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(A) for administrative expenses, including the development of
areawide plans or action programs and technical assistance activi-
ties, 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 Commis-
sion, 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 ef-
fect under section 14526 of this title;
(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 admin-
istrative 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 pro-
grams; and
(C) for investigation, research, studies, evaluations, and assess-
ments of needs, potentials, or attainments of the people of the re-
gion, 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 designa-
tion 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.
(B) DISCRETIONARY GRANTS.—
(i) GRANTS TO WHICH PERCENTAGE LIMITATION DOESN’T
APPLY.—Discretionary grants made by the Commission to
implement significant regional initiatives, to take advantage
of special development opportunities, or to respond to emer-
gency economic distress in the region may be made without
243
regard to the percentage limitations specified in subparagraph
(A).
(ii) LIMITATION ON AGGREGATE AMOUNT.—For each fiscal
year, the aggregate amount of discretionary grants referred
to in clause (i) shall not be more than 10 percent of the
amount appropriated under section 14703 of this title for the
fiscal year.
(3) SOURCES OF GRANTS.—Grant amounts may be provided entirely
from appropriations to carry out this section, in combination with
amounts available under other federal or federal grant programs, or
from any other source.
(4) FEDERAL SHARE.—Notwithstanding any law limiting the federal
share in any other federal or federal grant program, amounts appro-
priated to carry out this section may be used to increase that federal
share, as the Commission decides is appropriate.
(b) ASSISTANCE
FOR DEMONSTRATIONS
OF ENTERPRISE DEVELOP-
MENT.—
(1) IN GENERAL.—The Commission may provide assistance under
this section for demonstrations of enterprise development, including site
acquisition or development where necessary for the feasibility of the
project, in connection with the development of the region’s energy re-
sources and the development and stimulation of indigenous arts and
crafts of the region.
(2) COOPERATION BY FEDERAL AGENCIES.—In carrying out the pur-
poses of this subtitle and in implementing this section, the Secretary
of Energy, the Environmental Protection Agency, and other federal
agencies shall cooperate with the Commission and shall provide assist-
ance that the Federal Cochairman may request.
(3) AVAILABLE AMOUNTS.—In any fiscal year, not more than—
(A) $3,000,000 shall be obligated for energy resource related
demonstrations; and
(B) $2,500,000 shall be obligated for indigenous arts and crafts
demonstrations.
(c) RECORDS.—
(1) COMMISSION.—The Commission, as required by the President,
shall maintain accurate and complete records of transactions and ac-
tivities financed with federal amounts and report to the President on
the transactions and activities. The records of the Commission with re-
spect to grants are available for audit by the President and the Comp-
troller General.
244
(2) RECIPIENTS OF FEDERAL ASSISTANCE.—Recipients of federal as-
sistance under this section, as required by the Commission, shall main-
tain accurate and complete records of transactions and activities fi-
nanced with federal amounts and report to the Commission on the
transactions and activities. The records are be available for audit by
the President, the Comptroller General, and the Commission.
§ 14322. Approval of development plans, strategy state-
ments, and projects
(a) ANNUAL REVIEW AND APPROVAL REQUIRED.—The Appalachian Re-
gional Commission annually shall review and approve, in accordance with
section 14302 of this title, state and regional development plans and strat-
egy statements, and any multistate subregional plans which may be devel-
oped.
(b) APPLICATION PROCESS.—An application for a grant or for other as-
sistance for a specific project under this subtitle shall be made through the
state member of the Commission representing the applicant. The state
member shall evaluate the application for approval. To be approved, the
state member must certify, and the Federal Cochairman must determine,
that the application—
(1) implements the Commission-approved state development plan;
(2) is included in the Commission-approved strategy statement;
(3) adequately ensures that the project will be properly administered,
operated, and maintained; and
(4) otherwise meets the requirements for assistance under this sub-
title.
(c) AFFIRMATIVE VOTE REQUIREMENT DEEMED MET.—After the appro-
priate state development plan and strategy statement are approved, certifi-
cation by a state member, when joined by an affirmative vote of the Federal
Cochairman, is deemed to satisfy the requirements for affirmative votes for
decisions under section 14302(a) of this title.
CHAPTER 145—SPECIAL APPALACHIAN PROGRAMS
SUBCHAPTER I—PROGRAMS
Sec.
14501.
Appalachian development highway system.
14502.
Demonstration health projects.
14503.
Assistance for proposed low- and middle-income housing projects.
14504.
Telecommunications and technology initiative.
14505.
Entrepreneurship initiative.
14506.
Regional skills partnerships.
14507.
Supplements to federal grant programs.
SUBCHAPTER II—ADMINISTRATIVE
14521.
Required level of expenditure.
14522.
Consent of States.
14523.
Program implementation.
14524.
Program development criteria.
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14525.
State development planning process.
14526.
Distressed and economically strong counties.
SUBCHAPTER I—PROGRAMS
§ 14501. Appalachian development highway system
(a) PURPOSE.—To provide a highway system which, in conjunction with
the Interstate System and other Federal-aid highways in the Appalachian
region, will open up an area with a developmental potential where commerce
and communication have been inhibited by lack of adequate access, the Sec-
retary of Transportation may assist in the construction of an Appalachian
development highway system and local access roads serving the Appalachian
region. Construction on the development highway system shall not be more
than 3,025 miles. There shall not be more than 1,400 miles of local access
roads that serve specific recreational, residential, educational, commercial,
industrial, or similar facilities or facilitate a school consolidation program.
(b) COMMISSION DESIGNATIONS.—
(1) WHAT IS TO BE DESIGNATED.—The Appalachian Regional Com-
mission shall transmit to the Secretary its designations of—
(A) the general corridor location and termini of the development
highways;
(B) local access roads to be constructed;
(C) priorities for the construction of segments of the develop-
ment highways; and
(D) other criteria for the program authorized by this section.
(2) STATE TRANSPORTATION DEPARTMENT RECOMMENDATION RE-
QUIRED.—Before a state member participates in or votes on designa-
tions, the member must obtain the recommendations of the state trans-
portation department of the State which the member represents.
(c) ADDITION TO FEDERAL-AID PRIMARY SYSTEM.—When completed,
each development highway not already on the Federal-aid primary system
shall be added to the system.
(d) USE OF SPECIFIC MATERIALS AND PRODUCTS.—
(1) INDIGENOUS MATERIALS AND PRODUCTS.—In the construction of
highways and roads authorized under this section, a State may give
special preference to the use of materials and products indigenous to
the Appalachian region.
(2) COAL DERIVATIVES.—For research and development in the use
of coal and coal products in highway construction and maintenance, the
Secretary may require each participating State, to the maximum extent
possible, to use coal derivatives in the construction of not more than
10 percent of the roads authorized under this subtitle.