(8) maintain a temporary office in the District of Columbia and establish a permanent office at such a central and appropriate location as it may select and field offices at such other places as it may deem appropriate.

(9) take such other actions and incur such other expenses as may be necessary or appropriate. (As amended Pub. L. 90-103, title I, § 104, Oct. 11, 1967, 81 Stat. 257.)

AMENDMENTS

1967-Clause (7). Pub. L. 90-103 inserted the parenthetical provisions "(including, notwithstanding any other provision of law, the lease of office space for any term expiring no later than June 30, 1971)" and "(which is hereby so authorized to the extent not otherwise prohibited by law)".

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 108 of this Appendix and in title 5 section 5334.

§ 107. Information.

In order to obtain information needed to carry out its duties, the Commission shall

(1) hold such hearings, sit and act at such times and places, take such testimony, receive such evidence, and print or otherwise reproduce and distribute so much of its proceedings and reports thereon as it may deem abvisable, a Cochairman of the Commission, or any member of the Commission designated by the Commission for the purpose, being hereby authorized to administer oaths when it is determined by the Commission that testimony shall be taken or evidence received under oath;

(2) arrange for the head of any Federal, State, or local department or agency (who is hereby so authorized to the extent not otherwise prohibited by law) to furnish to the Commission such information as may be available to or procurable by such department or agency; and

(3) keep accurate and complete records of its doings and transactions which shall be made available for public inspection, and for the purpose of audit and examination by the Comptroller General or his duly authorized representatives.

§ 108. Personal financial interests.

(a) Except as permitted by subsection (b) hereof, no State member or alternate and no officer or employee of the Commission shall participate personally and substantially as member, alternate, officer, or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization (other than a State or political subdivision thereof) in which he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is neotiating or has any arrangement concerning propective employment, has a financial interest. Any Derson who shall violate the provisions of this sub

section shall be fined not more than $10,000, or imprisoned not more than two years, or both.

(b) Subsection (a) hereof shall not apply if the State member, alternate, officer, or employee first advises the Commission of the nature and circumstances of the proceeding, application, request for a ruling or other determination, contract, claim, controversy, or other particular matter and makes full disclosure of the financial interest and receives in advance a written determination made by the Commission that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Commission may expect from such State member, alternate, officer, or employee.

(c) No State member or alternate shall receive any salary, or any contribution to or supplementation of salary for his services on the Commission from any source other than his State. No person detailed to serve the Commission under authority of paragraph (4) of section 106 shall receive any salary or any contribution to or supplementation of salary for his services on the Commission from any source other than the State, local, or intergovernmental department or agency from which he was detailed or from the Commission. Any person who shall violate the provisions of this subsection shall be fined not more than $5,000, or imprisoned not more than one year, or both.

(d) Notwithstanding any other subsection of this section, the Federal Cochairman and his alternate on the Commission and any Federal officers or employees detailed to duty with it pursuant to paragraph (3) of section 106 shall not be subject to any such subsection but shall remain subject to sections 202 through 209 of Title 18.

(e) The Commission may, in its discretion, declare void and rescind any contract, loan, or grant of or by the Commission in relation to which it finds that there has been a violation of subsection (a) or (c) of this section, or any of the provisions of sections 202 through 209 of Title 18.

§ 109. Amendment of section 5334(a) of Title 5.

Section 5334(a) of title 5 is amended by adding at the end thereof the following new sentence: "For the purpose of this subsection, an individual employed by the Appalachian Regional Commission under section 106(a) of the Appalachian Regional Development Act of 1965, or by a regional commission established pursuant to section 502 of the Public Works and Economic Development Act of 1965, under section 506(2) of such Act, who was a Federal employee immediately prior to such employment by a commission and within six months after separation from such employment is employed in a position to which this subchapter applies, shall be treated as if transferred from a position in the executive branch to which this subchapter does not apply." (Added Pub. L. 90-103, title I, § 105, Oct. 11, 1967, 81 Stat. 257.)

REFERENCES IN TEXT

Section 502 of the Public Works and Economic Development Act of 1965 and section 506(2) of such Act, referred to in the text, are classified to section 3182 and section 3186(2), respectively, of Title 42, The Public Health and Welfare.

TITLE II. SPECIAL APPALACHIAN PROGRAMS PART A.- NEW PROGRAMS

§ 201. Appalachian development highway system.

(a) In order to provide a highway system which, in conjunction with the Interstate System and other Federal-aid highways in the Appalachian region. will open up an area or areas with a developmental potential where commerce and communication have been inhibited by lack of adequate access, the Secretary of Transportation (hereafter in this section referred to as the "Secretary") is authorized to assist in the construction of an Appalachian development highway system and local access roads serving the Appalachian region. The provisions of sections 106(a) and 118 of title 23, United States Code, relating to the obligation, period of availability, and expenditure of Federal-aid highway funds, shall apply to the development highway system and the local access roads, and all other provisions of such title 23 that are applicable to the construction and maintenance of Federal-aid primary and secondary highways and which the Secretary determines are not inconsistent with this Act shall apply, respectively, to such system and roads. Construction on the development highway system shall not exceed two thousand seven hundred miles. Construction of local access roads shall not exceed one thousand six hundred miles that will serve specific recreational, residential, educational, commercial, industrial, or other like facilities or will facilitate a school consolidation program.

(b) The Commission shall transmit to the Secretary its designations of (1) the general corridor location and termini of the development highways, (2) local access roads to be constructed, (3) priorities for the construction of segments of the development highways, and (4) other criteria for the program authorized by this section. Before any State member participates in or votes on such designations, he shall have obtained the recommendations of the State highway department of the State which he represents.

(c) In no event shall the Secretary assist in any construction (including right-of-way acquisition) which would require for its completion the expenditure of Federal funds (other than funds available under title 23 in excess of the appropriations authorization in subsection (g). On its completion each development highway not already on the Federal-aid primary system shall be added to such system and each development highway and local access road shall be required to be maintained by the State as provided for Federal-aid highways in title 23.

(d) In the construction of highways and roads authorized under this section, the States may give special preference to the use of materials and products indigenous to the Appalachian region.

(e) For the purposes of research and development in the use of coal and coal products in highway construction and maintenance, the Secretary is authorized to require each participating State, to the maximum extent possible, to use coal derivatives in the construction of not to exceed 10 per centum of the roads authorized under this Act.

(f) Federal assistance to any construction project under this section shall not exceed 50 per centum of the costs of such project, unless the Commission determines that assistance in excess of such percentage is required in furtherance of the purposes of this Act, but in no event shall such Federal assistance exceed 70 per centum of such costs.

(g) To carry out this section there is hereby authorized to be appropriated to the President, to be available until expended, $175,000,000 for the fiscal year ending June 30, 1970; $175,000,000 for the fiscal year ending June 30, 1971; $175,000,000 for the fiscal year ending June 30, 1972; and $170,000,000 for the fiscal year ending June 30, 1973.

(h) (1) When a participating State proceeds to construct a segment of a development highway without the aid of Federal funds, in accordance with all procedures and requirements applicable to the construction of segments of Appalachian development highways with such funds, except insofar as such procedures and requirements limit a State to the construction of projects for which Federal funds have previously been appropriated, the Secretary, upon application by the State and with the approval of the Commission, is authorized to pay to the State the Federal share not to exceed 70 per centum of the costs of the construction of such segment, from any sums appropriated and allocated to such State to carry out this section.

(2) This subsection shall not be construed as a commitment or obligation on the part of the United States to provide funds for segments of development highways constructed under this subsection, and shall not increase the limitation on construction in subsection (c). (As amended Pub. L. 89-670, § 8(b), Oct. 15, 1966, 80 Stat. 942; Pub. L. 90-103, title I, § 106, Oct. 11, 1967, 81 Stat. 258; Pub. L. 91-123, title I, § 103, Nov. 25, 1969, 83 Stat. 214.)

AMENDMENTS

1969-Subsec. (a). Pub. L. 91-123, § 103(a), inserted references to sections 106(a) and 118 of title 23 relating to the obligation, period of availability, and expenditures of Federal-aid highway funds as applicable to the development highway system and local access roads.

Subsec. (g). Pub. L. 91-123, § 103 (b), substituted provisions authorizing to be appropriated $175,000,000 for the fiscal years ending June 30, 1970, June 30, 1971, and June 30, 1972, and $170,000,000 for the fiscal year ending June 30, 1973, for provisions authorizing to appropriated $715,000,000 for the four-fiscal year period ending June 30, 1971.

1967-Subsec. (a). Pub. L. 90-103 rearranged text sequence, defined "Secretary" for this section as the Secretary of Transportation, increased development highway system and local access roads mileage from 2,350 to 2,700 and from 1,000 to 1,600 miles, respectively, made title 23 provisions relating to construction and maintenance of Federal-aid primary highways applicable only to the development highway system, made such title 23 provisions as relate to Federal-aid secondary highways applicable to local access roads, and provided that such local access roads serve also educational facilities.

Subsec. (b). Pub. L. 90-103 substituted introductory provision respecting transmission of designations for submission of recommendations and in last sentence "designations" for "recommendations" and deleted initial phrase "As soon as feasible", "the designation of" preceding "local access roads" from cl. 2), and "of the local access roads and of the major" preceding "segments" from cl. (3).

Subsec. (c). Pub. L. 90-103 included right-of-way acquisition, required State maintenance of local access roads and that State maintenance be as provided for Federalaid highways in Title 23, and deleted initial provision authorizing the Secretary to approve in whole or in part the recommendations or to require modifications or revisions thereof.

Subsec. (d). Pub. L. 90-103 substituted "materials and products" for "mineral resource materials".

Subsec. (e). Pub. L. 90-103 eliminated "of Transportation following "Secretary" in view of definition in subsec. (a) of this section.

Subsec. (f). Pub. L 90-103 substituted "the Commission determines" for "the Secretary of Commerce and the Secretary of Transportation determine, pursuant to the recommendation of the Commission".

Subsec. (g). Pub. L. 90-103 substituted appropriation authorization of $715,000,000 to the President for fourfiscal-year period ending June 30, 1971, to be available until expended, for appropriation authorization of $840,000,000 to the Secretary of Commerce, who shall tranfer funds to the Secretary of Transportation for administration of projects approved by both Secretaries.

Subsec. (h). Pub. L. 90–103 added subsec. (h).

1966 Subsec. (a). Pub. L. 89-670, §§ 8(b)(1), (2), substituted "Transportation" for "Commerce (hereafter in this section referred to as the 'Secretary')", and "Secretary of Transportation" for "Secretary".

Subsec. (b). Pub. L. 89-670, § 8(b)(3), inserted "of Commerce" after "Secretary".

Subsec. (c). Pub. L. 89-670, §§ 8(b)(4), (5), inserted provision for the approval of recommendations by the Secretary of Commerce prior to transmittal to the Secretary of Transportation for his approval and inserted "of Transportation" following "Secretary" in existing pro

visions.

Subsec. (e). Pub. L. 89-670, § 8(b)(6), inserted "of Transportation" after "Secretary".

Subsec. (f). Pub. L. 89-670, § 8(b) (7), inserted provisions requiring the approval of both the Secretary of Commerce and the Secretary of Transportation to allow Federal assistance in excess of 50 per centum of the cost of a project.

Subsec. (g). Pub. L. 89-670, § 8(b) (8), called for appropriation of the authorized funds to the Secretary of Commerce for transfer to the Secretary of Transportation for the administration of projects approved by both Secretaries.

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment of section by Pub. L. 89-670 effective 90 days after the Secretary of Transportation first takes office, or on any earlier date after Oct. 15, 1966, as the President prescribes and publishes in the Federal Register, see section 15(a) of Pub. L. 89-670, set out in the note under section 1651 of Title 49, Transportation.

AVAILABILITY OF FUNDS TO FEDERAL COCHAIRMAN Funds appropriated pursuant to this section available to Federal Cochairman of Appalachian Regional Commission, see section 6(a) of Ex. Ord. No. 11386, Dec. 28, 1967, 33 F.R. 5, set out as a note under section 3183 of Title 42, The Public Health and Welfare.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 214, 401, 405 of this Appendix.

§ 202. Demonstration health projects.

(a) In order to demonstrate the value of adequate health facilities and services to the economic development of the region, the Secretary of Health, Education, and Welfare is authorized to make grants for the planning, construction, equipment, and operation of multi-county demonstration health, nutrition, and child care projects, including hospitals, regional health diagnostic and treatment centers and other facilities and services necessary for the purposes of this section. Grants for such construction (including the acquisition of privately owned 47-500 0-71-vol. 8- 63

facilities not operated for profit and initial equipment) shall be made in accordance with the applicable provisions of title VI of the Public Health Service Act, the Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963 (77 Stat. 282), and other laws authorizing grants for the construction of health-related facilities, without regard to any provisions therein relating to appropriation authorization ceilings or to allotments among the States. Grants under this section shall be made solely out of funds specifically appropriated for the purpose of carrying out this Act and shall not be taken into account in the computation of the allotments among the States made pursuant to any other provisions of law.

(b) No grant for the construction or equipment of any component of a demonstration health project shall exceed 80 per centum of such costs. The Federal contribution may be provided entirely from funds authorized under this section or in combination with funds provided under other Federal grant-in-aid programs for the construction or equipment of health-related facilities. Notwithstanding any provision of law limiting the Federal share in such other programs, funds authorized under this section may be used to increase Federal grants for component facilities of a demonstration health project to a maximum of 80 per centum of the cost of such facilities.

(c) Grants under this section for operation (including initial operating funds and operating deficits comprising among other items the costs of attracting, training, and retaining qualified personnel) of a demonstration health project, whether or not constructed with funds authorized by this section, may be made for up to 100 per centum of the costs thereof for the two-year period beginning, for each component facility or service assisted under any such operating grant, on the first day that such facility or service is in operation as a part of the project. For the next three years of operations such grants shall not exceed 75 per centum of such costs. The Federal contribution may be provided entirely from funds appropriated to carry out this section or in combination with funds provided under other Federal grant-in-aid programs for the operation of health related facilities and the provision of health services. Notwithstanding any provision of law limiting the Federal share in such other programs, funds appropriated to carry out this section may be used to increase Federal grants for operating components of a demonstration health project to the maximum percentage cost thereof authorized by this subsection. No grant for operation of a demonstration health project shall be made unless the facility is publicly owned, or owned by a public or private nonprofit organization, and is not operated for profit. No grants for operation of a demonstration health project shall be made after five years following the commencement of the initial grant for operation of the project. No such grants shall be made unless the Secretary of Health, Education, and Welfare is satisfied that the operation of the project will be conducted under efficient management practices designed to obviate operating deficits. Notwithstanding

section 104 of the Public Works and Economic Development Act of 1965 (79 Stat. 554), a healthrelated facility constructed under title I of that Act may be a component of a demonstration health project eligible for operating grant assistance under this section.

(d) The Secretary of Health, Education, and Welfare is authorized to provide funds to the Commission for the support of its Health Advisory Committee and to make grants for expenses of planning necessary for the development and operation of demonstration health projects for the region. The amount of any such grant shall not exceed 75 per centum of such expenses.

(e) In order to provide for the further development of the Appalachian region's human resources, grants under this section shall give special emphasis to programs and research for the early detection, diagnosis, and treatment of occupational diseases arising from coal mining, such as black lung. (As amended Pub. L. 90-103, title I, § 107, Oct. 11, 1967, 81 Stat. 259; Pub. L. 91-123, title I, § 104, Nov. 25, 1969, 83 Stat. 214.)

REFERENCES IN TEXT

Title VI of the Public Health Service Act, referred to in subsec. (a), is classified to section 291 et seq. of Title 42, The Public Health and Welfare.

Mental Retardation Facilities and Community Mental Health Centers Construction Act of 1963 (77 Stat. 282), referred to in subsec. (a), is classified to sections 611, 612, 613, 617, 618, and former section 676 of Title 20, Education, and sections 291k, 295-295e, and 2661 et seq. of Title 42.

Section 104 of the Public Works and Economic Development Act of 1965 and title I of that Act, referred to in subsec. (c), are classified to section 3134 and section 3131 et seq., respectively, of Title 42, The Public Health and Welfare.

AMENDMENTS

1969 Subsec. (a). Pub. L. 91-123, § 104 (a), authorized the Secretary to make grants for planning, construction, equipment, and operation of multi-county nutrition and child care projects.

Subsec. (c). Pub. L. 91-123, § 104(b), increased from 50 to 75 per centum of the costs for health projects the maximum amounts allowed for grants for the third, fourth, and fifth years of operations of such health projects.

Pub. L. 91-123, § 104 (c), added provisions authorizing operating expenses for demonstration projects to be wholly funded by appropriations for this section, or in combination with funds provided to carry out other Federal grant-in-aid programs for the operation of health related facilities, and authorizing funds appropriated for this section to be used to increase Federal grants for operating components of demonstration health projects to the maximum per centum authorized by this subsection.

Subsec. (e). Pub. L. 91-123, § 104 (d), substituted provisions that grants under this section give special emphasis to research for the early detection, and treatment of occupational diseases arising from coal mining, for provisions that authorized to be appropriated an amount not to exceed $50,000,000 of the funds authorized in section 401 of this Act for the two-fiscal year period ending June 30, 1969 to carry out the purposes of this section. 1967-Subsec. (a). Pub. L. 90-103 substituted "health facilities and services" for "health and medical facilities" and "health projects" for "health facilities", authorized planning grants, other services necessary to health, and grants for acquisition of privately owned facilities not operated for profit, and provided that construction grants be also made in accordance with other laws authorizing grants for construction of health-related facilities.

Subsec. (b). Pub. L. 90-103 designated sources of funds for the Federal contribution and authorized use of the

funds to increase Federal grants for facilities of a demonstration health project to a maximum of 80 per centum of the costs of such facilities, and eliminated provisions for availability of $41,000,000 for construction grants for period ending June 30, 1967, as provided in former provisions of section 401 of the Act, now incorporated in subsec. (e) of this section.

Subsec. (c). Pub. L. 90-103 provided for operating funds and operating deficits comprising among other items the costs of attracting, training, and retaining qualified personnel, for projects whether or not constructed with funds authorized by this section, for component facility or service assisted under any operating grant, prohibited grants for operation of a project unless the facility is publicly owned, or owned by a public or private nonprofit organization, and is not operated for profit and unless the Secretary of Health, Education, and Welfare is satisfied that the operation of the project will be conducted under efficient management practices designed to deprive obviate operating deficits, and permitted a healthrelated facility constructed under title I of the Public Works and Economic Development Act of 1965 to be a component of a health project eligible for operating grant assistance under this section, and eliminated provisions for availability of $28,000,000 for operating grants for period ending June 30, 1967, as provided in former provisions of section 401 of the Act, now incorporated in subsec. (e) of this section.

Subsec. (d). Pub. L. 90–103 added subsec. (d).

Subsec. (e). Pub. L. 90-103 incorporated former second sentence of subsec. (b) and last sentence of subsec. (c) in provisions designated as subsec. (e), substituting provisions for availability of $50,000,000 for two-fiscal-year period ending June 30, 1969, to carry out this section for former provisions of subsec. (b) for availability of $41,000,000 for construction grants and former provisions of subsec. (c) for availability of $28,000,000 for operating grants for period ending June 30, 1967, as provided in former provisions of section 401 of the Act.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 401 of this Appendix.

§ 203. Land stabilization, conservation, and erosion control.

(a) In order to provide for the control and prevention of erosion and sediment damages in the Appalachian region and to promote the conservation and development of the soil and water resources of the region, the Secretary of Agriculture is authorized to enter into agreements of not more than ten years with landowners, operators, and occupiers, individually or collectively, in the Appalachian region determined by him to have control for the period of the agreement of the lands described therein, providing for land stabilization, erosion and sediment control, and reclamation through changes in land use, and conservation treatment including the establishment of practices and measures for the conservation and development of soil, water, woodland, wildlife, and recreation resources.

(b) The landowner, operator, or occupier shall furnish to the Secretary of Agriculture a conservation and development plan setting forth the appropriate and safe land uses and conservation treatment mutually agreed by the Secretary and the landowner operator, or occupier to be needed on the lands for which the plan was prepared.

(c) Such plan shall be incorporated in an agreement under which the landowner, operator, or occupier shall agree with the Secretary of Agriculture to carry out the land uses and conservation treatment provided for in such plan on the lands described in the agreement in accordance with the terms and conditions thereof.

(d) In return for such agreement by the landowner, operator, or occupier the Secretary of Agriculture shall be authorized to furnish financial and other assistance to such landowner, operator, or occupier in such amounts and subject to such conditions as the Secretary determines are appropriate and in the public interest for the carrying out of the land uses and conservation treatment set forth in the agreement: Provided, That grants hereunder shall not exceed 80 per centum of the cost of carrying out such land uses and conservation treatment on fifty acres of land occupied by such owner, operator, or occupier.

(e) The Secretary of Agriculture may terminate any agreement with a landowner, operator or occupier by mutual agreement if the Secretary determines that such termination would be in the public interest, and may agree to such modification of agreements previously entered into hereunder as he deems desirable to carry out the purposes of this section or to facilitate the practical administration of the program authorized herein.

(f) Notwithstanding any other provision of law, the Secretary of Agriculture, to the extent he deems it desirable to carry out the purposes of this section, may provide in any agreement hereunder for (1) preservation for a period not to exceed the period covered by the agreement and an equal period thereafter of the cropland, crop acreage, and allotment history applicable to land covered by the agreement for the purpose of any Federal program under which such history is used as a basis for an allotment or other limitation on the production of such crop; or (2) surrender of any such history and allotments.

(g) The Secretary of Agriculture shall be authorized to issue such rules and regulations as he determines are necessary to carry out the provisions of this section.

(h) In carrying out the provisions of this section, the Secretary of Agriculture shall utilize the services of the Soil Conservation Service, and the State and local committees provided for in section 8(b) of the Soil Conservation and Domestic Allotment Act, and is authorized to utilize the facilities, services, and authorities of the Commodity Credit Corporation. The Corporation shall not make any expenditures to carry out the provisions of this subsection unless funds specifically appropriated for such purpose have been transferred to it.

(i) Not to exceed $19,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to carry out this section (As amended Pub. L. 90-103, title I, § 108, Oct. 11, 1967, 81 Stat. 260.)

REFERENCES IN TEXT

Section 8(b) of the Soil Conservation and Domestic Allotment Act, referred to in subsec. (h), is classified to ection 590h (b) of Title 16, Conservation.

AMENDMENTS

1967 Subsec. (1), Pub. L. 90-103 substituted provions for availability of $19,000,000 for two-fiscal-year eriod ending June 30, 1969, for former provisions for vailability of $17,000,000 for period ending June 30, 1967, provided in former provisions of section 401 of the Act. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 401 of this ppendix.

§ 204. Timber development organizations.

(a) In order that the region shall more fully benefit from the timber stands that are one of its prime assets, the Secretary of Agriculture is authorized to

(1) provide technical assistance in the organization and operation, under State law, of private timber development organizations having as their objective the carrying out of timber development programs to improve timber productivity and quality, and increase returns to landowners through establishment of private nonprofit corporations, which on a self-supporting basis may provide (A) continuity of management, good cutting practices, and marketing services, (B) physical consolidation of small holdings or administrative consolidation for efficient management under long-term agreement, (C) management of forest lands, donated to the timber development organizations for demonstrating good forest management, on a profitable and taxpaying basis, and (D) establishment of a permanent fund for perpetuation of the work of the corporations to be composed of donations, real or personal, for educational purposes.

(2) provide not more than one-half of the initial capital requirements of such timber development organizations through loans under the applicable provisions of the Consolidated Farmers Home Administration Act of 1961. Such loans shall not be used for the construction or acquisition of facilities for manufacturing, processing, or marketing forest products, or for physical consolidation of small timber holdings authorized by (1) (B) above except for the establishment of demonstration units.

(b) The Secretary of Agriculture is authorized to provide technical assistance, make grants, enter into contracts, or otherwise provide funds, first to colleges, universities and other institutions of higher education (with priority to land grant schools), and thereafter to forest products research institutions in the region and other appropriate public and private organizations, which schools, institutions, and organizations have the demonstrated capability to perform such research, for Appalachian hardwood products research, including investigations, studies, and demonstrations, which will further the purposes of this Act. Funds shall be provided only for programs and projects which will contribute significantly to the development of (1) Appalachian hardwood technology, (2) new or improved uses of Appalachian hardwood resources, (3) new or improved processes or methods for producing hardwood products, or (4) new or improved markets for such products. Funds under this section shall be provided solely out of sums specifically appropriated for the purpose of carrying out this Act, and shall not be taken into account in the allocation or distribution of funds pursuant to any other provision of law.

(c) Not to exceed $2,000,000 of the funds authorized in section 401 of this Act for the two-fiscal-year period ending June 30, 1969, shall be available to