which they administer; and (2) the Commission has determined that such program and projects meet the criteria established by this Act, and will contribute to the development of the Appalachian region, which determinations shall be binding on the implementing Federal agencies."

SEC. 18. Section 224 (a) of the Act is amended by striking out "In developing recommendations on the" and inserting in lieu thereof the following: “In approving".

SEC. 19. Subsections (a), (b), and (c) of section 302 of the Act are amended to read as follows:

"(a) The Commission is authorized

"(1) to make grants to State members of the Commission for technical services and administrative expenses of local development districts, but (A) the amount of any such grant shall not exceed 75 per centum of such expense, (B) no grants for administrative expenses shall be made for a local development district for a period in excess of three years beginning on the date the initial grant is made for such development district, and (C) the local contributions for administrative expenses may be in cash or in kind, fairly evaluated, including but not limited to space, equipment, and services; and

"(2) either directly or through arrangements with appropriate public or private organizations, to provide funds for investigation, research, studies, technical assistance, and demonstration projects, and for training programs, but not for construction purposes, which will further the purposes of this Act. "(b) Recipients of Federal assistance under the provisions of this section shall, as required by the Commission, maintain accurate and complete records of transactions and activities financed with Federal funds and report thereon to the Commission. The records of the recipient shall be available for audit with respect to such grants by the Commission and the Comptroller General or their duly authorized representatives.

"(c) Not to exceed $10,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section."

SEC. 20. Section 303 of the Act is amended to read as folows:

"PROJECT APPROVAL

"SEC. 303. An application for a grant or for any other assistance for a program or project under this Act shall be made through the State member of the Commission representing such applicant, and such State member shall evaluate such application for approval. Only applications for programs and projects which are approved by a State member as meeting the requirements for assistance under the Act shall be approved for assistance by the Commission." SEC. 21. Section 401 of the Act is amended to read as follows:

"AUTHORIZATION OF APPROPRIATIONS

"SEC. 401. (a) In addition to the appropriations authorized in section 201 for the Appalachian development highway system and local access roads, there is hereby authorized to be appropriated for the two-fiscal-year period ending June 30, 1969, to be available until expended, not to exceed $263,150,000 to the Commission to carry out this Act. The Commission is authorized, from funds appropriated under this section, to advance, from time to time, to the heads of the appropriate departments or agencies for the purposes of carrying out the various sections of this Act, such funds as the Commission approves within the ceilings established in the different sections of this Act.

"(b) Unexpended balances of appropriations under the authorization in this section prior to amendment by the Appalachian Regional Development Act Amendments of 1967 shall be treated as having been appropriated to the Commission and shall remain available until expended."

SEC. 22. (a) Section 403 of the Act is amended by inserting after the clause relating to the counties in Maryland the following:

"In Mississippi, the counties of Alcorn, Attala, Benton, Calhoun, Chickasaw, mission for educational planning and research in connection with its comprehensive planning for Appalachian region as defined under section 403 of the Appalachian Regional Development Act of 1965.".

"In New York, the counties of Allegany, Broome, Cattaraugus, Chautauqua, Chemung, Chenango, Cortland, Delaware, Otsego, Schuyler, Steuben, Tioga, and Tompkins ;".

(b) Such section is further amended by striking out the colon following "West Virginia" and all of the remainder of such section and inserting in lieu thereof a period.

SEC. 23. (a) Section 302 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 842) is amended by inserting after the first sentence of subsection (a) the following new sentence: "The Commissioner also shall reserve such amount as he may determine for grants to the Appalachian Regional Commission for educational planning and research in connection with its comprehensive planning for Appalachian region as defined under section 403 of the Appalachia Regional Development Act of 1965.".

(b) Section 303 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 843) is amended by inserting after "SEC. 303. Grants", the phrase "to a local education agency".

(c) Section 304 of the Elementary and Secondary Education Act of 1965

(c) Section 304 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 844) is amended by inserting after "Applications for grants” in subsection (b), the phrase "to a local education agency".

(d) Section 502 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 862) is amended by inserting after the first sentence of subsection (a) (1) the following new sentence: "The Commission also shall reserve such amount as he may determine for grants to the Appalachian Regional Commission for educational planning and research in connection with its comprehensive planning for the Appalachian region as defined under section 403 of the Appalachian Regional Development Act of 1965.".

(e) Section 505 of the Elementary and Seconadry Education Act of 1965 (20 U.S.C. 865) is amended by inserting before the period at the end of the section the folowing: ", and for grants to the Appalachian Regional Commission for educational planning and research in connection with its comprehensive planning for the Appalachian region as defined under section 403 of the Appalachian Regional Development Act of 1965".

[S. 602, 90th Cong., first sess.]

AN ACT To revise and extend the Appalachian Regional Development Act of 1965, and to amend title V of the Public Works and Economic Development Act of 1965

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-APPALACHIAN REGIONAL DEVELOPMENT ACT AMENDMENTS OF 1967

SEC. 101. This title may be cited as the "Appalachian Regional Development Act Amendments of 1967”.

SEC. 102. Section 102 of the Appalachian Regional Development Act of 1965 (hereinafter in this title referred to as "the Act") is amended (1) by inserting "and" at the end of clause (7); (2) by striking out the semicolon and the word "and" at the end of clause (8) and inserting in lieu thereof a period; and (3) by striking out clause (9).

SEC. 103. Section 105 of the Act is amended to read as follows:

"ADMINISTRATIVE EXPENSES OF THE COMMISSION

"SEC. 105. (a) For the period ending on June 30, 1967, the administrative expenses of the Commission shall be paid by the Federal Government. Thereafter, such expenses shall be paid 50 per centum by the Federal Government and 50 per centum by the States in the region, except that the expenses of the Federal Cochairman, his alternate, and his staff shall be paid solely by the Federal Government. The share to be paid by each State shall be determined by the Commission. The Federal Cochairman shall not participate or vote in such determination. No assistance authorized by this Act shall be furnished to any State or to any political subdivision or any resident of any State, nor shall the State member of the Commission participate or vote in any determination by the Commission while such State is delinquent in payment of its share of such expenses.

"(b) To carry out this section, there is hereby authorized to be appropriated to the Commission, to be available until expended, not to exceed $1,700,000 for the two-fiscal-year period ending June 30, 1969. Not to exceed $400,000 of such authorization shall be available for the expenses of the Federal Cochairman, his alternate, and his staff. Unexpended balances of appropriation under the authorization in this section prior to amendment by the Appalachian Regional Development Act Amendments of 1967 shall remain available for the purposes of this section, as amended, until expended."

SEC. 104. Clause (7) of section 106 of the Act, entitled "ADMINISTRATIVE POWERS OF THE COMMISSION", is amended to read as follows:

"(7) enter into and perform such contracts, leases (including, notwithstanding any other provision of law, the lease of office space for any term expiring no later than June 30, 1971), cooperative agreements, or other transactions as may be necessary in carrying out its functions and on such terms as it may deem appropriate, with any department, agency, or instrumentality of the United States (which is hereby so authorized to the extent not otherwise prohibited by law) or with any State, or any political subdivision, agency, or instrumentality thereof, or with any person, firm, association, or corporation."

SEC. 105. Section 201 of the Act is amended to read as follows:

"APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM

"SEC. 201. (a) In order to provide a highway system which, in conjunction with the Interstate System and other Federal-aid highways in the Appalachian region, will open up an area or areas with a developmental potential where commerce and communication have been inhibited by lack of adequate access, the Secretary of Transportation (hereafter in this section referred to as the 'Secretary') is authorized to assist in the construction of an Appalachian development highway system and local access roads serving the Appalachian region. The provisions of title 23, United States Code, that are applicable to the construction and maintenance of Federal-aid primary and secondary highways, and which the Secretary determines are not inconsistent with this Act, shall apply, respectively, to the development highway system and the local access roads. Construction on the development highway system shall not exceed two thousand seven hundred miles. Construction of local access roads shall not exceed two thousand miles that will serve specific recreational, residential, educational, commercial, industrial, or other like facilities or will facilitate a school consolidation program.

"(b) The Commission shall transmit to the Secretary its designations of (1) the general corridor location and termini of the development highways, (2) local. access roads to be constructed, (3) priorities for the construction of segments of the development highways, and (4) other criteria for the program authorized by this sestion. Before any State member participates in or votes on such designations, he shall have obtained the recommendations of the State highway_department of the State which he represents.

"(c) In no event shall the Secretary assist in any construction (includingright-of-way acquisition) which would require for its completion the expenditure of Federal funds (other than funds available under title 23, United States Code) in excess of the appropriations authorization in subsection (g). On its completion each development highway not already on the Federal-aid primary system shall be added to such system and each development highway and local access road shall be required to be maintained by the State as provided for Federal-aid highways in title 23, United States Code.

"(d) In the construction of highways and roads authorized under this section, the States may give special preference to the use of materials and products indigenous to the Appalachian region.

"(e) For the purposes of research and development in the use of coal and coal products in highway construction and maintenance, the Secretary shall require each participating State, to the maximum extent possible, to use coal derivatives in the construction of not to exceed 10 per centum of the roads authorized under this Act.

"(f) Federal assistance to any construction project under this section shall not exced 50 per centum of the costs of such project,, unless the Commission determines that assistance in excess of such percentage is required in furtherance of the purposes of this Act, but in no event shall such Federal assistance exceed 70 per centum of such costs.

"(g) To carry out this section, there is hereby authorized to be appropriated to the President, to be available until expended, $715,000,000 for the four-fiscalyear period ending June 30, 1971. Unexpended balances of appropriations to the Secretary of Commerce under the authorization in this section prior to amendment by the Appalachian Regional Development Act Amendments of 1967 shall be treated as having been appropriated to the President for the purposes of this section, as amended, and shall remain available until expended.

"(h) (1) When a participating State proceeds to construct a segment of a development highway without the aid of Federal funds, in accordance with all procedures and requirements applicable to the construction of segments of Appalachian development highways with such funds, except insofar as such procedures and requirements limit a State to the construction of projects for which Federal funds have previously been appropriated, the Secretary, upon application by the State and after approval of the project by the Commission under section 223 (2) of this Act, shall pay to the State the Federal share not to exceed 70 per centum of the cost of construction of such segment, from any sums appropriated to carry out this section.

"(2) This subsection shall not be construed as a commitment or obligation on the part of the United States to provide funds for segments of development highways constructed under this subsection, and shall not increase the limitation on construction in subsection (c).”

SEC. 106. Section 202 of the Act is amended to read as follows:

"DEMONSTRATION HEALTH PROJECTS

“SEC. 202. (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 projects, including hospitals, regional health diagnostic and treatment centers, and other facilities and services necessary to health. Grants for such construction (including the acquisition of facilities and initial equipment) shall be made in accordance with the applicable provisions of title VI of the Public Health Service Act (42 U.S.C. 291-2910), the Mental Retardation 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 provisions 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 carrying out this Act and shall not be taken into account in the computation 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 de monstration health project shall exceed 80 per centum of such costs. The Federal contribution may be provided entirely from funds authorized under this section or in combination with funds provided under other Federal grant-in-aid programs for the construction or equipment of health-related facilities. Notwithstanding any provision of law limiting the Federal share in such other programs, funds authorized under this section 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 costs of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with funds authorized by this section, 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 operations such grants shall not exceed 50 per centum of such costs. 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. Notwithstanding section 104 of the Public Works and Economic Development Act of 1965 (79 Stat. 554), a health-related facility constructed under title I of that Act may be a component of a demonstration health project eligible for operating grant assistance under this section.

"(d) The Secretary of Health, Education, and Welfare is authorized to provide funds to the Commission for the support of its Health Advisory Committee

81-844 0-67—2

and to make grants for expenses of planning necessary for the development and operation of demonstration health projects for the region. The amount of any such grant shall not exceed 75 per centum of such expenses.

"(e) Not to exceed $70,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section."

SEC. 107. Subsection (i) of section 203 of the Act, entitled "LAND STABILIZATION, CONSERVATION, AND EROSION CONTROL", is amended to read as follows:

"(i) Not to exceed $19,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section."

SEC. 108. Section 204 of the Act, entitled "TIMBER DEVELOPMENT AND RESEARCH", is amended by striking out subsection (b) and inserting in lieu thereof the following new subsections (b) and (c) :

"(b) The Secretary of Agriculture is authorized to provide technical assistance, make grants, enter into contracts, or otherwise provide funds to forest products research institutions in the region and other appropriate public and private organizations, for Appalachian hardwood products research, including investigations, studies, and demonstrations, which will further the purposes of this Act. Funds shall be provided only for programs and projects which will contribute significantly to the development of (1) Appalachian hardwood technology, (2) new or improved uses of Appalachian hardwood resources, (3) new or improved processes or methods for producing hardwood products, or (4) new or improved markets for such products. Funds under this section shall be provided solely out of sums specifically appropriated for the purpose of carrying out this Act, and shall not be taken into account in the allocation or distribution of funds pursuant to any other provision of law.

"(c) Not to exceed $4,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out the purposes of subsection (b) of this section."

SEC. 109. (a) Clause (1) of subsection (a) of section 205 of the Act, entitled "MINING AREA RESTORATION", is amended to read as follows:

"(1) make financial contributions to States in the region to seal and fill voids in abandoned coal mines and abandoned oil and gas wells, and to reclaim and rehabilitate lands affected by the strip and surface mining and processing of coal and other minerals, including lands affected by waste piles, in accordance with provisions of the Act of July 15, 1955 (30 U.S.C. 571 et seq.), to the extent applicable, without regard to section 2(b) thereof (30 U.S.C. 572(b)) or to any provisions therein limiting assistance to anthracite coal formation, or to the Commonwealth of Pennsylvania. Grants under this paragraph shall be made wholly out of funds specifically appropriated for the purposes of carrying out this Act." (b) Subsection (b) of such section is amended by striking out "and 1967" and inserting in lieu thereof ", 1967, 1968, and 1969", and by inserting after "restoration projects" a comma and the following: "including reasonable planning, engineering and land acquisition costs,”.

(c) The first sentence of subsection (d) of such section is amended to read as follows: "Not to exceed $39,150,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section."

SEC. 110. Subsection (g) of section 206 of the Act, entitled "WATER RESOURCE SURVEY", is amended to read as follows:

"(g) Not to exceed $2,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section."

SEC. 111. Part A of title II of the Act is amended by inserting at the end thereof a new section as follows:

66 'ASSISTANCE FOR PLANNING AND OTHER PRELIMINARY EXPENSES OF PROPOSED HOUSING PROJECTS UNDER SECTION 221 OF THE NATIONAL HOUSING ACT "SEC. 207. (a) In order to encourage and facilitate the construction or rehabilitation 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