[House Report 107-180]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-180
======================================================================
APPALACHIAN REGIONAL DEVELOPMENT REAUTHORIZATION ACT OF 2001
_______
August 1, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 2501]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 2501) to reauthorize the
Appalachian Regional Development Act of 1965, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
Purpose and Summary of the Legislation
H.R. 2501, the ``Appalachian Regional Development
Reauthorization Act of 2001,'' amends the Appalachian Regional
Development Act of 1965 (ARDA) to extend the authorization for
the Appalachian Regional Commission (ARC) through fiscal year
2006. The bill also revises and updates ARDA to reflect new
initiatives and better target ARC resources to economically
distressed communities.
The Committee recognizes the need for continued federal
assistance to economically distressed communities in
Appalachia. This bill targets these communities in several ways
including providing the Appalachian region with tools to
compete in the changing economy and requiring ARC to direct at
least fifty percent of its project funds toward activities in
distressed counties and areas.
Background on the Legislation
During the Subcommittee's hearing on June 20, 2001 on ARC's
reauthorization, the Committee received extensive testimony
regarding the progress ARC's programs have made in Appalachia.
While ARC has accomplished a great deal over the past 35 years,
there is still much to be done to bring Appalachia's economy to
the national average. For this reason, the Committee strongly
endorses the need for the continuation of the ARC's programs.
The economic prosperity enjoyed by the Nation during the 1990s
did not reach all of Appalachia, and ARC has continued to
assist the region through its federal-state-local partnership.
In recent years, Appalachia has endured great economic hardship
resulting from the loss of its major industry. ARC is assisting
the region to assimilate to the change through coordinated
regional planning and innovative proposals, which have resulted
in successful sustaining projects designed to replace coal
mining and other dying industries.
ARC has significantly improved the lives of Appalachians.
In recognition of ARC's achievements, the Commission served as
a model for creating the newly established Delta Regional
Authority. ARC's success lies in its ability to involve each
level of government in project identification and funding. The
partnership between ARC federal co-chairman and 13 member state
governors requires federal and state representatives to share
equally in making policy decisions, approving state development
plans, and allocating funds. Each state submits an annual state
development plan, which includes a list of projects to be
completed within the state. The plan is subject to review and
subsequent approval by the majority of the Commission. Since
all funding decisions are made jointly by the states and the
federal government, ARC is cited as a model program for
devolving funding decisions back to the states.
The ARC was established to address the unique problems
faced by the isolated Appalachian region, which separates it
from the economic mainstream. ARC's regional approach to
economic development enables states to work cooperatively to
address issues unique to the region. Due to its economic
distress, many Appalachian communities lack basic resources
needed to match other federal programs. ARC is able to provide
funds to these distressed areas at an 80 percent matching rate.
Ultimately, ARC is able to succeed because it responds to
identified and agreed upon needs, and is extremely flexible in
its approach. ARC also leverages its funds to provide resources
to bundle multiple federal programs.
Prior to the reauthorization passed in 1998, the
Appalachian Regional Commission was funded by appropriators,
but remained unauthorized for 17 years, despite Committee
efforts to reauthorize the program. By the time of the
reauthorization, many issues had been identified through
continued oversight over the Commission. Reforms implemented in
the 1998 reauthorization targeted these issues and focused
ARC's funding efforts on communities in the greatest need. One
important reform required ARC to designate the poorest counties
in Appalachia as ``distressed'' and designate those counties
that had achieved parity with the rest of the Nation as
``economically strong.''
ARC's programs affect 406 counties located in thirteen
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 region contains nearly 200,000 square miles and
22 million people. ARC reviews each of these counties on an
annual basis to determine which designation each county
receives--distressed, transitional, competitive or attainment.
A county is classified according to a comparison with the
national average on unemployment, poverty rate and per capita
market income. Distressed counties have a three-year average
unemployment rate that is at least 150% of the national
average, a poverty rate at least 150% of the national average,
and a per capita market income of no more than two-thirds of
the national average. Currently, of ARC's 406 counties, 114 are
considered to be distressed.
H.R. 2501 continues the Committee's previous focus on
distressed counties, requiring ARC to deliver at least half of
its program funds to activities in distressed counties and
areas. In the past, ARC was given wide latitude to define the
categories of ``distressed'' and ``economically strong,'' and
has shown great diligence in ensuring that these categories
have meaning in the scope of their program decisions. These
definitions are based on three factors: employment, poverty and
per capita market income. The Committee expects ARC to identify
similar factors to be relied upon for implementation of funding
in distressed areas that may not be located within the confines
of a distressed county. These areas are currently described in
ARDA as ``severely and persistently distressed,'' but lack a
statutory definition. The Committee notes that while an entire
county may not qualify as ``distressed,'' there may be pockets
of economic distress within a county in need of assistance.
Therefore, these pockets should be included in the fifty
percent funding target. The Committee notes that while ARC
focuses on funding projects in distressed areas, it should do
so while continuing to utilize a regional approach to economic
development.
H.R. 2501 does not alter any current authorizations or
authorities affecting the 3,025 mile Appalachian Development
Highway System. The Transportation Equity Act for the 21st
Century (TEA-21) has already provided necessary amendments for
the highway program. As such, the amendments in H.R. 2501 focus
on ARC's administration and area development program.
Testimony received during the Committee hearing illustrated
the progress ARC has made implementing the 1998 reauthorization
reforms. As such, the Committee reauthorizes ARC for a period
of five years and provides ARC with additional funding to
assist Appalachian residents to acquire better access to
telecommunications and technology, thereby enabling the region
to participate in the changing economy.
H.R. 2501
The Committee notes that ARC is one of several federal
agencies administering economic development programs in
Appalachia. While ARC's programs are administered according to
regional development plans and are approved according to state
development plans, other federal economic programs in the
region may provide assistance that is not reflected in these
plans. As such, the Committee recognizes the need for
coordination of these economic development projects and
provides for the creation of a council to bring federal
agencies together to organize the delivery of federal economic
development projects in the region.
While much of the Nation is experiencing the benefits of
access to technology and telecommunications, Appalachia has
extremely limited access to these assets. H.R. 2501 provides
ARC with the authority to provide technical assistance and
provide funds to increase affordable access to advanced
telecommunications, provide education and training, assist
industry groups and businesses in preparing to utilize
technology, and support entrepreneurial opportunities in the
region. The Committee authorizes $10 million for FY 2002 and
such sums as may be necessary through 2006. The Committee
anticipates that this initiative will enable Appalachians to
compete in the changing economy.
H.R. 2501 also continues the theme of the 1998
Reauthorization by requiring ARC to direct at least half of its
project funds to activities in distressed counties. The
Committee notes that it does not intend to exclude pockets of
distress that may exist within counties that on the whole do
not qualify under the requirements as distressed. Instead, the
Committee directs ARC to provide a definition for a distressed
area, which would also be eligible for funding under this
targeted requirement. The Committee grants ARC the discretion
to establish this definition based on ARC's current commitment
to target funds to distressed areas. Nevertheless, the
Committee intends to closely monitor the designation process
used by the Commission to assess whether further statutory
guidance may be needed. Local Development Districts (LDDs) that
include a distressed county will also benefit from H.R. 2501.
LDDs that include a distressed county are eligible for an
increased federal cost share of 75 percent for administrative
expenses. The bill also makes technical amendments to update
program terminology and to eliminate references to outdated
programs.
The Committee authorizes ARC for five years ending in FY
2006. Total authorizations for ARC are $78 million for FY 2002,
$80 million for FY 2003, $83 million for FY 2004, $85 million
for FY 2005 and $87 million for FY 2006.
Section-by-Section Analysis
Section 1. Short title
The Act may be cited as the ``Appalachian Regional
Development Reauthorization Act of 2001.'' All amendments are
made to the Appalachian Regional Development Act of 1965.
Section 2. Coordination of Appalachian regional development programs
Requires the President to create the ``Interagency
Coordinating Council on Appalachia'' to coordinate federal
economic development programs in the Appalachian region. The
council will be chaired by the Appalachian Regional Commission
(ARC) federal cochairman and will consist of representatives of
federal departments and agencies carrying out economic
development programs in Appalachia.
Section 3. Telecommunications and technology
Enables ARC to provide technical assistance, make grants,
enter into contracts and otherwise provide funds to increase
affordable access to advanced telecommunications in the region;
provide education and training for people, businesses and
governments in telecommunications technology; develop relevant
technology readiness programs for industry groups and
businesses; and support entrepreneurial opportunities in
information technology in the region. The program is authorized
for 2002 at $10 million and such sums as may be necessary
through 2006.
Section 4. Program development criteria
Requires ARC to distribute at least half of its project
grant funds to distressed counties.
Section 5. Grants for administrative expenses of local development
districts (LDDs)
Provides grants for administrative expenses at 75% federal
share for development districts that include one or more
counties designated as distressed. LDDs that do not contain a
distressed county remain eligible for administrative expense
grants at a 50/50 cost share.
Section 6. Addition of counties to Appalachian region
Expands ARC's jurisdiction to include six additional
counties.
Section 7. Technical amendments
Updates terminology by replacing outdated terms including
``implementing investment program'' and ``development program''
with ``strategy statement'' and ``development strategy.''
Provides ARC with the authority to lease office space for a
term exceeding its authorization period. Eliminates references
to federal grant in aid programs no longer in existence or not
used by ARC. Eliminates references to repealed authorities.
Section 8. Authorization of appropriations
Provides authorization of appropriations in the amount of
$78 million for FY 2002, $80 million for FY 2003, $83 million
for FY 2004, $85 million for FY 2005 and $87 million for FY
2006.
Section 9. Termination
Extends the date the Appalachian Regional Development Act
will cease to be in effect to October 1, 2006.
Hearings
The Subcommittee on Economic Development, Public Buildings
and Emergency Management held a hearing on the reauthorization
of the Appalachian Regional Commission on June 20, 2001.
Witnesses at this hearing included the federal and state co-
chairmen, a former state co-chairman, a representative from a
local development district and an individual from a county
development organization. Testimony from this hearing
illustrated the important work ARC has completed through its
partnerships with states to improve economic conditions in
highly distressed areas.
Committee Consideration
H.R. 2501 was introduced on July 16, 2001. The Subcommittee
on Economic Development, Public Buildings and Emergency
Management favorably reported the bill by unanimous voice vote
with no amendments on July 17, 2001. On July 18, 2001, the Full
Committee met in open session and ordered reported H.R. 2501
unanimously by voice vote with no amendments.
Roll Call Votes
Clause 3(b) of rule XIII requires each committee report to
include the total number of votes cast for and against on each
roll call vote on a motion to report and on any amendment
offered to the measure or matter, and the names of those
members voting for and against. There were no recorded votes
taken in connection with ordering H.R. 2501 reported. A motion
by Congressman Steven C. LaTourette to order H.R. 2501 reported
to the House was unanimously agreed to by voice vote, a quorum
being present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of the Legislation
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office (CBO)
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation are to
extend the authorization of the Appalachian Regional Commission
and to make amendments.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
2501 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 26, 2001.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2501, the
Appalachian Regional Development Reauthorization Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Lanette. J.
Walker.
Sincerely,
Steven M. Lieberman
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
H.R. 2501--Appalachian Regional Development Reauthorization Act of 2001
Summary: CBO estimates that H.R. 2501 would authorize the
appropriation of $473 million for the Appalachian Regional
Commission over the 2002-2006 period. The bill would establish
an Interagency Coordinating Council on Appalachia and create a
program to provide enhanced access to telecommunications and
technology. H.R. 2501 also would expand the definition of the
region to include six additional counties: three in Kentucky
and three in Mississippi. Under H.R. 2501, these six counties
would be eligible to receive grants from the commission. CBO
estimates that implementing H.R. 2501 would cost $246 million
over the 2002-2006 period, assuming the appropriation of the
necessary amounts. Because this bill would not affect direct
spending or receipts, pay-as-you-go procedures would not apply.
H.R. 2501 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
New authorizations of appropriations totaling $413 million over
the 2002-2006 period would support a variety of grant programs
to state and local governments in the Appalachian region. In
addition, CBO estimates that a total of $60 million would be
authorized over the 2002-2006 period for telecommunications and
technology assistance to those governments. Any costs
associated with applying for or implementing those grants would
be voluntary.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2501 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2001 2002 2003 2004 2005 2006
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending under current law for the Appalachian Regional
Commission:
Budget authority \1\.................................. 77 0 0 0 0 0
Estimated outlays..................................... 118 92 66 36 18 7
Proposed changes:
Estimated authorization level......................... 0 88 91 95 98 101
Estimated outlays..................................... 0 9 27 54 71 85
Spending under H.R. 2501 for the Appalachian Regional
Commission:
Estimated authorization level \1\..................... 77 88 91 95 98 101
Estimated outlays..................................... 118 101 93 90 89 92
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year for the Appalachian Regional Commission.
Basis of estimate: For this estimate we assume the
necessary amounts will be provided each year and that spending
will follow historical patterns. CBO estimates that
implementing H.R. 2501 would cost $246 million over the next
five years
H.R. 2501 would authorize the appropriation of $413 million
over the 2002-2006 period for the Appalachian Regional
Commission to provide grants to state and local governments to
support economic and social development within Appalachia. In
addition, the bill would create a program to provide enhanced
access to telecommunications and technology and authorize the
appropriation of $10 million in fiscal year 2002 and such sums
as are necessary over 2003-2006 period. Assuming annual
adjustments for anticipated inflation, we estimate that this
provision of H.R. 2501 would authorize the appropriation of $60
million over the five-year period for this new program.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 2501
contains no intergovernmental or private-sector mandates as
defined in UMRA. New authorizations of appropriations totaling
$413 million over the 2002-2006 period would support a variety
of grant programs to state and local governments in the
Appalachian region. In addition, CBO estimates that a total of
$60 million would be authorized over the 2002-2006 period for
telecommunications and technology assistance to those
governments. Any costs associated with applying for or
implementing those grants would be voluntary.
Estimate prepared by: Federal Costs: Lanette J. Walker;
Impact on State, Local, and Tribal Governments: Leo Lex; Impact
on the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (P.L. 104-4).
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965
* * * * * * *
TITLE I--THE APPALACHIAN REGIONAL COMMISSION
membership and voting
Sec. 101. (a) * * *
(b) Except as provided in section 105, decisions by the
Commission shall require the affirmative vote of the Federal
Cochairman and of a majority of the State members (exclusive of
members representing States delinquent under section 105). In
matters coming before the Commission, the Federal Cochairman
shall, to the extent practicable, consult with the Federal
departments and agencies having an interest in the subject
matter. A decision involving Commission policy, approval of any
State, regional, or subregional development plan or
[implementing investment program] strategy statement, any
modification or revision of the Appalachian Regional Commission
Code, any allocation of funds among the States, or any
designation of a distressed county or an economically strong
county shall not be made without a quorum of the State members.
The approval of project and grant proposals shall be a
responsibility of the Commission and exercised in accordance
with section 303 of this Act.
* * * * * * *
functions of the commission
Sec. 102. (a) In carrying out the purposes of this Act, the
Commission shall--
(1) * * *
* * * * * * *
(5) encourage the formation and support of local
development districts;
* * * * * * *
[liaison between federal government and the commission
[Sec. 104. The President]
SEC. 104. COORDINATION OF APPALACHIAN REGIONAL DEVELOPMENT PROGRAMS.
(a) Liaison Between Federal Government and Commission.--The
President shall provide effective and continuing liaison
between the Federal Government and the Commission and a
coordinated review within the Federal Government of the plans
and recommendations submitted by the Commission pursuant to
sections 102 and 103.
(b) Interagency Coordinating Council.--
(1) In general.--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
Appalachian region.
* * * * * * *
administrative powers of commission
Sec. 106. To carry out its duties under this Act, the
Commission is authorized to--
(1) * * *
* * * * * * *
(7) enter into and perform such contracts, leases
(including notwithstanding any other provision of law,
the lease of office space [for any term expiring no
later than September 30, 2001]), cooperative
agreements, or other transactions as may be necessary
in carrying out its functions and on such terms as it
may deem appropriate, with any department, agency, or
instrumentality of the United States (which is hereby
so authorized to the extent not otherwise prohibited by
law) or with any State, or any political subdivision,
agency, or instrumentality thereof, or with any person,
firm, association, or corporation.
* * * * * * *
TITLE II--SPECIAL APPALACHIAN PROGRAMS
Part A--New Programs
* * * * * * *
SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY.
(a) In General.--In order to ensure that the people and
businesses of the Appalachian region have the knowledge,
skills, and access to telecommunications services to compete in
the technology-based economy, the Commission may provide
technical assistance and make grants, enter into contracts, and
otherwise provide funds for the following purposes:
(1) To increase affordable access to advanced
telecommunications in the region.
(2) To provide education and training for people,
businesses, and governments in the region in the use of
telecommunications technology.
(3) To develop relevant technology readiness programs
for industry groups and businesses in the region.
(4) To support entrepreneurial opportunities in
information technology in the region.
(b) Sources of Funding.--Assistance provided under this
section may be provided entirely from appropriations made
available to carry out this section or in combination with
funds available under a Federal grant-in-aid program (as
defined in section 214(c)), under another Federal program, or
from any other source.
(c) Federal Share Limitations Specified in Other Laws.--
Notwithstanding any provision of law limiting the Federal share
in a Federal grant-in-aid program or other Federal program,
funds appropriated to carry out this section may be used to
increase such Federal share, as the Commission determines
appropriate.
(d) Authorization of Appropriations.--There is authorized to
be appropriated to the Commission to carry out this section
$10,000,000 for fiscal year 2002 and such sums as may be
necessary for fiscal years 2003 through 2006. Such sums shall
remain available until expended.
* * * * * * *
Part B--Supplementations and Modifications of Existing Programs
* * * * * * *
supplements to federal grant-in-aid programs
Sec. 214. (a) In order to enable the people, States, and
local communities of the region, including local development
districts, to take maximum advantage of Federal grant-in-aid
programs (as hereinafter defined) for which they are eligible
but for which, because of their economic situation, they cannot
supply the required matching share, or for which there are
insufficient funds available under the Federal grant-in-aid Act
authorizing such programs to meet pressing needs of the region,
the Federal Cochairman may use amounts made available to carry
out this section for all or any portion of the basic Federal
contribution to projects or activities (hereinafter referred to
as projects) under such Federal grant-in-aid programs
authorized by Federal grant-in-aid Acts, and for the purpose of
increasing the Federal contribution to projects under such
programs, as hereafter defined, above the fixed maximum portion
of the cost of such projects otherwise authorized by the
applicable law. In the case of any program or project for which
all or any portion of the basic Federal contribution to the
project under a Federal grant-in-aid program is proposed to be
made under this subsection, no such Federal contribution shall
be made until the responsible Federal official administering
the Federal grant-in-aid Act authorizing such contribution
certifies that such program or project meets the applicable
requirements of such Federal grant-in-aid Act and could be
approved for Federal contribution under such Act if funds were
available under such Act for such program or project. [Funds
may be provided for programs and projects in a State under this
subsection only if the Commission determines that the level of
Federal and State financial assistance under Acts other than
this Act, for the same type of programs or projects in that
portion of the State within the region, will not be diminished
in order to substitute funds authorized by this subsection.]
Funds provided pursuant to this Act shall be available without
regard to any limitations on areas eligible for assistance or
authorizations for appropriation in any other Act. Any
findings, report, certification, or documentation required to
be submitted to the head of the department, agency, or
instrumentality of the Federal Government responsible for the
administration of any Federal grant-in-aid program shall be
accepted by the Federal Cochairman with respect to a
supplemental grant for any project under such program.
* * * * * * *
[(c) The term ``Federal grant-in-aid programs'' as used in
this section means those Federal grant-in-aid programs
authorized by this Act and Acts other than this Act for the
acquisition or development of land, the construction or
equipment of facilities, or other community or economic
development or economic adjustment activities, including but
not limited to grant-in-aid programs authorized by the
following Acts: Federal Water Pollution Control Act; Watershed
Protection and Flood Prevention Act; titles VI and XVI of the
Public Health Services Act; Vocational Education Act of 1963;
Federal Airport Act; Airport and Airway Development Act of
1970; part IV of title III of the Communications Act of 1934;
title VI (part A) and VII of the Higher Education Act of 1965;
Land and Water Conservation Fund Act of 1965; National Defense
Education Act of 1958; Consolidated Farm and Rural Development
Act; sections 201 and 209 of the Public Works and Economic
Development Act of 1965; the housing repair program for
homeowners authorized by section 1319 of title 42, United
States Code; grants under the Indian Health Service Act (42
Stat. 208); and title I of the Housing and Community
Development Act of 1974. The term shall not include (A) the
program for the construction of the development highway system
authorized by section 201 of this Act or any program relating
to highway or road construction authorized by title 23, United
States Code or (B) any other program for which loans or other
Federal financial assistance, except a grant-in-aid program, is
authorized by this or any other Act. For the purpose of this
section, any sewage treatment works constructed pursuant to
section 8(c) of the Federal Water Pollution Control Act without
Federal grant-in-aid assistance under such section shall be
regarded as if constructed with such assistance.
[(d) Not to exceed $97,000,000 of the funds authorized in
section 401 of this Act for the two-fiscal-year period ending
June 30, 1969, shall be available to carry out this section.]
(c) Federal Grant-In-Aid Programs Defined.--
(1) Included programs.--In this section, the term
``Federal grant-in-aid programs'' means those Federal
grant-in-aid programs authorized by this Act or another
Act for the acquisition or development of land, the
construction or equipment of facilities, or other
community or economic development or economic
adjustment activities, including but not limited to
grant-in-aid programs authorized by the following Acts:
(A) The Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.).
(B) The Watershed Protection and Flood
Prevention Act (16 U.S.C. 1001 et seq.).
(C) Title VI of the Public Health Services
Act (42 U.S.C. 291 et seq.).
(D) The Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2301
et seq.).
(E) Part IV of title III of the
Communications Act of 1934 (47 U.S.C. 390 et
seq.).
(F) The Land and Water Conservation Fund Act
of 1965 (16 U.S.C 460l-4 et seq.).
(G) The Consolidated Farm and Rural
Development Act (7 U.S.C. 1921 et seq.).
(H) Sections 201 and 209 of the Public Works
and Economic Development Act of 1965 (42 U.S.C.
3141 and 3149).
(I) Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et
seq.).
(2) Excluded programs.--In this section, the term
``Federal grant-in-aid programs'' does not include--
(A) the program for the construction of the
development highway system authorized by
section 201 or any program relating to highway
or road construction authorized by title 23,
United States Code; or
(B) any other program for which loans or
other Federal financial assistance, except a
grant-in-aid program, is authorized by this or
any other Act.
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Part C--General Provisions
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program development criteria
Sec. 224. (a) In considering programs and projects to be
given assistance under this Act, and in establishing a priority
ranking of the requests for assistance presented to the
Commission, the Commission shall follow procedures that will
insure consideration of the following factors:
(1) the relationship of the project or class of
projects to overall regional development including its
location [in an area determined by the State have a
significant potential for growth or] in a severely and
persistently distressed county or area;
(2) the population and area to be served by the
project or class of projects including the relative per
capita market income and the unemployment rates in the
area;
* * * * * * *
(d) Assistance to Distressed Counties and Areas.--For each
fiscal year, at least one-half of the amount of grant
expenditures approved by the Commission under this Act shall
support activities or projects that benefit counties for which
distressed county designations are in effect under section 226.
appalachian state development planning process
Sec. 225. (a) Pursuant to policies established by the
Commission, each State member shall submit on such schedule as
the Commission shall prescribe a development plan for the area
of the State within the region. The State development plan
shall reflect the goals, objectives, and priorities identified
in the regional development plan and in any subregional
development plan which may be approved for the subregion of
which such State is a part. Such State development plan shall
(1) describe the State organization and continuous process for
Appalachian development planning, including the procedures
established by the State for the participation of local
development districts in such process, the means by which such
process is related to overall statewide planning and budgeting
processes, and the method of coordinating planning and projects
in the region under this Act, the Public Works and Economic
Development Act of 1965, and other Federal, State, and local
programs; (2) set forth the goals, objectives, and priorities
of the State for the region, as determined by the Governor, and
identify the needs on which such goals, objectives, and
priorities are based; and [(3) describe the development
program] (3) describe the development strategies for achieving
such goals, objectives, and priorities, including funding
sources, and recommendations for specific projects to receive
assistance under this Act.
* * * * * * *
(c) To the maximum extent practicable, Federal departments,
agencies, and instrumentalities undertaking or providing
financial assistance for programs or projects in the region
shall (1) take into account the policies, goals, and objectives
established by the Commission and its member States pursuant to
this Act; (2) recognize [Appalachian State development
programs] Appalachian State development strategies approved by
the Commission as satisfying requirements for overall economic
development planning under such programs or projects; and (3)
accept the boundaries and organization of any local development
district certified under this Act which the Governor may
designate as the areawide agency required under any such
program undertaken or assisted by such Federal departments,
agencies, and instrumentalities.
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TITLE III--ADMINISTRATION
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grants for administration expenses of local development districts and
for research and demonstration projects
Sec. 302. (a) Authorization To Make Grants.--
(1) In general.--The Commission is authorized--
(A) to make grants for administrative
expenses, including the development of areawide
plans or action programs and technical
assistance activities, of local development
districts, but (i) the amount of any such grant
shall not exceed 50 percent (or 75 percent for
a development district that includes 1 or more
counties for which a distressed county
designation is in effect under section 226) of
such expenses, (ii) no grants for
administrative expenses shall be made for a
State agency certified as a local development
district for a period in excess of three years
beginning on the date the initial grant is made
for such development district, and (iii) the
local development district contributions for
administrative expenses may be in cash or in
kind, fairly evaluated, including but not
limited to space, equipment, and services;
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approval of development plans, [investment programs] strategy
statements, and projects
Sec. 303. State and Regional Development Plans and
[implementing investments programs] strategy statements, and
any multistate subregional plans which may be developed, shall
be annually reviewed and approved by the Commission in
accordance with section 101(b) of this Act. An application for
a grant or for any other assistance for a specific project
under this Act shall be made through the State member of the
Commission representing such applicant, and such State member
shall evaluate the application for approval. Only applications
for grants or other assistance for specific projects shall be
approved which are certified by the State member and determined
by the Federal Cochairman to implement the Commission-approved
State development plan; to be included in the Commission-
approved [implementing investment program] strategy statement;
to have adequate assurance that the project will be properly
administered, operated, and maintained; and to otherwise meet
the requirements for assistance under this Act. After the
approval of the appropriate State development plan and
[implementing investment program] strategy statement,
certification by a State member of an application for a grant
or other assistance for a specific project pursuant to this
section shall, when joined by an affirmative vote of the
Federal Cochairman for such project, be deemed to satisfy the
requirements for affirmative votes for decisions under section
101(b) of this Act.
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TITLE IV--APPROPRIATIONS AND MISCELLANEOUS PROVISIONS
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) $68,000,000 for fiscal year 1999;
[(2) $69,000,000 for fiscal year 2000; and
[(3) $70,000,000 for fiscal year 2001.]
(a) In General.--In addition to amounts authorized by section
201 (and other amounts made available for the Appalachian
development highway system program) and section 203, there are
authorized to be appropriated to the Commission to carry out
this Act--
(1) $78,000,000 for fiscal year 2002;
(2) $80,000,000 for fiscal year 2003;
(3) $83,000,000 for fiscal year 2004;
(4) $85,000,000 for fiscal year 2005; and
(5) $87,000,000 for fiscal year 2006.
* * * * * * *
definition of appalachian region
Sec. 403. As used in this Act, the term ``Appalachian
region'' or ``the region'' means that area of the eastern
United States consisting of the following counties (including
any political subdivision located within such area):
In Alabama, the counties of Bibb, Blount, Calhoun,
Chambers, Cherokee, Chilton, Clay, Cleburne, Colbert,
Coosa, Cullman, De Kalb, Elmore, Etowah, Fayette,
Franklin, Hale, Jackson, Jefferson, Lamar, Lauderdale,
Lawrence, Limestone, Macon, Madison, Marion, Marshall,
Morgan, Pickens, Randolph, Saint Clair, Shelby,
Talladega, Tallapoosa, Tuscaloosa, Walker, and Winston;
In Georgia, the counties of Banks, Barrow, Bartow,
Carroll, Catoosa, Chattooga, Cherokee, Dade, Dawson,
Douglas, Elbert, Fannin, Floyd, Forsyth, Franklin,
Gilmer, Gordon, Gwinnett, Habersham, Hall, Haralson,
Hart, Heard, Jackson, Lumpkin, Madison, Murray,
Paulding, Pickens, Polk, Rabun, Stephens, Towns, Union,
Walker, White, and Whitfield;
In Kentucky, the counties of Adair, Bath, Bell, Boyd,
Breathitt, Carter, Casey, Clark, Clay, Clinton,
Cumberland, Edmonson, Elliott, Estill, Fleming, Floyd,
Garrard, Green, Greenup, Harlan, Hart, Jackson,
Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie,
Letcher, Lewis, Lincoln, McCreary, Madison, Magoffin,
Martin, Menifee, Metcalfe, Monroe, Montgomery, Morgan,
Owsley, Perry, Pike, Powell, Pulaski, Rockcastle,
Rowan, Russell, Wayne, Whitley, and Wolfe;
In Maryland, the counties of Allegany, Garrett, and
Washington;
In Mississippi the counties of Alcorn, Benton,
Calhoun, Chickasaw, Choctaw, Clay, Grenada, Itawamba,
Kemper, Lee, Lowndes, Marshall, Monroe, Montgomery,
Noxubee, Oktibbeha Pontotoc, Panola, Prentiss, Tippah,
Tishomingo, Union, Webster, Winston, and Yalobusha;
* * * * * * *
termination
Sec. 405. This Act, other than sections 201 and 403, shall
cease to be in effect on October 1, [2001] 2006.
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