A bill to reauthorize and improve the program authorized by the Appalachian Regional Development Act of 1965.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Appalachian Regional Development Act 
Amendments of 2008''.
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 to be 
    appropriated 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)--
            (A) in paragraph (1) by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)''; and
            (B) 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--
        (1) in paragraph (1) by striking ``paragraph (2)'' and 
    inserting ``paragraphs (2) and (3)''; and
        (2) 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. ECONOMIC AND ENERGY DEVELOPMENT INITIATIVE.
    (a) In General.--Subchapter I of chapter 145 of subtitle IV of 
title 40, United States Code, is amended by adding at the end the 
following:
``Sec. 14508. Economic and energy development initiative
    ``(a) Projects To Be Assisted.--The Appalachian Regional Commission 
may provide technical assistance, make grants, enter into contracts, or 
otherwise provide amounts to persons or entities in the Appalachian 
region for projects and activities--
        ``(1) to promote energy efficiency in the Appalachian region to 
    enhance the economic competitiveness of the Appalachian region;
        ``(2) to increase the use of renewable energy resources, 
    particularly biomass, in the Appalachian region to produce 
    alternative transportation fuels, electricity, and heat; and
        ``(3) to support the development of regional, conventional 
    energy resources to produce electricity and heat through advanced 
    technologies that achieve a substantial reduction in emissions, 
    including greenhouse gases, over the current baseline.
    ``(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.
    ``(c) Sources of Assistance.--Subject to subsection (b), grants 
provided under this section may be provided from amounts made available 
to carry out this section in combination with amounts made available 
under other Federal programs or from any other source.
    ``(d) Federal Share.--Notwithstanding any provision of law limiting 
the Federal share under any other Federal program, amounts made 
available to carry out this section may be used to increase that 
Federal share, as the Commission decides is appropriate.''.
    (b) Conforming Amendment.--The analysis for chapter 145 of title 
40, United States Code, is amended by inserting after the item relating 
to section 14507 the following:

``14508. Economic and energy development initiative.''.
SEC. 4. 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. 5. 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 is authorized to be appropriated to the 
Appalachian Regional Commission to carry out this subtitle--
        ``(1) $87,000,000 for fiscal year 2008;
        ``(2) $100,000,000 for fiscal year 2009;
        ``(3) $105,000,000 for fiscal year 2010;
        ``(4) $108,000,000 for fiscal year 2011; and
        ``(5) $110,000,000 for fiscal year 2012.''.
    (b) Economic and Energy Development Initiative.--Section 14703(b) 
of such title is amended to read as follows:
    ``(b) Economic and Energy Development Initiative.--Of the amounts 
made available under subsection (a), the following amounts may be used 
to carry out section 14508--
        ``(1) $12,000,000 for fiscal year 2008;
        ``(2) $12,500,000 for fiscal year 2009;
        ``(3) $13,000,000 for fiscal year 2010;
        ``(4) $13,500,000 for fiscal year 2011; and
        ``(5) $14,000,000 for fiscal year 2012.''.
    (c) 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 Appalachian 
Regional Commission for a project in a State in the Appalachian region 
pursuant to a congressional directive shall be derived from the total 
amount allocated to the State by the Appalachian Regional Commission 
from amounts appropriated to carry out this subtitle.''.
SEC. 6. TERMINATION.
    Section 14704 of title 40, United States Code, is amended by 
striking ``2007'' and inserting ``2012''.
SEC. 7. ADDITIONS TO APPALACHIAN REGION.
    (a) Kentucky.--Section 14102(a)(1)(C) of title 40, United States 
Code, is amended--
        (1) by inserting ``Metcalfe,'' after ``Menifee,'';
        (2) by inserting ``Nicholas,'' after ``Morgan,''; and
        (3) by inserting ``Robertson,'' after ``Pulaski,''.
    (b) Ohio.--Section 14102(a)(1)(H) of such title is amended--
        (1) by inserting ``Ashtabula,'' after ``Adams,'';
        (2) by inserting ``Mahoning,'' after ``Lawrence,''; and
        (3) by inserting ``Trumbull,'' after ``Scioto,''.
    (c) Tennessee.--Section 14102(a)(1)(K) of such title is amended by 
inserting ``Lawrence, Lewis,'' after ``Knox,''.
    (d) Virginia.--Section 14102(a)(1)(L) of such title is amended--
        (1) by inserting ``Henry,'' after ``Grayson,''; and
        (2) by inserting ``Patrick,'' after ``Montgomery,''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Appalachian Regional Development Act Amendments of 2008- Limits the amount of Appalachian regional development grants and loans for projects in at-risk counties to 70% of project costs. Directs the Appalachian Regional Commission to designate as "at-risk" those counties in the Appalachian region that are most at risk of becoming economically distressed.

Authorizes the Commission to provide technical assistance, provide grants, enter into contracts, or otherwise provide amounts to entities in the region for projects and activities to: (1) promote energy efficiency; (2) increase the use of renewable energy resources; and (3) support the development of regional, conventional energy resources to produce electricity and heat through advanced technologies.

Authorizes appropriations to the Commission through FY2012, with specified amounts designated for the economic and energy development initiative. Requires funds approved by the Commission for a project in an Appalachian state pursuant to a congressional directive to be derived from the amount allocated to that state.

Extends the termination date of the Appalachian Regional Development Act of 1965 until October 1, 2012.

Adds to the Appalachian region the counties of: (1) Metcalfe, Nicholas, and Robertson in Kentucky; (2) Ashtabula, Mahoning, and Trumbull in Ohio; (3) Lawrence and Lewis in Tennessee; and (4) Henry and Patrick in Virginia.