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in its program formulation responsibilities for the ACP as well as programs under Section 203.

B. When programs authorized by Section 203 have been proposed by the State Government and approved by the Appalachian Commission, the Secretary of Agriculture and the Federal Co-Chairman of the Commission, the implementation of those programs within the State and necessary supervision thereof shall be the joint responsibility of the Agricultural Stabilization and Conservation Service, the Soil Conservation Service, the Forest Service, and the Farmers Home Administration. The Agricultural Stabilization and Conservation Service hereby is designated as the Departmental agency responsible for administration of approved programs authorized by Section 203, and is delegated authority to issue regulations necessary for the carrying out of such programs.

C. Long-term conservation cost-sharing contracts under Section 203 with landowners, operators or occupiers shall be entered into for the Secretary by county ASC committees. Applications for such contracts shall be filed with that committee. The county ASC committee shall determine if the applicant would be eligible for such contract providing he has or develops an acceptable Conservation and Development Plan. Following this determination, eligible applicants will be referred by the county committee as hereinafter required to the local Soil Conservation Service representative for technical assistance with plan review, revision or development or the furnishing of available soils or technical guide data. After presentation of Conservation and Development plans to the county ASC committee that are acceptable to the Secretary, the committee shall enter into contracts.

D. The county committee will determine whether to enter into a contract and if so for which of the eligible conservation measures called for in the plan to approve cost-sharing and the amount thereof. Particular consideration should be given to cases where the measures also will further the purposes of other objectives of the Act. The committee will determine the length of the contract period and the time limit within the contract period by which each of the conservation practices or measures required under the contract is to be established. Such time limits shall be consistent with any necessary sequence of installation of measures called for in the approved Conservation and Development Plan. The Soil Conservation Service will be furnished a copy of the contract and any amendments thereto. The county committee shall determine compliance with the contract, issue payments due thereunder and otherwise administer the contract in accordance with instructions issued by the Administrator, Agricultural Stabilization and Conservation Service.

2. SOIL CONSERVATION SERVICE

A. The Soil Conservation Service shall be responsible for providing or arranging for technical planning assistance to landowners, operators and occupiers in formulating a Conservation and Development Plan for each farm or other land unit proposed for placing under contract after the county ASC committee has initially determined eligibility. Where the proposed treatment involves a single practice such as pasture renovation or timber stand improvement or conversion of small acreage (less than 10 acres) of land to grass or trees not involving critical areas or unusual costs, and the county committee requests such information as a basis for a contract, soil suitability information and other technical guide data as available will constitute adequate Soil Conservation Service planning assistance for Section 203.

B. The Soil Conservation Service shall be responsible for providing any onsite technical services needed in the application or installation of conservation practices or measures (other than forestry) called for in the contracts entered into by the ASC committee.

C. Soil Conservation Service shall be responsible for reporting to the committee the completion of such conservation measures for which Soil Conservation Service provides technical services as an aid to the committee in determining the propriety of payments to be made under such contracts.

3. FOREST SERVICE

A. The Forest Service shall be responsible for providing technical services needed in the installation of forestry practices or measures and for providing reports to county committees as needed on the completion of such practices. State and county foresters and qualified personnel of other public and private

organizations may be used by the Forest Service where it deems this appropriate in the discharge of these responsibilities.

4. FARMERS HOME ADMINISTRATION

A. The Farmers Home Administration, within available funds and subject to the authority and limitations of Section 304 of the Consolidated Farmers Home Administration Act of 1961, as amended, will make loans to contract holders who are also eligible for loan assistance from FHA for that part of the cost of conservation measures called for in an approved plan for which cost sharing will not be available under the contract.

B. Loans will also be made to eligible borrowers in Appalachia, to the extent of funds available, for the costs of conservation measures on acreage in excess of the contract acreage, and to persons not entering into cost sharing contracts, which will achieve similar conservation and development on farms in the area.

5. APPROVAL OF CONSERVATION AND DEVELOPMENT PLANS

A. To be acceptable to the Secretary for purposes of contracts under Section 203 a Conservation and Development Plan must meet the following criteria:

(1) Except for the cases described in 2A above, the plan must be developed by the applicant with technical assistance from the Soil Conservation Service. All applicants will be encouraged to become cooperators with their local soil and water conservation district.

(2) The plan must set-forth for the land proposed to be placed under contract the proposed uses of such land, the conservation practices or measures proposed for treating the land in such uses, and where essential to the success of those measures and uses, the proper combinations and sequence of such practices and land-use changes.

(3) The land use changes proposed in the plan must not result in a significant increase of total cropland on the farm or land unit.

(4) Except for the cases described in 2A above, the plan must be approved for the Secretary by Soil Conservation Service before the county ASC committee enters into the contract. As a part of its approval of a plan the Soil Conservation Service will provide the county ACS committee for the land proposed to be placed under contract, (a) a plan map that identifies each field, the approximate acreage in each, the planned land use, and other features such as available soils or technical guide information helpful to the participant in carrying out the plan, (b) a listing by fields or other identified areas of the land, the amount or extent or combinations of practices or measures (or components thereof) needed and (c) the sequence necessary for successful establishment of planned measures or practices.

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COORDINATION OF DEPARTMENT ACTIVITIES IN APPALACHIA AND ESTABLISHMENT OF THE USDA COMMITTEE FOR APPALACHIA DEVELOPMENT

1. Background and policy. The Appalachian Regional Commission was created by The Appalachian Regional Development Act of 1965 (P. L. 89-4)

to coordinate a variety of programs designed to revitalize the Appalachian economy, namely to secure the following:

a. Better access to and within the region;

b. Fuller development of the land and timber resources of Appalachia; c. Improved development and management of Appalachia's water resources; and

d. Improvements in human resources and public facilities. In addition, the Commission makes recommendations with regard to existing and proposed programs, and provides program planning.

The Commission is comprised of representatives from each of the eleven Appalachian States (Alabama, Georgia, Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia) and a Federal Co-Chairman appointed by the President.

The Federal Co-Chairman represents the Federal Government. The affirmative vote of the Federal Co-Chairman is required in order for any action to be taken by the Commission. The Federal Co-Chairman is required to inform the nine Federal Departments and Agencies of significant matters to be taken under consideration by the Commission. Before the Federal Co-Chairman casts his vote on any such matters, he must secure a consensus of the interested Federal Departments and Agencies, through the Federal Development Committee For Appalachia, or by consultation with the Department or Agency representatives on the Committee.

Executive Order 11209, dated March 25, 1965, established the Federal Development Committee For Appalachia. Its purpose is to coordinate related Appalachian planning activities of the Federal Government. This Committee is composed of the Federal Co-Chairman of the Appalachian Regional Commission, who serves as chairman, and nine other members, each designated by and representing one of the following:

Secretary of Agriculture.

Secretary of the Army.

Secretary of Commerce.

Secretary of Health, Education, and Welfare.

Secretary of the Interior.

Secretary of Labor.

Housing and Home Financing Administrator.

Director of the Office of Economic Opportunity.

The Board of Directors, Tennessee Valley Authority.

The prinicipal functions of the Federal Development Committee For Appalachia are as follows:

a. To review all plans of the Federal Departments and Agencies before the Federal Co-Chairman transmits them to the Commission, to insure optimum coordination among all participating agencies; and

b. To review and prepare comments which are to be transmitted by the Federal Co-Chairman to the Commission, to reflect the Federal Government's position on all tentative development plans prepared by the Commission. Robert G. Lewis, Administrator, Rural Community Development Service, has been designated to represent the Department of Agriculture on the Federal Development Committee, and to coordinate Appalachian program activities within the Department. It is his responsibility to provide liaison between the Department and the Federal Co-Chairman on all Appalachian matters.

It is the policy of this Department to utilize all of its relevant program activities to help in developing the full economic and social potential of the Appalachian region.

In the development of the Department's position on matters that come before the Federal Development Committee For Appalachia, such matters will be referred to the Department agencies concerned for their analysis, appraisal, and advice.

2. COMMITTEE ESTABLISHED.-There is hereby established a USDA Committee for Appalachian Development. This will help to assure carrying out effective agricultural programs in the performance of duties conferred on this Department by Public Law 89-4 and Executive Order 11209. The Committee will enable the Department representative to present Department programs for review by the Federal Development Committee, and to present comments representing the position of the Department on Commission proposals.

3. DUTIES.-This USDA Committee will provide the means through which (1) information about the Federal Development Committee proceedings will be transmitted to the concerned Department agencies; (2) Department plans and proposals scheduled to be submitted to the Federal Co-Chairman will be reviewed, evaluated, and a unified position developed; (3) Department comments and recommendations on Commission proposals will be reviewed and a unified position developed; (4) Department program activities, problems, and progress in Appalachia that might be of interest to the Federal Development Committee, the Federal Co-Chairman, and the Commission, will be discussed and appraised; and (5) new development ideas and proposals originating in the USDA will be reviewed and considered for presentation to the Federal Development Committee. Each Committee representative will be expected to represent his agency's views and policies at Committee meetings. He will often be called for such views on short notice, because the Commission and the Federal Co-Chairman are placing great emphasis on the need to minimize the time necessary for obtaining Federal agency clearances in order to avoid unnecessary delays in making decisions on program activities.

4. MEMBERSHIP.-The following persons will represent their respective agencies on the Committee:

Robert G. Lewis, RCDS, Chairman.

E. L. Baum, ERS.

George Burks, CSRS.

Lee Fryer, FHA.

E. R. Goode, Jr., ARS.

H. G. Preston, FCS.

Hamilton K. Pyles, FS.
Fred G. Ritchie, ASCS.
Raymond C. Scott, FES.
John L. Wells, B&F.
Galdwin E. Young, SCS.

ORVILLE L. FREEMAN.

Mr. WALDIE. The next witnesses will be Gen. Harry Woodbury, Director of Civil Works, Corps of Engineers, accompanied by Colonel Lee.

STATEMENT OF BRIG. GEN. HARRY G. WOODBURY, JR., DIRECTOR OF CIVIL WORKS, CORPS OF ENGINEERS, ACCOMPANIED BY IRWIN REISLER, ASSISTANT CHIEF, PLANNING DIVISION, AND COL. JOHN LEE, JR., DIRECTOR, OFFICE OF APPALACHIAN STUDIES (CINCINNATI, OHIO)

General WOODBURY. Thank you very much, Mr. Chairman. As you know, I have recently been appointed Director of Civil Works of the Corps of Engineers.

It is a privilege to be invited before you this morning. I am happy to be here with Col. John Lee, Jr., who is the Director of the Office of Appalachian Studies and who is providing the leadership in this interagency water resources survey that was authorized by section 206 of the Regional Development Act, and Mr. Irwin Reisler, the Assistant Chief of our Planning Division of my office who is also closely associated with these activities and is accompanying me here this morning. In the interest of conserving the committee's time, I would be happy to file my statement for the record, sir, and summarize it.

Mr. JONES (presiding). That will be fine. Without objection, it will be received in the record as if read.

(The document follows:)

Statement of Brig. Gen. Harry G. WOODBURY, JR., DIRECTOR OF CIVIL WORKS

Mr. Chairman and members of the committee, I am Brigadier General Harry G. Woodbury, Director of Civil Works in the Office, Chief of Engineers. It is a pleasure to appear before you today in behalf of the Secretary of the Army and the

Chief of Engineers to review the Civil Works activities of the Corps of Engineers with respect to the Appalachian Regional Development Program. I have with me today Colonel John C. H. Lee, Jr., the Director of our Office of Appalachian Studies, who is conducting the Water Resources Survey authorized by Section 206 of the Appalachian Regional Development Act, and Mr. Irwin Reisler, Assistant Chief, Planning Division of my office, both of whom are closely associated with our current activities in the region. I will briefly review the Corps program and current activities in the region, and then ask Colonel Lee to describe in some detail the status of actions he has taken to prosecute the Comprehensive Water Resources Survey authorized by Section 206.

The Corps of Engineers is participating in the creation of a broad development program for the Appalachian Region which was authorized by the Appalachian Regional Development Act of 1965. We are impressed by the magnitude and complexity of the problems for which solutions must be found if the human and material resources of this large region are to be more effectively utilized in both national and regional interest. We welcome the opportunity to participate in the comprehensive and coordinate effort.

For many years the Civil Works program of the Army Corps of Engineers has made many important contributions to the economy of the Appalachian Region. It has provided protection from floods. It has made available dependable water supplies for industrial and municipal uses. It has greatly expanded the opportunities for healthful outdoor recreation. It has created low cost electric energy from falling water which is of special value for power peaking purposes. It has contributed to cleaning up the rivers by abating pollution through increasing low water flows. Fish and wildlife resources have been enhanced. The economy of the region has taken advantage of reduced transportation costs through the provision of navigable waterways.

We have continued our efforts to bring to realization the projects that have already been authorized by Congress to provide solution to critical water problems in the region. These projects are already well justified under past criteria and their value to the Nation will be further enhanced by the proposed development of the Appalachian Region. Thus a high level of water resources construction activity has been sustained in the region even prior to adoption of the Appalachian program. This activity has been accelerated in the past few years in recognition of the importance that has been placed by the President and the Congress on improving the environment of Appalachia as a means of encouraging economic growth.

The estimated cost of the presently active authorized program of the Corps of Engineers in the Appalachian Region totals about $4,270,000,000. One hundred and nine projects, having a total cost of $1,208,000,000, have been completed. Additional projects having a total cost of $1,916,000,000 are currently in a construction status. The remainder of the authorized program, consisting of fifty projects at an estimated cost of $1,146,000,000, have not yet been initiated, although advance planning preparatory to construction is underway on twenty of these. These figures are exclusive of the work that has been done by the Tennessee Valley Authority and other Federal agencies under their regular program responsibilities within the area.

To give some indication of the magnitude of current efforts that are being expended by the Army Engineers in the Appalachian Region, the FY 1967 Appropriations Act included funds totaling $140,000,000 for carrying forward the Corps' authorized program in the region. Of this amount, $128,200,000 is for continuing construction on forty-seven projects, $5,500,000 is to initate construction on nine new projects, and $6,300,000 is for detailed engineering planning of fifteen projects in preparation for future costruction activity. The President's budget for FY 1968, which was recently transmitted to the Congress, would provide for a continuing high level of activity. He has recommended $138,000,000 for Corps of Engineers activities in the region for the next fiscal year.

Perhaps one of the most serious deterrents to the well-being of the people of Appalachia and their opportunities for economic growth is the chronic flood problem which plagues many parts of the region. The program activity I mentioned has given high priority to areas in Appalachia having serious flood problems. This year in March the region again suffered serious flood damage in portions of Pennsylvania, West Virginia and eastern Kentucky, as well as in other areas of the Ohio River Basin. Residual flood losses this Spring totaled over $35 million, but this figure would have been much higher had it not been for

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