Appalachians lived in poverty. Per capita 
income was 23 percent lower than the U.S. average. High unemployment 
and harsh living conditions had, in the 1950s, forced more than 2 
million Appalachians to leave their homes and seek work in other 
regions of the Nation. By 1963, Kennedy had formed the President's 
Appalachian Regional Commission and directed it to create a 
comprehensive program for economic development of the Appalachian 
region. The resulting report was endorsed by the Conference of 
Appalachian Governors and President John Kennedy's cabinet. Soon after, 
Lyndon B. Johnson used the report to create legislation which 
ultimately created the Appalachian Regional Commission in 1965.
  The ARC has long worked to address the long-term economic distress 
and isolation of the Appalachian region, and to press for greater 
Federal involvement in addressing the region's common problems. The ARC 
funds several hundreds projects annually affecting one of our Nation's 
most underserved populations. The ARC has played a leading role in 
granting consistently impoverished communities with improving water and 
sewer systems, sometimes providing running water for the first time, 
improving educational resources and teacher training in schools, access 
to health care, access to telecommunications and the Internet, and 
providing technical assistance for new business initiatives. They 
provide State and local agencies such as economic development agencies 
and human resource agencies in my 10,000-square mile congressional 
district, as well as nonprofit organizations. These projects have 
resulted in thousands of jobs.
  Mr. Speaker, this is just the tip of the iceberg of ARC's good works. 
It is necessary and appropriate to reauthorize this valuable asset for 
rural America. It is my hope this Congress does. And on a note from 
those that I represent, without that funding from ARC and many of the 
Federal agencies, people who are my neighbors would not be able to have 
a water line that has usable water, safe water, a sewer system, nor 
would they have in many cases first responder buildings, as well as 
equipment that is much needed.
  Mrs. CAPITO. Mr. Speaker, I have no further speakers, and I would 
just like to offer my gratitude to all of the Members who have worked 
so hard on this. This is extremely important to my home State of West 
Virginia. My entire State is part of the ARC. I mentioned several 
projects in my State. The gentleman from Tennessee mentioned water 
projects. I have two going right now that are the beneficiaries of ARC 
funding.
  I think it is important to realize, too, that this is a partnership 
between the Federal Government and the States. By leveraging ARC funds 
just this year, $9.55 million in my State of West Virginia, has 
resulted in another $16 million of additional investment.
  This part of our country has historically struggled, and with the 
current energy issues that we have before us and the high price of 
gasoline, we are an energy-rich region of this country. We can 
contribute to the solutions through either coal to liquid and our 
natural gas reserves and other things that need to be added to a 
comprehensive, all-of-the-above energy plan for this country.
  With that, I express my deep gratitude and also my deep commitment to 
the ARC and its continuation.

[[Page 15032]]


  Mr. OBERSTAR. Mr. Speaker, I rise in strong support of S. 496, as 
amended, a bipartisan bill to improve the programs authorized by the 
Appalachian Regional Development Act of 1965 (Pub. L. 89-4) and 
reauthorize the Appalachian Regional Commission (``ARC'') for 5 years 
through fiscal year 2012.
  The Appalachian Regional Commission was created to address economic 
issues and social problems of the Appalachian region as a part of 
President Lyndon B. Johnson's Great Society program. Historically, the 
Appalachian region has faced high levels of poverty and economic 
distress resulting from geographic isolation and inadequate 
infrastructure.
  As a regional economic development agency, the ARC supports the 
development of Appalachia's economy and critical infrastructure to 
provide a climate for industry growth and job creation in 13 States, 
including all of West Virginia, and parts of Alabama, Georgia, 
Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, 
Pennsylvania, South Carolina, Tennessee, and Virginia. The Appalachian 
region covers nearly 200,000 square miles and contains nearly 23 
million people. Currently, of the 410 counties included in the ARC, 78 
are economically distressed counties and an additional 78 counties are 
classified as ``at-risk''.
  Since its creation in 1965, the ARC has administered a variety of 
programs to aid in the advancement of the region, including 
construction of the Appalachian Development Highway System, 
enhancements in education and job training, and the development of 
water and sewer systems. The ARC's funding and projects have 
contributed significantly to employment, health, and general economic 
development improvements in the region. According to research conducted 
by Brandow Co. and the Economic Development Research Group, three 
fourths of ARC infrastructure projects with specific business or job-
related goals met or exceeded formal projections.
  S. 496 builds upon more than four decades of economic development 
successes by providing additional, much-needed Federal investment in 
the region. It authorizes $510 million over the 5-year period through 
fiscal years 2012.
  In addition, the bill provides authority for the Commission to make 
technical assistance grants for energy efficient projects or projects 
to increase the use of renewable energy resources. The bill authorizes 
$65 million for the ARC to provide grants to promote energy efficiency 
and increase the use of renewable energy in Appalachia. This energy 
efficiency authorization is an outgrowth of the ARC's Energizing 
Appalachia report and I thank the gentleman from Ohio (Mr. Space) for 
working to include this provision in the House bill and this House-
Senate compromise bill. The gentleman is a true champion of Appalachia 
and I thank him for his efforts to move this bill forward.
  ARC's authorization expired at the end of fiscal year 2006. This bill 
includes the anti-earmarking provision that I have insisted upon for 
the last three years in response to the Republican-led earmarking of 
ARC projects by the Committee on Appropriations. I am encouraged that 
the Committee on Appropriations, under the leadership of Chairman Obey 
and Chairman Visclosky, has halted this practice. This provision will 
ensure that a future Congress doesn't restart it.
  I urge my colleagues to join me in supporting this House-Senate 
bipartisan compromise bill, S. 496, to reauthorize the Appalachian 
Regional Commission.
  Mrs. CAPITO. Mr. Speaker, I yield back the balance of my time.
  Mr. SPACE. Mr. Speaker, in thanking the gentlewoman from West 
Virginia for her very able advocacy of this bill, I too yield back the 
balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. Space) that the House suspend the rules and 
pass the Senate bill, S. 496, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the Senate bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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