An Act to extend the Appalachian Regional Development Act of 1965, to increase the authorizations for the title V Action Planning Commissions, and for other purposes.
PL 94-188 (H.R.4073), enacted 12/31/1975

PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1079 
Public Law 94-188 
94th Congress 
An Act 
To extend the Appalachian Regional Development Act of 1965, to increase the 
authorizations for the title V Action Planning Commissions, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "Regional Development Act of 1975". 
TITLE I 
SEC. 101. This title may be cited as the "Appalachian Regional 
Development Act Amendments of 1975". 
SEC. 102. Section 2 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 2) is amended by inserting "(a)" after 
"SEC. 2." and adding the following new subsection: 
"(b) The Congress further finds and declares that while substantial 
progress has been made toward achieving the foregoing purposes, 
especially with respect to the provision of essential public facilities, 
much remains to be accomplished, especially with respect to the pro-
vision of essential health, education, and other public services. The 
Congress recognizes that changes and evolving national purposes in 
the decade since 1965 affect not only the Appalachian region, but 
also its relationship to a nation now assigning higher priority to 
conservation and the quality of life, values long cherished within the 
region. Appalachia now has the opportunity, in accommodating 
future growth and development, to demonstrate local leadership 
and coordinated planning so that housing, public services, transpor-
tation and other community facilities will be provided in a way 
congenial to the traditions and beauty of the region and compatible 
with conservation values and an enhanced quality of life for the 
people of the region. The Congress recognizes also that fundamental 
changes are occurring in national energy requirements and produc-
tion, which not only risk short-term dislocations but will undoubtedly 
result in major long-term effects in the region. It is essential that 
the opportunities for expanded energy production be used so as to 
maximize the social and economic benefits and minimize social and 
environmental costs to the region and its people. It is, therefore, also 
the purpose of this Act to provide a framework for coordinating 
Federal, State and local efforts toward (1) anticipating the effects of 
alternative energy policies and practices, (2) planning for accompany-
ing growth and change so as to maximize the social and economic 
benefits and minimize social and environmental costs, and (3) 
implementing programs and projects carried out in the region by 
Federal, State, and local governmental agencies so as to better meet 
the special problems generated in the region by the Nation's energy 
needs and policies, including problems of transportation, housing, 
commimity facilities, and human services.". 
SEC. 103. Section 101 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 101) is amended as follows: 
(1) The third sentence of subsection (a) is amended to read as fol-
lows : "Each State member shall be the Governor.". 
Dec. 31, 1975 
[H.R. 4073] 
Regional 
Development Act 
of 1975. 
42 u s e 3181 
note. 
Appalachian 
Regional 
Development Act 
Amendments of 
1975. 
40 u s e app. 1 
note. 
Appalachian 
Regional 
eommission. 
Membership and 
voting. 
89 STAT. 1080 
PUBLIC LAW 94-188—DEC. 31, 1975 
40USCapp.303. 
State alternate. 
Compensation. 
5 use 5314. 
5 use 5316. 
Appropriation 
authorization. 
(2) The last sentence of subsection (a) is amended by striking tHe 
period and inserting the following: "for a term of not less than one 
year.". 
(3) Subsection (b) is amended by adding the following: "No deci-
sion involving Commission policy, approval of State, regional or sub-
regional development plans or implementing investment programs, 
any modification or revision of the Appalachian Regional Commission 
Code, or any allocation of funds among the States may be made with-
out a quorum of State members present. The approval of project and 
grant proposals shall be a responsibility of the Commission and exer-
cised in accordance with section 303 of this Act.". 
(4) The first sentence of subsection (c) is amended to read as fol-
lows : "Each State member may have a single alternate, appointed by 
the Governor from among the members of the Governor's cabinet or 
the Governor's personal staff.". 
(5) Subsection (c) is amended by adding at the end thereof the fol-
lowing : "A State alternate shall not be counted toward the establish-
ment of a quorum of the Commission in any instance in which a quorum 
of the State members is required to be present. No Commission powers 
or responsibilities specified in the last two sentences of subsection (b) 
of this section, nor the vote of any Commission member, may be dele-
gated to any person not a Commission member or who is not entitled 
to vote in C^'ommission meetings.". 
SEC. 104. Subsection (d) of section 101 of the Appalachian Regional 
Development Act of 1965 (40 App. U.S.C. 101) is amended to read as 
follows: 
"(d) The Federal Cochairman shall be compensated by the Federal 
Government at level III of the Executive Schedule in subchapter II of 
chapter 53 of title V, United States Code. His alternate shall be com-
pensated by the Federal Government at level V of such Executive 
Schedule, and when not actively serving as an alternate for the Fed-
eral Cochairman, shall perform such functions and duties as are dele-
gated to him by the Federal Cochairman. Each State member and his 
alternate shall be compensated by the State which they represent at 
the rate established by law of such State.". 
SEC. 105. Section 102 of the Appalachian Regional Development Act 
of 1965 (40 App. U.S.C. 102) is amended by inserting "(a)" after 
"SEC. 102." and adding the following new subsection: 
" (b) In carrying out its functions under this section, the Commis-
sion shall identify the characteristics of. and may distinguish between 
the needs and goals of appropriate subregional areas, including cen-
tral, northern, and southern A ppalachia.". 
SEC. 106. Section 105(b) of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 105) is amended by adding at the end 
thereof the following new sentence: "To carrv oTit this section there is 
hereby authorized to be appropriated to the Commission, to be avail-
able until expended, not to exceed $4,600,000 for the period beginning 
July 1, 1975, and ending September 30, 1977 (of such amount not to 
exceed $800,000 shall be available for expenses of the Federal cochair-
man, his alternate and his staff), and not to exceed $5,000,000 for the 
two-fiscal-year period ending September 30,1979 (of such amount not 
to exceed $900,000 shall be available for expenses of the Federal 
cochairman, his alternate and his staff).". 
SEC. 107. Paragraph (7) of section 106 of the Appalachian Regional 
Development Act of 1965 (40 App. U.S.C. 106) is amended bv striking 
out "June 30,1975" and inserting in lieu thereof, "September 30,1979". 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1081 
SEC. 108. Paragraph (2) of section 106 of the Appalachian Regional 
Development Act of 1965 (40 App. U.S.C. 106) is amended by insert-
ing after the first sentence the following: "The executive director shall 
be responsible for carrying out the administrative functions of the 
Commission, for direction of the Commission staff, and for such other 
duties as the Commission may assign.". 
SEC. 109. Section 107 of the Appalachian Regional Development Act 
of 1965 (40 App. U.S.C. 107) is amended by inserting "(a)" after 
"SEC. 107." and adding the following new subsection: 
"(b) Public participation in the development, revision, and imple-
mentation of all plans and programs under this Act by the Commis-
sion, any State or any local development district shall be provided for, 
encouraged, and assisted. The Commission shall develop and publish 
regulations specifying minimum guidelines for such public participa-
tion, including put^lic hearings.". 
SEC. 110. Section 201 of the Appalachian Regional Development Act 
of 1965 (40 App. U.S.C. 201) is amended as follows: 
(1) The third sentence of subsection (a) is amended by striking 
"two thousand seven hundred miles" and inserting in lieu thereof "two 
thousand nine hundred miles"; and the fourth sentence of subsection 
(a) is amended by striking "one thousand six hundred miles" and 
inserting in lieu thereof "one thousand four hundred miles". 
(2) Subsection (g) is amended by striking "and $180,000,000 for 
the fiscal year ending June 30, 1978." and inserting in lieu thereof 
$250,000,000 for fiscal year 1978; $300,000,000 for fiscal year 1979; 
$300,000,000 for fiscal year 1980; and $170,000,000 for fiscal year 
1981.". 
SEC. 111. Section 202 of the Appalachian Regional Development Act 
of 1965 (40 App. LLS.C. 202) is amended as follows: 
(1) The second sentence of subsection (a) is amended by (A) insert-
ing after "not operated for profit" the phrase ", or previously operated 
for profit where the acquisition of such facilities is the most cost-
effective means for providing increased health services if the Com-
mission finds that but for the acquisition of such facility such health 
services would not be otherwise provided in the area served by such 
facility,", and (B) inserting after "made in accordance" the phrase 
"with section 223 of this Act and shall not be incompatible". 
(2) The third sentence of subsection (c) of such section is amended 
by inserting "and title XX" after "title IV, parts A and B,". 
SEC. 112. Section 205 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 205) is amended as follows: 
(1) The first sentence of subsection (a) (1) is amended by striking 
"and to control and abate mine drainage pollution." and inserting in 
lieu thereof "to control and abate mine drainage pollution; and for 
planning or engineering for any such activities.". 
(2) The first sentence of subsection (a) (2) is amended by inserting 
"planning, engineering, or" after "projects for". 
(3) The second sentence of subsection (b) of such section is amended 
by inserting "(including, but not limited to, sand, clay, stone, culm, 
rock, spoil bank and noncombustible materials)" after "materials". 
(4) Subsection (c) is amended to read as follows: 
"(c) Whenever a State, local government, or other nonprofit appli-
cant agrees to indemnify the Federal Government, or its officers, 
agents, or employees, for all claims of loss or damage resulting from 
the use and occupation of lands for a project assisted under this 
section, the Secretary may waive all requirements for the submission 
Plans and 
programs, public 
participation. 
Regulations. 
Appalachian 
development 
highway system. 
Appropriation 
authorization. 
Demonstration 
health projects. 
Post, p. 1083. 
Mining area 
restoration. 
Waiver. 
89 STAT. 1082 
PUBLIC LAW 94-188—DEC. 31, 1975 
Grants and loans 
for housing 
projects. 
12 
use 
1
7
1
5
/
. 
42 
use 
1408. 
42 
use 
1485. 
40 u s e app. 402. 
Vocational 
education 
facilities. 
40 u s e app. 211. 
of releases, consents, waivers, or similar instruments respecting siich 
lands, but the Secretary may require security as he deems appropriate 
for any such indemnification 
agreement.". 
(5) Subsection (d) is amended to read as follows: 
"(d) No moneys authorized by this Act shall be expended for the 
purposes of reclaiming, improving, grading, seeding, or reforestation 
of strip-mined areas, except on lands owned by Federal, State, or local 
government bodies or by private nonprofit entities organized under 
State law to be used for public recreation, conservation, community 
facilities, or public housing.". 
SEC. 113. Section 207 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 207) is amended as follows: 
(1) Subsection (a) is amended to read as follows: 
"(a) In order to encourage and facilitate the construction or reha-
bilitation of housing to meet the needs of low- and moderate-income 
families and individuals, the Secretary of Housing and 
Urban 
Development (hereafter in this section referred to as the 'Secretary') 
is authorized to make grants and loans from the Appalachian Housing 
Fund established by this section, under such terms and conditions 
as he may prescribe, to nonprofit, limited dividend, or cooperative 
organizations, and public bodies, for planning and obtaining federally 
insured mortgage financing or other financial assistance for housing 
construction or rehabilitation projects for low- and moderate-income 
families and individuals, under section 221 of the National Housing 
Act, section 8 of the United States Housing Act of 1937, section 515 
of the Housing Act of 1949, or any other law of similar purpose 
administered by the Secretary or any other department, agency, or 
instrumentality of the Federal or State government, in any area of 
the Appalachian region determined by the Commission." 
(2) Subsection (c) (2) is amended to read as follows: 
"(2) The Secretary is authorized to make grants and commitments 
for grants, and may advance funds under such terms and conditions 
as he 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, whenever such a grant, commitment, or advance is essential 
to the economic feasibility of any housing construction or rehabilita-
tion project for low- and moderate-income families and individuals 
which otherwise meets the requirements for assistance under this 
section, except that no such grant for the construction of housing, 
shall exceed 10 per centum of the cost of such project, and no such 
grant for the rehabilitation of housing shall exceed 10 per centum of 
the reasonable value of such rehabilitation housing, as determined 
by the Secretary.". 
(3) Subsection (e) is amended by inserting before the period at 
the end, the following: "and may provide funds to the States for 
making grants and loans to nonprofit, limited dividend, or coopera-
tive organizations and public bodies for the purposes for which the 
Secretary is authorized to provide funds under this section". 
(4) By adding the following new subsection (f) : 
"(f) Programs and projects assisted under this section shall be sub-
ject to the provisions cited in section 402 of the Act, notwithstanding 
such section, to the extent provided in the laws authorizing assistance 
for low- and moderate-income housing.". 
SEC. 114. Section 211 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 214) is amended as follows: 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1083 
(1) The first sentence of subsection (b) (1) is amended by striking 
out everything after "operating" and inserting in lieu thereof, "educa-
tion projects which will serve to demonstrate area 
wide education plan-
ning, services, and programs, with special emphasis on vocational and 
technical education, career education, cooperative and recurrent edu-
cation, guidance and counseling. Projects shall be selected with the 
involvement of all sectors of the community, including industry and 
labor.". 
(2) Subsection (b) (2) is amended by striking out "a vocational 
and technical" and inserting in lieu thereof, "an". 
(3) (a) The first and third sentences of subsection (b) (3) are 
amended by striking out "vocational and technical". 
(b) The fourth sentence of subsection (b) (3) is amended by strik-
ing out "a vocational and technical" and inserting in lieu thereof, "an". 
(4) Subsection (b) (4) is amended by striking out "a vocational and 
technical" and inserting in lieu thereof, "an". 
(5) Subsection (b)(5) is amended to read as follows: 
"(5) No grant for planning, construction, equipment, or operation 
of an education demonstration project shall be made unless the facility 
is publicly owned, but this shall not be deemed to preclude training or 
on-the-job employment activities away from such facility if the proj-
ect is administered through a public body.". 
SEC. 115. Section 214 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 214) is amended as follows: 
(1) The first sentence of subsection (a) of such section is amended "Federal grant-
by inserting after "projects", where it first appears in such subsection, in-aid programs." 
"or activities (hereinafter referred to as projects)". 
(2) The first sentence of subsection (c) of such section is amended 
to read as follows: "The term 'Federal grant-in-aid programs' as used 
in this section means those Federal grant-in-aid programs authorized 
on or before December 31, 1978, by this Act and Acts other than this 
Act for the acquisition or development of land, the construction or 
equipment of facilities, or other community or economic development 
or economic adjustment activities, including but not limited to grant-
in-aid programs authorized by the following Acts: Federal Water 
Pollution Control Act; Watershed Protection and Flood Prevention 33 USC 1151 
Act; titles VI and XVI of the Public Health Services Act; Vocational note. 
Education Act of 1963; Library Services and Construction Act; Fed- ^^ ^^^ ^^^^ 
eral Airport Act; Airport and Airway Development Act of 1970; part ^o^Tjsr 291 
IV of title III of the Communications Act of 1934; title VI (part A) 
3QQ^ 
and VII of the Higher Education Act of 1965; Land and Water Con- 20 USC 1241 
servation Fund Act of 1965; National Defense Education Act of 1958; note, 351 note. 
Consolidated Farm and Rural Development Act; titles I and IX of 
49 U
S
C 1701 
the Public Works and Economic Development Act of 1965; the note, 
housing repair program for homeowners authorized by section 1319 47 U
S
C 390. 
of title 42, United States Code; grants under the Indian Health Serv- ^?o^^^ ^^^^' 
ice Act (42 Stat. 208) ; and title I of the Housing and Community 
;l j.^' 
,^^, , 
Development Act of 1974.". 
. 
. 
iote 
SEC. 116. Clause (1) of section 223 of the Appalachian Regional 
20 lisc 401 note. 
Development Act of 1965 (40 App. U.S.C. 223) is amended by striking 
7 usc 1921 note! 
"compatible" and inserting in lieu thereof "not incompatible". Clause 42 U
S
C 3131, 
(2) of section 223 of the Appalachian Regional Development Act of 3241. 
1965 (40 App. U.S.C. 223) is amended to read as follows: "(2) the 25 USC 13, 52a. 
Commission has approved such program or project and has deter- 
'^^ U
S
C 5301 
mined that it meets the applicable criteria under section 224 of this Act AQ^rjcp 
and the requirements of the development planning process under sec- 
*P^" 
89 STAT. 1084 
PUBLIC LAW 94-188—DEC. 31, 1975 
^re/ra. 
tion 225, and will contribute to the development of the region, which 
determination shall be controlling and which shall be accepted by tKe 
Federal agencies.". 
SEC. 117. Section 224 of the Appalachian Regional Development Act 
of 1965 (40 App. U.S.C. 224) is amended by adding at the end the 
following new subsection: 
"(c) Funds may be provided for programs and projects in a State 
under this Act only if the Commission determines that the level of 
Federal and State financial assistance under Acts other than this Act 
for the same type of programs or projects in that portion of the State 
within the region, will not be diminished in order to substitute funds 
authorized by this Act.". 
SEC. 118. There is inserted after section 224 of the Appalachian 
Regional Development Act of 1965 (40 App. U.S.C. 224) a new section 
as follows: 
"APPALACHIAN 
STATE DEVELOPMENT PLANNING 
PROCESS 
40 use app. 225. 
"SEC. 225. (a) Pursuant to policies established by the Commission, 
each State member shall submit on such schedule as the Commission 
shall prescribe a development plan for the area of the State within 
the region. The State development plan shall reflect the goals, objec-
tives, and priorities identified in the regional development plan and 
in any subregional development plan which may be approved for 
the subregion of which such State is a part. Such State development 
plan shall (1) describe the State organization and continuous process 
for Appalachian development planning, including the procedures 
established by the State for the participation of local development 
districts in such process, the means by which such process is related 
to overall statewide planning and budgeting processes, and the method 
of coordinating planning and projects in the region under this Act, 
42 use 3121 
the Public Works and Economic Development Act of 1965, and other 
'lote. 
Federal, State, and local programs; (2) set forth the goals, objectives, 
and priorities of the State for the region, as determined by the 
Governor, and identify the needs on w^hich such goals, objectives, and 
priorities are based; and (3) describe the development program for 
achieving such goals, objectives, and priorities, including funding 
sources, and recommendations for specific projects to receive assistance 
under this Act. 
"(b)(1) Local development districts certified by the State under 
40 use app. 301. section 301 of this Act provide the linkage between State and substate 
planning and development. In carrying out the development planning 
process, including the selection of programs and projects for assist-
ance. States shall consult with local development districts, local units 
of government, and citizen groups and take into consideration the 
goals, objectives, priorities, and recommendations of such bodies. The 
districts shall assist the States in the coordination of areawide pro-
grams and projects, and may prepare and adopt areawide plans or 
action programs. 
"(2) The Commission shall encourage the preparation and execu-
tion of areawide action programs which specify interrelated projects 
and schedules of actions together with the necessary agency fundings 
and other commitments to implement such programs. Such programs 
shall make appropriate use of existing plans affecting the area. 
"(c) To the maximum extent practicable, Federal departments, 
agencies, and instrumentalities undertaking or providing financial 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1085 
42 u s e 3121 
note. 
assistance for programs or projects in the region shall (1) take into 
account the policies, goals, and objectives established by the Commis-
sion and its member States pursuant to this Act; (2) recognize Appa-
lachian State development progi-ams approved by the Commission as 
satisfying requirements for overall economic development planning 
under such programs or projects; and (3) accept the boundaries and 
organization of any local development district certified under this Act 
which the Governor may designate as the areawide agency required 
under any such program undertaken or assisted by such Federal 
departments, agencies, and instrumentalities." 
SEC. 119. Section 302 of the Appalachian Regional Development Act 
of 1965 (40 App. XJ.S.C. 302) is amended as follows: 
(1) Subsection (a) (1) is amended by striking "including technical 
services," and inserting in lieu thereof "including the development of 
areawide plans or action programs and technical assistance activities,". 
(2) Subsection (a) is amended by striking "and" after paragraph 
(1), by redesignating paragraph (2) as paragraph (3), and by insert-
ing the following new paragraph: 
" (2) to make grants to the Commission for assistance to States 
for a period not in excess of two years to strengthen the State 
development planning process for the region and the coordination 
of State planning under this Act, the Public Works and Eco-
nomic Development Act of 1965, as amended, and other Federal 
and State programs; and". 
(3) Subsection (b) is amended to read as follows: 
"(b) (1) Notwithstanding the provisions of section 224(b) (2), (3), 
or (4), the Commission may provide assistance under this section for 40 U
S
C app. 224 
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 resources and 
the development and stimulation of indigenous arts and crafts of the 
region. No more than $3,000,000 shall be obligated for such energy 
resource related demonstrations in any fiscal year, and no more than 
$2,500,000 shall be obligated for such indigenous arts and crafts 
demonstrations. 
"(2) In carrying out the purposes of this Act, including section 
2(b), and in implementing this section, the Federal Energy Admin-
istration, the Energy Research and Development Administration, the 
Environmental Protection Agency, and other Federal agencies shall 
cooperate with the Commission and shall provide such assistance as 
the Federal Cochairman may request. 
" (3) The Commission shall conduct a study and report on the status 
of Appalachian migrants in the destinations to which they have 
migrated, current migration patterns and implications, and the impact 
which the Commission program has had, and the potential for such 
impact, on out-migration and the welfare of Appalachian migrants. 
The Commission is authorized to conduct pilot projects and demon-
strations within the region in connection with such study. 
"(4) The Commission shall conduct a study of physical hazards 
which are constraints on land use in the Appalachian region (with 
emphasis on mudslides, landslides, sink holes, and subsidence) and the 
risks associated with such hazards. To the extent practicable, such 
study shall identify^ high-risk hazard areas throughout the Appalach-
ian region. The Cfommission shall submit its report on such study, 
Ante, p. 1079. 
Migrants, study 
and report. 
Physical hazards, 
study. 
Report to 
Congress. 
89 STAT. 1086 
PUBLIC LAW 94-188—DEC. 31, 1975 
Annual review 
and approval. 
40USCapp. 101. 
Appropriation 
authorization. 
Termination. 
Report to 
Congress. 
40 u s e app. 2 
note. 
Ante, p. 1079. 
40 u s e app. 302. 
Repeal. 
42 u s e 3134. 
40 u s e app. 201 
note. 
40 u s e app. 201. 
together with recommendations for means to remove or avoid such 
constraints on land use, to the Congress not later than twenty-four 
months after the enactment of this paragraph.". 
SEC. 120. Section 303 of the Appalachian Regional Development Act 
of 1965 (40 App. U.S.C. 303) is amended to read as follows: 
"APPROVAL OF DEVELOPMENT PLANS, INVESTMENT PROGRAMS, AND PROJECTS 
"SEC. 303. State and Regional Development Plans and implementing 
investment programs, and any multistate subregional plans which 
may be developed, shall be annually reviewed and approved by the 
Commission in accordance with section 101 (b) of this Act. An applica-
tion for a grant or for any other assistance for a specific project under 
this Act shall be made through the State member of the Commission 
representing such applicant, and such State member shall evaluate the 
application for approval. Only applications for grants or other assist-
ance for specific projects shall be approved which are certified by the 
State member and determined by the Federal Cochairman to imple-
ment the Commission-approved 
State development plan; to be 
included 
in the Commission-approved 
implementing 
investment 
program; to have adequate assurance that the project will be properly 
administered, operated, and maintained; and to otherwise meet the 
requirements for assistance under this Act. After the approval of the 
appropriate State development plan and implementing investment 
program, certification by a State member of an application for a 
grant or other assistance for a specific project pursuant to this section 
shall, when joined by an affirmative vote of the Federal Cochairman 
for such project, be deemed to satisfy the requirements for affirma-
tive votes for decisions under section 101(b) of this Act.". 
SEC. 121. Section 401 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 401) is amended by adding at the end 
thereof the following new sentence: "In addition to the appropriations 
authorized in section 105 for administrative expenses, and in section 
201(g) for the Appalachian development highway system and local 
access roads, there is authorized to be appropriated to the President, 
to be available until expended, to carry out this Act, $340,000,000 for 
the period beginning July 1, 1975, and ending September 30, 1977, 
and $300,000,000 for the two-fiscal year period ending September 30 
1979.". 
SEC. 122. (a) Section 405 of the Appalachian Regional Development 
Act of 1965 (40 App. U.S.C. 405) is amended by striking "July 1, 
1975" and inserting in lieu thereof, "October 1, 1979". 
(b) The Appalachian Regional Commission shall submit to Con-
gress by July 1, 1977, a report on the progress being made on imple-
menting section 2(b) of the Appalachian Regional Development Act 
of 1965, the energy related enterprise development demonstration 
authority in section 302 of such Act, and other amendments made by 
this title. 
SEC. 123. Section 104 of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3121) is repealed. 
SEC. 124. To the extent that any section of this title provides new or 
increased authority to enter into contracts under section 201 of the 
Appalachian Regional Development Act of 1965, such new or increased 
authority shall be effective for any fiscal year only in such amounts 
as are provided in appropriation acts. 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1087 
TITLE II 
SEC. 201. This title may be cited as the "Kegional Action Planning 
Commission Improvement Act of 1975". 
SEC. 202. Section 509(d) of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3188(a)), as amended, is amended, 
to read as follows: 
"(d) (1) There are authorized to be appropriated to the Secretary 
to carry out this title, for the two-fiscal-year period ending June 30, 
1971, to be available until expended, not to exceed $225,000,000; and 
for the two-fiscal-year period ending June 30, 1973, to be available 
until expended, not to exceed $305,000,000; for the fiscal year ending 
June 30, 1974, to be available until expended, $95,000,000; for the 
fiscal year ending June 30, 1975, to be available until expended, 
$150,000,000; for the fiscal year ending Jime 30, 1976, to be available 
until expended, $200,000,000; for the transition quarter ending 
September 30, 1976, to be available until expended, $50,000,000; and 
for the fiscal year ending September 30, 1977, to be available until 
expended, $250,000,000. After deducting such amounts as are author-
ized to carry out subsections (a) (1) and (b) of section 505, the 
Secretary shall apportion the remainder of the sums appropriated 
under this authorization for any fiscal year among the regional com-
missions which have been established for more than two fiscal years. 
"(2) There are authorized to be appropriated to the Secretary as 
are necessary for the management and authorized activities under 
this title of any new commissions for their first two full fiscal years, 
for the fiscal year ending June 30,1976, to be available until expended, 
not to exceed $5,000,000; for the transition quarter ending September 
30, 1976, to be available until expended, not to exceed $1,250,000; and 
for the fiscal year ending September 30, 1977, to be available until 
expended, not to exceed $5,000,000." 
SEC. 203. Section 513 of the Public Works and Economic Develop-
ment Act of 1965, as amended, is amended to read as follows: 
Regional Action 
Planning 
Commission 
Improvement Act 
of 1975. 
42 u s e 3181 
note. 
Appropriation 
authorization. 
42 u s e 3188a. 
42 u s e 3185. 
42 u s e 3192. 
REGIONAL TRANSPORTATION 
"SEC. 513. (a) Each regional commission, with the assistance of the 
Secretary of Transportation, is authorized to conduct and facilitate 
full and complete investigations and studies of the transportation 
needs of economic development regions established under this title. 
Such studies and investigations should analyze the effectiveness of 
regional transportation systems for meeting the purposes of this Act, 
The information gathered from these studies and investigations should 
determine the types of transportation facilities needed in the region 
and be of value in planning for such transportation facilities. 
"(b) Each regional commission, with the assistance of the Secretary Grants, 
of Transportation, is authorized to make grants for the planning of 
regional transportation networks and to make grants for the construc-
tion, purchase of equipment, and operation (including payment of 
operating deficits) for transportation demonstration projects. Grants 
under this section shall be made solely out of funds specifically appro-
priated for the purpose of carrying out this title and shall not be taken 
into account in the computation of the allotments among the States 
made pursuant to any other provisions of law. 
Investigation and 
studies. 
89 STAT. 1088 
PUBLIC LAW 94-188—DEC. 31, 1975 
Cost limitation. 
Federal share. 
42 u s e 3188a. 
" (c) No grant for the construction or equipment for any component 
of a demonstration transportation project shall exceed 80 per centum 
of such cost. The Federal contribution may be provided entirely from 
funds authorized under this section or in combination with funds 
authorized under other Federal grant-in-aid programs for the con-
struction of transportation facilities. Notwithstanding any other pro-
vision of law, funds authorized under this section may be used to 
increase the Federal share of any such project to 80 per centum of the 
cost of such facilities. 
"(d) Not to exceed $5,000,000 of the funds apportioned to each 
regional commission under section 509 of this title shall be expended in 
any one fiscal year for the purpose of carrying out this section.". 
SEC. 204. Title V of the Public Works and Economic Development 
Act of 1965, as amended, is amended by adding the following new 
section at the end thereof : 
"ENERGY DEMONSTRATION PROJECTS AND PROGRAMS 
42 use 3194. 
"SEC. 515. (a) Fundamental changes are occurring in national 
energy requirements and production which could result in short-term 
dislocation and result in major long-term effects on various regions 
of the country. Expanded energy production opportunities must maxi-
mize social and economic benefits while minimizing social and environ-
mental costs to the regions experiencing increased energy development. 
In some regions, impacted by limited energy resources, severe prob-
lems disruptive of regional economies could result. The programs of 
the regional commissions provide an excellent framework for coordi-
nating Federal, State, and local efforts toward (1) anticipating tHe 
effects of alternative energy policies and practices, (2) planning for 
accompanying growth and change so as to maximize social and 
economic benefits and minimize the social and environmental costs, 
and (3) implementing programs and projects carried out in the regions 
by Federal, State, or local government agencies so as to better meet 
the special problems generated in the regions by the Nation's energy 
needs and policies, including problems of transportation, housing, 
community facilities, and human services. 
"(b) Each regional commission is authorized to carry out energy-
related demonstration projects and programs within its regions includ-
ing programs and projects addressing the social, economic, and 
environmental impact of energy development, requirements, and 
utilization. Grants shall be made only to those projects which are 
developed through regional planning designed to identify the effects 
of regional resource development, requirements, utilization, and 
impact. Each regional commission is authorized to carry out demon-
stration projects within its region in connection with the development 
and stimulation of indigenous art and crafts of the region. 
"(c) Not to exceed $5,000,000 of the funds apportioned to each 
regional commission under section 509 of this title shall be expended 
in any one fiscal year for the purpose of carrying out the energy-
related provisions of this section, and not to exceed $2,500,000 of such 
funds shall be expended in any one fiscal year for indigenous arts and 
crafts demonstrations.". 
SEC. 205. Title V of such Act is further amended by adding the 
following new section at the end thereof: 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1089 
"HEALTH AND NUTRITION DEMONSTRATION PROJECTS 
"SEC. 516. (a) In order to demonstrate the value of adequate health 
facilities and services to the economic development of the region, the 
Secretary of Health, Education, and Welfare is authorized to make 
grants for the planning, construction, equipment, and operation of 
multicounty demonstration health, and nutrition projects including 
hospitals, regional health diagnostic and treatment centers, and other 
facilities and services necessary for the purpose of this section. Grants 
for such construction (including the acquisition of privately owned 
facilities not operated for profit or previously operated for profit 
where the acquisition of such facilities is the most cost effective means 
for providing increased health services, and initial equipment) shall 
be made after applications and plans relating to the program or 
project have been determined by the responsible Federal official to be 
compatible with the provisions and objectives of Federal laws which 
he administers that are not inconsistent with this title, and the regional 
commission has approved such program or project and determined 
that it will contribute to the development of the region, and shall not 
be incompatible with the applicable provisions of title V I of the Public 
Health Service Act (42 U.S.C. 291-291o), the Mental Ketardation 
Facilities and Community Mental Health Centers Construction Act 
of 1963 (77 Stat. 282), and other laws authorizing grants for the 
construction of health-related facilities, without regard to any provi-
sions therein relating to appropriation authorization ceilings or to 
allotments among the States. Grants under this section shall be made 
solely out of funds specifically appropriated for the purpose of carry-
ing out this title and shall not be taken into account in the computa-
tion of the allotments among the States made pursuant to any other 
provision of law. 
"(b) No grant for the construction or equipment of any component 
of a demonstration health project shall exceed 80 per centum of such 
costs. The Federal contribution may be provided entirely from funds 
authorized under this title or in combination with funds provided 
under other Federal grant-in-aid programs for the construction or 
equipment of health-related facilities. Notwithstanding any provi-
sion of law limiting the Federal share in such other programs, funds 
authorized under this title may be used to increase Federal grants for 
component facilities of a demonstration health project to a maximum 
of 80 per centum of the costs of such facilities. 
"(c) Grants under this section for operation (including initial 
operating funds and operating deficits comprising among other items 
the cost of attracting, training, and retaining qualified personnel) of a 
demonstration health project, whether or not constructed with funds 
authorized by this title, may be made for up to 100 per centum of the 
costs thereof for the two-year period beginning, for each component 
facility or service assisted under any such operating grant, on the first 
day that such facility or service is in operation as a part of the project. 
For the next three years of operation such grants shall not exceed 75 
per centum of such costs. The Federal contributions may be provided 
entirely from funds appropriated to carry out this title or in combina-
tion with funds provided under other Federal grant-in-aid programs 
for the oj^eration of health related facilities and the provision of health 
services, including title IV, parts A and B, and title X X of the Social 
Security Act. Notwithstanding any provision of the Social Security 
Grants. 
42 use 3195. 
42 use 2661 
note. 
Federal share. 
42 use 3161, 
3171, 1397. 
89 STAT. 1090 
PUBLIC LAW 94-188—DEC. 31, 1975 
Act requiring assistance or services on a statewide basis, if a State pro-
vides assistance or services under such a program in any area of the 
region approached by the regional commission, such State shall be 
considered as meeting such requirement. Notwithstanding any provi-
sion of law limiting the Federal share in such other programs, funds 
appropriated to carry out this section may be used to increase Federal 
grants for operating components of a demonstration health project to 
the maximum percentage cost thereof authorized by this subsection. 
No grant for operation of a demonstration health project shall be 
made unless the facility is publicly owned, or owned by a public or 
private nonprofit organization, and is not operated for profit. No 
grants for operation of a demonstration health project shall be made 
after five years following the commencement of the initial grant for 
operation of the project. No such grants shall be made unless the 
Secretary of Health, Education, and Welfare is satisfied that the 
operation of the project will be conducted under efficient management 
practices designed to obviate operating deficits. A health-related f acil-
42 use 3131. 
ity constructed under title I of this Act may be a component of a 
demonstration health project eligible for operating grant assistance 
under this section.". 
Grants. 
SEC. 206. Title V of such Act is further amended by inserting at the 
end thereof the following new section: 
"EDUCATION DEMONSTRATION PROJECTS 
42 use 3196. 
"SEC. 517. (a) In order to assist in the expansion and improvement 
of educational opportunities and services for the people of the region, 
the Secretary of the Department of Health, Education, and Welfare 
is authorized to make grants for planning, construction, equipping, 
and operating vocational and technical educational projects which 
will serve to demonstrate areawide educational planning, services, 
and programs. Grants under this section shall be made solely out of 
funds specifically appropriated for the purposes of this title and shall 
not be taken into account in any computation of allotments among the 
States pursuant to any other law. 
"(b) No grant for the construction or equipment of any component 
of a vocational and technical education demonstration project shall 
exceed 80 per centum of its cost. 
"(c) Grants under this section for operation of components of 
vocational and technical educational demonstration projects, whether 
or not constructed by funds authorized by this title, may be made for 
up to 100 per centum of the costs thereof for the two-year period begin-
ning on the first day that such component is in operation as a part 
of the project. For the next three years of operation, such grants shall 
not exceed 75 per centum of such costs. No grants for operation of 
vocational and technical education demonstration projects shall be 
made after five years following the commencement of the initial grant 
for operation of the project. An education-related facility constructed 
under title I of this Act may be a component of a vocational and 
technical education demonstration project eligible for operating grant 
assistance under this section. 
"(d) No grant for expenses of planning necessary for the develop-
ment and operation of a vocational and technical education demon-
stration project shall exceed 75 per centum of such expenses. 
PUBLIC LAW 94-188—DEC. 31, 1975 
89 STAT. 1091 
"(e) No grant for planning, construction, operation, or equip-
ment of a vocational and technical education demonstration project 
shall be made unless the facility is publicly owned. 
"(f) Any Federal contribution referred to in this section majr be 
provided entirely from funds appropriated to carry out this section, 
or in combination with funds available under other Federal grant-
in-aid programs providing assistance for education-related facilities or 
services. Notwithstanding any provision of law limiting the Federal 
share in such programs, funds appropriated to carry out this section 
may be used to increase such Federal share to the maximum per-
centage cost thereof authorized by the applicable paragraph of this 
subsection.". 
SEC. 207. Each regional commission established pursuant to title V 
of the Public Works and Economic Development Act of 1965 shall 
submit to the Committees on Public Works of the Senate and House 
of Representatives within one hundred and twenty days after enact-
ment of this Act the Regional Economic Development Plan required 
under section 503(a) (2) of the Public Works and Economic Develop-
ment Act of 1965. 
SEC. 208. (a) The second and third sentences of section 502(b) of the 
Public Works and Economic Development Act of 1965 are amended 
to read as follows: "Each State member shall be the Governor. The 
State members of the commission shall elect a cochairman of the com-
mission from among their number for a term of not less than one year." 
(b) Section 502(c) of the Public Works and Economic Develop-
ment Act of 1965 is amended by adding at the end thereof the follow-
ing new sentence: "No decision involving commission policy, approval 
of regional development plan, implementing investment programs, or 
allocating funds among the States may be made without a quorum of 
State members present.". 
(c) The first sentence of section 502(d) of the Public Works and 
Economic Development Act of 1965 is amended to read as follows: 
"Each State member may have a single alternate, appointed by the 
Governor from among the members of the Governor's cabinet or the 
Governor's personal staff.". 
(d) Such section 502(d) is further amended by adding at the end 
thereof the following new sentences: "A State alternate shall not be 
counted toward the establishment of a quorum of the commission in 
any instance in which a quorum of the State members is required to 
be present. No commission power or responsibility specified in the 
last sentence of subsection (c) of this section, nor the vote of any 
commission member, may be delegated to any person not a commission 
member or who is not entitled to vote in commission meetings.". 
SEC. 209. (a) Section 501(a) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3181), as amended, is amended 
by inserting "and the Commonwealth of Puerto Rico and the Virgin 
Islands and the States of California and Texas" after "with the 
exception of Alaska and Hawaii,". 
(b) Section 502(f) of such Act of 1965 (42 U.S.C. 3182) is amended 
by inserting after "Hawaii" the following "or the State of California 
or the State of Texas", and by striking out "either" and inserting in 
lieu thereof "any such". 
Federal share. 
Regional 
Economic 
Development 
Plan, submittal to 
congressional 
committees. 
42 u s e 3183 
note. 
42 u s e 3181. 
42 u s e 3183. 
42 u s e 3182. 
89 STAT. 1092 
PUBLIC LAW 94-188—DEC. 31, 1975 
42 use 3183 
(c) It is the intent of Congress that the Secretary of Commerce 
"ot«- 
acting under authority of title V of the Public Works and Economic 
42 use 3181. 
Development Act of 1965 should invite and encourage the formation 
of a regional commission for the region along the border with Mexico 
in the States of Texas, New Mexico, Arizona, and California. 
Approved December 31, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-202 (Comm. on Public Works and Transportation) and No. 
94-727 (Comm. of Conference). 
SENATE REPORTS: No. 94-278 accompanying S. 1513 (Comm. on Public Works) and 
No. 94-552 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
May 19, considered and passed House. 
July 17, considered and passed Senate, amended, in lieu of S. 1513. 
Dec. 16, Senate agreed to conference report. 
Dec. 17, House agreed to conference report.