Legislation News & Report (TM) 

TheWeekInCongress.com (TM)

Managing America: Economic Development

TheWeekInCongress.com (TM)

Week Ending July 20, 2007

H.R.799 To reauthorize and improve the program authorized by the Appalachian Regional Development Act of 1965.

The Appalachian Regional Commission was created in the Appalachian Regional Development Act of 1965 to coordinate Federal, State and local government cooperation towards developing the Appalachian Region.

The ARC supports, mainly through grants, business and industry growth through economic and infrastructure improvement. One significant effort is the development of a highway system along with educational opportunities, job training and water and sewer infrastructure development. ARC is seen as successful in the effort that has resulted in a 50% reduction in the poverty rate, a cut in infant mortality by two thirds, numerous health facilities, clean water and sewer where they did not exist and a high school graduation rate above the national average.

ARC is reauthorized for five years under this bill along with some modifications of the ARD Act itself.

The amount of an ARC grant may not exceed 50% of expenses or 75% if the county receiving the grant is considered distressed. Grants are authorized for operations and operating deficits that include the cost of attracting, training and retaining qualified personnel for a demonstration health project. Such grants for a distressed county can rise to 80%. Grants would be made from appropriated funds.

ARC can make loans for the cost of planning and obtaining financing of up to 50% of the costs and 70% in an at-risk county. There is a restriction on loans to for-profit organizations should the Secretary conclude that the loan cannot be recovered from the proceeds of a permanent loan.

Projects that promote energy efficiency in the region, increase the use of renewable energy resources to produce alternative transportation fuels, electricity and heat and to support conventional production of transportation fuels, electricity and heat are also authorized.

Sponsor:  Rep. James Oberstar (D-MN-8^th)

Vote:

Cost to the taxpayers: Authorizes $65,000,000 for fiscal year 2007; $80,000,000 for fiscal year 2008; $85,000,000 for fiscal year 2009; $90,000,000 for fiscal year 2010; and

`(5) $95,000,000 for fiscal year 2011.' “CBO estimates that implementing H.R. 799 would cost $280 million over the 2007-2012 period.”

Earmark Certification:   The report did not provide an earmark certification.

## All Rights Reserved. © 2007 TheWeekInCongress.com(TM)

No reproduction, language translation or distribution without written permission from TheWeekInCongress.com.(TM)