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[Senate Report 109-279]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 513
109th Congress                                                   Report
                                 SENATE
 2nd Session                                                    109-279

======================================================================

 
        APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 2006

                                _______
                                

                 July 12, 2006.--Ordered to be printed

                                _______
                                

    Mr. Inhofe, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 2832]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 2832) 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 do pass.

                    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 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 2005, for example, 57 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 77 counties 
in 2006. 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 $36.7 million in revolving loan funds 
that generated $115 million in loans for small businesses and 
leveraged $8.59 in other investment for each ARC dollar, 
helping create more than 30,000 jobs.
    Unfortunately, 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.

                     Objectives of the Legislation

    S. 2832 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.

                      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 2006''.
Sec. 2. Limitation on available amounts; maximum commission 
        contribution.

                                Summary

    This section amends sections 14321(a), 14502, 14503, 14504, 
14505, 14506 and 14507(g) 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 or 80 
percent for distressed counties and 50 percent for all other 
counties. This section provides ARC with a 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. Distressed, at-risk, and economically strong counties.
    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. 4. 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'').
Sec. 5. 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, 
2006, to October 1, 2011.
Sec. 6. Effective date.
    This section states that the amendments made by this Act 
take effect on October 1, 2006.

                          Legislative History

    On May 18, 2006, Senator Voinovich introduced S. 2832, 
which was co-sponsored by Senators Clinton, Warner, DeWine, 
Lott, Allen, Burr and Dole. The bill was read twice and 
referred to the Senate Committee on Environment and Public 
Works. The committee met on May 23, 2006 to consider the bill. 
S. 2832 was ordered favorably reported without amendment by 
voice vote.

                                Hearings

    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 2006 reauthorization. The committee received 
testimony from Ms. Ann 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. 2832 on May 23, 2006. The bill was ordered 
favorably reported by voice vote. No roll call 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. 2832 
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. 2832 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 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:
                              ----------                              

S. 2832, Appalachian Regional Development Act Amendments of 2006, As 
        ordered reported by the Senate Committee on Environment and 
        Public Works on May 23, 2006
Summary
    S. 2832 would authorize the appropriation of $511 million 
for the Appalachian Regional Commission over the 2007-2011 
period. The commission provides grants to State and local 
governments to support economic development within the 
Appalachian region. S. 2832 also would amend limitations on the 
size of awards to grantees.
    CBO estimates that implementing S. 2832 would cost $267 
million over the 2007-2011 period and $244 million more after 
2011, assuming the appropriation of the authorized amounts. 
Enacting the bill would not affect direct spending or revenues.
    S. 2832 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. 2832 is shown in the 
following table. The costs of this legislation fall within 
budget function 450 (community and regional development). For 
this estimate we assume that the authorized amounts will be 
provided each year and that spending will follow historical 
patterns for the Appalachian Regional Commission. CBO estimates 
that implementing S. 2832 would cost $267 million over the next 
5 years.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                                   2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
                SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for the Appalachian Regional
 Commission.....................................................
    Budget Authority............................................      65       0       0       0       0       0
    Estimated Outlays...........................................      64      60      47      26      15       7
Proposed Changes................................................
    Authorization Level.........................................       0      95      99     102     106     109
    Estimated Outlays...........................................       0      10      29      59      77      92
Spending Under S. 2832 for the Appalachian Regional Commission..
    Authorization Level.........................................      65      95      99     102     106     109
    Estimated Outlays...........................................      64      70      76      85      92      99
----------------------------------------------------------------------------------------------------------------

Intergovernmental and Provate-Sector Impact
    S. 2832 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 an additional $500 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: Gregory Waring; 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:
                              ----------                              

            TITLE 40. PUBLIC BUILDINGS, PROPERTY, AND WORKS

             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;
                            (ii) grants for administrative 
                        expenses shall not be made for a state 
                        agency certified as a local development 
                        district for a period of more than 
                        three years beginning on the date the 
                        initial grant is made for the 
                        development district; and
                            (iii) the local development 
                        district contributions for 
                        administrative expenses may be in cash 
                        or in kind, fairly evaluated, including 
                        space, equipment, and services;
                    (B) for assistance to States for a period 
                of not more than two years to strengthen the 
                state development planning process for the 
                Appalachian region and the coordination of 
                state planning under this subtitle, the Public 
                Works and Economic Development Act of 1965 (42 
                U.S.C. 3121 et seq.), and other federal and 
                state programs; and
                    (C) for investigation, research, studies, 
                evaluations, and assessments of needs, 
                potentials, or attainments of the people of the 
                region, technical assistance, training 
                programs, demonstrations, and the construction 
                of necessary facilities incident to those 
                activities, which will further the purposes of 
                this subtitle.
            (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. 14502. DEMONSTRATION HEALTH PROJECTS

    (a) * * *

           *       *       *       *       *       *       *

    (d) Operation grants.--
            (1) Standards for making grants.--A grant for the 
        operation of a demonstration health project shall not 
        be made--
                    (A) unless the facility is publicly owned, 
                or owned by a public or private nonprofit 
                organization, and is not operated for profit;
                    (B) after five years following the 
                commencement of the initial grant for operation 
                of the project, except that child development 
                demonstrations assisted under this section 
                during fiscal year 1979 may be approved under 
                section 14322 of this title for continued 
                support beyond that period, on request of the 
                State, if the Commission finds that no federal, 
                state, or local amounts are available to 
                continue the project; and
                    (C) unless the Secretary of Health and 
                Human Services is satisfied that the operation 
                of the project will be conducted under 
                efficient management practices designed to 
                obviate operating deficits.
            [(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), 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) * * *

           *       *       *       *       *       *       *

    (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.
            (2) Interest.--A loan shall be made without 
        interest, except that a loan made to an organization 
        established for profit shall bear interest at the 
        prevailing market rate authorized for an insured or 
        guaranteed loan for that type of project.
            (3) Payment.--The Secretary shall require payment 
        of a loan made under this section, under terms and 
        conditions the Secretary may require, no later than on 
        completion of the project. Except for a loan to an 
        organization established for profit, the Secretary may 
        cancel any part of a loan made under this section on 
        determining that a permanent loan to finance the 
        project cannot be obtained in an amount adequate for 
        repayment of a loan made under this section.
    (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.
            (2) Site development costs and offsite 
        improvements.--The Secretary may make grants and 
        commitments for grants, and may advance amounts under 
        terms and conditions the Secretary may require, to 
        nonprofit, limited dividend, or cooperative 
        organizations and public bodies for reasonable site 
        development costs and necessary offsite improvements, 
        such as sewer and water line extensions, when the 
        grant, commitment, or advance is essential to the 
        economic feasibility of a housing construction or 
        rehabilitation project for low- and moderate-income 
        families and individuals which otherwise meets the 
        requirements for assistance under this section. A grant 
        under this paragraph for--
                    (A) the construction of housing shall not 
                be more than 10 percent of the cost of the 
                project; and
                    (B) the rehabilitation of housing shall not 
                be more than 10 percent of the reasonable value 
                of the rehabilitation housing, as determined by 
                the Secretary.

           *       *       *       *       *       *       *

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), 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.--The maximum Commission 
        contribution for a project or activity 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 80 percent.
            (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.

           *       *       *       *       *       *       *

                      Subchapter II. Administrative

  

           *       *       *       *       *       *       *

Sec. 14526. DISTRESSED 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) `competitive counties', which 
                        shall be those counties in the region 
                        that are approaching economic parity 
                        with the rest of the United States; and
                            (ii) `attainment counties', which 
                        shall be those counties in the region 
                        that have attained or exceeded economic 
                        parity with the rest of the United 
                        States.

           *       *       *       *       *       *       *

                       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.]
    (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.

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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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