recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, and the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. "(b) The Administrator and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examinations to any books, documents, papers, and records of the recipients that are pertinent to the grants received under this Act. COMPREHENSIVE ECONOMIC COST STUDIES "SEC. 312. (a) In order to provide the basis for evaluating programs authorized by this Act and the development of new programs and to furnish the Congress with the information necessary for authorization of appropriations by fiscal years beginning after June 30, 1969, the Administrator, in cooperation with State, interstate, and local air pollution control agencies, shall make a detailed estimate of the cost of carrying out the provisions of this Act; a comprehensive study of the cost of program implementation by affected units of government; and a comprehensive study of the economic impact of air quality standards on the Nation's industries, communities, and other contributing sources of pollution, including an analysis of the national requirements for and the cost of controlling emissions to attain such standards of air quality as may be established pursuant to this Act or applicable State law. The Administrator shall submit such detailed estimate and the results of such comprehensive study of cost for the fiveyear period beginning July 1, 1969, and the results of such other studies, to the Congress not later than January 10, 1969, and shall submit a reevaluation of such estimate and studies annually thereafter. "(b) The Administrator shall also make a complete investigation and study to determine (1) the need for additional trained State and local personnel to carry out programs assisted pursuant to this Act and other programs for the same purpose as this Act; (2) means of using existing Federal training programs to train such personnel; and (3) the need for additional trained personnel to develop, operate and maintain those pollution control facilities designed and installed to implement air quality standards. He shall report the results of such investigation and study to the President and the Congress not later than July 1, 1969. ADDITIONAL REPORTS TO CONGRESS "SEC. 313. Not later than six months after the effective date of this section and not later than January 10 of each calendar year beginning after such date, the Administrator shall report to the Congress on measures taken toward implementing the purpose and intent of this Act including, but not limited to, (1) the progress and problems associated with control of automotive exhaust emissions and the research efforts related thereto; (2) the development of air quality criteria and recommended emission con trol requirements; (3) the status of enforcement actions taken pursuant to this Act; (4) the status of State ambient air standards setting, including such plans for implementation and enforcement as have been developed; (5) the extent of development and expansion of air pollution monitoring systems; (6) progress and problems related to development of new and improved control techniques; (7) the development of quantitative and qualitative. instrumentation to monitor emissions and air quality; (8) standards set or under consideration pursuant to title II of this Act; (9) the status of State, interstate, and local pollution control programs established pursuant to and assisted by this Act; and (10) the reports and recommendations made by the President's Air Quality Advisory Board. LABOR STANDARDS "SEC. 314. The Administrator shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors or subcontractors on projects assisted under this Act shall be paid wages at rates not less than those prevailing for the same type of work on similar construction in the locality as determined by the Secretary of Labor, in accordance with the Act of March 3, 1931, as amended, known as the Davis-Bacon Act (46 Stat. 1494; 40 U.S.C. 276a-276a-5). The Secretary of Labor shall have, with respect to the labor standards specified in this subsection, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 276c). SEPARABILITY "SEC. 315. If any provision of this Act, or the application of any provision of this Act to any person or circumstance, is held invalid, 'the application of such provision to other persons or circumstances, and the remainder of this Act, shall not be affected thereby. APPROPRIATIONS "SEC. 316. There are authorized to be appropriated to carry out this Act, other than sections 103 (f) (3) and (d), 104, 212, and 403, $125,000,000 for the fiscal year ending June 30, 1971, $225,000,000 for the fiscal year ending June 30, 1972, $300,000,000 for the fiscal year ending June 30, 1973, $300,000,000 for the fiscal year ending June 30, 1974, and $300,000,000 for the fiscal year ending June 30, 1975. SAVINGS PROVISIONS! "SEC. 16. (a) (1) Any implementation plan adopted by any State and submitted to the Secretary of Health, Education, and Welfare, or to the Administrator pursuant to the Clean Air Act prior to enactment of this Act may be approved under section 110 of the 1 Provisions included in Clean Air Act Amendments of 1970. In these provisions, the phrases "prior to enactment of this Act" and "as amended by this Act" refer to enactment of the Clean Air Act Amendments of 1970. Clean Air Act (as amended by this Act) and shall remain in effect, unless the Administrator determines that such implementation plan, or any portion thereof, is not consistent with the applicable requirements of the Clean Air Act (as amended by this Act) and will not provide for the attainment of national primary ambient air quality standards in the time required by such Act. If the Administrator so determines, he shall, within ninety days after promulgation of any national ambient air quality standards pursuant to section 109 (a) of the Clean Air Act, notify the State and specify in what respects changes are needed to meet the additional requirements of such Act, including requirements to implement national secondary ambient air quality standards. If such changes are not adopted by the State after public hearings and within six months after such notification, the Administrator shall promulgate such changes pursuant to section 110 (c) of such Act. "(2) The amendments made by section 4(b) shall not be construed as repealing or modifying the powers of the Administrator with respect to any conference convened under section 108 (d) of the Clean Air Act before the date of enactment of this Act.2 "(b) Regulations or standards issued under title II of the Clean Air Act prior to the enactment of this Act shall continue in effect until revised by the Administrator consistent with the purposes of such Act. * Mr. SMITH. Our next witness will be Mr. Robert S. Powell, Jr., Executive Director of the Economic Development Authority for the State of New Jersey. He is appearing for EDA and also for Mr. David J. Bardin, Commissioner of Environmental Protection. TESTIMONY OF ROBERT S. POWELL, JR., EXECUTIVE DIRECTOR, ECONOMIC DEVELOPMENT AUTHORITY, STATE OF NEW JERSEY Mr. POWELL. Mr. Chairman, I am Robert Powell. Commissioner Bardin was planning to attend until last evening, when the Governor asked him to remain for some problems that we are having in New Jersey, and he expressed his regrets at not being able to come. I have brought with me a copy of the Commissioner's statement, which he asked me to file with your subcommittee. Mr. SMITH. Fine. [The prepared statement of Mr. Bardin follows:] PREPARED STATEMENT OF COMMISSIONER DAVID J. BARDIN, NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION Mr. Chairman, members of the subcommittee, my name is David J. Bardin, and I am the Commissioner of the Department of Environmental Protection of New Jersey, P.O. Box 1390, Trenton, New Jersey, 08625. I am also a statutory member of the Economic Development Authority, of which Robert S. Powell, Jr. is the Executive Director. I urge early enactment of H.R. 78. This legislation is needed to assist small business to acquire pollution control devices on the same terms as those now available, in a practical matter, only to large business. The large industries have had the benefits of utilizing low cost financing under the terms of the State's Industrial Pollution Control Financing Act. Under the terms of this legislation, the Department of Environmental Protection must certify that the project proposed by the applicant is a proper method of solving the problem. Under this program, the New Jersey Department of Environmental Protection must review all of the proposed projects. The attached Table I indicates the 14 projects involving $153 million of facilities which the Department has certified under the 9-month old program. You will note from the list that most of the projects were of significant size and were quite supportive of the larger industries in the state. Smaller industries are at a disadvantage in obtaining favorable financing, as N.J. Economic Authority Executive Director, Robert S. Powell, Jr. has testified. The projects on this list range from a high of $40 million dollars for Chevron Oil Company down to a $500,000 project of Charms, Inc. The ability of Charms to obtain this type of financing was somewhat unique. The waste treatment facility of Charms was part of an entire new plant construction for which Charms had already received long-term credit commitments. By taking the waste treatment portion of the project and handling it via industrial pollution control financing bonding they were able to get a better interest rate on this portion of the facility. The bank which held the mortgage on the entire facility purchased the entire underwriting and therefore Charms was able to save the costs involved in the sale of a bond. Small businesses contribute to the pollution problem and cannot be dismissed as a negligible or an inconsequential portion of our overall program for environmental improvement and maintenance. The Bureau of Air Pollution Control (New Jersey Department of Environmental Protection) issues approximately 300 enforcement orders per year that call for the installation of control devices to remove undesirable air emissions. Our records indicate that approximately one half of these are issued to small businesses. Table 2 indicates the total number of permits issued by the Bureau of Air Pollution Control which provide for the installation of control apparatus. The table indicates the costs reported by industry for these unit installations. These costs average $13,000 per installation. It is not feasible for smaller businesses to undertake an underwriting. The cost of issuance of a bond is 20 to 30 thousand dollars minimum. Another problem that small companies have is their credit rating which makes it difficult in many cases to obtain financing. Examples of some of the smaller businesses involved and the cost of equipment are as follows: Doug's Auto Body, $1,500 for a filter for a paint spray booth. People's Italian Bakery, $6,900 for an afterburner to an incinerator. It should be recognized that federal legislation (P. L. 92-500) provides for pretreatment of industrial wastes when necessary prior to discharge into municipal sewage systems. At the present time, the Department of Environmental Protection of New Jersey estimates the existence of approximately 3,500 industrial dischargers into municipal sewage facilities. It is anticipated that approximately 500 of these would be requiring the installation of pretreatment equipment. The majority of these would be smaller companies which are located in the urban areas and the suburban industrial parks. At the present time, any small or large business must submit to us an application for a permit for installation of a pollution control device. The Department reviews the information in this application before issuing such a permit. The same information is reviewed when certifying the project under the State's Industrial Pollution Control Financing Act. This information would be adequate for any certification under an S.B.A. program. The initiation of such a program would not require any additional effort on industry's part nor revisions of our current procedures to carry on this program. Therefore, I urge speedy action on this proposed legislation. TABLE 1. PROJECTS CERTIFIED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION FOR BONDING 1 Exxon Corp. atypical and omitted from average data; $22,000,000 total amount reported on permit application. Mr. POWELL. And I will answer any questions that I might be able to about it. |