I 
109TH CONGRESS 
2D SESSION 
H. R. 5812 
To reauthorize and improve the program authorized by the Appalachian 
Regional Development Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2006 
Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. SHUSTER, Ms. NOR-
TON, Mr. BACHUS, Mr. BOEHLERT, Mr. CHANDLER, Mr. DAVIS of Ten-
nessee, Mr. DUNCAN, Mr. HIGGINS, Mr. HOLDEN, Mr. KUHL of New 
York, and Mr. RAHALL) introduced the following bill; which was referred 
to the Committee on Transportation and Infrastructure 
A BILL 
To reauthorize and improve the program authorized by the 
Appalachian Regional Development Act of 1965. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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— 
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(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 char-
ter or authority that includes the eco-
nomic development of a county or a 
part of a county for which a dis-
tressed 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 char-
ter or authority that includes the eco-
nomic 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 adminis-
trative expenses;’’; and 
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(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 el-
igible 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 car-
ried out in a county for which a distressed 
county designation is in effect under sec-
tion 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: 
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‘‘(2) LIMITATION ON AVAILABLE AMOUNTS.— 
Grants under this section for the operation (includ-
ing 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 oper-
ation; 
‘‘(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 Com-
mission 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— 
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‘‘(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 pre-
liminary surveys and analyses of market needs, pre-
liminary 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 
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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 fi-
nancing 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 estab-
lished 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 car-
ried out in a county for which a distressed 
county designation is in effect under sec-
tion 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 ex-
penses.’’. 
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(d) TELECOMMUNICATIONS AND TECHNOLOGY INI-
TIATIVE.—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 designa-
tion 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— 
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‘‘(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 designa-
tion 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 designa-
tion is in effect under section 14526, 80 percent 
may be provided from amounts appropriated to 
carry out this section; or 
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‘‘(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
PRO-
GRAMS.—Section 14507(g) of title 40, United States 
Code, is amended by adding at the end the following: 
‘‘(3) AT-RISK COUNTIES.—The maximum Com-
mission 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 
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(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 dis-
tressed; 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 pur-
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suant to congressional direction shall be derived from such 
State’s portion of the Commission’s allocation of appro-
priated 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 Oc-
tober 1, 2006. 
Æ 
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