Federal-State Regional Commissions

Appalachian Regional Commission

• View NADO ARC Issue Brief | View Index of Distressed ARC Counties

July 2008 --

• Senate Approves Funding Boost for ARC--On July 8, the Senate Appropriations Energy-Water Subcommittee approved a $33.3 billion FY2009 Energy-Water spending bill (currently unnumbered). Similar to the measure (currently unnumbered) passed by the House Appropriations Committee last week, the Senate bill tops President Bush’s spending request by $1.9 billion and current funding by $2.4 billion. The full committee was scheduled to take up the bill July 10. According to Subcommittee documents, the bill provides $85 million for the Appalachian Regional Commission (ARC), $20 million above the budget request and $12 million above current spending. The House Energy and Water Appropriations bill provides $65 million for ARC.
• ARC Funded at Administration’s Request--On June 25, the House Appropriations Committee approved a $33.2 billion Energy and Water Development Appropriations spending measure (currently unnumbered), which is nearly $2.4 billion over current funding and $2.1 billion over the administration’s request. The Senate has yet to consider its version of the bill. The bill provides $65 million for the Appalachian Region Commission (ARC), which is equal to the administration’s request and $8 million below current funding. Of the funds provided, the committee allocates $53.9 million for area development; $5.3 million for local development districts and technical assistance; and $5.7 million for salaries and expenses.

October 2007 --

• House Approves Regional Commission Legislation--On October 4, the House adopted legislation (HR 3246), by a vote of 264-154, reauthorizing the Delta Regional Authority (DRA) and Northern Great Plains Regional Authority (NGPRA) and establishing new federal-state commissions in the SouthEast Crescent, Southwest Border and Northern Border regions. The measure now awaits Senate consideration. The administration opposes the bill and has threatened a veto of the measure. In a Statement of Administration Policy (SAP), the White House maintains that the legislation would duplicate programs that already exist within the Departments of Agriculture, Commerce and Housing and Urban Development. In addition, the administration opposes Davis-Bacon Act provisions contained in the bill. To view the SAP, visit www.whitehouse.gov/omb/legislative/sap/110-1/hr3246sap-h.pdf. The legislation authorizes $1.25 billion for the five regional commissions and establishes a standard board structure and operation model based on the Appalachian Regional Commission (ARC). The legislation adds new counties to the DRA and NGPRA footprint. Each commission would be authorized at $40 million beginning in FY2008 and rise to $60 million by FY2012. The legislation had previously been considered under suspension of the rules on September 17, but failed to receive the two-thirds majority vote (225-152) required for passage of measures considered on the suspension calendar. A number of Representatives made comments in support of the legislation, including Reps. Michael Arcuri (D-NY), Charles Boustany (R-LA), Henry Cuellar (D-TX), Raul Grijalva (D-AZ), Ruben Hinojosa (D-TX), Paul Hodes (D-NH), John McHugh (R-NY), Mike McIntyre (D-NC), Mike Michaud (D-ME) Solomon Ortiz (D-TX), Ciro Rodriguez (D-TX) and Peter Welch (D-VT). NADO thanks regional development organizations in these areas for contacting their House members and urging them to support the measure. Click Here to View Floor Proceedings

July 2007 --

• Committee Approves Regional Commissions Legislation--On August 1, the House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management marked up legislation (currently unnumbered) to authorize and reauthorize a number of proposed and existing federal-state regional commissions. The bill is expected to come before the full committee after the August recess. The bill would extend the authorization of the Delta Regional Authority (DRA) and the Northern Great Plains Regional Commission and authorize the establishment of the Southeast Crescent Regional Commission, Southwest Border Regional Commission and Northern Border Regional Commission. Each commission would be authorized at $40 million beginning in FY2008 and rise to $60 million in FY2012. The legislation requires the utilization of economic development districts (EDDs) to serve as local development districts. In addition, the measure establishes a standardized board structure for each of the commissions, which requires the affirmative vote of the Federal Co-chairperson and a majority of state members to approve any action. For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.
• Senate Approves ARC Reauthorization Bill--On August 3, the Senate adopted legislation (S 496) reauthorizing the Appalachian Regional Commission (ARC) through FY2011. The House passed its version of legislation (HR 799) on July 16. The House and Senate will not conference the two versions of the bill. The Senate measure authorizes $95.2 million beginning in FY2007 and rises to $109.4 million in the bill’s final year. The bill also authorizes existing funds to be spent on a new Economic and Energy Development Initiative, which is designed to promoted energy efficiency and increase the use of renewable energy resources in the region to enhance economic competitiveness. The House measure authorizes $65 million for ARC for FY2007 and increases to $95 million by FY2011 and provides an additional $12 million per year for the Economic and Energy Development Initiative. The Senate bill also contains language in the House bill that requires any project earmark to be taken from a state's individual funding allocation as opposed to the overall amount of funding provided for ARC. Unlike the Senate version, the House bill adds 13 counties to the ARC region in Kentucky (Metcalfe and Nicholas), Ohio (Ashtabula, Fayette, Mahoning and Trumbull), Tennessee (Giles, Lawrence, Lewis and Lincoln) and Virginia (Henry and Patrick). For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

July 2007 --

• House Approves ARC Reauthorization Legislation--On July 16, the House approved legislation (HR 799) reauthorizing the Appalachian Regional Commission (ARC) through FY2011. The measure overwhelmingly passed by a vote of 332-70. The Senate Environment and Public Works Committee adopted its version on May 7. The measure authorizes $65 million for ARC for FY2007 and increases to $95 million by FY2011. The bill also provides an additional $12 million per year for the Economic and Energy Development Initiative, which is designed to promoted energy efficiency and increase the use of renewable energy resources in the region to enhance economic competitiveness. The bill adds thirteen counties to the ARC region in Kentucky (Metcalfe and Nicholas), Ohio (Ashtabula, Fayette, Mahoning and Trumbull), Tennessee (Giles, Lawrence, Lewis and Lincoln) and Virginia (Henry and Patrick). The bill retains provisions from previous legislation creating an “at-risk” designation for counties on the verge of becoming “distressed” and sets the federal-local match rate for ARC programs in these counties at 70 percent – 30 percent. Finally, the measure contains a provision requiring any project earmark to be taken from a state’s overall allocation and not from ARC’s overall funding allocation.

June 2007 --

• On June 20, during floor consideration of the FY 2008 Energy & Water Development Appropriations bill (HR 2641) two amendments concerning the Appalachian Regional Commission (ARC) were considered. The first was an amendment offered by Reps. Zack Space (D-OH) and Robert Aderholt (R-AL) to increase ARC’s appropriation to $65 million, level with current spending. The amendment was withdrawn after a colloquy between Energy & Water Development Appropriations Subcommittee Chairman Pete Viclosky (D-IN) and Space in which the chairman pledged to consider the issue during conference. The second amendment was offered by Rep. Randy Neugebauer (R-TX) to strip ARC’s funding of $35 million from the bill entirely. The amendment failed by a vote of 133-298. The Senate Appropriations Committee adopted a $32.7 billion version on June 28, which increases ARC funding $10 million to $75 million.

• On June 6, the House Appropriations Committee marked up the $31.6 billion Energy and Water Development Appropriations bill (currently unnumbered). The measure provides $1.3 billion over FY2007 spending and $1.1 billion over the administration request. Despite this increase, the measure cuts funding for federal-state regional commissions. The Appalachian Regional Commission (ARC) is provided $35 million, $30 million under current funding and the President's request. The committee report states that the "ARC budget justification indicates that it targets 50 percent of its funds to distressed counties or distressed areas in the Appalachian region. In times of budget austerity, the Committee believes this should be the primary, and in fact, the sole, focus of the ARC." The reports adds that the "reduction is to be taken from the area development activities that serve other than distressed counties and distressed areas."

February 2007 --

As reported by the Appalachian Regional Commission (ARC), the House Transportation and Infrastructure Committee today approved by voice vote a 5-year ARC reauthorization bill (H.R. 799). During action on the bill the Committee approved an amendment by Rep. Zack Space (D-OH) to add a new “Economic and Energy Development” authority that tracks the general thrust of ARC’s energy blueprint. The new program would be authorized at $12 million a year; this amount would be on top of the funding level for ARC’s regular program. The Committee also considered an amendment by Rep. Steve LaTourette (R-OH) to add counties to the Commission, but this was withdrawn pending further discussion. A compromise amendment adding counties is expected when the bill comes to the House floor, which could happen as early as next week.

The bill approved by the committee requires the Commission to designate economically at-risk counties and permits the Commission to fund up to 70% of the cost of projects in at-risk counties. The authorization level for ARC’s regular program is $65 million in FY07, $80 million in FY08, $85 million in FY09, $90 million in FY10, and $95 million in FY11. It continues all of ARC’s existing program authorities.

During debate on the ARC bill, the following members of the Appalachian delegation made strong statements of support for ARC: Reps. Nick Rahall (D-WV), Bill Shuster (R-PA), Zack Space (D-OH), Mike Arcuri (D-NY), and Heath Shuler (D-NC).

In other legislative action, Sen. George Voinovich (R-OH) yesterday introduced a Senate reauthorization bill (S. 496). It also is for five years, but it uses the higher funding levels that were contained in last year’s Senate-passed bill--$95.2 million in FY07, $98.6 million in FY08, $102 million in FY09, $105.7 million in FY10, and $109.4 million in FY11. The bill would also create a new energy authority along the lines of the Commission’s energy blueprint, starting with $12 million in FY07 and increasing to $13.8 million in FY11. This amount would come out of the overall funding level. It also sets aside funds for the telecommunications and technology program, with $10 million in FY07, $8 million in FY08, and $5 million each in FY09 through FY11. This would also come out of the overall funding level.

Joining Sen. Voinovich as original cosponsors of the legislation are Senators Clinton (D-NY), Warner (R-VA), Byrd (D-WV), Lott (R-MS), Brown (D-OH), Cochran (R-MS), Schumer (D-NY), Burr (R-NC), Cardin (D-MD), Mikulski (D-MD), Dole (R-NC), Shelby (R-AL), and Graham (R-SC).

Link to the ARC Web Site

Delta Regional Authority

July 2008 --

• Senate Approves Funding Boost for DRA --On July 8, the Senate Appropriations Energy-Water Subcommittee approved a $33.3 billion FY2009 Energy-Water spending bill (currently unnumbered). Similar to the measure (currently unnumbered) passed by the House Appropriations Committee last week, the Senate bill tops President Bush’s spending request by $1.9 billion and current funding by $2.4 billion. The full committee was scheduled to take up the bill July 10. The Delta Regional Authority (DRA) is provided $20 million, $14 million above the budget request, $8.32 million above current spending and $14 million above the House allocation.
• DRA Funded at Administration’s Request--On June 25, the House Appropriations Committee approved a $33.2 billion Energy and Water Development Appropriations spending measure (currently unnumbered), which is nearly $2.4 billion over current funding and $2.1 billion over the administration’s request. The Senate has yet to consider its version of the bill. The Delta Regional Authority (DRA) is provided with $6 million, nearly $6 million under current funding and level with the administration’s request. The report indicates that “it has come to the Committee’s attention that the DRA has failed to provide assistance in several counties within its jurisdiction that are among the most economically distressed. In the view of this Committee, this lapse is unacceptable, given the Authority’s primary mission is to assist the counties where the most need exists. The DRA is instructed to provide a report outlining the assistance provided in its territory, by county, ranked in order of rates of poverty and economic distress as defined by the Census Bureau. The DRA is also to review the process by which assistance is provided to the counties within its jurisdiction according to need.”

October 2007 --

On October 10, the Delta Regional Authority (DRA) announced it will begin accepting pre-applications for its fiscal 2008 grant cycle. Local development districts must submit pre-application packages by January 8, 2008. Local development districts are responsible for screening the pre-applications. Areas of emphasis for the 2008 grant program are:

• Basic public infrastructure in distressed counties
• Transportation infrastructure for the purpose of facilitating economic development
• Business development with an emphasis on entrepreneurship
• Job training with an emphasis on existing public education institutions

  More information is available at www.dra.gov.

June 2007 --

On June 6, the House Appropriations Committee marked up the $31.6 billion Energy and Water Development Appropriations bill (currently unnumbered). The measure provides $1.3 billion over FY2007 spending and $1.1 billion over the administration request. Despite this increase, the measure cuts funding for federal-state regional commissions. Funding for the Delta Regional Authority (DRA) is reduced 50 percent to $6 million, equal to the administration's budget. The report states that the committee "is concerned with the level of administrative expenses and with the Authority's lack of direction and strategic planning." The report directs DRA to provide the House and Senate Appropriations committees with a five-year strategic plan and, within two years, limit administrative expenses to five percent of its overall appropriation. The report adds that "it has come to the Committee's attention that the Delta Regional Authority is not responsive to Congressional inquiries. The Delta Regional Authority should be able to respond in a timely manner to inquiries regarding its budget and expenditures." The Senate provides level funding of $12 million for DRA. Report language is included stating the “Government Accountability Office recently reported that the DRA has a commendable record in the percentage of funds spent in rural America, and the Committee recognizes the DRA’s role in bettering the underserved area of the Nation.”

View NADO's DRA Issue Brief | View Index of Distressed DRA Counties

Link to the DRA Web Site

Northern Great Plains Regional Authority

Southeast Crescent Regional Commission

• June 2008 - SECA Authorization Included in 2008 Farm Bill
  View Updated Southeast Crescent Fact Sheet
• January 2007 - SECA Legislation Introduced in House On January 9, Rep. Mike McIntyre (D-NC) introduced legislation (HR 66) that would establish a new federal-state commission encompassing the SouthEast Crescent Region. The SouthEast Crescent Authority (SECA), would establish a new commission modeled after the Appalachian Regional Commission (ARC) and would cover the seven states in the region - Alabama, Georgia, Florida, Mississippi, North Carolina, South Carolina and Virginia. A total of $40 million would be authorized to fund economic development activities. The existing network of EDA-designated development districts would serve as the local program delivery mechanism.

View NADO Southeast Crescent Issue Brief (updated 6/08) | View Index of Distressed Southeast Counties

Southwest Border Regional Commission

View Southwest Border Fact Sheet | View Map of Counties Covered by SWBA

• June 2008 - Southwest Border Authority Authorization Included in Farm Bill

Denali Commission

Northern Border Regional Commission

• June 2008 - Northern Border Regional Commission Authorization Included in 2008 Farm Bill
• October 2007 -Northern Border Commission Legislation Introduced in Senate On October 26, legislation (S 2249) authorizing the creation of Northern Border Economic Development Commission was introduced. The legislation establishes a new federal-state regional commission covering selected counties in Maine, New Hampshire, New York and Vermont. The measure is similar to legislation (HR 3246) that was adopted by the House on October 4. The bill is sponsored by Sen. Olympia Snowe (R-ME) and cosponsored by Sens. Hillary Clinton (D-NY), Susan Collins (R-ME), Bernard Sanders (I-VT) and Charles Schumer (D-NY). It authorizes $40 million annually through 2012 for a variety of economic and community development activities, including resource conservation activities and the development of renewable fuels. The legislation requires the use of EDA-designated economic development districts as the local delivery mechanism. To view the legislation, visit http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:s2249is.txt.pdf. For more information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.

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