[DOCID: f:hr033.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-33
======================================================================
APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 2007
_______
March 6, 2007.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 799]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 799) to reauthorize and improve the
program authorized by the Appalachian Regional Development Act
of 1965, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Appalachian Regional Development Act
Amendments of 2007''.
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) by striking paragraph (1)(A)(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) by striking paragraph (2)(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) by striking subsection (d)(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 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 14503 of title 40, United States Code, is amended--
(1) by striking subsection (d)(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) by striking subsection (e)(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--
``(1) to promote energy efficiency in the region to enhance
its economic competitiveness;
``(2) to increase the use of renewable energy resources in
the region to produce alternative transportation fuels,
electricity, and heat; and
``(3) to support the development of conventional energy
resources in the region to produce alternative transportation
fuels, electricity, and heat.
``(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 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.--Assistance 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 (other than
section 14508)--
``(1) $65,000,000 for fiscal year 2007;
``(2) $80,000,000 for fiscal year 2008;
``(3) $85,000,000 for fiscal year 2009;
``(4) $90,000,000 for fiscal year 2010; and
``(5) $95,000,000 for fiscal year 2011.''.
(b) Authorization of Appropriations.--Section 14703(b) of such title
is amended to read as follows:
``(b) Economic and Energy Development Initiative.--In addition to
amounts made available under section 14501, there is authorized to be
appropriated to the Commission to carry out section 14508 $12,000,000
for each of fiscal years 2008 through 2011.''.
(c) Availability.--Section 14703(c) of such title is amended by
striking ``subsection (a)'' and inserting ``subsections (a) and (b)''.
(d) 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 Commission for a
project in a State in the Appalachian region pursuant to congressional
direction shall be derived from such State's portion of the
Commission's allocation of appropriated amounts among the States.''.
SEC. 6. TERMINATION.
Section 14704 of title 40, United States Code, is amended by striking
``2006'' and inserting ``2011''.
Purpose of the Legislation
H.R. 799, the Appalachian Regional Development Act
Amendments of 2007, is a bill to reauthorize and improve the
programs authorized by the Appalachian Regional Development Act
of 1965. H.R. 799 authorizes appropriations for the Appalachian
Regional Commission programs for five years.
Background and Need for Legislation
The Appalachian Regional Development Act of 1965 (ARDA)
established the Appalachian Regional Commission (ARC). The ARC
is a regional economic development agency representing a unique
and precedent-setting partnership of Federal, State, and local
government. ARC includes all or part of 13 States: Alabama,
Georgia, Kentucky, 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 the
creation a highway system, enhancements in education and job
training, and the development of water and sewer systems.
Since its creation in 1965, ARC's funding and projects have
contributed significantly to employment, health, public works,
and general economic development improvements in the region.
The regional poverty rate has been reduced by almost one-half.
High school graduation rates have doubled, and the percentage
of Appalachian students now completing high school is slightly
above the national average. The infant mortality rate has been
cut by two-thirds, and ARC funds have helped build more than
400 health facilities serving four million Appalachians. ARC
projects have provided more than 800,000 Appalachians with
access to clean water and sanitation facilities.
Building its successful strategy on a regional approach,
ARC States work cooperatively with the Federal ARC co-chair to
address issues of economic development particular to the
Appalachian region. ARC programs do not duplicate other Federal
programs, but respond to locally identified needs and are
extremely flexible in their ability to quickly respond to
unique problems of the Appalachian region.
H.R. 799 reauthorizes the ARC for five years, from fiscal
year 2007 through fiscal year 2011.
Summary of the Legislation
Section 1. Short title
Section 1 states that this Act may be cited as the
``Appalachian Regional Development Act Amendments of 2007''.
Section 2. Limitation on available amounts; Maximum commission
contribution
Section 2(a)(1) amends section 14321(a)(1)(A) of Title 40,
United States Code, by striking paragraph (1)(A)(i) and
inserting the following: the amount of the grant shall not
exceed 50 percent of administrative expenses; 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 part of a county for which
a distressed county designation is in effect, 75 percent of
administrative expenses; or, 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, 70 percent of
administrative expenses.
Section 2(a)(2) amends section 14321(a)(2)(A) of Title 40,
United States Code, by adding a provision which authorizes the
Commission, at its discretion, to make grants for 70 percent
for any activity eligible for financial assistance to a
designated at-risk county.
Section 2(b) amends section 14502 of Title 40, United
States Code, by striking subsection (d)(2) and inserting a new
subsection (d)(2). The new subsection authorizes the Commission
to make grants 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. The grant amounts may be
made for up to 50 percent, or 80 percent in the case of a
project to be carried out in a county which is a designated
distressed county, or 70 percent for a designated at-risk
county. Subsection (f) of section 14502 is amended by adjusting
the maximum commission contribution for an at-risk county to
the lesser of 70 percent or the maximum Federal contribution
percentage authorized by this section.
Section 2(c) amends section 14503 of Title 40, United
States Code, by striking subsection (d)(1) and inserting a new
subsection (d)(1). The new subsection authorizes the Commission
to make loans 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 up to
50 percent of the cost, 80 percent of the cost in a designated
distressed county, and up to 70 percent of the cost for a
designated at-risk county.
Section 2(c) further amends section 14503(e)(1) by striking
the existing provision and by inserting a new provision that
states 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 not be made to an organization established for profit,
and shall not exceed 50 percent, 80 percent in a designated
distressed county, or 70 percent of those expenses in a
designated at-risk county.
Section 2(d) amends section 14504(b) of Title 40, United
States Code, by striking subsection (b) and inserting a new
subsection (b) to authorize the Commission to make grants for
the costs of any activity eligible under this section of not
more than 50 percent, 80 percent for a designated distressed
county, or 70 percent for a designated at-risk county.
Section 2(e) amends section 14505 of Title 40, United
States Code, by striking subsection (c) and inserting a new
subsection (c). The new subsection authorizes the Commission to
make grants for the costs of any activity under this section of
not more than 50 percent may be provided from amounts
appropriated to carry out this section; 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 in the case of a project to be carried out in a
county for which an at-risk designation is in effect to under
section 14526, 70 percent may be provide from amounts
appropriated to carry out this section.
Section 2(f) amends section 14506 of Title 40, United
States Code, by striking subsection (d) by adding a new
subsection (d). The new subsection authorizes the Commission to
make grants for the costs of any activity eligible under this
subsection of not more than 50 percent, 80 percent for a
designated distressed county, or 70 percent grant amount for a
designated at-risk county.
Section 2(g) amends section 14507(g) of Title 40, United
States Code, by adding a new subsection (g)(3). The new
subsection states that the maximum Commission contribution for
a project to be carried out in an at-risk county may be
increased to 70 percent.
Section 3. Economic and energy development initiative
This section adds section 14508 of Title 40, United States
Code, and authorizes the Commission to provide technical
assistance, make grants, enter into contracts, or to otherwise
provide amounts to person or entities in the Appalachian region
for projects to promote energy efficiency in the region; to
increase the use of renewable energy resources in the region to
productive alternative transportation fuels, electricity, and
heat; and to support the development of conventional energy
resources in the region to produce alternative transportation
fuels, electricity, and heat. Further, this new section sets a
limitation of available amounts to not more than 50 percent, 80
percent for a designated distressed county, or 70 percent for a
designated at-risk county to be provided from amounts
appropriated to carry out the section.
Section 4. Distressed, at-risk, and economically strong counties
Section 4(a) amends section 14526 of title 40, United
States Code by inserting ``at-risk'' after ``distressed''. This
section also adds the definition of ``at-risk counties'' as
those counties in the Appalachian region that are most at risk
of becoming economically distressed.
Section 5. Authorization of appropriations
Section 5(a) amends section 14703(a) of Title 40, United
States Code, to authorize appropriations for the ARC for five
fiscal years as follows: $65 million for fiscal year 2007, $80
million for fiscal year 2008; $85 million for fiscal year 2009;
$90 million for fiscal year 2010, and $95 million for fiscal
year 2011.
Section 5(b) and (c) amend section 14703(b) of Title 40,
United States Code, to authorize appropriations for the
economic and energy development initiative as follows: $12
million for each of fiscal years 2008 through 2011. These
amounts are in addition to the amounts provided under
subsection (a).
Section 5(d) amends section 14703 of Title 40, United
States Code, to add subsection (d). Subsection (d) provides
that funds approved by the Commission for a project in a State
pursuant to congressional direction will be derived from such
State's portion of the Commission's allocation of appropriated
amounts among the States.
Section 6. Termination
Section 6 extends the termination date of the ARC from 2006
to 2011.
Legislative History and Committee Consideration
During the 107th Congress, Congress enacted the Appalachian
Regional Development Reauthorization Act of 2001 (P.L. 107-
149), which built upon past successes of the Appalachian
Regional Commission, made several amendments to existing law,
and extended the authorization for an additional five years.
Specifically, the Appalachian Regional Development
Reauthorization Act expanded the Commission by adding four new,
adjacent counties to the region, required the Commission to
direct at least one-half of its grant funding to activities and
projects in distressed counties, established a program to
provide enhanced access to telecommunications and technology to
the region, and lowered the cost-sharing amount for distressed
counties.
ARC's current authorization expired in FY 2006. During the
109th Congress, the Committee leadership introduced H.R. 5812,
a bill reauthorizing ARC through FY 2011. In addition, on July
12, 2006, the Subcommittee held a legislative hearing to assess
the progress of ARC's programs in preparation for the
reauthorization, and to examine legislative proposals that
would create additional regional economic development
authorities, including the Northeast Regional Development
Commission, the Southeast Crescent Authority, and the Southwest
Regional Border Authority. No further action was taken on H.R.
5812.
On February 6, 2007, the Economic Development, Public
Buildings, and Emergency Management Subcommittee met in open
session and recommended H.R. 799 favorably to the Committee on
Transportation and Infrastructure by voice vote.
On February 7, 2007, the Committee on Transportation and
Infrastructure met in open session and adopted by voice vote an
amendment to authorize an economic and energy development
initiative in Appalachia. The Committee on Transportation and
Infrastructure ordered H.R. 799, as amended, reported favorably
to the House by voice vote.
Record Votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each record 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.
799 reported. A motion to order H.R. 799, as amended, reported
favorably to the House was agreed to by voice vote with a
quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(I) 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 Legislation
Clause 3(c)(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
included in the report.
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
reauthorize and improve the programs authorized by the
Appalachian Regional Development Act of 1965. H.R. 799
authorizes appropriations for the Appalachian Regional
Commission programs for five years.
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 enclosed cost estimate for H.R. 799
from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 13, 2007.
Hon. James L. Oberstar,
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. 799, the
Appalachian Regional Development Act Amendments of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Daniel
Hoople (for federal costs), and Melissa Merrell (for the state
and local impact).
Sincerely,
Peter R. Orszag,
Director.
Enclosure.
H.R. 799--Appalachian Regional Development Act Amendments of 2007
Summary: H.R. 799 would authorize the appropriation of $65
million for the Appalachian Regional Commission (ARC) for 2007.
(The commission is currently funded at an annual rate of $35
million in Public Law 109-383, a joint resolution making
further continuing appropriations for fiscal year 2007.) The
bill also would authorize $398 million over the 2008-2011
period for the ARC to make grants to state and local
governments that support economic development within the
Appalachian region. CBO estimates that implementing H.R. 799
would cost $280 million over the 2007-2012 period.
H.R. 799 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budget impact of H.R. 799 is shown in the following table. The
costs of this legislation fall within budget function 450
(community and regional development). For this estimate, CBO
assumes that the bill will be enacted in fiscal year 2007 and
that the amounts authorized by the bill will be appropriated
for each fiscal year.
----------------------------------------------------------------------------------------------------------------
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 \1\:
Budget Authority.......................... 35 0 0 0 0 0
Estimated Outlays......................... 64 54 37 21 12 4
Proposed Changes:
Economic Development Grants:
Authorization Level................... 30 80 85 90 95 0
Estimated Outlays..................... 3 14 33 55 71 73
Energy Grants:
Authorization Level................... 0 12 12 12 12 0
Estimated Outlays..................... 0 1 4 7 9 10
Total:
Authorization Level................... 30 92 97 102 107 0
Estimated Outlays..................... 3 15 37 62 80 83
Spending Under H.R. 799 for the Appalachian
Regional Commission:
Authorization Level....................... 65 92 97 102 107 0
Estimated Outlays......................... 67 69 74 83 92 87
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount provided under the current continuing resolution (Public Law 109-383). A full-
year appropriation for this agency has not yet been enacted for fiscal year 2007. H.R. 799 would authorize the
appropriation of $65 million for 2007.
Basis of estimate: H.R. 799 would authorize the
appropriation of $65 million in fiscal year 2007 for the ARC to
make grants to the 13 states of the Appalachian region. The ARC
is currently funded at an annual rate of $35 million for fiscal
year 2007 under the continuing resolution (Public Law 109-383)
in effect through February 15. Thus, enacting this legislation
would authorize the appropriation of an additional $30 million
to the ARC in 2007.
H.R. 799 also would authorize the appropriation of $350
million over the 2008-2011 period for the ARC and would
increase the maximum percentage of funds available for projects
within counties determined to be the most at risk of becoming
economically distressed. In addition, H.R. 799 would authorize
the appropriation of $48 million over the 2008-2011 period for
the ARC to establish a grant program promoting energy
efficiency and increased use of renewable energy resources and
alternative fuels in the Appalachian region. Based on
historical spending patterns, CBO estimates that implementing
H.R. 799 would cost $3 million in 2007 and $280 million over
the 2007-2012 period, assuming appropriation of the authorized
sums.
Intergovernmental and private-sector impact: H.R. 799
contains no intergovernmental or private-sector mandates as
defined in UMRA. Assuming the appropriation of the authorized
amounts, counties in the Appalachian region would receive more
than $380 million over the next several years for a variety of
grant programs. In addition, this bill would increase the
funding available to certain counties that are at risk of
becoming economically distressed. Any costs to those
governments would be incurred voluntarily as conditions of
receiving federal assistance. This bill would not affect the
budgets of other state, local, or tribal governments.
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: Robert A. Sunshine, Assistant
Director for Budget Analysis.
Compliance With House Rule XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, H.R. 799 does not contain any congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9(d), 9(e), or 9(f) of rule XXI of the Rules
of the House of Representatives.
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 (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 799 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are 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 (Public Law
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):
TITLE 40, UNITED STATES CODE
* * * * * * *
SUBTITLE IV--APPALACHIAN REGIONAL DEVELOPMENT
* * * * * * *
CHAPTER 143--APPALACHIAN REGIONAL COMMISSION
* * * * * * *
SUBCHAPTER II--FINANCIAL ASSISTANCE
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 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.
* * * * * * *
CHAPTER 145--SPECIAL APPALACHIAN PROGRAMS
SUBCHAPTER I--PROGRAMS
Sec.
14501. Appalachian development highway system.
* * * * * * *
14508. Economic and energy development initiative.
* * * * * * *
SUBCHAPTER II--ADMINISTRATIVE
* * * * * * *
[14526. Distressed and economically strong counties.]
14526. Distressed, at-risk, and economically strong counties.
SUBCHAPTER I--PROGRAMS
* * * * * * *
Sec. 14502. Demonstration health projects
(a) * * *
* * * * * * *
(d) Operation Grants.--
(1) * * *
[(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 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.
* * * * * * *
(f) Maximum Commission Contribution.--
(1) In general.--Subject to [paragraph (2)]
paragraphs (2) and (3), 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.
* * * * * * *
(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) * * *
* * * * * * *
(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 for 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) * * *
[(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
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.
* * * * * * *
Sec. 14505. Entrepreneurship initiative
(a) * * *
* * * * * * *
[(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
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.
* * * * * * *
Sec. 14506. Regional skills partnerships
(a) * * *
* * * * * * *
[(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
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.
* * * * * * *
Sec. 14507. Supplements to 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.
* * * * * * *
(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, make grants, enter
into contracts, or otherwise provide amounts to persons or
entities in the Appalachian region for projects--
(1) to promote energy efficiency in the region to
enhance its economic competitiveness;
(2) to increase the use of renewable energy resources
in the region to produce alternative transportation
fuels, electricity, and heat; and
(3) to support the development of conventional energy
resources in the region to produce alternative
transportation fuels, electricity, and heat.
(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
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.--Assistance 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.
SUBCHAPTER II--ADMINISTRATIVE
* * * * * * *
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--
(i) * * *
* * * * * * *
CHAPTER 147--MISCELLANEOUS
* * * * * * *
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.]
(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
(other than section 14508)--
(1) $65,000,000 for fiscal year 2007;
(2) $80,000,000 for fiscal year 2008;
(3) $85,000,000 for fiscal year 2009;
(4) $90,000,000 for fiscal year 2010; and
(5) $95,000,000 for fiscal year 2011.
(b) Economic and Energy Development Initiative.--In addition
to amounts made available under section 14501, there is
authorized to be appropriated to the Commission to carry out
section 14508 $12,000,000 for each of fiscal years 2008 through
2011.
(c) Availability.--Amounts made available under [subsection
(a)] subsections (a) and (b) remain available until expended.
(d) Allocation of Funds.--Funds approved by the Commission
for a project in a State in the Appalachian region pursuant to
congressional direction shall be derived from such State's
portion of the Commission's allocation of appropriated amounts
among the States.
Sec. 14704. Termination
This subtitle, except sections 14102(a)(1) and (b) and 14501,
ceases to be in effect on October 1, [2006] 2011.
* * * * * * *
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