[Senate Report 110-63]
[From the U.S. Government Publishing Office]
Calendar No. 136
110th Congress Report
SENATE
1st Session 110-63
======================================================================
APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 2007
_______
May 7, 2007.--Ordered to be printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 496]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, to which was
referred a bill (S. 496) to reauthorize and improve the program
authorized by the Appalachian Regional Development Act of 1965,
having considered the same, reports favorably thereon and
recommends that the bill as amended do pass.
Purpose of the Legislation
S. 496, the Appalachian Regional Development Act Amendments
of 2007, provides for the reauthorization and improvement of
the Appalachian Regional Development Act of 1965. The bill
strengthens the Act by providing tools to better assist those
counties most at-risk of becoming economically distressed and
by increasing the authorization level of the Act. S. 496
authorizes appropriations for the Appalachian Regional
Commission programs for five years.
General Statement and Background
The Appalachian Regional Development Act of 1965 (title 40,
subtitle IV, United States Code) established the Appalachian
Regional Commission (ARC). ARC is a Federal-State partnership
that works with the people of Appalachia to create
opportunities for self-sustaining economic development and
improved quality of life. ARC includes all or portions of 13
States: Alabama, Georgia, Kentucky, Maryland, Mississippi, New
York, North Carolina, Ohio, Pennsylvania, South Carolina,
Tennessee, Virginia, and West Virginia.
ARC's primary function is to support development of
Appalachia's economy and critical infrastructure to provide a
climate for growth in business and industry that will create
jobs. ARC administers a variety of programs to aid in the
development and advancement of the region including a highway
system, education and job training, and water and sewer
systems.
ARC administers economic development funds through a series
of grant programs. The agency generally allocates funds based
on the economic distress of a given locality, devoting a
significant percentage of its resources to benefit economically
distressed communities. By law, at least 50 percent of all non-
highway project grant funds must go to distressed counties and
areas. In fiscal year 2006, for example, 61 percent of ARC's
non-highway funds supported projects that primarily or
substantially benefited distressed counties and areas.
Since its creation in 1965, ARC's funding and projects have
contributed significantly to improvements in the region. The
number of economically distressed counties has been cut by more
than half, from 223 distressed counties in 1965 to 78 counties
in 2007. The regional poverty rate has been cut by more than
half. High school graduation rates have increased by more than
70 percent. The infant mortality rate has been cut by two-
thirds, and more than 400 ARC-funded rural health facilities
have expanded access to health care across Appalachia. Since
1977, ARC has invested $37.6 million in revolving loan funds
that generated $123 million in loans for small businesses and
leveraged $8.41 in other investment for each ARC dollar,
helping create more than 30,000 jobs.
Unfortunately, however, roughly one-fifth of ARC's counties
remain distressed. Additionally, one-fourth of Appalachia's
counties have a poverty rate more than 150 percent of the
national average and a majority of the counties have a higher
unemployment rate than the national average.
Section-by-Section Analysis
Section 1. Short title
This section provides that this Act may be cited as the
``Appalachian Regional Development Act Amendments of 2007''.
Sec. 2. Limitation on available amounts; Maximum commission
contribution
Summary
Section 2 amends section 14321, 14502, 14503, 14504, 14505,
14506, and 14507 of Title 40, United States Code, to provide a
maximum grant rate of 70 percent for designated at-risk
counties.
Description
ARC's grant programs include assistance for economic
development, demonstration health projects, assistance for
proposed low- and middle-income housing projects, a
telecommunications and technology initiative, an
entrepreneurship initiative, a regional skills partnership, and
supplements to Federal grant programs. Currently each of these
non-highway programs includes a maximum grant rate of 75 for
administrative expenses and 80 percent for the cost of eligible
projects for distressed counties, and 50 percent for all other
counties. This section provides ARC with an additional tool to
try to prevent those counties most at risk of becoming
economically distressed from actually becoming distressed by
providing a maximum grant rate for these `at-risk' counties of
70 percent for all of ARC's non-highway grant programs.
Sec. 3. Economic and Energy Development Initiative
Summary
This section amends subchapter I of chapter 145, subtitle
IV of Title 40, by adding Section 14508, the Economic and
Energy Development Initiative.
Description
This provision will allow the Appalachian Regional
Commission to provide technical assistance, grants, or enter
into contracts with individuals or entities to promote energy
efficiency, renewable energy resources, and to enhance the
economic competitiveness of the Appalachian region.
Sec. 4. Distressed, at-risk, and economically strong counties
Summary
This section amends section 14526(a)(1) of title 40, United
States Code, to direct the Commission to designate as `at-risk'
those counties that are most at risk of becoming economically
distressed.
Sec. 5. Authorization of appropriations
Summary
This section amends section 14703 of title 40, United
States Code, to set authorization levels for fiscal years 2007-
2011.
Description
The section authorizes $95.2 million in fiscal year 2007;
$98.6 million in fiscal year 2008; $102 million in fiscal year
2009; $105.7 million in fiscal year 2010; and $109.4 in fiscal
year 2011. These levels include increases in line with
projected inflation rates (Historical Tables of the U.S.
Government Budget, Table 10.1, (`Other Grants').) Further,
spending for Section 14504, Telecommunications and Technology
is specified as $10,000,000 for fiscal year 2007; $8,000,000
for fiscal year 2008; $5,000,000 for each of the fiscal years
2009 through 2011. The bill also specifies the expenditures for
economic and energy initiative as follows: $12,000,000 for
fiscal year 2007; $12,400,000 for fiscal year 2008; $12,900,000
for fiscal year 2009; $13,300,000 for fiscal year 2010; and
$13,800,000 for fiscal year 2011.
Sec. 6. Termination
This section amends section 14704 of title 40, United
States Code, to extend the date on which the Appalachian
Regional Development Act of 1965 (with the exception of the
Appalachian development highway system and the definition of
the Appalachian region) ceases to be in effect from October 1,
2007, to October 1, 2011.
Sec. 7. Effective date
This section states that the amendments made by this Act
take effect on October 1, 2006.
Legislative History
On February 6, 2007 Senator Voinovich introduced S. 496,
which was co-sponsored by Senators Clinton, Warner, Byrd, Lott,
Brown, Cochran, Schumer, Burr, Cardin, Mikulski, Dole,
Alexander, Shelby, Graham, Rockefeller, Sessions, Specter, and
McConnell. The bill was read twice and referred to the Senate
Committee on Environment and Public Works. The committee met on
March 29, 2007 to consider the bill as amended by a Chairman's
mark amendment. S. 496 as revised by the Chairman's mark was
ordered favorably reported without amendment by voice vote.
Hearings
The Committee did not hold hearings on S. 496 during the
110th Congress. However, on April 20, 2006, the Committee on
Environment and Public Works conducted a field hearing in
Marietta, Ohio, to receive testimony on the impact of the 2002
reauthorization and issues regarding the upcoming
reauthorization. The committee received testimony from Ms. Anne
Pope, Federal Co-Chair, Appalachian Regional Commission; Mr.
T.J. Justice, Director, Governor's Office of Appalachia,
Appalachian Regional Commission; Mr. Don Myers, Director, Ohio
Mid-Eastern Governments Association; Mr. Gary Little,
President, Information Technology Alliance of Appalachian Ohio;
Mr. David Matusoff, Principal and Director of Technology
Planning, Whiteboard Broadband Solutions; Dr. David Scholl,
President, CEO, Diagnostic Hybrid, Inc.; Ms. Angela Stuber,
Executive Director, Ohio Community Computing Network; Mr. Steve
Grossman, Executive Director, Ohio Water Development Authority;
Mr. Jeff Hughes, Director, Environmental Finance Center,
University of North Carolina at Chapel Hill, Institute of
Government; and Mr. Ken Reed, Director, Vinton County Community
and Economic Development, Vinton County Courthouse.
Rollcall Votes
The Committee on Environment and Public Works met to
consider S. 496 as revised by the Chairman's mark amendment on
March 29, 2007. The Chairman's mark was ordered favorably
reported by voice vote. No rollcall votes were taken.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee finds that S. 496
does not create any additional regulatory burdens, nor will it
cause any adverse impact on the personal privacy of
individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the committee finds that S. 496 would
impose no Federal intergovernmental unfunded mandates on State,
local, or tribal governments. The bill contains no new private-
sector mandates as defined in UMRA.
Cost of Legislation
Section 402 of the Congressional Budget and Impoundment
Control Act, 2 U.S.C. Sec. 653, requires that any timely-
submitted estimate of the cost of the reported bill prepared by
the Congressional Budget Office be included in this report.
That statement follows:
S. 496, Appalachian Regional Development Act Amendments of 2007, As
ordered reported by the Senate Committee on Environment and
Public Works on March 29, 2007
Summary: S. 496 would authorize appropriations for the
Appalachian Regional Commission (ARC), modify the terms of some
existing programs, and create a new grant program to promote
energy efficiency and renewable energy in the Appalachian
region. The bill would authorize a total of $511 million over
2007-2011 period, including $95 million for fiscal year 2007.
S. 496 also would allow the ARC to increase the government's
share of the cost of projects in counties most at risk of
becoming economically distressed.
CBO estimates that implementing this bill would cost $294
million over the 2007-2012 period, assuming appropriation of
the specified amounts. Enacting S. 496 would have no effect on
direct spending or revenues.
S. 496 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would benefit local governments in the Appalachian region.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 496 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--
-----------------------------------------------
2007 2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for the Appalachian Regional
Commission:
Budget Authority \1\........................................ 65 0 0 0 0 0
Estimated Outlays........................................... 64 60 51 29 15 7
Proposed Changes:
Economic Development Grants
Authorization Level..................................... 18 87 89 93 95 0
Estimated Outlays....................................... 2 12 32 56 71 75
Energy Grants
Authorization Level..................................... 12 12 13 13 14 0
Estimated Outlays....................................... 1 4 7 10 12 12
Total Changes
Authorization Level..................................... 30 99 102 106 109 0
Estimated Outlays....................................... 3 16 39 66 83 87
Spending Under S. 496 for the Appalachian Regional Commission:
Authorization Level......................................... 95 99 102 106 109 0
Estimated Outlays........................................... 67 76 90 95 98 94
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount provided thus far for this year under Public Law 110-5. S. 496 would authorize
the appropriation of $95 million for 2007.
Basis of estimate: S. 496 would authorize the appropriation
of $511 million over the 2007-2011 period for the ARC, which
makes grants to the 13 states of the Appalachian region. Based
on historical spending patterns, CBO estimates that
implementing S. 496 would cost $3 million in 2007 and $294
million over the 2007-2012 period. For this estimate, CBO
assumes that this legislation will be enacted in the spring of
2007 and that the authorized amounts will be appropriated for
each year.
The funding authorized by S. 496 includes $95 million for
fiscal year 2007, of which $12 million would be for a new grant
program to promote energy efficiency and renewable energy in
the Appalachian region. Thus far, the ARC has received funding
of $65 million for fiscal year 2007 under Public Law 110-5, the
Revised Continuing Appropriations Resolution, 2007. Thus,
enacting this legislation would authorize the appropriation of
an additional $30 million for the ARC in 2007. For this
estimate, CBO assumes that the added amount would be provided
in a supplemental appropriation.
The bill also would specify funding levels for fiscal years
2008 through 2011, authorizing the appropriation of $416
million over those four years. That total includes $364 million
for ARC's existing grant programs, of which $23 million would
be allocated for the commission's Telecommunications and
Technology Initiative. The remaining $52 million would be
authorized for the new energy grant program.
Intergovernmental and private-sector impact: S. 496
contains no intergovernmental or private-sector mandates as
defined in UMRA and would benefit local governments in the
Appalachian region.
Previous CBO estimate: On February 13, 2007, CBO
transmitted a cost estimate for H.R. 799, the Appalachian
Regional Development Act Amendments of 2007, as ordered
reported by the House Committee on Transportation and
Infrastructure on February 7, 2007. S. 496 and H.R. 799 are
similar but would authorize different amounts of funding. In
addition, CBO has updated the estimated spending under current
law to reflect the amounts appropriated under Public Law 110-5.
Estimate prepared by: Federal costs: Daniel Hoople; Impact
on State, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, 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:
* * * * * * *
SUBTITLE IV--APPALACHIAN REGIONAL DEVELOPMENT
[As Amended Through P.L. 109-270, Enacted August 12, 2006]
* * * * * * *
Sec. 14101. Findings and purposes
(a) 1965 Findings and Purpose.--
(1) Findings.--* * *
* * * * * * *
Sec. 14321. Grants and other assistance
(a) Authorization To Make Grants.--
(1) In general.--The Appalachian Regional Commission
may make grants--
(A) 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 a grant shall not
exceed 50 percent of administrative
expenses or, at the discretion of the
Commission, 75 percent of
administrative expenses if the grant is
to a local development district that
has a charter or authority that
includes the economic development of a
county or part of a county for which a
distressed county designation is in
effect under section 14526 of this
title;]
(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;
* * * * * * *
(2) Limitation on available amounts.--
[(A) In general.--Except as provided in
subparagraph (B), not more than 50 percent (or
80 percent in the case of a project to be
carried out in a county for which a distressed
county designation is in effect under section
14526 of this title) of the cost of any
activity eligible for financial assistance
under this section may be provided from amounts
appropriated to carry out this subtitle.]
(A) In general.--Except as provided in
subparagraph (B), of the cost of any project
eligible for financial assistance under this
section, not more than--
(i) 50 percent may be provided from
amounts made available 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 made
available 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 made available to
carry out this subtitle.
* * * * * * *
CHAPTER 145--SPECIAL APPALACHIAN PROGRAMS
[As Amended Through P.L. 108-199, Enacted January 23, 2004]
SUBCHAPTER I--PROGRAMS
Sec.
14501. Appalachian development highway system.
14502. Demonstration health projects.
14503. Assistance for proposed low- and middle-income housing projects.
14504. Telecommunications and technology initiative.
14505. Entrepreneurship initiative.
14506. Regional skills partnerships.
14507. Supplements to federal grant programs.
14508. Economic and energy development initiative.
SUBCHAPTER II--ADMINISTRATIVE
14521. Required level of expenditure.
14522. Consent of States.
14523. Program implementation.
14524. Program development criteria.
14525. State development planning process.
[14526. Distressed and economically strong counties.]
14526. Distressed, at-risk, and economically strong counties.
SUBCHAPTER I--PROGRAMS
Sec. 14501. Appalachian development highway system
(a) Purpose.--* * *
* * * * * * *
Sec. 14502. Demonstration health projects
(a) Purpose.--* * *
* * * * * * *
(d) Operation Grants.--
(1) Standards for making grants.--* * *
* * * * * * *
[(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 by
this section, may be made for up to 50 percent of the
cost of that operation (or 80 percent of the cost of
that operation for a project to be carried out in a
county for which a distressed county designation is in
effect under section 14526 of this title).]
(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 provided 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 in a county for which an at-risk county
designation is in effect under section 14526,
70 percent of the cost of that operation.
* * * * * * *
(f) Maximum Commission Contribution.--
(1) In general.--Subject to paragraph (2), the
Commission may contribute not more than 50 percent of
any project cost eligible for financial assistance
under this section from amounts appropriated to carry
out this subtitle.
(2) Distressed counties.--The maximum Commission
contribution for a project to be carried out in a
county for which a distressed county designation is in
effect under section 14526 of this title may be
increased to the lesser of--
(A) 80 percent; or
(B) the maximum federal contribution
percentage authorized by this section.
(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.
* * * * * * *
Sec. 14503. Assistance for proposed low- and middle-income housing
projects
(a) Appalachian Housing Fund.--
(1) Establishment.--* * *
* * * * * * *
(d) Loans.--
[(1) Limitation on available amounts.--A loan under
subsection (b) shall not be more than 50 percent (or 80
percent for a project to be carried out in a county for
which a distressed county designation is in effect
under section 14526 of this title) of the cost of
planning and obtaining financing for a project,
including 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.]
(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 in a county for which an at-risk county
designation is in effect under section 14526,
70 percent of that cost.
* * * * * * *
(e) Grants.--
[(1) In general.--A grant under this section shall
not be made to an organization established for profit
and, except as provided in paragraph (2), shall not
exceed 50 percent (or 80 percent for a project to be
carried out in a county for which a distressed county
designation is in effect under section 14526 of this
title) of expenses, incident to planning and obtaining
financing for a project, which the Secretary considers
not to be recoverable from the proceeds of a permanent
loan made to finance the project.]
(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.
* * * * * * *
Sec. 14504. Telecommunications and technology initiative
(a) Projects To Be Assisted.--* * *
* * * * * * *
[(b) Limitation on Available Amounts.--Not more than 50
percent (or 80 percent in the case of a project to be carried
out in a county for which a distressed county designation is in
effect under section 14526 of this title) of the cost of any
activity eligible for a grant under this section may be
provided from amounts appropriated to carry out this section.]
(b) Limitation on Available Amounts.--Of the cost of any
project eligible for a grant under this section, not more
than--
(1) 50 percent may be provided from amounts made
available 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 made available 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 made available to carry out this section.
* * * * * * *
Sec. 14505. Entrepreneurship initiative
(a) Business Incubator Service.--In this section, the term
``business incubator service'' means a professional or
technical service necessary for the initiation and initial
sustainment of the operations of a newly established business,
including a service such as--
(1) * * *
* * * * * * *
[(c) Limitation on Available Amounts.--Not more than 50
percent (or 80 percent in the case of a project to be carried
out in a county for which a distressed county designation is in
effect under section 14526 of this title) of the cost of any
activity eligible for a grant under this section may be
provided from amounts appropriated to carry out this section.]
(c) Limitation on Available Amounts.--Of the cost of any
project eligible for a grant under this section, not more
than--
(1) 50 percent may be provided from amounts made
available 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 made available 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 made available to carry out this section.
* * * * * * *
Sec. 14506. Regional skills partnerships
(a) Eligible Entity.--In this section, the term ``eligible
entity'' means a consortium that--
(1) * * *
* * * * * * *
[(d) Limitation on Available Amounts.--Not more than 50
percent (or 80 percent in the case of a project to be carried
out in a county for which a distressed county designation is in
effect under section 14526 of this title) of the cost of any
activity eligible for a grant under this section may be
provided from amounts appropriated to carry out this section.]
(d) Limitation on Available Amounts.--Of the cost of any
project eligible for a grant under this section, not more
than--
(1) 50 percent may be provided from amounts made
available 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 made available 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 made available to carry out this section.
* * * * * * *
Sec. 14507. Supplements to federal grant programs
(a) Definition.--
(1) Federal grant programs.--In this section, the
term ``federal grant programs''--
(A) * * *
* * * * * * *
(g) Maximum Commission Contribution.--
(1) In general.--Subject to [paragraph (2)]
paragraphs (2) and (3), the Commission may contribute
not more than 50 percent of a project or activity cost
eligible for financial assistance under this section
from amounts appropriated to carry out this subtitle.
(2) Distressed counties.--* * *
(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. 14508. Economic and energy development initiative
(a) Projects To Be Assisted.--The Appalachian Regional
Commission may provide technical assistance, provide grants,
enter into contracts, or otherwise provide amounts to
individuals or entities in the Appalachian region for use in
carrying out projects and activities--
(1) to promote energy efficiency in the Appalachian
region to enhance the economic competitiveness of the
Appalachian region; and
(2) to increase the use of renewable energy
resources, particularly biomass, in the Appalachian
region to produce alternative transportation fuels,
electricity, and heat.
(b) Limitation on Available Amounts.--Of the cost of any
project eligible to be funded by a grant under this section,
not more than--
(1) 50 percent may be provided from amounts made
available 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 made available to carry out this section;
and
(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 made available to carry out this section.
(c) Sources of Assistance.--Subject to subsection (b), grants
provided under this section may be provided--
(1) entirely from amounts made available to carry out
this section; or
(2) 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 other provision of
law limiting a Federal share of the cost of a project under any
other Federal program, amounts made available to carry out this
section may be used to increase that Federal share, as the
Commission determines to be appropriate.
* * * * * * *
SUBCHAPTER II--ADMINISTRATIVE
Sec. 14521. Required level of expenditure
* * * * * * *
Sec. 14526. Distressed, at-risk, and economically strong counties
(a) Designations.--
(1) In general.--The Appalachian Regional Commission,
in accordance with criteria the Commission may
establish, each year shall--
(A) designate as ``distressed counties''
those counties in the Appalachian region that
are the most severely and persistently
distressed; [and]
(B) designate as ``at-risk counties'' those
counties in the Appalachian region that are
most at risk of becoming economically
distressed; and
[(B)] (C) designate two categories of
economically strong counties, consisting of--
* * * * * * *
[Sec. 14703. Authorization of appropriations
[(a) In General.--In addition to amounts authorized by
section 14501 of this title and other amounts made available
for the Appalachian development highway system program, the
following amounts may be appropriated to the Appalachian
Regional Commission to carry out this subtitle:
[(1) $88,000,000 for each of the fiscal years 2002-
2004.
[(2) $90,000,000 for fiscal year 2005.
[(3) $92,000,000 for fiscal year 2006.
[(b) Telecommunications and Technology Initiative.--Of the
amounts made available under subsection (a), the following
amounts are available to carry out section 14504 of this title:
[(1) $10,000,000 for fiscal year 2002.
[(2) $8,000,000 for fiscal year 2003.
[(3) $5,000,000 for each of the fiscal years 2004-
2006.
[(c) Availability.--Amounts made available under subsection
(a) remain available until expended.]
Sec. 14703. Authorization of appropriations
(a) In General.--In addition to the amounts made available
under section 14501, there are authorized to be appropriated to
the Appalachian Regional Commission to carry out this
subtitle--
(1) $95,200,000 for fiscal year 2007;
(2) $98,600,000 for fiscal year 2008;
(3) $102,000,000 for fiscal year 2009;
(4) $105,700,000 for fiscal year 2010; and
(5) $109,400,000 for fiscal year 2011.
(b) Telecommunications and Technology Initiative.--Of the
amounts made available under subsection (a), the following
amounts may be used to carry out section 14504:
(1) $10,000,000 for fiscal year 2007.
(2) $8,000,000 for fiscal year 2008.
(3) $5,000,000 for each of fiscal years 2009 through
2011.
(c) Economic and Energy 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 2007.
(2) $12,400,000 for fiscal year 2008.
(3) $12,900,000 for fiscal year 2009.
(4) $13,300,000 for fiscal year 2010.
(5) $13,800,000 for fiscal year 2011.
(d) Availability.--Amounts made available under subsection
(a) shall remain available until expended.
(e) Allocation of Funds.--Funds approved by the Appalachian
Regional Commission for a project in an Appalachian State
pursuant to a congressional directive shall be derived from the
total amount allocated to the State by the Appalachian Regional
Commission from amounts made available to carry out this
subtitle.
Sec. 14704. Termination
This subtitle, except sections 14102(a)(1) and (b) and 14501,
ceases to be in effect on October 1, [2007] 2011.
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