(b) Administration. "Administration" when used without further designation means the Economic Development Administration.

(c) Secretary. "Secretary" when used without further designation means the Secretary of Commerce.

(d) Commission. “Commission” when used without further designation means the Appalachian Regional Commission.

(e) Assistant Secretary. "Assistant Secretary" when used without further designation means the Assistant Secretary of Commerce for Economic Development.

(Secs. 101, 201, 79 Stat. 6, 10, secs. 601, 701, 79 Stat. 569; 40 U.S.C. App. 101, 201, 42 U.S.C. 3201, 3211) [31 F.R. 11174, Aug. 24, 1966, as amended at 31 F.R. 16713, Dec. 30, 1966]

§ 803.4 Compliance with the Civil Rights Act of 1964.

No financial assistance shall be extended under this Act until assurances have been obtained from the recipients of the assistance that they will comply with Title VI of the Civil Rights Act of 1964 and the implementing Federal regulations.

§ 803.6 Applicable labor standards.

All laborers and mechanics employed by contractors or subcontractors on projects assisted under the Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the DavisBacon Act, as amended (40 U.S.C. 276a to 276a-5).

66-096 O-67-5

Section 214 of the Act authorizes the Secretary, pursuant to specific recommendations of the Commission approved by him and after consultation with appropriate Federal officials, to allocate funds to heads of departments, agencies, and instrumentalities of the Federal Government, administering grant-in-aid programs for the purpose of increasing the Federal contribution to projects under such grant-in-aid programs in the Appalachian region above the fixed maximum portion of the cost of such project otherwise authorized by the applicable law. The Secretary's functions under this section of the Act shall be performed by the Assistant Secretary for Economic Development.

[31 F.R. 11175, Aug. 24, 1966, as amended at 31 F.R. 16714, Dec. 30, 1966]

§ 804.2 Eligible applicants under section

214 of the Act.

Applications for assistance under this section shall only be made by a State, a political subdivision of a State or local development district as defined in the

Act.

(Sec. 303, 79 Stat. 20, 40 U.S.C. App. 303) § 804.4 Eligible grant-in-aid programs.

Grant-in-aid programs, eligible for allocation of supplemental funds under section 214, are those Federal grant-inaid programs authorized by the Act for the construction or equipment of facilities, and all other grant-in-aid programs authorized on or before March 9, 1965, for the acquisition of land and the construction or equipment of facilities.

§ 804.5 Ineligible programs.

The program for the construction of the development highway system, authorized by section 201 of the Act, or any other program relating to highway or road construction, or any other program for which loans or other Federal financial assistance is authorized by this or any other Act, except a grant-in-aid program, would not be eligible for assistance under this part.

§ 804.7 Limitation on the use of funds.

No financial assistance granted under section 214 of the Act shall be used as follows:

(a) In relocating any establishment or establishments from one area to another.

(b) To finance the cost of industrial plants, commercial facilities, machinery, working capital, or other industrial facilities or to enable plant subcontractors to undertake work theretofore performed in another area by other subcontractors or contractors.

(c) To finance the cost of facilities for the generation, transmission, or distribution of electric energy.

(d) To finance the cost of facilities for the production, transmission, or distribution of gas (natural, manufactured or mixed).

(Sec. 224, 79 Stat. 18; 40 U.S.C. App. 224)

(a) The maximum assistance which will be extended under section 214 shall be calculated by subtracting from 80 percent of the eligible project cost:

(1) The amount of all other Federal grant assistance available for such project cost, and

(2) The amount of loan assistance which may reasonably be expected to be financed from revenues produced by the facility after due allowance for operating expenses, amortization of the local share of project costs and depreciation reserves: Provided, however, That the application of this paragraph is not intended to reduce the maximum allowable total Federal grant assistance below 50 percent of the eligible project cost.

(b) The basic grant-in-aid assumed to be available for purposes of computing the maximum amount of a supplementary grant under section 214 of the