been submitted, the present system of cooperation between the Secretary of Commerce and the State highway departments will take over, as in the case of every other federally supported roadbuilding program. WATER RESOURCES The proper management of Appalachia's water resources is the purpose of section 206 of this bill which authorizes the Army Corps of Engineers to conduct a comprehensive water resource survey for the region and prepare a comprehensive plan for water resource development. Your committee and its staff are really the source of this section. When you suggested its inclusion in the Appalachian bill last year, its good sense demanded immediate agreement. Appalachia's water resources, fed by a steady and abundant annual rainfall, are one of the region's most precious assets. With sufficient control and management, this resource can provide the essential base for industrial, residential, commercial, and recreational development. Without adequate control, a combination of flooding, drought, and polluted water will further retard the Appalachian effort to achieve greater economic growth. The water resource survey authorized by section 206 will be conducted by the Army Engineers in cooperation with the Appalachian Regional Commission, and all appropriate Federal and State agencies. The procedures for comprehensive water resource planning as set forth in S. 3 are similar to the procedures used for comprehensive river basin studies throughout the country, including some that have been completed or are now underway in the Appalachian region. Such work has already been done or is in process in several Appalachian River basins, including the Delaware, upper Ohio, Susquehanna, and Potomac. The timely completion of studies now in progress and the initiation of studies in additional river basins will help insure the fullest use of the region's water resource potential. PHYSICAL RESOURCES Sections 203, 204, and 205 of this bill deal directly with the most prominent and valuable physical resources of Appalachia. As crucial as they are to economic development, better highways and controlled water cannot by themselves produce the desired results unless considerable attention is also devoted to improving these natural resources. LAND STABILIZATION Land improvement and erosion control are made possible by section 203 which attempts to correct the neglect and misuse of much of Appalachia's land. The hilly topography of the Appalachian region has long been a deterrent to the successful farming of vegetables or grains in any large quantity. The Appalachian terrain has also discouraged the mechanization on the region's farms that would be necessary for profitable farming operations. Over the years the steeply sloped Appalachian farms have remained largely unproductive and have undergone severe erosion which has only helped to clog the region's streams. The principal emphasis of this program is to prevent further erosion on as much land as possible out of a total of 8.6 million acres of land requiring erosion control. This can be done by establishing an adequate vegetative covering on some of the land or by turning it into pasture land capable of supporting economical livestock operations. Section 203 will provide to eligible farms, grants covering the cost of 80 percent of the improvement of up to 25 acres of land which either has no protective covering or which needs improvement in order to make it economically feasible for livestock production. This legislation authorizes $8.5 million for each of the fiscal years 1966 and 1967 for this program, to be administered by the Agricultural Stabilization and Conservation Service which already operates similar grant programs for conservation practices. The program of grants would be carried out through the State and county committees in a manner similar to the existing programs. Specifically, the funds would be used for land preparation, seed and seeding costs, fertilizer and lime costs, and in some cases brush removal, pond construction and fencing costs. This program at the same rate of investment could by 1971 improve 3.3 million acres. TIMBER Section 204 provides for the establishment of timber development organizations in Appalachia in order to improve the potentially valuable timber resources of the region. Appalachia hardwoods are famous throughout the Nation and comprise 80 percent of both forest area and timber volume in the region. Timber growth in Appalachia has fallen far short of its potential, and much of the growth that has taken place has been low in quality. Because over 70 percent of the region's total forest acreage is in small private stands, sound timber management practices have not been applied to substantial portions of Appalachian timberland. The primary responsibility for promoting the concept of timber improvement through timber development organizations will rest with the U.S. Forest Service, working with State foresters, although the implementation is designed to be carried out under private auspices. Briefly, a timber development organization will be the joining together in a nonprofit corporate or cooperative structure various sized tracts so as to establish a single management unit that will protect and restore the timberland to full productivity and guarantee a return to the landowner either in the future or on an annual or periodic basis. Through such cooperative efforts, landowners ideally will achieve maximum management and harvesting advantages. Timber development organizations should concentrate on providing technical assistance on the lands within the organization, such as the establishment of better tree cutting and timber practices. But in order to accomplish this goal, the timber development organization is permitted to seek the physical consolidation of landholdings important to the maximum management of the designated land. This may also include the purchase of tax-delinquent lands and property of nonresident owners wanting to dispose of their holdings. There is no intention, nor is there authority in the bill, for the acquisition of land under eminent domain. In the initial period, emphasis should be placed on demonstration timber development organizations and research assistance and on marketing assistance for research products. The timber development organization, like the individual landowner, will be eligible for technical and management assistance under existing programs operated by State foresters and State extension forestry units in cooperation with the U.S. Forest Service. However, it is anticipated that the major portion of assistance to a timber development organization for technical guidance, direct management and organization will come from private foresters. That is to say, the timber development organization once established, will hire the independent forester as a consultant, or on a part-time or full-time basis. It is intended that from the beginning, the Federal employee will have only a minimal role in the affairs of the timber development organization. The principal role of the Federal Government in establishment of timber development organizations will be in providing a loan (not a grant) for one-half the initial capital requirements of the organization. The Appalachian Regional Development Act will authorize $5 million for fiscal 1966 and fiscal 1967 for these loans, which will be administered by the Farmers Home Administration. However, it is intended that loans be granted by FHA only after plans have been submitted to the Appalachian Regional Commission showing a management and program outline for the proposed timber development organization which has been prepared by State and private foresters and individuals, as proposed to Federal personnel. It is further intended, as specifically stated in the bill, that no Federal funds, that is the FHA loan, shall be used to set up manufacturing for forest products. Federal funds can be used for construction of facilities necessary for improving the timber stand within the timber development organization, such as construction of access roads and installation of boundary markets. The remaining 50 percent capital requirement of the timber development organization would be achieved through donations, loans, purchases of stock or pledges of land by private sources or State or local governments. COAL LANDS Section 205 provides for several programs of restoration in the mining areas of Appalachia. Much of the Appalachian landscape has been damaged by the mining of coal. Both strip mining and deep mining operations have eroded the hillsides, polluted the streams, and threatened the well-being of thousands of people. Today, the mistakes of past coal mining practices serve as a major deterrent to industrial and recreational development Appalachia. While we would expect that the States will take steps to prevent future damage from mining activities, local and State governments have not had the necessary resources to repair the widespread damages caused by past coal mining. Strip mining in the region causes substantial erosion and stream pollution both locally and many miles downstream. Many Appalachian communities are constantly threatened by subsidence of lands into the coal mines that lie beneath. Unsealed underground mines have leaded enormous quantities of acid into Appalachian streams and rivers, creating serious water pollution problems. The reclamation of lands damaged by past mining operations is crucial to stimulating economic development in the region. Under this section, the Secretary of the Interior is authorized to repair damage caused by mine subsidence throughout Appalachia on a scope greater than provided under existing legislation. The existing mine fire control program has had its appropriations limitation increased and the Fish and Wildlife Service has been authorized additional funds to restore areas damaged by mining practices. The Federal contributions to all programs referred to in section 205 (a) are established at not to exceed 75 percent by this bill. Furthermore, these new appropriations will not be counted in any computation of apportionments to the States under the existing national programs. In order to insure that private landowners do not receive a windfall from strip mine reclamation, such projects will be carried out only on those lands to which the public has access or from which a public benefit will result. Because of complicated problems involving private versus public interests, benefits versus costs, etc., the Secretary of the Interior will undertake a strip mine study in full cooperation with appropriate Federal, State, and local departments and agencies and the Commission. The Secretary is to submit to the President, and the President to Congress, by July 1, 1967, detailed recommendations for a longrange comprehensive program for reclamation and rehabilitation of strip- and surface-mined areas in the United States and for the policies under which the program should be conducted. The study will consider the nature and extent of strip mining and its results; the effectiveness of State legislation; the public interest and public benefits resulting from reclamation activities; and the appropriate cost-sharing roles of Federal and State Governments and private interests and other relevant topics. Sections 202, 211, and 212 of this bill bear directly upon the human resource needs and community development requirements of the Appalachian region. There is a direct relationship between the services that a community can offer its residents and the likelihood of economic growth occurring in that community. The construction of health centers, vocational education schools, and sewage treatment facilities all influence a community's ability to hold and attract the industries and the jobs that make for economic stability and growth. HEALTH CENTERS Under section 202, the Federal Government is authorized to make contributions to the costs of constructing and operating multicounty regional health centers. The bill authorizes Federal grants in the first 2 years of a hospital's operation to cover costs in excess of those provided from patients and other revenue sources. Even communities which can raise their share of the construction costs under the Hill-Burton program have difficulties obtaining operating funds in their initial years of operation. Hospitals require working capital in the same manner that businesses do; initial funds must be on hand to provide for supplies and salaries. VOCATIONAL EDUCATION FACILITIES Federal investments in vocational education facilities provided by section 211 of the Appalachian Regional Development Act are necessary if the people of Appalachia are to participate in the national economic growth. The communities of Appalachia are now making a great effort to help themselves; the State governments of the region have made and are now making additional extensive investments in vocational training facilities. Even these efforts have been and will be inadequate to provide the facilities needed in face of present shortages. Constructive legislation passed by the 88th Congress, the Vocational Education Act of 1963, would provide some additional money to Appalachia. As much as $13.6 million may be available in the Appalachian portion of the 11 States comprising the region from that act. Five million of these dollars, however, will go to Pennsylvania, leaving an average of $800,000 for each of the remaining 10 States. These funds will have to be used for operations and teacher training as well as construction. Heavy costs are involved in providing vocational instruction. The cost of constructing and equipping the vocational schools can vary greatly depending on the mix of shop facilities included. The $16 million authorized by this bill to supplement the Vocational Education Act of 1963 could, when combined with State matching money, provide between 30 and 50 area vocational schools in Appalachia. These facilities will serve not only high school students but also adult trainees in manpower training and other vocational programs. The investment in vocational facilities should be repaid from the increased taxes that will be paid by the skilled persons who will graduate from these facilities. SEWAGE TREATMENT Inadequate waste treatment through the lack of sewage treatment facilities is a serious Appalachian problem which threatens the health of its people and thwarts economic development. In order to meet the sewage treatment need, section 212 of this bill authorizes $6 million for fiscal years 1966 and 1967 for construction of sewage treatment control facilities. This program is to be carried out under the terms of the Water Pollution Control Act, administered by the Department of Health, Education, and Welfare. The special Appalachian authorizations will not be affected by the authorization ceilings or allotments among the several States which are provided in the Water Pollution Control Act. SUPPLEMENTS TO GRANTS-IN-AID PROGRAMS The economic difficulties that beset large portions of Appalachia have prevented many of its communities from utilizing fully the wide variety of Federal grant-in-aid programs that are available to communities across the country. Consequently, these communities most in need of grant-in-aid funds have been unable to produce the matching funds required to take advantage of the Hill-Burton Act, the Department of Agriculture's small watershed conservation and develop |