110TH CONGRESS 

1ST SESSION S. 496

AN ACT

To reauthorize and improve the program authorized by the 

Appalachian Regional Development Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Appalachian Regional 

3 Development Act Amendments of 2007’’. 

4 SEC. 2. LIMITATION ON AVAILABLE AMOUNTS; MAXIMUM 

5 COMMISSION CONTRIBUTION. 

6 (a) GRANTS AND OTHER ASSISTANCE.—Section 

7 14321(a) of title 40, United States Code, is amended—

8 (1) in paragraph (1)(A), by striking clause (i) 

9 and inserting the following: 

10 ‘‘(i) the amount of the grant shall not 

11 exceed—

12 ‘‘(I) 50 percent of administrative 

13 expenses; 

14 ‘‘(II) at the discretion of the 

15 Commission, if the grant is to a local 

16 development district that has a char17 ter or authority that includes the eco18 nomic development of a county or a 

19 part of a county for which a dis20 tressed county designation is in effect 

21 under section 14526, 75 percent of 

22 administrative expenses; or 

23 ‘‘(III) at the discretion of the 

24 Commission, if the grant is to a local 

25 development district that has a char26 ter or authority that includes the eco-
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1 nomic development of a county or a 

2 part of a county for which an at-risk 

3 county designation is in effect under 

4 section 14526, 70 percent of adminis5 trative expenses;’’; and 

6 (2) in paragraph (2), by striking subparagraph 

7 (A) and inserting the following: 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), of the cost of any project eli10 gible for financial assistance under this section, 

11 not more than—

12 ‘‘(i) 50 percent may be provided from 

13 amounts made available to carry out this 

14 subtitle; 

15 ‘‘(ii) in the case of a project to be car16 ried out in a county for which a distressed 

17 county designation is in effect under sec18 tion 14526, 80 percent may be provided 

19 from amounts made available to carry out 

20 this subtitle; or 

21 ‘‘(iii) in the case of a project to be 

22 carried out in a county for which an at23 risk county designation is in effect under 

24 section 14526, 70 percent may be provided 
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1 from amounts made available to carry out 

2 this subtitle.’’. 

3 (b) DEMONSTRATION HEALTH PROJECTS.—Section 

4 14502 of title 40, United States Code, is amended—

5 (1) in subsection (d), by striking paragraph (2) 

6 and inserting the following: 

7 ‘‘(2) LIMITATION ON AVAILABLE AMOUNTS.—

8 Grants under this section for the operation (includ9 ing initial operating amounts and operating deficits, 

10 which include the cost of attracting, training, and 

11 retaining qualified personnel) of a demonstration 

12 health project, whether or not constructed with 

13 amounts authorized to be appropriated by this sec14 tion, may be provided for up to—

15 ‘‘(A) 50 percent of the cost of that oper16 ation; 

17 ‘‘(B) in the case of a project to be carried 

18 out in a county for which a distressed county 

19 designation is in effect under section 14526, 80 

20 percent of the cost of that operation; or 

21 ‘‘(C) in the case of a project to be carried 

22 out in a county for which an at-risk county des23 ignation is in effect under section 14526, 70 

24 percent of the cost of that operation.’’; and 
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1 (2) in subsection (f), by adding at the end the 

2 following: 

3 ‘‘(3) AT-RISK COUNTIES.—The maximum Com4 mission contribution for a project to be carried out 

5 in a county for which an at-risk county designation 

6 is in effect under section 14526 may be increased to 

7 the lesser of—

8 ‘‘(A) 70 percent; or 

9 ‘‘(B) the maximum Federal contribution 

10 percentage authorized by this section.’’. 

11 (c) ASSISTANCE FOR PROPOSED LOW- AND MIDDLE12 INCOME HOUSING PROJECTS.—Section 14503 of title 40, 

13 United States Code, is amended—

14 (1) in subsection (d), by striking paragraph (1) 

15 and inserting the following: 

16 ‘‘(1) LIMITATION ON AVAILABLE AMOUNTS.—A 

17 loan under subsection (b) for the cost of planning 

18 and obtaining financing (including the cost of pre19 liminary surveys and analyses of market needs, pre20 liminary site engineering and architectural fees, site 

21 options, application and mortgage commitment fees, 

22 legal fees, and construction loan fees and discounts) 

23 of a project described in that subsection may be 

24 made for up to—

25 ‘‘(A) 50 percent of that cost; 
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1 ‘‘(B) in the case of a project to be carried 

2 out in a county for which a distressed county 

3 designation is in effect under section 14526, 80 

4 percent of that cost; or 

5 ‘‘(C) in the case of a project to be carried 

6 out in a county for which an at-risk county des7 ignation is in effect under section 14526, 70 

8 percent of that cost.’’; and 

9 (2) in subsection (e), by striking paragraph (1) 

10 and inserting the following: 

11 ‘‘(1) IN GENERAL.—A grant under this section 

12 for expenses incidental to planning and obtaining fi13 nancing for a project under this section that the 

14 Secretary considers to be unrecoverable from the 

15 proceeds of a permanent loan made to finance the 

16 project shall—

17 ‘‘(A) not be made to an organization estab18 lished for profit; and 

19 ‘‘(B) except as provided in paragraph (2), 

20 not exceed—

21 ‘‘(i) 50 percent of those expenses; 

22 ‘‘(ii) in the case of a project to be car23 ried out in a county for which a distressed 

24 county designation is in effect under sec-
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1 tion 14526, 80 percent of those expenses; 

2 or 

3 ‘‘(iii) in the case of a project to be 

4 carried out in a county for which an at5 risk county designation is in effect under 

6 section 14526, 70 percent of those ex7 penses.’’. 

8 (d) TELECOMMUNICATIONS AND TECHNOLOGY INI9 TIATIVE.—Section 14504 of title 40, United States Code, 

10 is amended by striking subsection (b) and inserting the 

11 following: 

12 ‘‘(b) LIMITATION ON AVAILABLE AMOUNTS.—Of the 

13 cost of any project eligible for a grant under this section, 

14 not more than—

15 ‘‘(1) 50 percent may be provided from amounts 

16 made available to carry out this section; 

17 ‘‘(2) in the case of a project to be carried out 

18 in a county for which a distressed county designa19 tion is in effect under section 14526, 80 percent 

20 may be provided from amounts made available to 

21 carry out this section; or 

22 ‘‘(3) in the case of a project to be carried out 

23 in a county for which an at-risk county designation 

24 is in effect under section 14526, 70 percent may be 
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1 provided from amounts made available to carry out 

2 this section.’’. 

3 (e) ENTREPRENEURSHIP INITIATIVE.—Section 

4 14505 of title 40, United States Code, is amended by 

5 striking subsection (c) and inserting the following: 

6 ‘‘(c) LIMITATION ON AVAILABLE AMOUNTS.—Of the 

7 cost of any project eligible for a grant under this section, 

8 not more than—

9 ‘‘(1) 50 percent may be provided from amounts 

10 made available to carry out this section; 

11 ‘‘(2) in the case of a project to be carried out 

12 in a county for which a distressed county designa13 tion is in effect under section 14526, 80 percent 

14 may be provided from amounts made available to 

15 carry out this section; or 

16 ‘‘(3) in the case of a project to be carried out 

17 in a county for which an at-risk county designation 

18 is in effect under section 14526, 70 percent may be 

19 provided from amounts made available to carry out 

20 this section.’’. 

21 (f) REGIONAL SKILLS PARTNERSHIPS.—Section 

22 14506 of title 40, United States Code, is amended by 

23 striking subsection (d) and inserting the following: 
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1 ‘‘(d) LIMITATION ON AVAILABLE AMOUNTS.—Of the 

2 cost of any project eligible for a grant under this section, 

3 not more than—

4 ‘‘(1) 50 percent may be provided from amounts 

5 made available to carry out this section; 

6 ‘‘(2) in the case of a project to be carried out 

7 in a county for which a distressed county designa8 tion is in effect under section 14526, 80 percent 

9 may be provided from amounts made available to 

10 carry out this section; or 

11 ‘‘(3) in the case of a project to be carried out 

12 in a county for which an at-risk county designation 

13 is in effect under section 14526, 70 percent may be 

14 provided from amounts made available to carry out 

15 this section.’’. 

16 (g) SUPPLEMENTS TO FEDERAL GRANT PRO17 GRAMS.—Section 14507(g) of title 40, United States 

18 Code, is amended—

19 (1) in paragraph (1), by striking ‘‘paragraph 

20 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(3) AT-RISK COUNTIES.—The maximum Com23 mission contribution for a project to be carried out 

24 in a county for which an at-risk county designation 
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1 is in effect under section 14526 may be increased to 

2 70 percent.’’. 

3 SEC. 3. ECONOMIC AND ENERGY DEVELOPMENT INITIA4 TIVE. 

5 (a) IN GENERAL.—Subchapter I of chapter 145 of 

6 subtitle IV of title 40, United States Code, is amended 

7 by adding at the end the following: 

8 ‘‘§ 14508. Economic and energy development initia9 tive 

10 ‘‘(a) PROJECTS TO BE ASSISTED.—The Appalachian 

11 Regional Commission may provide technical assistance, 

12 provide grants, enter into contracts, or otherwise provide 

13 amounts to individuals or entities in the Appalachian re14 gion for use in carrying out projects and activities—

15 ‘‘(1) to promote energy efficiency in the Appa16 lachian region to enhance the economic competitive17 ness of the Appalachian region; and 

18 ‘‘(2) to increase the use of renewable energy re19 sources, particularly biomass, in the Appalachian re20 gion to produce alternative transportation fuels, elec21 tricity, and heat. 

22 ‘‘(b) LIMITATION ON AVAILABLE AMOUNTS.—Of the 

23 cost of any project eligible to be funded by a grant under 

24 this section, not more than—
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1 ‘‘(1) 50 percent may be provided from amounts 

2 made available to carry out this section; 

3 ‘‘(2) in the case of a project to be carried out 

4 in a county for which a distressed county designa5 tion is in effect under section 14526, 80 percent 

6 may be provided from amounts made available to 

7 carry out this section; and 

8 ‘‘(3) in the case of a project to be carried out 

9 in a county for which an at-risk county designation 

10 is in effect under section 14526, 70 percent may be 

11 provided from amounts made available to carry out 

12 this section. 

13 ‘‘(c) SOURCES OF ASSISTANCE.—Subject to sub14 section (b), grants provided under this section may be pro15 vided—

16 ‘‘(1) entirely from amounts made available to 

17 carry out this section; or 

18 ‘‘(2) from amounts made available to carry out 

19 this section, in combination with amounts made 

20 available under other Federal programs or from any 

21 other source. 

22 ‘‘(d) FEDERAL SHARE.—Notwithstanding any other 

23 provision of law limiting a Federal share of the cost of 

24 a project under any other Federal program, amounts 

25 made available to carry out this section may be used to 
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1 increase that Federal share, as the Commission deter2 mines to be appropriate.’’. 

3 (b) CONFORMING AMENDMENT.—The analysis for 

4 chapter 145 of title 40, United States Code, is amended 

5 by inserting after the item relating to section 14507 the 

6 following:

‘‘14508. Economic and energy development initiative.’’.

7 SEC. 4. DISTRESSED, AT-RISK, AND ECONOMICALLY 

8 STRONG COUNTIES. 

9 (a) DESIGNATION OF AT-RISK COUNTIES.—Section 

10 14526 of title 40, United States Code, is amended—

11 (1) in the section heading, by inserting ‘‘, at12 risk,’’ after ‘‘Distressed’’; and 

13 (2) in subsection (a)(1)—

14 (A) by redesignating subparagraph (B) as 

15 subparagraph (C); 

16 (B) in subparagraph (A), by striking 

17 ‘‘and’’ at the end; and 

18 (C) by inserting after subparagraph (A) 

19 the following: 

20 ‘‘(B) designate as ‘at-risk counties’ those 

21 counties in the Appalachian region that are 

22 most at risk of becoming economically dis23 tressed; and’’. 

24 (b) CONFORMING AMENDMENT.—The analysis for 

25 chapter 145 of title 40, United States Code, is amended 
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1 by striking the item relating to section 14526 and insert2 ing the following:

‘‘14526. Distressed, at-risk, and economically strong counties.’’.

3 SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 

4 (a) IN GENERAL.—Section 14703 of title 40, United 

5 States Code, is amended to read as follows: 

6 ‘‘§ 14703. Authorization of appropriations 

7 ‘‘(a) IN GENERAL.—In addition to the amounts made 

8 available under section 14501, there are authorized to be 

9 appropriated to the Appalachian Regional Commission to 

10 carry out this subtitle—

11 ‘‘(1) $95,200,000 for fiscal year 2007; 

12 ‘‘(2) $98,600,000 for fiscal year 2008; 

13 ‘‘(3) $102,000,000 for fiscal year 2009; 

14 ‘‘(4) $105,700,000 for fiscal year 2010; and 

15 ‘‘(5) $109,400,000 for fiscal year 2011. 

16 ‘‘(b) TELECOMMUNICATIONS AND TECHNOLOGY INI17 TIATIVE.—Of the amounts made available under sub18 section (a), the following amounts may be used to carry 

19 out section 14504: 

20 ‘‘(1) $10,000,000 for fiscal year 2007. 

21 ‘‘(2) $8,000,000 for fiscal year 2008. 

22 ‘‘(3) $5,000,000 for each of fiscal years 2009 

23 through 2011. 
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1 ‘‘(c) ECONOMIC AND ENERGY INITIATIVE.—Of the 

2 amounts made available under subsection (a), the fol3 lowing amounts may be used to carry out section 14508: 

4 ‘‘(1) $12,000,000 for fiscal year 2007. 

5 ‘‘(2) $12,400,000 for fiscal year 2008. 

6 ‘‘(3) $12,900,000 for fiscal year 2009. 

7 ‘‘(4) $13,300,000 for fiscal year 2010. 

8 ‘‘(5) $13,800,000 for fiscal year 2011. 

9 ‘‘(d) AVAILABILITY.—Amounts made available under 

10 subsection (a) shall remain available until expended. 

11 ‘‘(e) ALLOCATION OF FUNDS.—Funds approved by 

12 the Appalachian Regional Commission for a project in an 

13 Appalachian State pursuant to a congressional directive 

14 shall be derived from the total amount allocated to the 

15 State by the Appalachian Regional Commission from 

16 amounts made available to carry out this subtitle.’’. 

17 SEC. 6. TERMINATION. 

18 Section 14704 of title 40, United States Code, is 

19 amended by striking ‘‘2007’’ and inserting ‘‘2011’’. 
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1 SEC. 7. EFFECTIVE DATE. 

2 The amendments made by this Act take effect on Oc3 tober 1, 2006. 

Passed the Senate August 3, 2007. 

Attest:

Secretary. 
110TH CONGRESS 

1ST SESSION S. 496

AN ACT

To reauthorize and improve the program authorized 

1965.by the Appalachian Regional Development Act of