Appalachian Regional Development Act Amendments of 2002
PL 107-149 (S.1206), enacted 03/12/2002

116 STAT. 66 
PUBLIC LAW 107-149—MAR. 12, 2002 
Public Law 107-149 
107th Congress 
Mar. 12, 2002 
[S. 1206] 
Appalachian 
Regional 
Development Act 
Amendments of 
2002. 
40 u s e app. 1 
note. 
40 u s e app. 2 
note. 
40 u s e app. 2. 
An Act 
40 u s e app. 102. 
To reauthorize the Appalachian Regional Development Act of 1965, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Appalachian Regional Develop-
ment Act Amendments of 2002". 
SEC. 2. PURPOSES. 
(a) THIS ACT.—The purposes of this Act are— 
(1) to reauthorize the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App.); and 
(2) to ensure that the people and businesses of the Appa-
lachian region have the knowledge, skills, and access to tele-
communication and technology services necessary to compete 
in the knowledge-based economy of the United States. 
(b) APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965.—Sec-
tion 2 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended— 
(1) in subsection (b), by inserting after the third sentence 
the following: "Consistent with the goal described in the pre-
ceding sentence, the Appalachian region should be able to take 
advantage of eco-industrial development, which promotes both 
employment and economic growth and the preservation of nat-
ural resources."; and 
(2) in subsection (c)(2)(B)(ii), by inserting ", including eco-
industrial development technologies" before the semicolon. 
SEC. 3. FUNCTIONS OF THE COMMISSION. 
Section 102(a) of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) is amended— 
(1) in paragraph (5), by inserting ", and support," after 
"formation of; 
(2) in paragraph (7), by striking "and" at the end; 
(3) in paragraph (8), by striking the period at the end 
and inserting a semicolon; and 
(4) by adding at the end the following: 
"(9) encourage the use of eco-industrial development tech-
nologies and approaches; and 
"(10) seek to coordinate the economic development activities 
of, and the use of economic development resources by, Federal 
agencies in the region.". 
PUBLIC LAW 107-149—MAR. 12, 2002 
116 STAT. 67 
SEC. 4. INTERAGENCY COORDINATING COUNCIL ON APPALACHIA. 
Section 104 of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended— 
40 USC app. 104. 
(1) by striking "The President" and inserting "(a) IN GEN-
ERAL.—^The President"; and 
(2) by adding at the end the following: 
"(b) INTERAGENCY COORDINATING COUNCIL ON APPALACHIA.— 
"(1) ESTABLISHMENT.—In carrying out subsection (a), the 
President shall establish an interagency council to be known 
as the 'Interagency Coordinating Council on Appalachia'. 
"(2) MEMBERSHIP.—The Council shall be composed of— 
"(A) the Federal Cochairman, who shall serve as Chair-
person of the Council; Eind 
"(B) representatives of Federal agencies that carry out 
economic development programs in the region.". 
SEC. 5. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE. 
Title II of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended by inserting after section 202 the 
following: 
«SEC. 203. TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE. 
40 USC app. 203. 
"(a) IN GENERAL.—^The Commission may provide technical 
assistance, make grants, enter into contracts, or otherwise provide 
fiinds to persons or entities in the region for projects— 
"(1) to increase affordable access to advanced telecommuni-
cations, entrepreneurship, and management technologies or 
applications in the region; 
"(2) to provide education and training in the use of tele-
communications and technology; 
"(3) to develop programs to increase the readiness of 
industry groups and businesses in the region to engage in 
electronic commerce; or 
"(4) to support entrepreneurisil opportunities for businesses 
in the information technology sector. 
"(b) SOURCE OF FUNDING.— 
"(1) IN GENERAL.—^Assistance under this section may be 
provided— 
"(A) exclusively from amounts made available to carry 
out this section; or 
"(B) from amoiuits made available to csirry out this 
section in combination with amounts made available under 
any other Federal program or from any other source. 
"(2) FEDERAL SHARE REQUIREMENTS SPECIFIED IN OTHER 
LAWS.—^Notwithstanding any provision of law limiting the Fed-
eral 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 determines to be appro-
priate. 
"(c) COST SHARING FOR GRANTS.—^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 designation is in effect under 
section 226) of the costs of any activity eligible for a grant under 
this section may be provided from funds appropriated to carry 
out this section.". 
116 STAT. 68 
PUBLIC LAW 107-149—MAR. 12, 2002 
SEC. 6. ENTREPRENEURSHIP INITIATIVE. 
Title II of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended by inserting after section 203 (as 
added by section 5) the following: 
40 use app. 204. 
"SEC. 204. ENTREPRENEURSHIP INITIATIVE. 
"(a) DEFINITION OF BUSINESS INCUBATOR SERVICE.—In this sec-
tion, the term 'business incubator service' means a professional 
or technical service necessary for the initiation and initial 
sustainment of the operations of a newly established business, 
including a service such as— 
"(1) a legal service, including aid in preparing a corporate 
charter, partnership agreement, or basic contract; 
"(2) a service in support of the protection of intellectual 
property through a patent, a trademark, or any other means; 
"(3) a service in support of the acquisition and use of 
advanced technology, including the use of Internet services 
and Web-based services; and 
"(4) consultation on strategic planning, marketing, or 
advertising. 
"(b) PROJECTS TO BE ASSISTED.—^The Commission may provide 
technical assistance, make grants, enter into contracts, or otherwise 
provide funds to persons or entities in the region for projects— 
"(1) to support the advancement of, and provide, entrepre-
neurial training and education for youths, students, and 
businesspersons; 
"(2) to improve access to debt and equity capital by such 
means as facilitating the establishment of development venture 
capital funds; 
"(3) to aid communities in identifying, developing, and 
implementing development strategies for various sectors of the 
economy; and 
"(4)(A) to develop a working network of business incubators; 
and 
"(B) to support entities that provide business incubator 
services. 
"(c) SOURCE OF FUNDING.— 
"(1) IN GENERAL.—Assistance under this section may be 
provided— 
"(A) exclusively from amounts made available to carry 
out this section; or 
"(B) from amounts made available to carry out this 
section in combination with amounts made available under 
any other Federal program or from any other source. 
"(2) FEDERAL SHARE REQUIREMENTS SPECIFIED IN OTHER 
LAWS.—^Notwithstanding any provision of law limiting the Fed-
eral 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 determines to be appro-
priate. 
"(d) COST SHARING FOR GRANTS.—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 designation is in effect under 
section 226) of the costs of any activity eligible for a grant under 
this section may be provided from funds appropriated to carry 
out this section.". 
PUBLIC LAW 107-149—MAR. 12, 2002 
116 STAT. 69 
SEC. 7. REGIONAL SKILLS PARTNERSHIPS. 
Title II of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App.) is amended by inserting after section 204 (as 
added by section 6) the following: 
* 
"SEC. 205. REGIONAL SKILLS PARTNERSHIPS. 
40 USC app. 205. 
"(a) DEFINITION OF ELIGIBLE ENTITY.—In this section, the term 
'eligible entity' means a consortium that— 
"(1) is established to serve 1 or more industries in a speci-
fied geographic area; and 
"(2) consists of representatives of— 
"(A) businesses (or a nonprofit organization that rep-
resents businesses); 
"(B) labor organizations; 
"(C) State and local governments; or 
"(D) educational institutions. 
"(b) PROJECTS TO BE ASSISTED.—^The Commission may provide 
technical assistance, make grants, enter into contracts, or otherwise 
provide funds to eligible entities in the region for projects to improve 
the job skills of workers for a specified industry, including projects 
for— 
"(1) the assessment of training and job skill needs for 
the industry; 
"(2) the development of curricula and training methods, 
including, in appropriate cases, electronic learning or tech-
nology-based training; 
"(3)(A) the identification of training providers; and 
"(B) the development of partnerships between the industry 
and educational institutions, including community colleges; 
"(4) the development of apprenticeship programs; 
"(5) the development of training programs for workers, 
including dislocated workers; and 
"(6) the development of training plans for businesses. 
"(c) ADMINISTRATIVE COSTS.—An eligible entity may use not 
more than 10 percent of the funds made available to the eligible 
entity under subsection (b) to pay administrative costs associated 
with the projects described in subsection (b). 
"(d) SOURCE OF FUNDING.— 
"(1) IN GENERAL.—^Assistance under this section may be 
provided— 
"(A) exclusively from amounts made available to carry 
out this section; or 
"(B) from amounts made available to carry out this 
section in combination with amounts made available under 
any other Federal program or from any other source, 
"(2) FEDERAL SHARE REQUIREMENTS SPECIFIED IN OTHER 
LAWS.—Notwithstanding any provision of law limiting the Fed-
eral 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 determines to be appro-
priate. 
"(e) COST SHARING FOR GRANTS.—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 designation is in effect under 
section 226) of the costs of any activity eligible for a grant under 
this section may be provided from funds appropriated to carry 
out this section.". 
116 STAT. 70 
PUBLIC LAW 107-149—MAR. 12, 2002 
SEC. 8. PROGRAM DEVELOPMENT CRITERIA. 
(a) 
ELIMINATION OF GROWTH CENTER CRITERIA.—Section 
224(a)(1) of the Appalachian Regional Development Act of 1965 
40 use app. 224. 
(40 U.S.C. App.) is amended by striking "in an area determined 
by the State have a significant potential for growth or". 
(b) ASSISTANCE TO DISTRESSED COUNTIES AND AREAS.—Section 
224 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App.) is amended by adding at the end the following: 
"(d) ASSISTANCE TO DISTRESSED COUNTIES AND AREAS.—^For 
fiscal year 2003 and each fiscal year thereafter, not less than 
50 percent of the amount of grant expenditures approved by the 
Commission shall support activities or projects that benefit severely 
and persistently distressed counties and areas.". 
SEC. 9. GRANTS FOR ADMINISTRATIVE EXPENSES OF LOCAL DEVEL-
OPMENT DISTRICTS. 
Section 302(a)(l)(AXi) of the Appalachian Regional Develop-
40 use app. 302. 
ment Act of 1965 (40 U.S.C. App.) is amended by inserting "(or, 
at the discretion of the Commission, 75 percent of such expenses 
in the case of 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 effect under section 226)" after "such expenses". 
SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
Section 401 of the Appalachian Regional Development Act of 
40 use app. 401. 
1965 (40 U.S.C. App.) is amended to read as follows: 
"SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 
"(a) IN GENERAL.—^In addition to amounts authorized by section 
201 and other amounts made available for the Appalachian develop-
ment highway system program, there are authorized to be appro-
priated to the Commission to carry out this Act— 
"(1) $88,000,000 for each of fiscal years 2002 through 2004; 
"(2) $90,000,000 for fiscal year 2005; and 
"(3) $92,000,000 for fiscal year 2006. 
"(b) TELECOMMUNICATIONS AND TECHNOLOGY INITIATIVE.—Of 
the amounts made available under subsection (a), the following 
amounts may be made available to carry out section 203: 
"(1) $10,000,000 for fiscal year 2002. 
"(2) $8,000,000 for fiscal year 2003. 
"(3) $5,000,000 for each of fiscal years 2004 through 2006. 
"(c) AVAILABILITY.—Sums made available under subsection (a) 
shall remain available until expended.". 
SEC. 11. ADDITION OF COUNTIES TO APPALACHIAN REGION. 
Section 403 of the Appalachian Regional Development Act of 
40 use app. 403. 
1965 (40 U.S.C. App.) is amended— 
(1) in the third undesignated paragraph (relating to Ken-
tucky)^— 
(A) by inserting "Edmonson," after "Cumberland,"; 
(B) by inserting "Hart," after "Harlan,"; and 
(C) by striking "Montogomery," and inserting "Mont-
gomery,"; and 
(2) in the fifth undesignated paragraph (relating to Mis-
sissippi)— 
(A) by inserting "Montgomery," after "Monroe,"; and 
(B) by inserting "Panola," after "Oktibbeha,". 
PUBLIC LAW 107-149—MAR. 12, 2002 
116 STAT. 71 
SEC. 12. TERMINATION. 
Section 405 of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.) is amended by striking "2001" and inserting 
40 USC app. 405. 
"2006". 
SEC. 13. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 101(b) of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App.) is amended in the third sentence 
40 USC app. lOl. 
by striking "implementing investment program" and inserting 
"strategy statement". 
(b) Section 106(7) of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App.) is amended by striking "expiring 
40 USC app. 106. 
no later than September 30, 2001". 
(c) Sections 202, 214, and 302(a)(1)(C) of the Appalachian 
Regional Development Act of 1965 (40 U.S.C. App.) are amended 
40 USC app. 202, 
by striking "grant-in-aid programs" each place it appears and 214,302. 
inserting "grant programs". 
(d) Section 202(a) of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App.) is amended in the second sentence 
40 USC app. 202. 
by striking "title VI of the Public Health Service Act (42 U.S.C. 
291-29lo), the Mental Retardation Facilities and Community 
Mental Health Centers Construction Act of 1963 (77 Stat. 282)," 
and inserting "title VI of the PubUc Health Service Act (42 U.S.C. 
291 et seq.), the Developmental Disabilities Assistance and Bill 
of Rights Act of 2000 (42 U.S.C. 15001 et seq.),". 
(e) Section 207(a) of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App.) is amended by striking "section 221 40 USC app. 207. 
of the National Housing Act, section 8 of the United States Housing 
Act of 1937, section 515 of the Housing Act of 1949," and inserting 
"section 221 of the National Housing Act (12 U.S.C. 17151), section 
8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), 
section 515 of the Housing Act of 1949 (42 U.S.C. 1485),". 
(f) Section 214 of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) is amended— 
40 USC app. 214. 
(1) in the section heading, by striking "GRANT-IN-AID" and 
inserting "GRANT"; 
(2) in subsection (a)— 
(A) by striking "grant-in-aid Act" each place it appears 
and inserting "Act"; 
(B) in the first sentence, by striking "grant-in-aid Acts" 
and inserting "Acts"; 
(C) by striking "grant-in-aid program" each place it 
appears and inserting "grant program"; and 
(D) by striking the third sentence; 
(3) by striking subsection (c) and inserting the following: 
"(c) DEFINITION OF FEDERAL GRANT PROGRAM.— 
"(1) IN GENERAL.—In this section, the term Tederal grant 
program' means any Federal grant program authorized by this 
Act or any other Act that provides assistance for— 
"(A) the acquisition or development of land; 
"(B) the construction or equipment of facilities; or 
"(C) any other community or economic development 
or economic adjustment activity. 
"(2) INCLUSIONS.—In this section, the term Tederal grant 
program' includes a Federal grant program such as a Federal 
grant program authorized by— 
99-194 O - 03 - 4 : QL 3 Part 1 
116 STAT. 72 
PUBLIC LAW 107-149—MAR. 12, 2002 
"(A) the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.); 
"(B) the Land and Water Conservation Fund Act of 
1965 (16 U.S.C. 4601-4 et seq.); 
"(C) the Watershed Protection and Flood Prevention 
Act (16 U.S.C. 1001 et seq.); 
"(D) the Carl D. Perkins Vocational and Technical Edu-
cation Act of 1998 (20 U.S.C. 2301 et seq.); 
"(E) the Federal Water Pollution Control Act (33 U.S.C. 
1251 et seq.); 
"(F) title VI of the Public Health Service Act (42 U.S.C. 
291 et seq.); 
"(G) sections 201 and 209 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3141 3149); 
"(H) title I of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5301 et seq.); or 
"(I) part IV of title III of the Communications Act 
of 1934 (47 U.S.C. 390 et seq.). 
"(3) EXCLUSIONS.—In this section, the term Tederal grant 
program' does not include— 
"(A) the program for construction of the Appalachian 
development highway system authorized by section 201; 
"(B) any program relating to highway or road construc-
tion authorized by title 23, United States Code; or 
"(C) any other program under this Act or any other 
Act to the extent that a form of financial assistance other 
than a grant is authorized."; and 
(4) by striking subsection (d). 
(g) Section 224(aX2) of the Appalachian Regional Development 
40 use app. 224. 
Act of 1965 (40 U.S.C. App.) is amended by striking "relative 
per capita income" and inserting "per capita market income". 
(h) Section 225 of the Appalachian Regional Development Act 
40 use app. 225. 
of 1965 (40 U.S.C. App.)— 
(1) in subsection (a)(3), by striking "development program" 
and inserting "development strategies"; and 
(2) in subsection (c)(2), by str&ing "development programs" 
and inserting "development strategies". 
(i) Section 303 of the Appalachian Regional Development Act 
40 use app. 303. 
of 1965 (40 U.S.C. App.) is amended— 
(1) in the section heading, by striking "INVESTMENT PRO-
GRAMS" and inserting "STRATEGY STATEMENTS"; 
(2) in the first sentence, by striking "implementing invest-
ments programs" and inserting "strategy statements"; and 
(3) by striking "implementing investment program" each 
place it appears and inserting "strategy statement". 
PUBLIC LAW 107-149—MAR. 12, 2002 
116 STAT. 73 
(j) Section 403 of the Appalachian Regional Development Act 
of 1965 (40 U.S.C. App.) is amended in the next-to-last imdesignated 40 U
S
C app. 403. 
paragraph by striking "Committee on Public Works and Transpor-
tation" and inserting "Committee on Transportation and Infrastruc-
ture". 
Approved March 12, 2002. 
LEGISLATIVE HISTORY—S. 1206 (H.R. 2501): 
HOUSE REPORTS: No. 107-180 accompanying H.R. 2501 (Comm. on Transpor-
•fQ'fjQj^ 
flTiQ 
TTifi*3.stnictiirG) 
SENATE REPORTS: No. 107-132 (Comm. on Environment and Public Works). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
Feb. 8, considered and passed Senate. 
Feb. 26, considered and passed House.