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B-194634 1 (1979-05-16)

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                          THE  COMPTROLLER GENERAL
DECISION                  OF   THE   UNITED STATES
                          \A/ASHINGTON,  D. C. 20548


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B-194634
                        DA   :-Ma  6, 1979

OF:  Federal Assistance for Areas Impacted by
     Increased Coal or Uranium Production.


Under section 601(a) of the Powerplant and
Industrial Fuel Use Act of 1978, a State
Governor may designate an impacted area
based on his finding that employment in
coal or uranium production activities
increased for the most recent calendar year
by 8 percent or more from the immediately
preceding year.  Both the plain meaning of
the statute and its legislative history support
the view that the most recent calendar year
is determined with respect to the time of the
Governor's finding, and not, with respect to U
any calendar year since 1975, of 8 percent
increased employment. Final regulations of
the Farmers Home  Administratin for the Energy
Impacte  Ar,_ Development Assistance Program
should include an amended definition of base
year consistent with this decision.


     The Acting General Counsel of the Department of Agriculture had
requested our interpretation of a portion of section 601 of the Powerplant
and Industrial Fuel Use Act of 1978, Pub. L. No. 95-620, approved
Nov. 9, 1978, 92 Stat. 3289, which established Federal assistance for areas
impacted by coal or uranium production.

     Although there is a second criterion, for purposes of this decision,
eligibility for this assistance depends on a determination by the Governor
for an area in the State that employment in coal or uranium production
activities has increased by 8 percent or more in a base period - defined
in the statute as the most recent calendar year over the immediately
preceding year.

     Section 601(a) states in pertinent part:

        (a) DESIGNATION  OF IMPACTED   AREAS.  --
     (1) In accordance with such criteria and guidelines
     as the Secretary of Agriculture shall, by rule,


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