GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION PROJECTS.

SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION PROJECTS. (a) Availability of Amounts.—Section 302(a) of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended— (1) by striking “The President” and inserting “The Commission”; and (2) in paragraphs (1), (2), and (3), by striking “to the Commission” each place it appears. (b) Cost Sharing.—Section 302(a) of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended— (1) in paragraph (1)— (A) in subparagraph (A), by striking “75 per centum” and inserting “50 percent”; and (B) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively; (2) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; (3) by striking “(a) The” and inserting the following: “(a) Authorization To Make Grants.— “(1) In general.—The”; (4) by adjusting the margins of subparagraphs (A), (B), and (C) (as redesignated by paragraph (2)) to reflect the amendment made by paragraph (3); and (5) by adding at the end the following:112 STAT. 3625 “(2) Cost sharing after September 30, 1998.— “(A) In general.—Except as provided in subparagraph (B), after September 30, 1998, not more than 50 percent (or 80 percent in the case of a project to be carried out in a county for which a distressed county designation is in effect under section 226) of the costs of any activity eligible for financial assistance under this section may be provided from funds appropriated to carry out this Act. “(B) Discretionary grants.— “(i) In general.— Discretionary grants made by the Commission to implement significant regional initiatives, to take advantage of special development opportunities, or to respond to emergency economic distress in the region may be made without regard to the percentage limitations specified in subparagraph (A). “(ii) Limitation on aggregate amount.— For each fiscal year, the aggregate amount of discretionary grants referred to in clause (i) shall not exceed 10 percent of the amounts appropriated under section 401 for the fiscal year.”. (c) Conforming and Technical Amendments.— (1) Section 302 of the Appalachian Regional Development Act of 1965 (40 U.S.C. App.) is amended— (A) in subsection (b)— (i) in paragraph (2), by striking “Federal Energy Administration, the Energy Research and Development Administration” and inserting “Secretary of Energy”; and (ii) by striking paragraphs (3) and (4); and (B) by striking subsections (d) and (e). (2) Section 210(a) of title 35, United States Code, is amended— (A) by striking paragraph (11); and (B) by redesignating paragraphs (12) through (22) as paragraphs (11) through (21), respectively.