To reauthorize and improve the program authorized by the Appalachian Regional Development Act of 1965.

Summary: Appalachian Regional Development Act Amendments of 2006 - Limits the maximum Appalachian Regional Commission non-highway grant amount for designated at-risk counties to 70%.

Directs the Commission to designate as "at-risk counties" those counties in the Appalachian region that are most at risk of becoming economically distressed.

Authorizes additional appropriations to the Commission through FY2011 to carry out Appalachian regional development.

Extends, for five years, the termination date of the Appalachian Regional Development Act of 1965 (with exceptions for the Appalachian development highway system and certain definitions).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Appalachian Regional Development Act 
Amendments of 2006''.

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

    (a) Grants and Other Assistance.--Section 14321(a) of title 40, 
United States Code, is amended--
            (1) in paragraph (1)(A), by striking clause (i) and 
        inserting the following:
                            ``(i) the amount of the grant shall not 
                        exceed--
                                    ``(I) 50 percent of administrative 
                                expenses;
                                    ``(II) at the discretion of the 
                                Commission, if the grant is to a local 
                                development district that has a charter 
                                or authority that includes the economic 
                                development of a county or a part of a 
                                county for which a distressed county 
                                designation is in effect under section 
                                14526, 75 percent of administrative 
                                expenses; or
                                    ``(III) at the discretion of the 
                                Commission, if the grant is to a local 
                                development district that has a charter 
                                or authority that includes the economic 
                                development of a county or a part of a 
                                county for which an at-risk county 
                                designation is in effect under section 
                                14526, 70 percent of administrative 
                                expenses;''; and
            (2) in paragraph (2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), of the cost of any activity eligible 
                for financial assistance under this section, not more 
                than--
                            ``(i) 50 percent may be provided from 
                        amounts appropriated to carry out this 
                        subtitle;
                            ``(ii) in the case of a project to be 
                        carried out in a county for which a distressed 
                        county designation is in effect under section 
                        14526, 80 percent may be provided from amounts 
                        appropriated to carry out this subtitle; or
                            ``(iii) in the case of a project to be 
                        carried out in a county for which an at-risk 
                        county designation is in effect under section 
                        14526, 70 percent may be provided from amounts 
                        appropriated to carry out this subtitle.''.
    (b) Demonstration Health Projects.--Section 14502 of title 40, 
United States Code, is amended--
            (1) in subsection (d), by striking paragraph (2) and 
        inserting the following:
            ``(2) Limitation on available amounts.--Grants under this 
        section for the operation (including initial operating amounts 
        and operating deficits, which include the cost of attracting, 
        training, and retaining qualified personnel) of a demonstration 
        health project, whether or not constructed with amounts 
        authorized 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), 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) in subsection (d), by striking paragraph (1) and 
        inserting the following:
            ``(1) Limitation on available amounts.--A loan under 
        subsection (b) for the cost of planning and obtaining financing 
        (including the cost of preliminary surveys and analyses of 
        market needs, preliminary site engineering and architectural 
        fees, site options, application and mortgage commitment fees, 
        legal fees, and construction loan fees and discounts) of a 
        project described in that subsection may be made for up to--
                    ``(A) 50 percent of that cost;
                    ``(B) in the case of a project to be carried out in 
                a county for which a distressed county designation is 
                in effect under section 14526, 80 percent of that cost; 
                or
                    ``(C) in the case of a project to be carried out 
                for a county for which an at-risk county designation is 
                in effect under section 14526, 70 percent of that 
                cost.''; and
            (2) in subsection (e), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--A grant under this section for expenses 
        incidental to planning and obtaining financing for a project 
        under this section that the Secretary considers to be 
        unrecoverable from the proceeds of a permanent loan made to 
        finance the project shall--
                    ``(A) not be made to an organization established 
                for profit; and
                    ``(B) except as provided in paragraph (2), not 
                exceed--
                            ``(i) 50 percent of those expenses;
                            ``(ii) in the case of a project to be 
                        carried out in a county for which a distressed 
                        county designation is in effect under section 
                        14526, 80 percent of those expenses; or
                            ``(iii) in the case of a project to be 
                        carried out in a county for which an at-risk 
                        county designation is in effect under section 
                        14526, 70 percent of those expenses.''.
    (d) Telecommunications and Technology Initiative.--Section 14504 of 
title 40, United States Code, is amended by striking subsection (b) and 
inserting the following:
    ``(b) Limitation on Available Amounts.--Of the cost of any activity 
eligible for a grant under this section, not more than--
            ``(1) 50 percent may be provided from amounts appropriated 
        to carry out this section;
            ``(2) in the case of a project to be carried out in a 
        county for which a distressed county designation is in effect 
        under section 14526, 80 percent may be provided from amounts 
        appropriated to carry out this section; or
            ``(3) in the case of a project to be carried out in a 
        county for which an at-risk county designation is in effect 
        under section 14526, 70 percent may be provided from amounts 
        appropriated to carry out this section.''.
    (e) Entrepreneurship Initiative.--Section 14505 of title 40, United 
States Code, is amended by striking subsection (c) and inserting the 
following:
    ``(c) Limitation on Available Amounts.--Of the cost of any activity 
eligible for a grant under this section, not more than--
            ``(1) 50 percent may be provided from amounts appropriated 
        to carry out this section;
            ``(2) in the case of a project to be carried out in a 
        county for which a distressed county designation is in effect 
        under section 14526, 80 percent may be provided from amounts 
        appropriated to carry out this section; or
            ``(3) in the case of a project to be carried out in a 
        county for which an at-risk county designation is in effect 
        under section 14526, 70 percent may be provided from amounts 
        appropriated to carry out this section.''.
    (f) Regional Skills Partnerships.--Section 14506 of title 40, 
United States Code, is amended by striking subsection (d) and inserting 
the following:
    ``(d) Limitation on Available Amounts.--Of the cost of any activity 
eligible for a grant under this section, not more than--
            ``(1) 50 percent may be provided from amounts appropriated 
        to carry out this section;
            ``(2) in the case of a project to be carried out in a 
        county for which a distressed county designation is in effect 
        under section 14526, 80 percent may be provided from amounts 
        appropriated to carry out this section; or
            ``(3) in the case of a project to be carried out in a 
        county for which an at-risk county designation is in effect 
        under section 14526, 70 percent may be provided from amounts 
        appropriated to carry out this section.''.
    (g) Supplements to Federal Grant Programs.--Section 14507(g) of 
title 40, United States Code, is amended 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. 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. 4. 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 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) 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 an Appalachian State pursuant to congressional direction 
shall be derived from such State's portion of the Commission's 
allocation of appropriated amounts among the States.''.

SEC. 5. TERMINATION.

    Section 14704 of title 40, United States Code, is amended by 
striking ``2006'' and inserting ``2011''.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act take effect on October 1, 2006.