The University Library THE PENNSYLVANIA STATE UNIVERSITY STATE COLLEGE, PENNSYLVANIA CONFERENCE OF STATE PLANNING AND DEVELOPMENT OFFICERS WITH FEDERAL OFFICIALS U. S. DEPARTMENT OF COMMERCE OFFICE OF AREA DEVELOPMENT U. S. DEPARTMENT OF COMMERCE Sinclair Weeks, Secretary Frederick H. Mueller, Assistant Secretary for Domestic Affairs OFFICE OF AREA DEVELOPMENT Victor Roterus, Director SUMMARY Conference of State Planning and Development Officers with Federal Officials Secretary's Conference Room U. S. Department of Commerce February 27 and 28, 1957 Arranged by Office of Area Development U. S. Department of Commerce in cooperation with Association of State Planning and Development Agencies WASHINGTON, D. C. Contents Page Foreword by Victor Roterus IV Opening Session 1 Richard Preston, Massachusetts, Presiding Carl F. Oeschle 1 Victor Roterus. 2 Gustav E. Larson 2 DISPERSION POLICY... 2 Theodore K. Pasma 2 NEW PRODUCTS ACTIVITY 3 Robert M. Kerr 3 AREA DEVELOPMENT RESEARCH 4 Dr. Roger A. Prior 4 INDUSTRIAL CONSTRUCTION: TRENDS AND OUTLOOK 5 Walter W. Schneider ,. 5 CIVIL WORKS ACTIVITIES OF THE CORPS OF ENGINEERS 6 Brigadier General J. L. Person 6 W. H. CaldweU 9 WATER SUPPLY AND WATER POLLUTION CONTROL PROGRAM 9 Gordon E. McCallum 9 INTERNATIONAL COOPERATION ADMINISTRATION 11 Robert Rupard 11 THE NON-MILITARY PROGRAM OF THE ATOMIC ENERGY COMMISSION 12 Sidney A. Edwards, Connecticut, Presiding Paul C. Aebersold 12 REACTOR DEVELOPMENT FOR CIVILIAN POWER PURPOSES 16 U. M. Staebler 16 SUPPORTING FACILITIES FOR CIVILIAN REACTOR POWER PROGRAM 17 Charles G. Manly 17 AEC REGULATORY PROGRAM 20 Lester Rogers 20 Sinclair Weeks 23 THE FEDERAL HIGHWAY PROGRAM 23 Randall Klemme, Oklahoma, Presiding Bertram Tallamy 23 FEDERAL AREA DEVELOPMENT LEGISLATION 24 Kenneth F. McClure 24 Attendees (Appendix A) 27 Procedure Involving the Conception, Authorization, and Ultimate Construction of Corps of Engineers' River and Harbor and Flood Control Projects (Appendix B) 29 The Federal Water Pollution Control Act (Appendix C) 31 (in) Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/summaryconferencOOunit Foreword The eighth annual conference of State planning and development agencies with Federal officials, held in the Department of Commerce on February 27 and 28, 1957, focused on three new Federal programs which held great economic de- velopment potential. All three of these programs are therefore directly con- cerned with problems of great significance to local planning and economic groups. For instance, the Federal Highway Program, aside from its tremendous eco- nomic significance, offers an unparalleled opportunity for sound planning and the rehabilitation of congested, remote, and declining areas. The Federal Water Pollution Control Program focuses attention on a national problem that becomes more important with each passing day and offers means of attacking this prob- lem on a broad scale through research and treatment facilities. The AEC non- military program combines major economic stimuli with the most rigid ad- herence to the highest standards of intelligent planning, coordination and appli- cation of efforts. That substantial progress has been made in these three broad areas of ac- tivity cannot be denied. The very existence of active Federally- supported programs is testimony of progress. Moreover, the emphasis on primary local responsibility and private participation is an expression of confidence by Con- gress in the ability of State and local groups to make the right decisions and take the right actions to gain maximum benefit from the opportunities offered by our expanding national economy. Though several other subjects were discussed during the conference, the above programs are singled out for comment here because they are new and are designed to deal with problems which are common to all of the States represented at the conference. Description and explanation of new Federal pro- grams and the induced reactions in the local area are a keystone in the design of the conference agenda. Many have been helpful in preparing for and participating in the conference. We are particularly indebted to the numerous Federal officials and others who appeared on the agenda and cheerfully agreed to this added load to already heavy duties. Mr. Richard Preston, President of the Association of State Plan- ning and Development Agencies, suggested several of the topic items, and he and several ex -presidents of the Association assisted in the actual conduct of the meetings. Edmund H. Robertson, ASPDA Executive Secretary, cooperated fully with the Department in making arrangements. Gordon E. Reckord, Assist- ant to the Director of the Office of Area Development, served as Conference Secretary, arranged the session and provided liaison with the other Depart- ments. The following summary was prepared by Charles F. Daoust, Office of Area Development who monitored the meetings. It was edited for publication by Robert Stephen Brode, Information Officer to the office. As in the case of recent conferences, this is only a summary account, one which highlights the important points made by each speaker and in the discus- sion periods. While the exact language has not always been preserved, the essential material has been abstracted. A list of persons attending the conference, along with several detailed in- formational items referred to in the meetings, is appended. VICTOR ROTERUS Director Office of Area Development U. S. Department of Commerce (v) SUMMARY Wednesday Morning The conference was called to order by Mr. Rich- ard Preston, Commissioner, Massachusetts De- partment of Commerce and President of the Asso- ciation of State Planning and Development Agencies. Mr. Preston introduced Mr. Victor Roterus, Direc- tor of the Office of Area Development, U. S. De- partment of Commerce. Mr. Roterus welcomed the members and guests and stated that the basic purpose of the annual meetings was two-sided: (A) to bring the members new information on govern- ment programs; and (B) to give them an opportunity to ask questions on any Federal program or on re- lations between the State and Federal agencies. He noted that the conference agenda contained sugges- tions from the members on subjects of particular interest to the members. He introduced officers of the OAD staff who were, he said, ready and willing to talk to anyone about anything of interest. Mr. Roterus then introduced Mr. Carl F. Oechsle, Deputy Assistant Secretary for Domestic Affairs who officially welcomed for the Department the members and guests. MR. OECHSLE stated that salesmanship is an important part of any Gov- ernment agency's activities. For instance, the Of- fice of Area Development does a selling job of services to the State agencies. At a recent meet- ing of the Sales Executive Club, he said, it was pointed out that the crucial point in our economy is no longer productivity; now it is distribution. The cruciality of distribution and marketing is re- flected in our rapid population growth. Recalling the public notice which attended the previous week's event of the Census Bureau's pop- ulation recording dial passing the 170 million mark, Mr. Oechsle noted that in the following 12 days enough people had been added to the popula- tion to equal a city the size of Albuquerque, New Mexico. At the present rate of increase, we will have a population of approximately 18 million more people by 1964, or more than the combined 1956 population of the three Pacific States and Alaska, or, more interestingly, all of Canada. The problem of national, state and local develop- ment is quite clearly and starkly drawn from these population figures. How are we going to make cer- tain that our economy continues its strong rate of growth? That it provides for a constantly increas- ing population, for the jobs, the homes, the schools, the highways, and all of the basic supports of what is and cannot be disputed— the highest standard of living in history? It is clear that many of the multiple answers re- quired by that question will be provided by the members and staff of the Association of State Plan- ning and Development Agencies. The Department of Commerce, of course, is anxious to help in this job. That is why we asked last year for an in- creased budget, why we have engaged an enlarged staff, and undertaken the intensified program de- scribed later by Vic Roterus. This is also the reason that we introduced last year, and will again this year, legislation to define more clearly the job to be done and to increase the kit of tools with which to do the Federal part of the job. In his Economic and Budget messages, and even in Cabinet meetings, President Eisenhower has ex- pressed the sincerest kind of interest in the prob- lems of those areas of the country that have suf- fered economic reverses for which local people don't have the technical and material resources for recovery. These include the continuing pock- ets of higher-than-normal unemployment both in cities and rural areas, and in low-income areas in the South; areas hit by recent floods; and, more re- cently, areas in the Southwest that have suffered abnormally low rainfall. The Office of Area Development, which is your own hitching post in Washington, has grown up with the problems of local economic development. In its rather brief history, and as the attendees at these meetings know, it has been concerned with an amazing variety of kinds of activities. These include, among others, river basin studies, urban economics, civil defense and industrial location. But of all the activities that have been allotted to and performed so capably by the Office, I believe that one endeavor stands out: The advance efforts to help local communities— and almost always with the help of you and your organization— to take the steps that lead to changing, modified or enlarged economic opportunities for local citizens. The publications, field work, and consultation done by the office have, I think, set the standards for much of the work in this field. The Department of Commerce is basically a service agency and the Office of Area Development has intentionally followed this service policy. The Department and this Office are constantly con- cerned that the services, facilities and data are most effective. On the other hand, the Department recognizes that groups such as your own State agencies are also concerned with local economic development. Yours is the responsibility for proj- ect initiation and action. The Department is anx- ious to cooperate and to assist; but only on those local projects that are sponsored and wanted by responsible State and local organizations. This is a supplementary relationship, not a replacement. Maybe some of those present have forgotten that it was 10 years ago that area development was rec- ognized at the Federal level of Government at your own request. In that time it has had its ups and downs. The outlook seems to promise more of the former and less of the latter. Progress of the Of- fice will depend upon its faithfulness to the idea of service. Certainly it is meeting that promise at the present time. MR, PRESTON responded to the welcome and stated that at the end of the conference he would try to express the attitude of ASPDA toward the conference and its objective as set forth by Mr. Oechsle. The State agencies, he said, are also feeling the pressure of population growth. The urgency of the situation in affected States must be called to the at- tention of State officers so that they may prepare for the emergency which confronts them. The so- lutions must come from the States rather than be imposed on them. The States also must recognize the need for a continuing program of planning and research that will provide new answers to new problems. Mr. Preston then introduced Mr. Roterus. MR. ROTERUS described the current program of the Office of Area Development being carried out under the increased appropriation provided by the last session of Congress. He explained the new organization of the Office which includes 4 major divisions, directed toward the separate responsi- bilities of the Office. He then introduced the Offi- cers and Division Chiefs and briefly described their separate activities which would be described in greater detail. Mr. Roterus then introduced Mr. Gustav Larson, Deputy Director of the Office of Area Development. MR. LARSON, serving as Acting Chief of the State and Community Assistance Division, de- scribed the activities of that office. Although the staff is relatively small, it handles most of the numerous, varied requests for assistance to local communities. About 500-bOO such requests were received last year from all types of National, State and local organizations. To illustrate the kind of assistance which is provided, Mr. Larson de- scribed a recent request from a small, one-indus- try community in Southern Maryland where the welfare of the community rested to a great extent on the success of a single firm. The firm had long been engaged in the manufacture of a high-quality line of carving sets and other types of fine cutlery. Recently foreign cutlery of inferior quality, closely patterned after the firm's best product, had flooded the American market. This resulted in a loss of market for the local product and caused a serious local unemployment problem. Through the State and Community Assistance Division, the office ar- ranged a series of meetings between the president of the company and the various officials of the In- dustry Divisions of Business and Defense Services Administration within the Department. The objec- tive of the meetings was to find new outlets for the industrial capacity of the plant through introduction of new products or new sources of sub-contract work. During the meetings it was learned that several large industries, especially in the electronics field, are considering expansion and were looking for sub-contract facilities. It was suggested that the president of the firm attend industry and automa- tion shows and exhibitions; in doing so, he could become familiar with the types of electronic sub- contracting work that is being currently placed — work which might be added to his plant output. Another suggestion was that the firm obtain from the Joint Armed Forces Electronics Procurement Resources Administration the names of electronics companies currently behind in their production schedules. Other opportunities were discussed in the aluminum -plating industry, the plastics mold- ing industry and the automotive parts industry in each of which the firm had the necessary know-how to produce. Opportunities for defense contracts were pointed out specifically in the production of hand tools for the aircraft industry, printed cir- cuits and containers in the electronics industry, and special hand tools needed in the guided missile programs. DISPERSION POLICY Mr. Roterus then presented Mr. Theodore K. Pasma, Acting Chief, Industrial Location Division. MR. PASMA stated that in addition to providing counselling service on the National Industrial Dis- persion Program, his Division also served as a clearing-house of information on industrial loca- tion factors at the Federal level. In this connec- tion, he indicated that the Office would appreciate having copies of State and community brochures or studies dealing with industrial location for the Division's file. He then summarized some of the pertinent points of the revised National Industrial Dispersion Program as set forth in Defense Mobi- lization Order 1-19, dated January 18, 1956, and the dispersion counselling service of the Industrial Lo- cation Division. Mr. Pasma distributed copies of a release entitled The National Industrial Dispersion Program which explains in detail the revised policy. This statement will be useful to the State agencies for describing the Federal policies to local in- quirers. Critical population or industrial concentrations are still defined as those containing 16,000 work- ers in defense-related industries or 200,000 in- habitants within an area encompassed by a 4 -mile diameter circle. About 50 urban metropolitan areas presently qualify under this definition. DMO 1-19 rejects the idea of a single distance standard for determining adequate dispersion. The determination of appropriate dispersal affording the greatest degree of relative safety is to be de- cided on a case-by-case basis. Factors besides distance considered include the size of the partic- ular urban target area; the destructive power of a large-yield weapon suitable for that target; prox- imity of the proposed site to a limited number and kind of highly strategic military installations; and the construction characteristics of the proposed facility itself. As a practical matter, economic and other factors are weighed with bomb damage considerations from a double-edged viewpoint: a properly -functioning urban economy and a compet- itive plant location. The Office of Defense Mobilization limits the granting of such Federal incentives as accelerated tax amortization to those defense facilities whose locations comply with the standards of the National Industrial Dispersion Program. Under the Department of Defense Production Al- location Program, effort is being made to get into dispersed areas at least 40 percent of the planned war-time assembly capacity of all 1,000 items and their sub-assemblies placed on what is called a "preferential planning list." Members of over 100 local dispersion advisory committees in the country contribute their serv- ices at no cost to the Federal government. Through surveys these volunteer groups determine whether or not their cities contain sufficiently large con- centrations of population or industry to be consid- ered attractive enemy targets. In addition, they assist manufacturers in filling out the applications for rapid tax amortization which are allowed as an incentive to proper industrial defense balance and dispersal. In the implementation of DMO 1-19, the Office of Area Development, at the Washington level, has been assigned the responsibility of providing guid- ance and assistance to manufacturers contemplat- ing new plant expansions. In this connection the Office of Area Development has set up a conven- ient "one-stop" advisory service which includes: (1) Data on the relationship of specific sites to recognized urban target zones; (2) For target cities, determination of an ap- propriate dispersion distance which will afford relative security of location; and a further deter- mination, in cooperation with the Department of Defense, on whether or not the site is far enough removed from strategic military installations and key industrial facilities. Mr. Pasma emphasized that should any of the members desire a determination of the dispersion value on a proposed plant site within their State, three steps are necessary: (1) Indicating the proposed site or sites on a map of adequate scale (ordinary road map will suf- fice); (2) Sending the marked map to: Industrial Lo- cation Division, Office of Area Development, U. S. Department of Commerce, Washington 25, D. C; (3) Checking with the local dispersion commit- tee for its data on specific sites. With this information, he said, the dispersion val- ue of any site can be quickly determined. Mr. Roterus stated that the dispersion program was now more effective principally because indus- tries check the dispersion value of several sites before the selection of a final site. In this way, he said, industry can determine the relationship of proposed sites to tax amortization and defense work. Through this one-stop service, it can avoid commitment to a location which, during negotiation or for defense considerations, might not be satis- factory. Mr. Roterus introduced Mr. Robert M. Kerr, Chief, Products Expansion Division, who discussed the activities of his Division. NEW PRODUCTS ACTIVITY MR. KERR stated that the objective of the Prod- ucts Expansion Division was to develop ways of making available to small manufacturers the bene- fits of Federal research and development activities. Of the several programs underway, he said, one is far enough advanced to describe as a functioning program. This is the locally -sponsored technolog- ical exhibit. Mr. Kerr differentiated between the several classes of exhibits. The first class is chiefly a product display— such as a trade fair or auto show- conducted with an eye to sales promotion. Another class is the opportunity meeting, such as those conducted by Commerce Field Offices or the Small Business Administration— to point out specific new opportunities available to businessmen. A third class is the production -procurement clinic — spon- sored by the Navy and the Department of Defense— which is an exhibit of end items and sub-contract items to be purchased by the Federal government. The fourth class, and the one that directly con- cerns the Office of Area Development, is the local- ly-sponsored technological exhibit, designed to in- troduce to the management of firms looking for ad- ditional markets new products, new processes and new patents developed from Government research. This kind of exhibit has been tested by experience: the results and reactions have been favorable. The first project of the Office was the Detroit, Michi- gan New Products, New Methods and Patents Ex- hibit of October 19-22, 1954, which grew from a suggestion offered in May, 1954, by the Area De- velopment Division— the predecessor to the Office of Area Development— during discussions in the U. S. Department of Commerce with a Detroit- Edi- son Company officer. He had been referred by the White House Office to the Department of Commerce to find out what help was then available from Gov- ernment agencies to relieve unemployment in Michigan. Shortly afterwards, this idea for a new kind of cooperative exhibit came to a practical form in the Detroit Exhibit of 1954. Several months later, a considerable number of business- men who had attended the exhibit reported that they had received practical benefits from the technolog- ical displays. Another opportunity to test the idea came in the New England New Products, New Methods and Pat- ents Exhibit in Boston on March 26-29, 1956. Spon- sored by the 6 New England Governors and 14 local interested organizations, it had a much broader geographic, organizational and industrial sponsor- ship and participation. The follow-up surveys again showed favorable results. Following these two successful tests, other ex- hibits were scheduled at the request of State and local sponsors representing broad geographic areas which qualify for technical assistance and cooperation by Federal executive agencies. The technological exhibit is a combination of such unique features as State and local sponsorship and responsibility; local organization and manage- ment; local financing of the exhibit; emphasis on new technology especially suited to development possibilities in a region for the benefit of labor surplus areas, actual or potential; the partnership of business, labor, and State and local government with the Federal Government in each exhibit; a concrete method whereby a community can find new outlets for its resources and talent. Mr. Kerr then distributed copies of a briefing paper which describes the program in detail. Ad- ditional copies are available from the Office of Area Development. Mr. Roterus introduced Dr. Roger A. Prior, Chief, Resources Analysis Division. AREA DEVELOPMENT RESEARCH DR. PRIOR stated that the name "Resources Analysis" may be misleading, since the Division's primary job is one of analyzing information. In ad- dition to the regular program of the Office special effort is being made to complete the two projects suggested at last year's conference. One project is the compilation and publication of two bibliogra- phies that would suggest a basic area development library, including both Government publications and privately published works. Copies of Staff Paper No. 4, Selected Bibliographies of Industrial & Area Development, were distributed at this point. The other project is the completion of the Office study of industrial development organizations. De- scribed last year by Mr. John Rentz, it is now in manuscript form and will be published by fall. Dr. Prior thanked the several agencies for their as- sistance in the collection of the material now being incorporated in the study. Dr. Prior described a new effort now underway— the analysis and interpretation of the data contained in the 1954 Census of Manufactures and the assem- bly of information on regional and subregional trends in manufacturing activity. This research will be continuing; findings will be presented in oc- casional staff papers and in the Area Development Bulletin. The final product, he said, will probably be published in the form of an Industrial Develop- ment Atlas. Dr. Prior distributed copies of two recent publi- cations of his Division entitled Central Business Districts and Their Metropolitan Areas, and Ex- panding Industries in Manufacturing , both of which are intended to be parts of the projected Atlas. Discussion Mr. Edwards, Connecticut, asked Mr. Larson what were the tangible results of the meetings and efforts to assist the company and community he had described. Mr. Larson replied that the firm had obtained manufacturing rights for production of a motorized golf car. Also, they are negotiating with a major automobile manufacturer to start production of au- to accessory stamping in 1958. The firm is follow- ing up several leads provided on sub- contracting of defense work. Mr. Caldwell, Virginia, asked if state participa- tion was solicited in the particular case described by Mr. Larson, and if state participation would be invited in future instances. Mr. Larson replied that the State agency was notified and was invited to participate in all such dealings with communities. Mr. Edwards, Connect- icut, asked if the State agencies could initiate ac- tion similar to that described and to what degree the State could depend on the Office of Area Devel- opment for follow -through. He stated that the State could build up a large volume of this type of spe- cific, personalized service, but wondered just how much could be handled in this manner at the Wash- ington level. Mr. Roterus emphasized that this was an extreme case affecting a whole community and that specialized treatment could not at this time be extended to all firms desiring it. However, it illustrates the types of assistance available. If a similar situation arises, the State agency should first check with the Office of Area Development and determine what can be done about arranging a meeting with the industry divisions. With the completion of the Office of Area Devel- opment presentation Mr. Preston introduced Mr. Walter W. Schneider, In Charge of Construction Statistics, Business and Defense Services Admin- istration, U. S. Department of Commerce. INDUSTRIAL CONSTRUCTION: TRENDS AND OUTLOOK MR. SCHNEIDER stated that "industrial con- struction"— using the term to include all kinds of manufacturing, assembly, and warehouse build- ings—was one of the factors responsible for the record of construction volume set in 1956. This type of construction increased by nearly 30 per- cent over the year 1955. It expanded by over $ 600 million to a new total in excess of $3 billion for this year. This represents about one -half the in- crease reported for all types of new construction, public and private combined, which increased from $43 billion in 1935 to $44 1/4 billion in 1956. It can be generally stated that industrial con- struction moves along with the balance of the econ- omy. It goes up when the rest of the economy goes up, and drops when the rest of the economy does so. The critical question at any given time is "How much is it going up?" or "How much is it go- ing down?" The answers do not come easily. As our economy becomes more complex, fore- casting grows more difficult. With the average in- come of individuals increasing and a greater num- ber of people moving into the middle -income brack- ets, they may spend a greater share of their total income for commodities and services. A smaller share of their income goes to basic economy ne- cessities. It is the consumer, therefore, who largely decides on the distribution of the total out- put among the various goods and services accounts in our national balance sheet. Forecasting is, therefore, principally a matter of trying to guess the aggregate effect of, literally, the billions of in- dividual consumer decisions. The forecast on industrial construction made for 1957 was prepared last November. At that time we expected that industrial construction would go up about 5 percent. ("Construction" here is defined as "the volume of work actually put in place to distinguish it from related series, such as contract awards, work started and building permits is- sued.") It had forecast that construction costs in 1957 would probably be up about 3 percent over 1956. This indicated that the rapidly increasing cost in- dexes would slow down a bit in 1957 from the 5 per- cent increase in 1956. Since then, cement and steel prices are somewhat stronger than we ex- pected. A continued rise in the cost of living will result in increased pressure by labor unions and further wage increases in 1957. At the same time it is encouraging that prices in many other building materials may not move up as much as expected. The index of wholesale prices of all building mate- rials is a little more than 2 percent greater than it was a year ago. Thus, the greater increase in ce- ment and steel prices, together with the slight in- crease in other building materials, indicates that an overall increase of 3 percent in 1957 is prob- ably not far out of line. Supply and demand are in better balance than they were one year ago. With the single exception of steel, it appears that the building materials sup- plies will be more adequate in 1957 than they have been for several years. The supply of gypsum board, glass, plumbing fixtures, brick, and tile will certainly be adequate to meet all construction needs in 1957. Even with the new highway program, cement (a very troublesome item in the fall of 1955 and early part of 1956) has now moved into the readily available category— thanks to the 50-mil- lion-barrel plant expansion which took place in 1955 and 1956. However, there will still be a few spot shortages of cement when many large cement- using construction projects are initiated simulta- neously within a local area. Steel is the one trouble-spot in construction ma- terials supply. The steel situation will be a sig- nificant factor in determining how much industrial construction occurs in 1957 and perhaps for sever- al years to come. Steel consumption and demand will increase steadily because of several impor- tant factors. In the building construction, shifts in type and size of structural steel demand are antici- pated. Construction of office buildings will be stronger than expected and the possibility of Fed- eral aid in school construction is another impor- tant factor here. For example, in New York City, 5 office buildings now under construction will re- quire 140 thousand tons of structurals which repre- sents 5 percent of the total 1956 national output. The Federal Highway Program will also contrib- ute to this steel supply problem. Because of design specifications on the interstate system nearly 3 million structures will be required. Also, freight cars with a backlog of orders of 125,000 and cur- rent production of 6,000 cars per month will create additional demand. In shipbuilding, the stepped-up tanker program and new European orders — neither one at capacity because of the current steel short- age—will heighten demand. Production for heavy line pipe is scheduled only up to mid- 1959. Cur- rent demand in fabricated structural steel is scheduled at 300,000 tons over the next 4 months, which is equal to the highest monthly rate achieved in 1956. The problem seems to be in the flow of steel to the fabricators and not in fabricating ca- pacity. The one bright spot in the steel situation appears to be the automobile industry. Because of an inven- tory adjustment the auto industry will not increase its steel consumption even with a continued high output. How construction and particularly high- ways will fare in this scramble for steel is any- body's guess. Perhaps revision of certain restric- tive building and construction codes to permit wid- er use of p'restressed and precast concrete would relieve some steel demand. The capacity and back- log of the prestressed industry are both unknown. Industrial construction is generally a long-range planning operation with the final decision to go ahead being held up until the businessman sees a reasonable chance for profit. The latter part of 1956 was, and apparently the early part of 1957 will be, a period of reassessment by business management— a period when concentration focuses upon increasing the efficiency of new plants, on re- ducing unit costs, and in meeting competitive pres- sures. Both the Contract Awards data from the F. W. Dodge Corporation and McGraw-Hill's ENGINEER- ING NEWS- RECORD show a tapering off in indus- trial contract awards. The Dodge series reveals a much sharper decline than ENR. This may be due to the fact that Dodge covers all sizes of proj- ects, whereas ENR covers only those costing more than $93,000. Both series are still at fairly high levels. It will be particularly valuable as a clue to construction activity in the latter part of 1957 and early in 1958 to watch how these series move in the next 3 to 4 months. Corporate financing of industrial expansion of plant and equipment was radically different in 1956 than in 1955. Almost the whole increase of $7 bil- lion was secured by reducing liquid assets, market borrowing and new stock issues. In the light of the continued efforts of the Federal Reserve to re- strain credit, any significant increase in the cur- rent rate of plant and equipment expenditures is unlikely. Discussion Mr. Williams, Colorado, asked Mr. Schneider the meaning of the phrase "consolidation of gains" as applied to industrial construction. In his reply, MR. SCHNEIDER referred to the fact that the profit return on construction has not been up to ex- pectations; principally because of the time re- quired to get new facilities into operation. Wednesday Afternoon CIVIL WORKS ACTIVITIES OF THE CORPS OF ENGINEERS Mr. Caldwell, Virginia, presided over the after- noon meeting and introduced the first speaker, Brigadier General J. L. Person, Assistant Chief of Engineers, U. S. Army. GENERAL PERSON stated that the Corps of Engineers' civil works program, while of nation- wide scope, is developed by river basins to serve primarily the needs of the various states and local interests in such basins. As such it is actually a Federal, State and local program. Thus, it is the desire of the Corps of Engineers to work closely with the State agencies to assure that its plans most effectively serve State and local needs. Civil works operations are those relating to the development and maintenance of rivers, harbors and waterways for navigation, flood control, and related purposes. Also included are participation in development and construction of beach erosion control projects for protection of publicly owned shores. The related purposes that have become an important segment of the civil works program through multiple-purpose development include de- velopment of hydroelectric power, storage of water for industrial, municipal and agricultural use, and the numerous widespread benefits that result from improvement of low river flows. Also, the proj- ects constructed under this program often provide large public recreational opportunities, and they support preservation of fish and wildlife resources. Corps of Engineers operations include: (1) en- gineering and economic investigations of projects; (2) planning, construction, operation and mainte- nance of water resource projects authorized by Congress; and (3) administration of laws for the protection and preservation of navigable water- ways of the United States. Also included: the collection and publication of statistics on water- borne commerce; participation in flood fighting and rescue work; and participation in disaster re- lief activities when requested to do so by the Fed- eral Civil Defense Administrator; surveying and charting of the Great Lakes, the Mississippi River, and other inland waterways; and the supervision, through Joint Control Boards, of boundary waters between the United States and Canada. Action to authorize a civil works project must start with local people who will have to present their needs for improvements to their elected representatives in Congress; they in turn will take up the matter with the appropriate Congressional Committee, and Congress will authorize the Corps of Engineers to prepare a study of feasible proj- ects. When so directed, the Corps of Engineers then makes an engineering and economic study of the proposed improvements and reports its find- ings, with recommendations, to Congress. If Congress then considers the project feasible, it is authorized for construction. Development of detailed plans and subsequent construction are undertaken as funds are provided by Congress. (A more detailed discussion of the 17 steps in- volved in conception, authorization and construc- tion of Corps of Engineers' Civil Works project is contained in Appendix B). Aside from the normal procedures, the Corps of Engineers has certain emergency or general flood control authorities which may apply within certain limits as provided for by law. These in- clude: a. Public Law 685, 84th Congress: Provides for construction of small flood control projects not specifically authorized by Congress where found advisable by the Chief of Engineers. Limited to $400,000 per project and $10,000,000 total per fiscal year. b. Section 13 of 1937 F. C, Act as amended by Section 208 of 1954 F. C, Act: Provides for snag- ging and clearing of navigable streams when found advisable in the interest of flood control. Limited to $100,000 per stream and $2,000,000 total per fiscal year. c. Section 14, 1946 F. C. Act: Provides for construction of emergency bank protection works to prevent flood damage to highways, bridge ap- proaches and public works. Limited to $50,000 at any one location and $1,000,000 total per fiscal year. d. Public Law 99, 84th Congress: Authorizes emergency funds of $15,000,000 to be e flood fighting and rescue work, and in repair, res- toration and maintenance of an flood control structure threatened or destroyed by flood. Under Public Law 875, and in accordance with Executive Order 10427, January 16, 1953, the Fed- eral Civil Defense Administrator is responsible for directing and coordinating the assistance made available by all Federal agencies to "major dis- aster" areas affected by catastrophes from floods and other natural phenomena. Military resources under control of the Department of the Army may be made available for disaster relief by the De- partment of Defense when required and requested by the Federal Civil Defense Administration. Disaster activities, which under certain circum- stances have been assigned to the Corps of En- gineers, include accomplishment of protective and other work essential for preservation of life and property; debris and wreckage clearance; and emergency repair to, and temporary replacement of, essential public facilities. Congressional authorization based on recom- mendations of the Corps of Engineers has resulted in a total active program of over 3,000 projects for navigation, flood control and multiple -purpose river basin development. These projects have a total estimated cost of about $16.6 billion. Ap- propriations to date total about $7.3 billion, leaving some $9.3 billion as the amount required to complete the authorized progi im The Corps has completed 1,958 navigation im- provements at an estimated cost of about $1.4 billion. Two hundred forty-one (241) navigation projects with an estimated cost of about $1.6 bil- lion are now in construction; and 178 navigation projects with an estimated cost of about $1.8 bil- lion have been authorized but not yet started. The Corps is now maintaining some 22,600 miles of inland waterways and some 700 coastal and Great Lakes harbors. In 1955, for the first time in history, total waterborne commerce of the United States exceeded one billion tons. In the field of flood control and navigation, the major project is in the Alluvial Valley of the Mis- sissippi River. With an estimated cost of $1.4 billion, it is now under construction and provides a high degree of protection to the valley extending from Cairo, Illinois, to the Gulf of Mexico. The general or nationwide flood control program dates from 1936. Since then, 344 projects with an es- timated cost of about $963 million have been com- pleted; 136 projects with an estimated cost of $2.1 billion are under construction; and 275 projects with an estimated cost of $1.9 billion have been started. Flood control projects in operation prevent flood losses estimated to average about $500 mil- lion annually. Despite the progress made, mini- mum adequate protection is not available in most areas, and the Nation is highly vulnerable to severe damage from major floods such as those experi- enced in 1955 in the Northeast and on the West Coast. The third major segment of the civil works pro- gram includes multiple-purpose projects which produce hydroelectric power in connection with flood control and navigation. The Corps has com- pleted 20 multiple-purpose projects, with an esti- mated cost of $1.1 billion. At the end of fiscal 1956 installed generator capacity totaled over 4 million kilowatts. The Corps builds and operates these projects, but the power is marketed by the Secretary of the Interior. The 18.1 billion kilowatt hours of energy generated at Corps of Engineers' projects in fiscal 1956 represents about 15.1 percent of the hydro- electric power produced and 3.1 percent of the total power produced by all sources of the Nation's utility systems. The Corps is now providing over one million acre-feet of storage space for domestic and in- dustrial water supply in 16 reservoirs serving approximately 38 towns and cities. About 4 mil- lion acre-feet of storage are being utilized either exclusively for irrigation, or jointly for irrigation and other purposes. In numerous instances, res- ervoirs are also operated for low-flow regulation and thereby improve water supplies downstream and reduce pollution. Recent droughts have made it all-too-apparent that developed water supplies for domestic use, industry and agriculture are inadequate. At the same time the demands upon water supply are constantly increasing. As new industrial proc- esses require ever greater quantities of water, plants are coming to the riverbanks not only to obtain low cost water transportation but to have access to the water itself. Recent estimates by the Department of Commerce indicate that water usage in the United States will increase from about 262 billion gallons daily in 1955 to over 453 billion gallons in 1975. It is becoming more and more evident that adequate water supply depends on con- servation. Under present authority the Corps of Engineers may modify reservoirs to provide additional stor- age for water supply on condition that local in- terests pay the cost of that storage, and can make contracts with States, municipalities, local agen- cies and individuals for surplus water that may be available at civil works projects. Also, in certain instances, the project authorization provides spe- cifically for water supply features in the project. While these authorities are valuable to meet cur- rent needs where a customer is available to pay for such storage, they are not broad enough to per- mit an adequate approach to water supply problems as a part of river basin development. The Corps does not have authority to provide storage for future needs where no customer is presently available to pay for the storage costs. Legislation is being considered to meet this prob- lem, and its passage will help the Corps plan and build projects best-suited to meeting future needs. In addition there are many instances where stor- age should be provided for augmentation of low flow in streams where such effects would extend over long reaches of river often affecting a num- ber of States. Legislation is also under considera- tion in Congress which would permit the Federal Government to provide for such low-flow regula- tion just as it now does for flood control— or regu- lation of high flows. In carrying out these activities, the Corps works closely with the States and other sub -divisions of Government. It also works with those having an interest in this field to assure that projects which will serve the needs of the region are planned and constructed most effectively,. In project formulation, coordination is obtained at field level by Division and District Engineers to develop early understanding and to assist in resolving problems while still in an embryo stage. This is accomplished by exchange of data, corre- spondence, informal conferences and public hear- ings. Designated representatives of affected states are consulted fully in preparation of plans to insure that the desires and ideas of those agen- cies axe fully considered. In Washington, the Chief of Engineers transmits his proposed report to the Governors of the af- fected States for comment, and includes the Gov- ernors' comments with his report to Congress. By first coordinating at the field level differences are held to a minimum. Where differences occur in spite of field coordination, the Chief of Engi- neers attempts to resolve them or to arrive at some kind of a working compromise with the af- fected state or states. Full cognizance is taken of interstate compacts and agreements that have been entered into by the several states concerned. Close relations with States are particularly im- portant to improvements dealing with water supply. The Corps of Engineers recognizes the control of States over their waters. The Corps does not ac- quire water rights or sell water. We provide in effect the storage service which enables the States to better control the use of those waters. It is Corps policy that provision of any water rights needed for establishment of a project should be provided by the local interests concerned. Gf great value to the program is the existence of State organizations capable of dealing with the Federal Government on matters of local coopera- tion; capable of participating in planning of im- provements; and, in some instances, authorized to raise funds. Efforts for coordination do not end with project authorization. The views of affected interests are also taken into account during detailed project planning and every effort is made to coordinate the Federal improvement with other developments within the affected area. During the time lag in- volved between authorization and project construc- tion, developments may take place in project areas which greatly increase costs for lands and reloca- tions, in some instances seriously affecting proj- ect justification. Many of these problems can be avoided through coordinated planning which em- braces all forms of development within the basin. There must be a thorough exchange of informa- tion about contemplated construction and real es- tate needs on the part of all development agencies, public and private. To the various agencies con- cerned, District Engineers are now distributing descriptions of authorized projects not yet under construction, and explanations of such factors as the status of planning and imminence of construc- tion, so that the public may take our development proposals into account in planning other types of improvements. The civil works program is in effect designed for the greatest possible benefit to the people of the region it serves. Solutions to problems en- countered in meeting that objective jmay best be obtained through the cooperative efforts of all con- cerned. The designation of an overall State agency to work with the Corps of Engineers on matters pertaining to water resource development would be most helpful in bringing the various interests together for the ultimate benefit of all. Discussion General Person replied to several questions by stating that the Corps of Engineers was concerned 8 in harbor development only to the extent to which navigation was involved, but not with development of port facilities other than aids on obstruction to labor navigation. He also said that the Corps had no responsibility or water rights to water im- pounded for flood control. Riparian rights were still applicable to storage water. MR. CALDWELL stated that the members rec- ognized the States' responsibility to cooperate in water development and would certainly work to- ward acceptance of this responsibility in their respective States in the future. Mr. Caldwell introduced Mr. Gordon E. Mc- Callum, Chief, Water Supply and Water Pollution Control Program, U. S. Public Health Service. WATER SUPPLY AND WATER POLLUTION CONTROL PROGRAM MR. McCALLUM stated that the use and reuse of water is the crux of the water pollution prob- lem. The traditionally narrow view of cleaning up a particular stream or of conserving water has prevailed, rather than a concentration upon the intelligent use and reuse of the water supply. The Federal Water Pollution Control Act (P.L. 660, 84th Congress) was designed to provide for broad Federal cooperation in the serious national problem of water pollution and the growing need for water resources conservation. The Act authorizes Federal activity in 5 major areas which will have a great impact on the pollu- tion control problems of all cooperating agencies — local, State, interstate and Federal: (1) Program grants to State and interstate water pollution control agencies; (2) Research and technical assistance; (3) Collection and dissemination of water qual- ity basic data and related information; (4) Grants for construction of treatment works; and (5) Federal control of interstate pollution. Perhaps the most significant provision in the Federal Water Pollution Control Act is the one providing for direct grants to State and interstate water pollution control agencies to assist them financially in establishing and maintaining ade- quate programs in line with their growing water pollution problems. For this purpose, the Act authorizes $3 million for each fiscal from 1957 through 1961. For 1957, $2 million was appropriated. In the final analysis, pollution control will be achieved nationally only as fast as State and interstate water pollution con- trol agencies are able to prevail upon municipali- ties and industries to construct the needed waste treatment works. Enormous pollution problems have been thrust upon the States in recent years by the rapid in- crease and concentration of industry, and by the continuing growth of urban areas. Many States have expanded their programs to meet these grow- ing problems. However, too many State water pollution control agencies have been inadequately supported by appropriations for the job they have to do. For this fiscal of 1957, 25 States and Terri- tories have annual appropriations for water pollu- tion control of less than $50,000. Ten of these provide less than $20,000 a year, and there is one State with no appropriation at all. Under the new Act the use of the grant funds has been broadened to include all aspects of water pollution control, including training of personnel. These grants are not intended to replace or under- write State funds for water pollution control, but rather to demonstrate to the States what greater State support for such programs can accomplish. They are, in effect, matching grants, with each State required to provide from one-third to two- thirds of the cost of carrying out its total water pollution control program. The amount of the Federal grant varies from State to State depend- ing upon (1) the population, (2) the extent of the water pollution problem, and (3) the financial need of the State. One of the principal areas of cooperative water pollution control activity in which a national agen- cy can engage is research. For more than half a century the Public Health Service has been active in water pollution studies: the old Stream Inves- tigations Laboratory at Cincinnati (which later be- came the Environmental Health Center) pioneered much of our present-day knowledge of pollution and stream behavior. The Environmental Health Center has been replaced recently by the new Robert A. Taft Sanitary Engineering Center, the largest, most modern research facility of its kind in the Nation. The Act provides for greater Federal coopera- tion in these areas through research grants and fellowships, contract research, demonstrations and training. These authorizations will permit the Public Health Service to assume needed lead- ership in water pollution prevention and control, and will direct much more of the Nation's techni- cal competency to bear on the problems. The normal course of research developments has been from the laboratory to pilot plant to full- scale application. Generally, States, municipali- ties and industries traditionally await proof of the technical and economic feasibility of laboratory and pilot scale research. The new Act provides for demonstrations, both intramural and contract, thus permitting a course of "laboratory-to-pilot- plant-to-demonstration -to-full -scale" application. Demonstrations will do much to expedite applica- tion of the results of research. The new Act authorizes research grants to public and private agencies and individuals. Grants may be made for studies in all phases of water pollution control and related water uses. This 9 makes it possible to bring into the cooperative national effort the resources of universities, re- search organizations, institutions, industry and individuals which, as was pointed out for research contracts, otherwise might not be utilized on water pollution problems. Another area where a national agency can co- operate with and assist State and local water pol- lution control programs is in the provision of technical assistance. The Sanitary Engineering Center, with its skilled staff of researchers, is uniquely qualified to perform these special services. Resources have been sufficient, however, to meet only a small part of the need. As an indication of the magnitude of the need for technical assistance and consultation, during the first 6 months of this fis- cal nearly 500 requests for such services were received from Federal agencies, States, Terri- tories, professional and trade associations, for- eign governments and others. It is hoped that this phase of our cooperative program can be strength- ened in the next fiscal. The construction grant authorization provides for the appropriation of $50 million each year up to an aggregate of $500 million for grants to any State, municipality, or intermunicipal or interstate agency for the construction of treatment works. Individual grants for any project cannot exceed 30 percent of the estimated reasonable cost of the project or $250,000, whichever is smaller. Also, 50 percent of the funds appropriated for any fiscal must be used for grants to municipalities of 125,- 000 population or under. The construction grant program is being carried out in cooperation with the States and once again this program is demonstrating the effectiveness of Federal-State-local action. Within 4 months from the time appropriations were made available, forms were developed and printed, regulations and manuals of procedure were prepared and is- sued, conferences held with all State agencies, and the first projects approved for Higginsville, Mis- souri and Meridian, Mississippi. To our knowl- edge, no other program of this nature has begun so quickly. Enforcement was probably the most controver- sial part of the new Act. Divergent points of view, which have been expressed for many years, ranged from support of a strong, centralized Federal au- thority to those who see no need for Federal par- ticipation in this or any other program. Some still contend that the enforcement proce- dures in the new Act are too weak. However, the House Committee on Public Works, in House Re- port 2190, states that the "procedures constitute a reasonable balance between the primary rights of the States to control water pollution within their boundaries and the rights of States affected by pollution from another State to have available to them a practicable remedy." The new procedures differ from those of the previous Act principally in that: • The Surgeon General is authorized to call con- ferences of State and interstate agencies and others concerned to determine the nature of in- terstate water pollution problems; • A public hearing must be held before a finding of pollution can be made; and • The Surgeon General is authorized to institute proceedings upon request of any State affected by interstate pollution without the consent of the discharging State. The Public Health Service believes that the new Act provides a workable interstate water pollution control procedure. It believes that, by working in close cooperation with State and interstate agen- cies and others, better factual information on in- terstate pollution problems will be obtained and that solutions will largely be found during the pre- hearing conferences without invoking formal en- forcement procedures of the Act. However, if it becomes necessary to enforce corrective meas- ures to control interstate pollution situations, the Public Health Service will be prepared to act on the request of the State or States involved. (See Appendix C — Federal Water Pollution Control Act- Summary and Preliminary Procedures). Discussion In answer to several questions from the floor, Mr. McCallum stated that the situation of obtaining contractors for the construction grants had not been good. Too many other projects are now com- peting for the services of construction engineers. However, current procedures have proved satis- factory and no change is contemplated to make the construction program more attractive to contrac- tors. The Federal inspections during construction are intended only to aid progress payments to the municipality; they are in no way restrictive. Also, he said, technical assistance can be extended to industries if it is requested by the State water authority. The program has not been hindered by the division of water responsibility in several State agencies; the big problem has been in getting funds to do the job. He stated that some States have started programs to prevent water pollution as well as to cure it. He said further that the Public Health Service is studying means of prevention, but as yet has not developed an active program of prevention. Mr. Caldwell then introduced Mr. Walter L. Picton, Deputy Director, Water and Sewerage In- dustry and Utilities Division, U. S. Department of Commerce. 10 MR. PICTON briefly discussed several other Federal agency water supply and facilities pro- grams of special significance to community de- velopment: • The U. S. Geological Survey, Department of the Interior, conducts water resources field sur- veys and investigations made on a cooperative (matching fund) basis, and also metropolitan area water supply studies. Bureau of Reclamation, Department of the In- terior, program of cooperation in including municipal and industrial water supply provi- sions in multi-purpose projects; also Federal aid through interest-free loans and non- reimbursable grants for such portion of a non- Federal project chargeable to reclamation and/ or flood control under the Small Projects Act. • Soil Conservation Service, Department of Agri- culture, Watershed Protection and Flood Pre- vention Program of loans and grants for de- velopment of water supply even if no part is for agriculture; grants limited to that portion chargeable to watershed protection and/or flood prevention. Urban Renewal Service, Slum Clearance, Urban Redevelopment, and Fringe Area Planning Pro- gram which includes grants on a matching fund basis to properly organized municipal or metro- politan area planning authorities of communi- ties over 25,000 in population; or to State plan- ning commissions for similar work to be done for communities smaller than 25,000 population. Community Facilities Service, Housing and Home Finance Agency, Advance Planning of Public Works Program of interest-free loans for preparation of plans and loans for construction if local authority is unable to satisfactorily market bonds on the open market; interest rate tied to U. S. Treasury interest rates (not to the current bond market). INTERNATIONAL COOPERATION ADMINISTRATION Mr. Caldwell then introduced Mr. Robert Rupard, Acting Director, Office of Public Services, Inter- national Cooperation Administration. Mr. Caldwell noted that area assistance was an important part of our overseas program although usually under other names. A number of ASPDA members had served as consultants on these programs. MR. RUPARD stated that the International Co- operation Administration, like ASPDA, was also primarily concerned with economic growth and its meaning to underdeveloped countries. There is, however, a basic difference. Even the most under- developed areas of the United States are far more advanced than the underdeveloped countries of Asia, South America, and Africa. He listed several characteristics of these countries to in- dicate the scope of the job to be done. An ex- tremely low -gross national product — usually less than one -fifth that of modern western nations; an antiquated, insufficient technology; a complete lack of appreciation for maintenance of modern equipment and of even the barest essentials of health (the average life span is about 33 years; over 200 million have been affected by malaria; and there is a widespread prevalence of debilita- ting diseases); high illiteracy rate; very little capacity for growth (there is a lack of notable resources, capital, energy); a population that is chiefly rural, dependent for subsistence upon agri- culture; lack of technically-trained people in all cases, and often of a governmental structure and services. Much of what is happening in the world today, Mr. Rupard said, is based upon the fundamental drives of nationalism and the improvement of living standards. The latter results in a surge to- ward economic development. Frequently this drive is switched to nationalism for political expediency. The recent Suez crisis is a case in point. The Suez Canal was seized in the name of nationalism as a result of the collapse of plans for economic development centered on the con- struction of the Aswan Dam. Closing the Canal has brought economic ruin to Egypt and caused severe setbacks to development programs in several other nearby underdeveloped countries. Most of the underdeveloped countries of the world are awaiting the outcome of the approaches taken by India and China to economic development. As contrasted to that of China, the approach of India might be called democratic, for she has de- veloped the concept of Indian Community Develop- ment, which centers activities and responsibili- ties in the villages. The central government trains extension workers who then go to the vil- lage and in turn train the villagers in the rudi- ments of health, simple construction, road build- ing, and other projects that the villagers think are necessary. The key to this approach is to encourage people to help themselves by using things locally availa- ble, to demonstrate that the extension worker can help on local problems, and, once he has secured the villagers' confidence, to go on to more complex development programs. Mr. Rupard cited several experiences of exten- sion workers in India and described how the basic principles of human relations and human dignity were intrinsically a part of this particular pro- gram. He stated that the development ideas in the 11 play (and subsequent motion picture adaptation) called Teahouse of the August Moon were perhaps classic examples of the problems faced in the underdeveloped countries. There were no questions from the audience, but several ASPDA members who had worked in the Point Four programs noted that they had similar experiences and, in their work with small com- munities in their State had used the same general approach: first, meeting the community's felt needs; then, as confidence is gained, progressing to broader programs. Thursday Morning THE NON- MILITARY PROGRAM OF THE ATOMIC ENERGY COMMISSION Mr. Sidney A. Edwards, Connecticut, presided and introduced Dr. Paul C. Aebersold, Director, Isotopes Extension, Division of Civilian Applica- tions, U. S. Atomic Energy Commission. Growth of Non-Power Uses of Atomic Energy DR. AEBERSOLD stated that although economic nuclear power holds great promise for the future, rich rewards are already being realized from the widespread and intensive use of radioisotopes. In- dustry alone is currently saving an estimated $ 300 million annually through the use of these versatile tools, which have been available in abundant quantities for only 10 years. Technical knowledge along with efficiency has increased rapidly as the number of industrial firms em- ploying radioisotopes has grown from 100 in 1950 to 1500 today. Also, there are now about 1500 medical users of radioisotopes and perhaps 2 mil- lion persons have been benefited by treatment. Isotopes are atoms of the same element (same atomic number or "place" in the Periodic Chart of Atoms), but which differ in weight. The isotopes of an element constitute a family of atoms, chemi- cally the same but physically different. For example, carbon atoms can exist in 6 forms, that is, 6 isotopes. Three of these carbon isotopes are unstable or radioactive and over a period of time disintegrate or decay to a stable atom, giving off radiations in the process. These are called "radioactive isotopes" or "radioisotopes." Scientists have so far identified nearly 1200 isotopes of the 101 known elements. About 275 are stable and occur in nature; the remaining 900 or so are radioactive. Such radioisotopes as radium and uranium occur in nature, but most of them must be made by man. Our concern is with the 100 or so radioisotopes produced in the nuclear reactor, and controlled and distributed by the Atomic Energy Commission. The nuclear principles which form the basis of most industrial radioisotope applications are not profound. The tremendous variety of uses stems from three principles: (1) Radiation can be used to trace material in chemical or physical reactions; (2) Materials affect radiation; and (3) Radiation affects materials. Radiation for Tracing Materials In applications based on this principle, the radioisotope is incorporated in, or carried by, the substance of interest. This substance can then be located, traced, or parts of it determined quanti- tatively by measuring the radiation emitted. The power of the tracer technique stems from the great extent to which radioisotopes can be diluted and still be detected. By use of proper in- strumentation they can be detected and traced, by the radiations they emit, in minute quantities, mil- lions to billions times smaller than tracers de- tectable by chemical means. A billion -billionth of an ounce of a radioisotope may be detected. The use of isotopes at very low levels in in- dustry has received little attention but may well be an area of great importance. Recent improve- ments in gas flow and scintillation instruments for low level radiation counting make possible the in- troduction of very small but safe amounts of isotopes into many commercial processes where sensitive product analysis is necessary. In addition to its sensitivity the radiotracer technique is highly specific. A specific atom of a complex molecule may be labeled uniquely and traced through a series of chemical or physical reactions. Labeling of atoms or molecules with two or more isotopes provides another means of achieving specificity in tracer experiments. Multiple labeling of compounds permits simul- taneous tracing of different portions of a complex molecule. Great versatility is possible in labeling mate- rials since useful radioisotope tracers can be produced for most elements. Techniques have also been devised for labeling blood cells and a wide variety of organisms such as bacteria, viruses, and higher organisms. A large number of indus- trial materials also have been labeled or made radioactive including detergents, glass, piston rings, cutting tools, gears and bearings, catalysts, tires, paints, and waxes. Radiomaterial can be traced in bulk as in locating markers, determining fluid flow, following motion of material, detecting leaks, or measuring wear and corrosion. Radioisotopes as tracer atoms are used to study all kinds of chemical, physical- chemical and biochemical problems. In technology tracer uses include studies of corro- 12 sion, diffusion, detergency, catalysis, and kinetics and mechanisms of reactions. Many tracer techniques in industry have reached the routine operational stage, usually where an object or material is to be followed or located, or to be identified among others of its kind. For example, radioactive material is injected between successive shipments of petroleum products flow- ing through a cross-country pipeline and identifies the change-over point by activating a radiation counter at a later switching terminal. Losses due to uncertainty of the boundary have been sharply reduced. The moving-marker technique for cross-country pipeline shipments is applied also in tracing the movement of batches of oil through complex piping patterns in the refinery. Also, the rate of flow of solid catalyst particles in petroleum cracking plants is monitored routinely by timing the cycling of a radioactive bead which circulates with the catalyst. Leaks of all kinds are a constant source of trouble in industry. A tracer amount of a radio- isotope can be introduced into a gas or liquid system and then either detected as it emerges from a leak or followed, despite intervening structures, by means of its gamma radiation. Wear and corrosion cost industry millions of dollars per year. Radioisotopes are of great benefit in combating this problem. Extremely small amounts of wear and corrosion can be ac- curately measured by using tracer techniques and the rate of obtaining results is greatly accelerated over conventional methods. The increased rate of finding ways to reduce this loss can result in enormous savings. For example, one group study- ing improvement of lubrication obtained results with tracer techniques in 4 years at a cost of $30,000 which would have required 60 years by previous methods at a cost of $ 1 million. Radioactivity induced into an engine component, cutting tool or machine part is also present in the particles worn from the surface. Thus, the amount or rate of removal is quickly and accurately measured by the amount of radioactivity found in the lubricating oil or chips. This technique is used to study the influence of fuels, lubricants, and operating variables on wear rates of various engine components such as piston rings, bearings, and gears. Radiotracer techniques have also been used to measure tire wear on starts, stops, curves, straight -aways, and at various speeds. The radio- isotope is incorporated into the tire tread rubber. By measuring the radioactivity of the worn rubber on the surface ove~ which the tire has passed, the tread wear can be determined directly. This method is much quicker and cheaper than the con- ventional fleet -testing. Many protective coatings are evaluated by tracer radioisotopes. The material applied to a surface is made radioactive. After wear, the amount of radiation indicates how much material remains and, thus, its resistance to wear. Paints and var- nishes as well as waxes may be evaluated by this technique. As tracers of molecules, rather than of mate- rial in bulk, radioisotopes are widely used in the study and control of chemical processes. Citing the petroleum industry as an example, a great amount of research is being done in hydrocarbon chemistry. Fortunately, we have cheap, readily available and very sensitive tracers for carbon and hydrogen, such as carbon 14, deuterium, and tritium. They have been of inestimable value in elucidating the mechanisms involved in alkylation, polymerization, catalytic cracking, and many other important reactions. In many cases chemical analysis is simplified and in others unique infor- mation is obtained. Materials Affect Radiation In this principle of use, radiation is directed at or through a material to gain information about the material. Here the requirements are a radio- active source, the material, and a detector to record the radiation transmitted through or re- flected from the material. All interactions of radiations with materials lower the energy or remove part of it from a beam. Thickness of a material, density, atomic number, and atomic structure have different effects on different radiations. Much can be learned re- garding these properties by observing the manner in which they absorb or reflect radiation. The principal uses are industrial radiography, thickness and density gaging, and analysis by radiation penetration. Other important uses in- clude liquid level gaging and other applications where an object is revealed by its effect on a beam of radiation, as in industrial sorting and packaging operations. Radiography took a great stride forward when strong sources of gamma ray- emitting isotopes such as cobalt 60, iridium 192, and cesium 137 became available. Previously industry was de- pendent on X-ray machines and radium as sources of gamma radiation. Radioisotopes do the same job and are cheaper, more adaptable to testing of specific materials, convenient to use, and do not require electricity. Even small foundries can now maintain radiographic inspection of their castings. Inspection teams can move along a new pipeline in the field radiographing weld after weld in rapid succession. Radiographic techniques are employed for the critical inspection of containment vessels, piping, and other components for reactors. Radio- graphic testing of numerous materials results in a safer and higher quality product. Over 500 firms are now employing radioisotopes in industrial radiography. Radioisotopes are fulfilling another long -felt need in industry through their ability to give rapid 13 information on thickness and density of a material. The beta -gage, employing beta particles from radioisotopes, is the most commonly known device for this purpose. Beta -gages are now completely established as a routine thickness monitoring in- strument, especially in sheet processing industries with products such as steel, aluminum, and other metals, plastics, paper, cloth, rubber, cigarettes, adhesive tape, and floor covering. A great advantage of radioisotope gages, in addition to their convenience and accuracy, is their ability to measure a material without con- tact. Swiftly moving strips of delicate and perhaps still moist or sticky product can be measured, where formerly production machinery had to be stopped while the strip was measured. In the manufacture of coated abrasives, for example, one company has been using a series of five beta gages in one production process. Gamma ray gages are also used to measure thickness or density of products such as foam rubber, steel, asbestos, ore suspensions, and ice cream. There have been developed reflection type gages which take advantage of the backward scattering of radiation. They require only one side of a mate- rial to be accessible; radioisotope, source, and detector are mounted side by side. Beta -ray re- flection gages measure paint film to within a ten- thousandth of an inch. Gamma -ray reflection gages allow routine monitoring of pipe or tank wall thickness for internal corrosion, logging the types of strata in an oil-well bore, and measurement of soil density. Level gages also find wide application in in- dustry where liquid and solid levels must be measured and controlled in process vessels and tanks. These gages are ideal for this purpose be- cause they may be used outside of the vessel and, therefore, are not subject to the extreme operat- ing conditions of temperature, pressure, and corrosive chemicals. The use of these gages naturally leads to auto- matic control of the processing equipment. Such automation is now fairly well established in the production of adhesive tape, steel strip, rubber sheet, paper, plastic calendering and cigarettes. Radiation Affects Materials The use of radiation to affect materials is the least exploited at present but it is expected to play a large role in the future. Although radiation can have many different effects on materials, these effects all result from ionization or excitation of atoms or molecules. Examples of present day uses include static elimination; excitation of phosphorescent light sources; voltage production; destruction of bacteria in foods and drugs; activa- tion of chemical reactions; polymerization and deg- radation of organics; and alteration of material strength and conductivity. Atomic radiation ionizes most of the materials it strikes. This property can be put to many beneficial industrial uses. For example, static electricity is a menacing problem to production and personnel. Radioisotopes help meet this problem by ionizing the air at selected points along the moving stock and thus "grounding" the static electricity. The electron tube industry also is profiting from the ionizing ability of these peacetime atoms. A small amount of a radioisotope inside certain specialized tubes keeps the gases in a partial state of ionization which makes the tubes operate more dependably. Luminescence, an effect of radiation on special phosphor materials, provides self-luminous mate- rial for safety marking in aircraft, mines, and public buildings; for low -level illumination, and for standard light sources. Voltage production is another application of radiation which affects materials. This extremely small but direct conversion of radioactivity to electricity is attracting much attention. Several types of radioisotope batteries have been de- veloped which operate on different principles. Such batteries produce extremely minute amounts of current but are very useful; for example, in electronic circuits where long-lived, stable sources of potential are required. The recent availability of high levels of radia- tion from radioisotopes, fission products, spent fuel elements, reactors and particle accelerators provides another new experimental tool for in- dustry. In the past, heat and catalysts have been used to promote chemical reactions. Radiation is a new way of adding energy to a system. Its possible future applications will be limited only by the amount of effort exerted toward developing new and practical uses. Long -chain polymers show marked changes in properties after irradiation. Radiation initiates cross -linking between neighboring molecules of a polymer. Side -chain bonds are rather easily broken by radiation and immediately join with similarly opened bonds in adjacent molecules. A quite-rigid, three-dimensional structure is formed, having different strength, heat-resistance, and other properties than the original. For example, ordinary polyethylene melts at about 100° Centigrade, but after irradiation may with- stand a constant temperature of 125° Centigrade and even temperatures of 200° Centigrade for short periods. In addition, the irradiated plastic will resist chemical agents such as soaps, detergents, oils, acids, and alcohols which would affect the non -irradiated form. While radiation from radio- isotopes may not compete with present commercial methods of producing many polymers, its ability to polymerize and cross -link without additives will yield special materials neither possible nor practical by other means. 14 The petroleum industry is experimenting with radiation to crack hydrocarbons and reform the resulting molecules into such products as gaso- line, various lubricants, and chemicals. This vast unexplored field has great potentialities. Vulcanization and curing of elastomers and plastomers using applied radiation is yielding en- couraging results. Rubber has been vulcanized by radiation but commercial application will depend on a relatively inexpensive source of radiation. Preservation of foods is another outstanding application of radiation effects. Although still in the developmental stage commercial feasibility is predicted. Radiation in large enough doses can destroy harmful bacteria and enzymes in a mate- rial without raising its temperature significantly. The necessary radiation doses cause unwanted changes in taste and color in certain foods, but others are quite uncharged and offer great com- mercial possibilities. Among the potential applications may be mentioned preservation of meat, poultry, fish and bread, killing of trichina in pork and insects in grain, inhibition of sprout- ing and spoilage in stored onions and potatoes, and extending shelf life of canned meats and vegeta- bles. While a good estimate of food preservation costs cannot be made yet, it appears to be in the neigh- borhood of 1 to 7 cents a pound. Future costs will depend largely upon the feasibility and economics of obtaining large usable quantities of radiation from nuclear reactors, from waste fission -prod- uct isotopes or from spent reactor fuel. It is not expected that applied radiation will suddenly re- place other methods for preserving food, but in certain instances, it may well be used as a sup- plement to heat sterilization, refrigerated storage, antibiotics, and other methods of food preserva- tion. Sterilization of drugs and other medical sup- plies seems to present fewer problems than that of food. Side effects (such as texture and color changes) are not as important and radiation proc- essing can assure "guaranteed" sterilization while avoiding disadvantages of high-presure steam sterilization. Experimental facilities indicate that operating costs would compare favorably with present ones. The early reluctance of industry to use radio- isotopes has generally disappeared, largely as a result of the informational and training activities of the Atomic Energy Commission, industry, and educational institutions. The excellent safety record of government and private enterprise in atomic energy speaks for itself. This record has been achieved only by a continuing study of factors relating to radiological protection and the estab- lishment of guides and standards for the safe use of radioactive materials. Because a potential radiation hazard exists in using radioactive materials, the Atomic Energy Act of 1954 contains provisions relating to radia- tion protection both for the users and the general public. For this reason the possession and use of radioisotopes (byproduct material) are governed by a Federal control program of licensing, regu- lations and inspection. Federal regulations governing the licensing of byproduct material have been published in the Federal Register, Title 10, Part 30. Radiation protection regulations also have been published in the Federal Register, Title 10, Part 20. The Federal Register is the official means by which notice of Federal Regulations is given. It is believed that these regulations wil provide the "ground rules" for future expansion of indus- trial applications of radioisotopes by assuring adequate production for users and for the public without retarding the growth of peaceful uses of atomic energy. The total economic value of isotope utilization is very great because of: (1) Time saving of personnel in basic and tech- nological research; (2) Increased speed in acquisition and practical application of knowledge; (3) Savings of material, time and labor in manufacturing; (4) Improved performance and durability of manufactured goods; (5) Experience toward broader participation in civilian uses of atomic energy. Increased speed in gaining knowledge depends on the application of new powerful research tools like radioisotopes which can obtain results more directly than older methods. The time of scientific and technical personnel, which is at a premium today, is not only conserved but can be devoted sooner to solving new problems. The vast amount of work with radioisotopes in all fields has built up a body of knowledge much of which could not have been obtained by other means. Hundreds of radioisotope applications in in- dustry are directed at economy in manufacturing and product improvement. Radiographic inspec- tion not only prevents damage and waste from product failure but permits economy in construc- tion materials. An excellent foundation has been laid for indus- trial firms desiring to exploit the potential benefits of isotope utilization. Today we have almost un- limited availability of most radioisotopes and there is assurance that the supply will be dependable. Costs of reactor radioisotopes in general do not hinder usage. In fact, as the number of users in- creases, costs will become even less. Government and private organizations are in- creasing the training of scientists and engineers in all phases of atomic energy utilization to meet the needs of this expanding program. Private industry may be justly proud of its success in realizing the benefits of radioisotope utilization during the scant decade in which these 15 reactor byproducts have been available. A firm foundation has been laid for successful exploitation of future opportunities. Radioisotopes may ulti- mately be the most rewarding use of atomic energy. Mr. Edwards introduced Mr. U. M. Staebler, Chief, Civilian Power Reactors Branch Division of Reactor Development, U. S. Atomic Energy Com- mission. REACTOR DEVELOPMENT FOR CIVILIAN POWER PURPOSES MR. STAEBLER stated that all States had felt the influence of the atomic energy industry. The supply of instruments and equipment to atomic energy installations is of major proportions. Atomic energy, he said, may be the largest new factor affecting State economics. The influence of the industry will continue to grow and become more and more a factor in State planning for economic development. The source of nuclear reactor energy is a fis- sion process. This is the splitting apart of atoms to yield energy and atomic fragments. The atomic reactor is a device to sustain and control the fis- sion process. The reactor consists of three major components: A fuel source, U235 (the only natural source); thorium, or plutonium (both of which are manmade and are products of reactors); a moderator mate- rial to slow up the reaction, but which does not absorb neutrons (heavy water, Beryllium, graphite); and a coolant which will not absorb neutrons (heavy water, organic materials, liquid sodium). Other components are a controller material to absorb neutrons and to control or stop the reaction; and shields for protection against radiation. While the phase of nuclear energy application which will be most important for commercial de- velopment is still unknown, the conversion of nuclear energy to electrical energy is expected to be an important development. The objective of the AEC Civilian Power Reactor Program is to achieve economic nuclear power production as early as possible. Hundreds of reactor types, capable of producing heat for conversion to electric power, are possi- ble because of (a) the alternative materials availa- ble for use as fuels, moderators and coolants; (b) the range of possibilities from a system com- pletely heterogeneous system to one completely homogeneous; and (c) the variation of neutron energies possible. One of the most difficult problems in planning the civilian power reactor development program is the selection of reactor types. Selections are based upon available technology. The AEC philos- ophy is to build experimental reactors, to ad- vance reactor technology and to stimulate its application by private industry. Three programs have been developed. One is the Government - financed program of building experimental reac- tors. Another is the privately financed reactors licensed by AEC. The third is the power demon- stration program; with joint Federal-private financing. AEC incentives to private development include rapid tax amortization and research and development contract assistance. There are several kinds of reactors which hold promise for development. Reactors can be clas- sified on the basis of the process and components used in converting the nuclear energy to electrical energy. There are the thermal reactors, designed to utilize the heat generated by the fission process, the Pressurized Water Reactor, the Boiling Water Reactor and the fast Breeder Reactors. Other types are the homogenous reactor, in which all components are in aqueous solution, and the heterogenous reactor, which uses fabricated com- ponents. The first large scale (50,000 KW) nuclear power plant is the Pressurized Water Reactor now under construction at Shippingport. The chief reason for selecting this type reactor for this plant was that the necessary technology was available. Another reactor of this type will be built in Massachusetts under the power demonstration program by the Yankee Atomic Electric Company. Consolidated Edison of New York will also build a Pressurized Water Reactor under an independent industrial program. Since high pressures are needed in this type of reactor, problems have developed in the design of vessels and heat exchangers. The Boiling Water Reactor does not require a heat exchanger, and lower pressures can be utilized; this permits elimination of one step in the process, and permits higher thermal efficiency. Several experimental boiling water reactors are in operation. The reactor at Argonne National Laboratory (ARBOR) is of this type and only re- cently went into operation. A similar reactor will be constructed in Minnesota under the power demonstration program. Independent industrial programs for boiling water reactors are planned for Dresden, Illinois by Commonwealth Edison Company and at Livermore, California, by General Electric and Pacific Gas and Electric. The tech- nology behind these reactors was developed in a series of experimental reactors constructed at Argonne and at the National Reactor Testing Sta- tion in Idaho. These experiments are continuing. Considerable progress has been made on the Sodium Thermal Reactor. Liquid sodium is used as a coolant and graphite as a moderator. Much higher temperatures are possible without high pressures. A higher thermal efficiency is attaina- ble without a large increase in cost. Design prob- lems must be worked out— problems involving separation of sodium from the water, graphite, and uranium, as well as shielding the sodium from 16 radioactivity. Sodium reactors, however, are under construction in California, Nebraska, and Alaska. A sodium-heavy water reactor is planned in New York. Experimental aqueous homogenous reactors are in operation at Oak Ridge and Los Alamos. In these reactors the fuel is dissolved in a liquid moderator and is circulated with the coolant. Thus, the components within combine to form a liquid mixture. Reactor design is mechanically simple and a high degree of nuclear stability makes for safety. Also, there is good possibility of continu- ous breeding of thorium -uranium fuel as fission products. Wolverine Electrical Cooperative will construct a homogenous reactor under the demon- stration program; Pennsylvania Power and Light Company will construct a plant as an independent project. The difficulties encountered in experi- mental homogenous reactors have been largely in containing the radioactive and corrosive solution in a high pressure plumbing system. This draw- back lies exclusively with failures in construction and materials used therein and not with the reactor design itself. The Fast Breeder Reactors are unique in that they produce more fuel than they use. Experi- mental breeder reactors are in operation at Argonne National Laboratory and Idaho Testing Station. Liquid metals are used as coolants and several fuel cores are being tested. At Los Alamos, experiments are underway utilizing molten plutonium as fuel. Problems have de- veloped with design of fuel elements and nuclear instability of the fast breeders. A fast breeder reactor plant will be constructed in Michigan under the demonstration program by Detroit Edison Company. The Liquid Metal Fuel Reactor uses uranium dissolved in molten bismuth. Developed mostly at Brookhaven National Laboratory, the reactor holds considerable promise as an economical source of heat. It has a great range of nuclear flexibility that should permit use of liquid metal fuels in a variety of reactor types and sizes. Experiments on the design, fabrication, and operation of a Gas -Cooled Reactor are being carried on at the Idaho Testing Station, while components are being tested in several other laboratories. This reactor is expected to meet many military needs. The City of Holyoke, Massachusetts, has planned a gas -cooled reactor for civilian power to be constructed in 1961. Other advanced design studies utilizing heavy water and natural uranium are being conducted at the Savannah River Plant. If successful, the pos- sibilities of doing away with the requirement of enriched fuel will bring the day of economic nucle- ar power much closer. Experimental work is underway on the feasibili- ty of recycling plutonium in thermal reactors. Construction of a thermal reactor using recycled plutonium moderated with heavy water is planned for the future. Many other organizations have announced plans for constructing nuclear power plants, but have not specified the reactor types or size. No one really knows what the rate of growth of the nuclear power industry will be in the United States. In the long run it will grow on the basis of ability to compete economically with other ways of producing power. However, nuclear power has not been demonstrated to be economically competitive today. On the other hand, we can expect nuclear power costs to be higher than power produced by conventional fuels. Experience with operating reactors can lead to rapid improvements in per- formance and reduction in costs of nuclear power. Operating costs may be lower in the future, but this is not certain. The United States is richly endowed with fossil fuels compared to many parts of the world. Even in the United States these materials should perhaps be conserved for chemical and metallurgical proc- esses and for transportation. Other countries— because of different economic situations and incentives and lack of conventional fuels— can be expected to instal larger amounts of nuclear power-generating capacity than the United States. Accelerated programs of this type in other countries could complement our own efforts if we lend assistance in the engineering and installation of multiple plans based upon our own domestic development program. The AEC is supporting what is believed to be a broad base of nuclear power technology. The agency is spending at a rate of $ 100 million a year in our power reactor development program. Private industrial expenditures will approach the rate of about half that of the AEC. It would not be surprising if a nuclear power industry with a capacity of 100 million kilowatts should emerge by 1980. Such a capacity would demand expenditures in the tens of billions of dollars during the next 20 years. Mr. Edwards then introduced Mr. Charles G. Manly, Chief, Commercial Development Branch, Division of Civilian Application, Atomic Energy Commission. SUPPORTING FACILITIES FOR CIVILIAN REACTOR POWER PROGRAM MR. MANLY described the basis processes of the atomic energy industry. They include mining; milling; processing; production; use of the basic materials — uranium, thorium and plutonium; the manufacture and operation of nuclear reactors — the new machine around which this industry is growing; processing and use of reactor products, such as heat and radioisotopes; the manufacture of 17 equipment:, and such special materials as zirconi- um, used in making the reactor; and services re- quired by the chemical processing of reactor fuels. The industry may be divided into three natural groupings of activities: nuclear fuel cycle; the manufacture of reactors as well as the equipment and special materials required to build them; and those activities which make use of reactor prod- ucts. The Enriched Uranium Fuel Cycle Any chorough discussion of the fuel cycle is necessarily quite complex. For example, there are two basic source materials — uranium and thorium— each of which can be used in either normal or enriched concentrations (a term used to indicate that fissionable material content has been increased). In some cases it looks as if uranium with less than the normal content of fissionable material will also be used; this is called depleted material. If nuclear power plants are competitive with coal- and oil-fired power plants, the cost of nuclear fuel probably cannot exceed 3 mills per kilowatt hour in cost. This can be translated into dollars by assuming that a nuclear power plant totaling 1 million kilowatts can be operated at a 60 percent load factor. The initial fuel for this power plant will cost about $75 million. The reactor will use uranium oxide fuel enriched to about 1.5 percent in U235 (the fissionable isotope of uranium) and presumably will get about 60 million kilowatt hours of electricity per ton of uranium in the reactor. The annual fuel bill for this hypothetical nuclear power plant would be $16 million. So, for every 1 million kilowatts of in- stalled capacity, the nuclear fuel industry can ex- pect to collect an initial $75 million and about $16 million a year thereafter from reactors of this type. These are rough figures which would differ with different types of reactors. Where possible, estimates are based on actual costs, where appro- priate—plus estimated costs for the balance. At the present time actual costs may be double the estimates used. This has economic significance to the nuclear fuel industry. The enriched uranium fuel cycle starts in a commonplace fashion with uranium mining in the Colorado Plateau area. Exploration for uranium is somewhat unique because radiation detection instruments are a necessity. The mining itself uses conventional methods and equipment. A mil- lion kilowatt power plant will require the mining of between 250,000 and 1 million tons of ore, de- pending on the grade. This is necessary to fill up the pipe line, and it is also needed for the initial loading of fuel in the reactor. Between 35,000 and 140,000 tons a year will be required to keep the reactor running. To remove the bulk of the undesirable materials, the raw ore is put through a milling operation. The ore contains l/8th to 1/2 percent uranium. The mill product contains about 70 percent uranium. The milling processes are conventional— leaching, roasting, solvent extraction and ion exchange. The product is a concentrate in a form dictated by the milling process used. Eleven of the twelve operating mills and all eight of the mills under construction for U 3 8 , one of the better known products, are privately owned. Capacities vary from 200 to 3,000 tons of ore a day. The hypo- thetical nuclear power plant will need from 100 to 400 tons a day per year. The mill products are worth from $6 to $ 12 per pound of contained U 3 8 . In 1956, 3 million tons of domestic ore were re- duced to about 6,000 tons of this crude concentrate. The next step is to separate the pure uranium and convert it to UF 6 , a gaseous compound at slightly above room temperature. There are several ways to accomplish this. All production of uranium hexafluoride, as the gas is called, is done in Government -owned plants. However, the AEC recently awarded a large contract to a com- pany which will build its own plant and produce more than 4,000 tons of uranium (as UF 6 ) from ore concentrates. The UF 6 is required as feed material for the next step — isotopic enrichment. U235, the fissiona- ble isotope of uranium, constitutes only about seven -tenths of 1 percent of natural uranium. To increase the content of U235 in a given quantity of uranium, the UF 6 is pumped through a vast series of porous barriers, on the principle that the lighter U235 atoms will pass through more readily than the heavier U 2 3 8 atoms. In this way, UF 6 is produced in which the uranium contains almost any desired concentration of U235. UF 6 , enriched to 11/2 percent U235, has a value of about $66 per pound. This isotopic enrichment process, accom- plished in three gaseous diffusion plants of AEC is one of the great technical achievements of our atomic energy program. The next step is to re- duce the enriched (JF 6 to uranium oxide. Mining and processing the ore into the uranium oxide needed initially to supply the pipe line and the power plant has cost about $ 58 million out of a $75 million total. To supply the annual require- ments to keep the plants running will require about $ 10 million a year for converting the ore to the enriched oxide. Before the uranium oxide can be used in the reactor, it must be fabricated into fuel elements. These elements must have a number of exception- al characteristics which obviously add greatly to the overall cost. The manufacture of fuel elements involves a wide variety of processes depending upon the individual element. For the hypothetical power plant, about $16 mil- lion will be needed for fabricating an initial supply of fuel elements and only about $ 4 million or so for an annual 90 ton requirement. Present-day costs run 2 to 3 times this amount. Here then is a real opportunity for the company which can de- sign and make a satisfactory fuel element at low 18 cost. Our $4 million must also pay for recovery of uranium from scrap generated in making the fuel elements. The next step is critical for low -power produc- tion. About $14 million has thus far been spent to purchase our annual supply of fuel ele- ments for the hypothetical plant. If this reactor is run for a full year and under the assumptions that 60 percent load factor, well over 5 billion kilowatt hours of electricity would have been pro- duced. To' produce this amount would actually destroy only about 1 1/2 tons of uranium worth about $200,000, and burn up about $2 million worth of U235 atoms in the remaining uranium. Unfortunately, atomic energy is still in an early stage of research and development. It is not pos- sible, for economic reasons, simply to throw away the fuel elements after they have been used. Much valuable uranium remains in them, although that uranium now contains much less U235 than origi- nally, and some of the U 2 3 8 has been converted into a valuable material called plutonium. Fis- sioning the uranium in the reactor has also created a vast quantity of radioactive fission products in the fuel element. An opportunity exists for some enterprising company to discover how to extract these fission products cheaply. There are already many uses for them, with new ones being uncovered. In any event, the value of materials in the irradiated fuel element is great enough to war- rant us taking another new step. The fuel element, which is highly radioactive, must be dissolved and the valuable materials separated and recovered. For the hypothetical plant about $1,500,000 a year can be afforded for this process. This works out to about $ 20 per pound of uranium throughout. At this time the AEC has very limited facilities in which to accomplish this step for the type of fuels used in power re- actors. A real opportunity exists in this field for a company that can develop a process to recover these materials cheaply. The storage of waste fission products is an ex- pensive item and will cost about $250,000 a year. The radioactivity of the fission products lasts for years. The plutonium can be processed further into a useful form and the AEC will pay $12 a gram for it as a reactor fuel. Under the accounting, the cost of recovering it as a nitrate has been charged to the power plant. Under this scheme, the re- actor operator could look forward to some revenue from the plutonium. At the present time plutonium is not used as a reactor fuel. Looking at the fuel cycle from a different point of view, it is obvious that it will in time be characterized by high volume and repetitive opera- tions. But right now it is not. About 600,000 kilowatts of privately-owned nuclear power plants are actually under construction and each uses a totally different fuel material. Plans for about a million more kilowatts have been announced during the last year. Although right now much more than $16 million a year is required to fuel the hypothetical power plant, this is the figure that must be achieved or bettered for any power plant in this country to be economically competitive. There is a great future for companies who can devise ways and means of lowering present day costs to this figure or con- tribute toward the necessary cost reductions. Even the pessimists and the prognosticators are pre- dicting that, beginning in 1962, the installation of nuclear power plants will begin to follow the curve of growth of the electric power industry. For every million kilowatts of new atomic power plants about $75 million will be spent on the initial fuel supply. It is not difficult to predict that by 1962 the nuclear fuel industry will be approaching a volume of several hundreds of millions of dollars a year. Because of the lead time to enter into any new field and become established, now is the time for qualified industry to be making plans. This new industry does not simply consist of nuclear reactors. It is a collection of widely- varied skills and activities already practiced in large extent by a number of different major in- dustries. An atomic energy industry plant may be anything from a chemical plant to a research laboratory, from a boiler shop to an instrument manufacturing firm, or from a metallurgical facility to a nuclear reactor. A point to remember is that location of a single reactor in one State will attract some industries which use reactor products, but a single reactor is unlikely to sup- port the industry necessary to provide fuel or manufacture reactors. Sevice companies of this type must look to broader markets. It is difficult to generalize about the many fac- tors which will influence the future location of plants in this new industry. However, there are some requirements which are common to all of them. The first may well be the availability of skilled manpower because this is no business for the unskilled. All products used in this industry re- quire careful and detailed product engineering and expert workmanship because of the exacting speci- fications required. This is a technical field of high order. Two other factors which may affect locational decisions of a large number of companies in this business are State regulatory activities and public acceptance of atomic energy plants. There are unique potential hazards connected with some atomic energy plants. This is by no means true of all of them. Many are less hazardous than more conventional enterprises already flourishing in your State. Unnecessary fears of the public should not prevent acceptance of this new industry. The attitude which would be most helpful to es- tablish is one of realism, an attitude which neither exaggerates nor minimizes the dangers and 19 opportunities in atomic energy. A proper mixture between regulation and freedom— based on under- standing the true nature of the industry— will do much toward encouraging an atomic energy in- dustry within your States. No person or company need await an invitation to get into the atomic energy industry in the field of peaceful applications. Pursuant to the 1954 Atomic Energy Act some activities need to be licensed, but this is no bar to entering the field. To encourage and assist industry the AEC has published and put on sale thousands of the best technical reports describing the results of our efforts in this field. During the period when some reports must still remain classified for reasons of national security, all of the classified reports con- cerning technology of primary use in civilian activities are on sale to persons holding Access Permits, and having cleared personnel. With but few exceptions, any company doing business in the United States can easily obtain an Access Permit if he believes he needs this classified information. Mr. Edwards then introduced the next speaker, Mr. Lester Rogers, Radiation and Interagency Branch, Division of Civilian Applications, Atomic Energy Commission. AEC REGULATORY PROGRAM MR. ROGERS stated that the Atomic Energy Commission's regulatory program is one in which State agencies have a vital interest, both from the standpoint of promoting the Civilian Atomic Energy Industry within their borders, as well as making sure that such non-beneficial aspects of atomic energy as health hazards are properly controlled. The Atomic Energy Act of 1954 places the responsibility on AEC for regulating through li- censing and inspection all civilian uses of atomic energy. The Commission is charged with assuring that the common defense and security are safeguarded and that the public, including workers, is protected against the potential hazards of nuclear radiation arising out of these activities. Under the Atomic Energy Act of 1946, the Commission exercised these same responsibilities over Commission in- stallations and over the distribution and use of Commission-produced radioisotopes for research, industrial, and medical purposes. To protect common defense and security, Feder- al ownership and strict control of nuclear mate- rials which could be used in weapons of war are of course imperative. A much more complex problem is the control of the potential radiation health hazard to the . public and workers in the industry. This affects not only the materials that could be used in weap- ons, but also the radioisotopes, or so-called by- product materials of atomic energy. The health hazard of nuclear radiation arises from the fact that various types of these radia - tions are in excessive amounts, capable, of harm- ing living things. Radiations are given off in large quantities in the fission process in reactors. Radioisotopes, such as Co 60 , Iodine 131 , Stronti- um 90 and hundreds of other useful ones, give off radiations as they decay to stable materials. As radiation and radioactivity exist in nature, every human being has been exposed to radiation from the beginning of time. The so-called "back- ground radiation" comes from naturally-occurring radioactive materials like radium, potassium, and uranium. These exist in the soil and in the cosmic rays from outer space. All of us have many radioactive atoms of K 40 and C 14 in our bodies. We are also exposed to X-rays for medical pur- poses. The basic hazard is not new. It is the scope of the hazard which has been enlarged. During the 13 years since the Atomic Energy Program began, radiation injuries to workers have been infrequent and the exposure to Atomic Energy workers usually does not exceed that which they receive from natural sources, like radium in the earth and cosmic rays. The total record of radia- tion safety in Atomic Energy operations is be- lieved to be unparalleled in industrial history. Before 1954, there was little need for a com- prehensive regulatory system, because essentially all Atomic Energy activities were under Govern- ment management. The exception, of course, was the widespread private use of radioisotopes in medicine, industry, and agriculture. In enacting legislation, Congress ended Govern- ment monopoly and made it possible for private persons and organizations to own and operate nuclear reactors and other nuclear facilities; to possess and use (though not own) fissionable mate- rial; and in other ways to engage in atomic energy activities on a commercial basis. Under the Act, private enterprise can engage in practically all atomic energy activities except the manufacture of atomic weapons. The role as a regulatory agency was rather new to the Commission. Equally novel were some of the problems that came with this new role. For example, there is no precedent in our economic history for establishing a regulatory system simultaneously with the birth of the industry to be regulated. The problem was, and still is, to convert AEC's experience into an effective pattern of licensing, regulation, and inspection during the formative period of the private industry, instead of per- mitting forms and methods of regulation to grow out of industrial experience. 20 The Commission believes that its regulations, as issued, adhere to a basic principle— that within the limits of assuring protection of public health and safety, they do not impose unnecessary re- strictions upon private participation in the develop- ment of the civilian uses of atomic energy, or un- necessarily interfere with management practices. Enforcement of the regulations is also believed to be practical. Basically, the regulations include such require- ments as: 9 Each licensee or his staff must have suitable training and experience to possess and use the material or facility safely for the purpose for which it is licensed. • Equipment and facilities of each licensee must be appropriate to protect health and minimize danger to life and property. • The location of the proposed activity must be suitable for the purpose. • The material or facility may be used only for a purpose stated in the license. • The material or facility may not be transferred except to persons authorized to receive it. The Commission's regulation 10 CFR 20 "Stand- ards for Protection against Radiation" which was published in the Federal Register on January 29, 1957, establishes maximum limits on radiation in two categories: (1) the permissible limits for exposure to ex- ternal or internal radiation which the licensee may allow for workers under his control; and (2) the maximum permissible levels of radia- tion and maximum permissible concentrations of radioactive material which a licensee may release into the environment or areas not controlled by him. Other provisions prescribe requirements for personnel monitoring, protective equipment, caution signs and signals, storage of licensed material, instruction of personnel on safe pro- cedures, records and reports and permissible methods, and levels of waste disposal. The interrelationships of the Commission's regulatory program with the important interests of the states is fully recognized, and nowhere is this more apparent than in the regulatory actions which deal directly with the health and safety of the people. Hence, every effort has been made to consult fully with representatives of the states on these standards; we shall look forward to further collaboration in revising the standards as ex- perience dictates. In the formulation of steps designed to prevent the catastrophic escape of these highly toxic radioactive materials from reactors, we have the problem of devising a licensing structure for an industry not yet in full being. Because there is fortunately little experience with reactor acci- dents, the normal process of predicting the nature and extent of future accidents on the basis of what has happened in the past cannot be followed. The very fact, however, that many reactors have been operated in the past 15 years without major acci- dent gives us confidence. It suggests that if future reactors are designed by competent persons on the basis of sufficient information and operated with the same degree of care as in the past, then the probability of a major disaster will continue to be remote. The hazards evaluation is the essence of the licensing program. It begins with the design of the facility and continues through construction phases to its completion— even to the modification of existing facilities. The responsibility for making the initial hazards evaluation rests with the scientists and engineers who design the facility. In the consideration of an application for a re- actor license, particular attention is given to the hazards evaluation portion of the application. This is a detailed report prepared by the applicant as he works out his design; in it he tries to anticipate all possible ways whereby radioactive fission products might accidentally be released from the reactor. He then works out steps to prevent such accidents. Despite the elaborate nuclear, mechanical, chemical, electrical and other controls which go into his reactor, the applicant must assume that there still exists the possibility of an escape of radioactive materials from the reactor core. Thus, he must go a step further and consider the pro- posed location of the reactor in relation to this possibility. He reports, therefore, on the loca- tion's hydrological and meteorological factors; the population density and distribution in the surround- ing area; and his conclusions on the type and de- gree of containment necessary, in case of acci- dent, to confine the escaping fission products and prevent their escape to the environs. The application is then subjected to critical re- view and analysis by the Commission's own tech- nical staff. Normally, numerous conferences and discussions are held with the applicant where all aspects of the report are fully considered. More- over, our staff obtains the views of the Advisory Committee on Reactor Safeguards in important hazards matters. On the basis of the application, the Commission will initially determine whether there is reasona- ble assurance that a facility of the general type proposed can be safely operated at the proposed site without undue risk to public health and safety. If the determination is favorable, a construction permit is issued. It is, of course, conditional. It cannot mature into a license to operate until the final hazards report is submitted. This usually occurs when the project is completed, and the Commission has determined that the facility (as designed, actually constructed and is to be oper- 21 ated) will pose no unreasonable risk to public health and safety. If, as design work proceeds, more information is gathered and necessary experiments are con- ducted, the reactor should prove unsuitable for operation at the particular site, the Commission could not, of course, convert the construction per- mit into a license to operate. This, in more-or-less summary form, is the procedure AEC follows to assure, first, that every reactor is as safe as present-day knowledge of the art can make it, and, second, that if an accident does occur, every reasonable line of defense has been provided to contain it. The hazards evalua- tion process is complex, intensive, and extremely technical. Throughout the course of construction, frequent inspections are scheduled and as a final step be- fore conversion of the construction permit into a license to operate, the reactor is inspected under operational conditions. Similar considerations are given to the hazard evaluation on applications for byproduct materials. The applicant must present information which demonstrates with reasonable assurance that the manner in which the material will be used will not present a health hazard to the public. The licensee must comply with the standards established in the Commission's regulation "Standards for Protec- tion against Radiation," and any other special con- ditions of his license. The Commission is fully aware that the States have a vital interest in this new industry coming within their borders. This interest has been demonstrated by the action of such groups as the New England Committee on Atomic Energy, Southern Governors' Conference and others in setting up study groups to make recommendations on the most appropriate course of action for States in this area. Many states have established the State Atomic Energy Commission as the co- ordinating group to evaluate the impact of this new industry upon existing State laws and activi- ties, as well as to coordinate the interest of the many State agencies. The State Health Agencies are particularly interested in the regulatory pro- gram as it relates directly to their field of interests. In recognition of the States' interest, AEC has made a strong effort to develop a close cooper- ative working relation with the appropriate State agencies. A branch has been established within the Commission's Division of Civilian Application to study the problems of State and local agencies in the atomic energy field, to serve as a point of contact for such agencies, and to develop a defini- tive and realistic cooperative program between the Commission and the States. Special effort is being made to keep States in- formed of our licensing activities. We are follow- ing a procedure of notifying governors and appro- priate State agencies, (including the health de- partments) of the receipt of applications for facility licenses and of the action taken on them. Copies of all byproduct and special nuclear mate- rials licenses are also sent States. We encourage a prospective Licensee to contact his State health agencies so that they can assist him and be in- formed of his activities. State agencies can be of material assistance by providing information on local environmental conditions with which they have intimate knowledge. Inspectors from our Division of Inspection routinely invite state health and labor representatives to accompany them on visits to byproduct licensees. In this manner state people will receive valuable training and be- come familiar with AEC's inspection program. The Commission is exploring ways and means whereby the Commission can best assist the States in obtaining further training of needed personnel. The Commission hopes that the States will avoid hasty and unnecessarily restrictive legisla- tion and regulations in the atomic energy field. If duplication of effort, non-uniformity, and possible jurisdictional conflicts are to be avoided it is essential that study and thought be given before the enactment of comprehensive legislation and regulation beyond that provided by the Atomic Energy Act of 1954. The Commission has pro- ceeded cautiously in this field after the most intensive study and evaluation of each proposed regulatory measure. We hope the States will also proceed cautiously in this field. If they find it necessary to regulate, we hope that the criteria and standards they pre- scribe will follow those which the Commission has developed in cooperation with the States tnemselves. Unless AEC and the States can find a way to de- velop an integrated program in this field, the atomic energy industry may find itself faced with an almost infinite variety of standards which at worst could create a real threat to its full-scale development, and at best could result in un- necessary conflict and confusion. Discussion In reply to several questions from the floor, Mr. Rogers stated that only 4 States had enacted State regulatory legislation; New York, Texas, Pennsyl- vania and California. He recommended the States should go very slowly and study thoroughly any proposed legislation. They should work closely with AEC in developing comprehensive legislation. AEC is now working closely with State Health De- partments in checking and coordinating AEC con- trols. MR. MILLER, Tennessee, stated he would like to add indorsement to the States' taking action. The States will have to reevaluate existing regulations on transportation of materials, pollution controls, workmen's compensation laws, and many others. ASPDA should provide leadership in this area and should keep close check on what the State is doing along the lines of regulatory legislation. 22 Mr. Edwards introduced Mr. Carroll A. Towne, Chief of Community Operations, Atomic Energy Commission, to the members. Mr. Towne, said MR. EDWARDS, is well-known in planning circles and would be particularly helpful to members of ASPDA in solving any problems arising in con- nection with planning and zoning for atomic energy installations. Mr. Preston then introduced Secretary of Com- merce Sinclair Weeks. SECRETARY WEEKS stated that he welcomed the opportunity of speaking for a moment, and was very happy that the nation- wide activity in planning for economic development has come into focus in the U. S. Department of Commerce. This activity, he said, has been of great personal interest through his association with the experience of Manchester, New Hampshire. When the Amoskeag Mills closed in Manchester a very difficult situation was created. Manchester was a one -industry town, but went on to do a good job attracting new and diversified industry. We are learning much about this problem and feel that the Federal Government should be able to do something about it. The fact that members of the various State agencies attend these meetings indicates confidence in the fact that there are essential tasks ahead for the State and Federal Governments. Thursday Afternoon THE FEDERAL HIGHWAY PROGRAM Mr. Randall Klemme, Oklahoma, presided over the afternoon meeting and introduced Mr. Bertram Tallamy, Administrator, Federal Highway Pro- gram, Bureau of Public Roads. The Federal Highway Program, MR. TALLAMY said, will have a tremendous impact on the U. S. economy in the future. The 13-year program in- volves expenditure of 25 billion dollars for the construction of some 40,000 miles of highways. Now, at the beginning of the program, is the time for planning agencies to take advantage of the op- portunity offered by this program to further the orderly development of both rural and urban areas adjacent to the highways. The modern express all-purpose road has proved to be a great stimulus to industrial and commercial development. An excellent example is the New York Thruway. Land values along the right-of-way have increased steadily. In one in- stance, the value increased from $7,000 to $10,- 000 an acre, and the same plot was sold recently for $23,000. The main reason for this great in- crease is that industry has sought sites along the highway. Mr. Tallamy cited an example of economic im- pact in a local area— a small village in the Mohawk Valley. The village had started as a canal town; it later became a railroad town. The village growth had stagnated— hemmed in by physical barriers, the river, and the railroad. The New York Thru- way required 400 to 500 feet right-of-way, which, because of terrain problems put the road through the center of the town and almost completely de- stroying it. Many townspeople actively opposed the highway. However, the community soon real- ized there was no alternative; the highway would have to be built through the town. Acting on the suggestion of the Thruway Authority, the town offi- cials obtained planning advice and used this oppor- tunity to make a new plan practically to relocate the town. The help of the local Chamber of Com- merce was enlisted to help sell the idea to local residents. The new plan was successfully executed. The village was moved and rebuilt with an orderly ar- rangement and balance of land use. New businesses and industries were attracted to the community; in a few years the town debt was paid off and the tax rate lowered. The desirability of an express highway location for industry is illustrated by the recent instance in which General Electric insisted upon knowing in ad- vance the location of a new proposed highway. It was essential to the successful operation of the plant and, accordingly, the exact location of the highway had to be known before the plant could be located. Every state with new express highways has had similar experiences. The inherent efficiency of the new toll roads has made adjacent land much sought- after for industrial and commercial sites. One New York trucking firm reported that in 2 years opera- tion on the thruway its insurance costs were de- creased by $50,000. During the same period it paid out tolls of only $48,000. Gas and oil expenses were sharply decreased, and more tires were sal- vaged by recapping. The firm was able to use lighter tractors at less cost, which also increased pay load by 1500 pounds. Mr. Tallamy stated that several cities in the state of New York had been successful with indus- trial park developments along the thruway. Because of the new highway program, new indus- trial and commercial development will be located away from urban areas, thus making them more desirable for residential use. Lower land costs, room for expansion, convenience for commutors— these will continue to be large factors encouraging decentralization. Even the satellite community is now more expansive, congested, and less attractive as a location for industry. The rapidity of these developments emphasizes the need for rural area zoning and building codes to prevent development of rural slums. Care should be taken not to preempt land along railroads just because right-of-way clearances 23 can be obtained. Also, shopping areas should re- ceive special attention in grade separation and cut- ting off part of the trade area. There will arise many technical problems allied to industrial and commercial development. Discussion In reply to questions from the floor, Mr. Tal- lamy said that the highway program would benefit the State turnpikes. First, no parallel routes will be built that might jeopardize financing of existing turnpikes. Also, short links may be constructed to tie the turnpikes into the interstate system. Secondly, the turnpike will benefit from traffic be- ing diverted from congested highways to new, im- proved roads. Further, the new urban highways will aid in re- j>j"enating downtown areas. The urban links, which will clear blighted areas, can be fully integrated with urban renewal plans. The determination of access points is primarily a state responsibility, but joint boards will review alternative routes and access points. Legislation on control of billboards along the routes is now under review. It calls for control of adjacent land extending 500 feet from the highway. Thruway authorities try to regulate advertising by purchase of easements on right of purchases, or through agreements with advertising agencies. This does not guarantee full protection, but it has been effective on some routes. Mr. Tallamy said he expected that local realtors would be most cooperative and did not anticipate any problems to develop between realtors and highway engineers. In his experience, he said, highway engineers had usually welcomes and fully considered the views of local realtors. Highway structure design techniques have been developed that give full consideration to esthetic values. Engineers now try to make the highway interesting. Cost is still a problem, but a wide variety of designs are available. Mr. Klemme introduced Mr. Kenneth F. Mc- Clure, Office of the General Counsel, U. S. De- partment of Commerce who summarized the ma- jor provisions of the legislation introduced to as- sist labor surplus areas. FEDERAL AREA DEVELOPMENT LEGISLATION MR. MC CLURE stated that 2 area assistance bills have been introduced in the current session of Congress, the Area Assistance Act of 1957 (S.1433) (the Administration Bill) and the Area Re- development Act (S.964) (the Douglas Bill). Sever- al counterpart bills have also been introduced in the House of Representatives. The purpose of the proposed legislation is to assist areas of substan- tial unemployment and underemployment in pro- viding new job opportunities through a program of financial and technical assistance. A major difference between the two bills is that the Administration Bill lodges the responsibility for the program in the U. S. Department of Com- merce, and the President appoints, with approval by the Senate, an Area Assistance Administrator. The Douglas Bill creates a new independent Area Redevelopment Administration. The provisions of the two bills are as follows: AREA ASSISTANCE ACT OF 1957 (S.1433) Definition of Area Eligibility Loans and technical assistance grants available to labor market areas in which the unemployment rate is (a) currently 8 percent or more, adjusted seasonally, and (b) has been at least 8 percent for the major portion of each of the preceding two years. Technical assistance is available to other areas of need. Financial Assistance— Industrial Facilities Loans available for (a) preparing land for indus- trial use; (b) constructing new factories; (c) mod- ernizing old factories. No loans for working capi- tal or for purchase of machinery and equipment. A revolving fund of $50 million to be established for these purposes. Financial Assistance— Community Improvements Amends Title I of the Housing Act of 1949, as amended, to make the aids authorized under the Urban Renewal Program available to a certified labor surplus area. Ordinarily under the Act, project areas are required to be redeveloped pri- marily for residential use; but under the Amend- ment, such redevelopment would be permitted for industrial and commercial uses. Housing and Home Finance Agency is directed to give first priority to applications from certified labor surplus areas for Federal aid in financing needed public facilities under Title II of the Hous- ing Amendments of 1955. Provides for direct planning grants under Sec- tion 701 of the Housing Act of 1954 to counties, cities, and other municipalities of 25,000 or more situated in certified labor surplus areas. Technical Assistance Grants authorized for technical assistance in- cluding studies evaluating the needs of, and devel- 24 oping potentialities for, economic growth of labor surplus areas. $1,500,000 annually is authorized for technical assistance grants. Non-grant technical assistance is available to all areas. Loans and Grants Specifications and Limitations Industrial and Related Loans 1. Must be reasonable possibility that assist- ance will lead to lasting improvement in local eco- nomic conditions. 2. State approval of project required. 3. Funds for project not otherwise available. 4. There must be a reasonable assurance of re- payment. 5. Amount of loan plus private and state and/or community funds adequate to insure completion. 6. No loan in excess of 35 percent of aggregate cost (excluding all other sources of Federal funds) nor for longer than 25 years. Interest rate to be determined by Secretary of the Treasury. 7. Not less than 15 percent of total cost be sup- plied by the State or by a local development or- ganization as equity capital; or "as a loan repay- able only after the financial assistance hereunder has been repaid in full . . . ." 8. Proposed project must be consistent with an overall economic development program for the area. 9. Must not rob another labor surplus area or cause substantial detriment to area of original lo- cation. 10. Not more than $50 million in loans may be outstanding at any one time. Coordination With Other Federal Programs Functions authorized by the Act are to be coor- dinated with all other Federal programs affecting local economic conditions. Funds for Program For loan assistance, a $50 million revolving fund to be established in the U. S. Treasury. Annual appropriation of $1,500,000 for technical assistance grants. Annual appropriation for administration of pro- gram. Other Provisions PROCUREMENT. -No new procedures specified. RURAL DEVELOPMENT. -Provides technical assistance to rural areas and rural communities in their efforts to develop manufacturing, process- ing, and service activities. SPECIAL LABOR FORCE STUDIES. -Secretary of Labor may undertake special studies of charac- teristics of labor force in certified areas. SURPLUS FOOD. —No new procedures specified. TAX RELIEF. —No new procedures specified. UNEMPLOYMENT COMPENSATION. -No new procedures specified. VOCATIONAL TRAINING. -Secretary of Labor to provide advice and technical assistance in de- veloping and carrying out a program to increase employment of local labor force. Secretary of Health, Education, and Welfare may provide as- sistance (financial and otherwise) for vocational training to the State vocational education agency. AREA REDEVELOPMENT ACT (S.964) Definition of Area Eligibility Loan, grant and technical assistance limited to industrial redevelopment areas where (1) at least a 12 percent unemployment rate has existed for at least 12 months; or (2) areas where at least 8 per- cent have been unemployed for at least 15 out of 18 months, or (3) 6 percent for 8 months in each of 2 succeeding years; and to rural redevelopment areas having the largest number and percentage of low-income families and meeting other general conditions. State and Local Responsibilities Administrator appoints local redevelopment committee of at least 7 residents to prepare plans and cost estimates. Loan assistance can be extended by the Adminis- trator with or without State approval. Financial Assistance— Industrial and Commercial Facilities Loans available for: (a) purchase or develop- ment of land for industrial use; (b) construction, rehabilitation or alteration of industrial plants or other facilities; (c) purchase of machinery or equipment. A revolving fund of $100 million to be estab- lished for loans in industrial redevelopment areas and $100 million in rural redevelopment areas. Financial Assistance— Community Improvements Administrator may make loans or grants to fi- nance land and/or construction of public facilities. Revolving fund of $75 million to be set up for loans for public facilities. $50 million may be appropriated annually for grants. Housing and Home Finance Administrator is au- thorized to use slum clearance and urban renewal projects in Redevelopment Areas for industrial and commercial rebuilding without regard to require- ments of existing law that project area be pre- dominantly residential in character or that it be redeveloped for predominantly residential uses. This is subject, however, to the limitation that not more than 10 percent of the funds authorized under 25 existing law for loans or capital grants tor slum clearance and urban renewal shall be avialable to provide financial assistance under this section. Housing and Home Finance Administrator is au thorized to make urban planning grants for planning in Redevelopment Areas. Technical Assistance Administrator may furnish redevelopment areas with technical assistance and information available withia the Federal government or through contrac - tual arrangements with private individuals or insti- tutions. $4.5 million authorized for these purposes. Technical assistance to non-labor surplus areas not specified. Loans and Grants Specifications and Limitations Industrial, Commercial and Rural Loans 1. Assistance reasonably calculated to lead to lasting improvement in local economic conditions. 2. Funds for projects not otherwise available. 3. Amount of loan plus private funds adequate to insure completion. 4. Project will not cause plant relocation "so as to effect a significant reduction in employment in any other area within the United States; ..." 5. No loan in excess of 75 percent of total cost of project, nor for longer than 40 years. Interest rate: Treasury plus one-half of 1 percent. Ten- year extension possible under Sec. 14. 6. Total loans to industrial redevelopment areas may not exceed $100 million at any one time; to rural redevelopment areas $100 million or $6 mil- lion to any one State, at any one time. 7. State and/or local participation, in a second- ary position, must be not less than 10 percent nor more than 25 percent of the total project cost . . . "shall be supplied by nongovernmental sources." Local participation could be through ... "a loan repayable only after the financial assistance pro- vided under this section has been repaid in full." Public Facilities Loans and Grants 1. Approximately same provisions and limita- tions for public facilities loans as for industrial, commercial and rural loans. 2. Total loans available for public facilities may not exceed $75 million at any one time. 3. Authorizes annual appropriation not to exceed $50 million for grants. 4. Group requesting grant must contribute in proportion to its ability to pay. 5. Project for which grant is made must fulfill a pressing need for the area. Coordination With Other Federal Programs Administrator shall furnish redevelopment areas with technical assistance and information available within the Federal government. Administrator furnishes Federal procurement divisions with names of firms desiring Government contracts. Funds for Program Issue notes and obligations not exceeding at any one time, $275 million ($100 million for industrial redevelopment areas, $100 million for rural rede- velopment areas and $75 million for public facili- ties loans). Annual appropriation of up to $50 million for public facilities grants. Annual appropriation for administration of pro- gram, including $1.5 million for administrative ex- penses of local and regional committees. Annual appropriation for technical assistance $4.5 million. Other Provisions PROCUREMENT. -Governmental departments shall procure supplies and services from labor surplus area firms where practicable. Set asides, bid-matching and other procedures stipulated. RURAL DEVELOPMENT. -Provides $100 mil- lion for loans in rural redevelopment areas. SPECIAL LABOR FORCE STUDIES. -Made at request of Administrator. UNEMPLOYMENT COMPENSATION. -Secretary of Labor, through States, makes weekly retraining payments for 13 weeks to unemployed not entitled to unemployment compensation and who are under- going training for a new job. VOCATIONAL TRAINING. -Secretary of Labor, in cooperation with the Secretary of Health, Edu- cation and Welfare, is responsible for providing suitable training for unemployed. Discussion After Mr. McClure's presentation, it was sug- gested that a digest and copies of both bills be made available to each of the State agencies for study and further consideration. Mr. Roterus said that this would be done promptly. In closing, Mr. Preston thanked those presiding over the sessions, the speakers, and Mr. Robert- son, and the staff of the Office of Area Develop- ment for arranging the program. He noted that the subjects discussed presented a real challenge and an opportunity for ASPDA to guide developments in relatively wide-open fields. The Association, he continued, has appointed standing committees on legislation, publishing, and ways and means. He then called for adjoinment on a rising note of confidence. 26 Appendix A ATTENDEES AT ANNUAL CONFERENCE OF ASSOCIATION OF STATE PLANNING AND DEVELOPMENT AGENCIES WITH FEDERAL GOVERNMENT OFFICIALS Wm. Whipple Abbe Office of Area Development LJ. S. Department of Commerce John D. Abrahamson Office of Area Development U. S. Department of Commerce Dr. Paul C. Aebersold U. S. Atomic Energy Commission Oak Ridge, Tennessee Tracy B. Augur Housing and Home Finance Agency J. E. Baril Florida Development Commis- sion John T. Barnhill Public Health Service U. S. Department of Health, Edu- cation and Welfare Lloyd D. Black Office of Area Development U. S. Department of Commerce R. E. Borden Rhode Island Development Council Robert Stephen Brode Office of Area Development U. S. Department of Commerce David Brown Office of Area Development U. S. Department of Commerce Harry E. Brown North Carolina Department of Conservation and Development J. A. "Buck" Buchanan Wyoming Natural Resource Board W. H. Caldwell Virginia Division of Planning and Economic Development William D. Carlebach New York Department of Com- merce Donald L. Chambers Office of Area Development U. S. Department of Commerce February 27, 28, 1957 Fred A. Clough, Jr. Maine Department of Develop- ment of Industry and Com- merce R. J. Colbert University of Wisconsin Charles F. Daoust Office of Area Development U. S. Department of Commerce J. Harold DeNike Office of Public Information U. S. Department of Commerce Murray Dessel Office of Area Development U. S. Department of Commerce Richard C. Dynes Virginia Division of Planning and Economic Development Fred H. Eaton Office of Area Development U. S. Department of Commerce Sidney A. Edwards Connecticut Development Com- mission John T. Forbes Office of Area Development U. S. Department of Commerce H. K. Francis Alabama Planning and Develop- ment Board Miles L. Frederick Delaware State Development Department W. G. Friedrich Consultant Washington, D. C. R. B. Garrabrant Urban Land Institute Washington, D. C. George Gibson Wyoming Natural Resource Board Warner Hall Public Health Service U. S. Department of Health, Edu- cation and Welfare David K. Hartley Montana State Planning Board Paul Herbert Michigan Economic Develop- ment Department Joseph S. Horan Louisiana Department of Com- merce and Industry Fred R. Jones Vermont Development Com- mission F.obert M. Kerr Office of Area Development U. S. Department of Commerce Richard M. Kinne Missouri Division of Resources and Development Randall T. Klemme Oklahoma Department of Com- merce and Industry Robert L. Koob Wisconsin Division of Industrial Development Theodore J. Langan New Jersey Department of Con- servation and Economic De- velopment Gustav E. Larson Office of Area Development U. S. Department of Commerce George R. Long Virginia Department of Conser- vation and Development C. G. Manly U. S. Atomic Energy Commission L. W. Marsh Minnesota Department of Busi- ness Development G. E. McCallum Public Health Service James McDowell Vermont Development Commis- sion 27 Joseph E. McLean New Jersey Department of Con- servation and Economic De- velopment Maurice Z. Michelman Office of Area Development U. S. Department of Commerce Harold V, Miller Tennessee State Planning Com- mission Prentiss Mooney Ohio Development and Publicity Commission Ivan B. Munch Office of Area Development U. S. Department of Commerce Mrs. Dorothy A. Muncy Industrial Planning Consultant Washington, D. C. Harold J. Newman Office of Area Development U. S. Department of Commerce John H. Nixon New York State Department of Commerce B. F. Nowack Iowa Development Commission Carter Page Corps of Engineers U. S. Department of the Army Theodore Pasma Office of Area Development U. S. Department of Commerce Brigadier General J. L. Person Corps of Engineers U. S. Department of the Army Jerome P. Pickard Board of Trade Washington, D. C. Walter L. Picton Business & Defense Services Administration U. S. Department of Commerce F. A. Pitkin Pennsylvania Department of Commerce Richard Preston Massachusetts Department of Commerce Rober A. Prior Office of Area Development U. S. Department of Commerce Gordon E. Reckord Office of Area Development U. S. Department of Commerce Albert E. Redman Ohio Chamber of Commerce John N. Rentz Office of Area Development U. S. Department of Commerce Edmund H. Robertson Association of State Planning and Development Agencies Lester R. Rogers U. S. Atomic Energy Commis- sion Victor Roterus Office of Area Development U. S. Department of Commerce Andrew V. Ruckman West Virginia Industrial and Publicity Commission Robert L. Rupard International Cooperation Ad- ministration Lawrence A. Schneider Office of Area Development U. S. Department of Commerce Douglas B. Smith Puerto Rico Economic Develop- ment Administration George C. Smith Office of Area Development U. S. Department of Commerce Steward J. Smith New York Department of Com- merce Washington, D. C. (Office) U. M. Staebler U. S. Atomic Energy Commission Frank H. Stedman U. S. Chamber of Commerce Bertram D. Tallamy Bureau of Public Roads SuloJ. Tani Maine Department of Develop- ment of Industry and Com- merce Joseph H. Taylor Kentucky Department of Econom- ic Development Carroll A. Towne U. S. Atomic Energy Commission C. M. Truluck Office of Area Development U. S. Department of Commerce Lee M. Uhl Michigan Department of Econom- ic Development John C. Vance Rhode Island Development Council Frank S. Walshe, Jr. Louisiana Department of Public Works Guy Waterman U. S. Chamber of Commerce Don Weeks Michigan Economic Development Department E. D. Westerman New York Department of Com- merce W. M. Williams Colorado State Planning Com- mission Robert L. Wolf Ohio Power Company Arthur W. Wood Maine Department of Develop- ment of Industry & Commerce Warren Zitzmann Pennsylvania Department of Commerce 28 Appendix B PROCEDURE INVOLVING THE CONCEPTION, AUTHORIZATION AND ULTIMATE CONSTRUCTION OF CORPS OF ENGINEERS' RIVER AND HARBOR AND FLOOD CONTROL PROJECTS Step No. 1. Instigation of investigation by local people who desire navigation or flood control improvements: Local people who desire improvements in the in- terest of navigation or flood control contact their respective Congressmen and Senators with an ap- peal for provision of corrective facilities. Step No. 2. Consultation by Senator or Represent- ative with Public Works Committee: Senator or Representative contacts Public Works Committee of Senate or House requesting that the Committee adopt a resolution calling upon the Board of Engineers for Rivers and Harbors to re- view previous reports in the same area made in the interest of navigation, flood control or allied purposes with a view to determining whether any modifications of the recommendations of the Chief of Engineers contained therein are advisable at the present time with respect to the locality in ques- tion. NOTE : In the event no previous reports have been made on the stream in question by the Chief of Engineers, it would be necessary to have an item included in an omnibus river and harbor and flood control bill or separate legislation authoriz- ing the Chief of Engineers to make a preliminary examination and survey of the stream in question. Step No. 3. Adoption of appropriate resolution by Public Works Committee: If the Committee is convinced of need for a review of reports in the interest of navigation, flood con- trol or allied purposes, an appropriate resolution calling upon the Board of Engineers for Rivers and Harbors to make the review is adopted by the Com- mittee and referred to the Chief of Engineers for necessary action. Step No. 4. Assignation of review of reports by Chief of Engineers: After reference of the resolution to the Board of Engineers, the Chief of Engineers assigns the re- view of reports to the Division and District Engi- neers in whose territory the stream in question is located for a report. NOTE : The Corps of Engi- neers is composed of 10 division offices and 42 district offices, dispersed throughout the nation, each having jurisdiction over one or more major river basins. Step No. 5. Public Hearings: The District Engineer in order to obtain the views and desires of local people holds a public hearing at a locality accessible to all concerned. Local in- terests are afforded full opportunity to express their views concerning the character and extent of the improvement desired and the need and advisa- bility of its execution. NOTE : The orderly prose- cution of the investigation by the District Engineer depends on the availability of the necessary survey funds. Step No. 6. Plan of recommended improvement: The District Engineer after carefully analyzing the data obtained from local interests and that com- piled through extensive field investigations devises a plan of improvement best suited for the area to be improved. Improvements usually consist of channel dredging and clearing to provide greater depths and widths and construction of locks and dams, jetties, and allied improvements for naviga- tion, and reservoirs, levees, and channel improve- ment for flood control. Where feasible, provision is usually made for the production of hydroelectric power and utilization of reservoir storage for water supply and other multiple uses. NOTE : A favorable recommendation by the District Engineer in any case depends on whether or not the benefits to be derived through operation of the plan of im- provement exceed the costs that will be incurred. Step No. 7. Consideration by Board of Engineers for Rivers and Harbors: Upon completion of the report by the District Engi- neer, the Division Engineer having jurisdiction re- views the report and endorses it to the Chief of Engineers for approval of a draft of public notice to be issued by the Division Engineer. The public notice issued by the Division Engineer is mailed to all parties known to be interested in the investiga- tion. It sets forth the findings of the District Engi- neer and his recommendation for improvement of the locality in question. It advises those concerned that they may appear before the Board of Engineers for Rivers and Harbors to present their views in the matter. NOTE : The Chief of Engineers, after the public notice has been issued, refers the re- port to the Board of Engineers for review as re- quired by existing law. However, in the case of 29 favorable preliminary examinations in which the Board concurs, no public notice is issued, and the reporting officers are instructed to make a de- tailed survey. Step No. 8. Hearing by Board of Engineers for Rivers and Harbors: The Board of Engineers, a permanent body sitting at Washington, D. C, is required by law to review all examination and survey reports. The Board holds public hearings if requested by local inter- ests before making recommendations to the Chief of Engineers. Step No. 9. Views of the affected states and Fed- eral agencies: Upon completion of the review of the report by the Board of Engineers and transmittal of the recom- mendation to higher authority, the Chief of Engi- neers refers the report to the Governors of the af- fected states and to Federal agencies, as required by existing law, in order to obtain their views and recommendations concerning the improvements discussed in the survey report. NOTE : The states and Federal agencies have 90 days in which to forward their comments on the report to the Chief of Engineers. When the Chief of Engineers trans- mits his report to the Congress, all comments re- ceived in connection with the report are appended thereto and form a part of the document when it is published. Step No. 10. Transmittal of survey report to Bu- reau of the Budget: When the Chief of Engineers receives the com- ments of all concerned, he refers the report, to- gether with the comments, to the Director of the Bureau of the Budget for a determination as to the relationship of the report to the program of the President. Step No. 11. Transmittal of survey report to the Congress: Upon receipt of the comments of the Bureau of the Budget, the Chief of Engineers transmits his re- port, together with all allied papers, through the Secretary of the Army, to the Congress. This step completes the action required by the Chief of Engi- neers insofar as compliance with the Congression- al resolution or act is concerned. Step No. 12. Congressional approval: The Committees on Public Works of the Senate and House hold open hearings at various times on num- erous reports submitted to the Congress, with a view towards formulating a river and harbor and flood control bill. Comprehensive river and har- bor and flood control legislation usually carries authorization for construction of projects through- out the nation, plus authority for the Chief of Engi- neers to make preliminary examinations and sur- veys at specific localities. Step No. 13. Request for construction funds: In order for the Corps of Engineers to construct the projects authorized in omnibus bills, it is nec- essary to obtain funds from the Congress. All re- quests for funds must be reviewed by the Bureau of the Budget, and if found to be within the President's budget are transmitted to the House Committee on Appropriations for consideration. Step No. 14. Appropriation of construction funds: Upon completion of hearings by the Committees on Appropriations considering the Department of the Army Civil Works Appropriations, a bill is re- ported out of the Committee and referred to both Houses for passage. If the legislation is enacted into law, authority is thereby afforded the Chief of Engineers to initiate construction of the projects contained therein. Step No. 15. Preparation of plans: Before construction of the project is undertaken, plans, specifications and engineering estimates of cost are prepared by the District Engineer. Step No. 16. Invitation to bid: Upon completion of plans and specifications, invi- tation for bids on the proposed improvements are mailed to prospective bidders. Upon determination of low bidder, a contract is awarded to the eligible contractor for construction of the project in ac- cordance with the plans and specifications of the District Engineer. Step No. 17. Initiation of construction of project: After a contract for construction of the project has been entered into by the successful bidder, the con- tractor mobilizes his plant and equipment and un- dertakes the construction of the project. 30 Appendix C DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE Public Health Service Washington 25, D. C. January 1, 1957 THE FEDERAL WATER POLLUTION CONTROL ACT Summary and Preliminary Procedures The new Federal Water Pollution Control Act (Public Law 660, 84th Congress) was approved by the President on July 9, 1956. A supplemental appropriation of $53 million to carry out various provisions of the legislation was approved on July 31. PRINCIPAL PROVISIONS The new statute: 1. Reaffirms the policy of Congress to recog- nize, preserve, and protect the primary responsi- bilities and rights of the States in preventing and controlling water pollution. 2. Authorizes continued Federal -State coopera- tion in the development of comprehensive pro- grams for the control of water pollution. 3. Authorizes increased technical assistance to States and a broadened program of research on water pollution. 4. Authorizes collection and dissemination of basic data on water quality relating to water pollu- tion prevention and control. 5. Directs the Surgeon General to continue to encourage interstate compacts and uniform State laws. 6. Authorizes grants to States and interstate agencies up to $3,000,000 a year for 5 years for water pollution control activities. 7. Authorizes Federal grants of $50,000,000 a year (up to an aggregate of $500,000,000) to assist construction of municipal sewage treatment works. 8. Modifies and simplifies procedures govern- ing Federal abatement actions against interstate pollution. 9. Authorizes the appointment of a Water Pollu- tion Control Advisory Board. 10. Authorizes a cooperative program to con- trol pollution from Federal installations. BACKGROUND INFORMATION ON GRANTS FOR CONSTRUCTION OF SEWAGE TREATMENT WORKS Section 6 of the Federal Water Pollution Control Act authorizes the Surgeon General of the Public Health Service "to make grants to any State, mu- nicipality, or intermunicipal or interstate agency for the construction of necessary treatment works to prevent the discharge of untreated or inade- quately treated sewage or other waste into any waters and for the purpose of reports, plans, and specifications in connection therewith." Section 6 (e) states that: "... .the term 'construction' includes prelim- inary planning to determine the economic and engineering feasibility of treatment works, the engineering, architectural, legal, fiscal, and economic investigations and studies, surveys, designs, plans, working drawings, specifications, procedures, and other action necessary to the construction of treatment works; and the erec- tion, building, acquisition, alteration, remodel- ing, improvement, or extension of treatment works; and the inspection and supervision of the construction of treatment works." Treatment works are defined in Section 11 (c) of the Act as follows: "The term 'treatment works' means the various devices used in the treatment of sewage or /in- dustrial wastes of a liquid nature, including the necessary intercepting sewers, outfall sewers, pumping, power, and other equipment, and their appurtenances, and includes any extension, im- provements, remodeling, additions, and altera- tions thereof." Funds Authorized The Act authorizes an appropriation of $50 mil- lion a year, up to a total of $500 million, for con- struction grants. The supplemental appropriation for the current fiscal year includes $50 million for this purpose. The portion which may be spent in any one State or Territory must be computed on the basis of population and per capita income and their relation to the national population and per capita income. (See page 5 for a list of tentative allotments.) Individual grants under the Act are limited to 30 percent of the estimated reasonable cost of the project or $250,000, whichever is less. The Act requires that at least half of the funds appropriated for grants be used to assist construction of treat- ment works serving communities of 125,000 or un- der. 31 Federal and State Requirements By the specific terms of the Act, six basic re- quirements must be met for a project to be eligible for a Federal construction grant: 1. The project must be approved by the State Water Pollution Control Agency of the State in which the project is located. 2. It must conform to a State water pollution control plan submitted pursuant to the provisions of the Act. 3. It must be included in a comprehensive water pollution control program prepared or developed by the Public Health Service in accordance with the Act. 4. The applicant must agree to pay the remain- ing construction costs. 5. The applicant must make provision for insur- ing proper and efficient operation and maintenance of the project after inspection. 6. The project must be certified by the State water pollution control agency of the State in which it is located as entitled to priority over other eli- gible projects on the basis of financial as well as water pollution control needs. In determining whether a Federal grant should be made, the Surgeon General is required by the Act to give consideration to the public benefits to be derived from the project, the propriety of Fed- eral aid in its construction, the relation of the ulti- mate costs of construction and maintenance to the public interest and public necessity and the ade- quacy of provisions made by the applicant for op- eration and maintenance. Application Procedures Applications for Federal grants must be re- viewed and acted upon both by the respective State water pollution control agencies and the Public Health Service. Public Health Service Engineers in the various Regional Offices of the Department of Health, Education, and Welfare will make the necessary reviews for the Service. Application forms and related materials are available to municipal officials and others con- cerned from State water pollution control agencies and from the Regional Offices of the Department of Health, Education, and Welfare. The following general procedures have been de- veloped for handling applications: The applicant after completing the application form submits it for approval by his State water pollution control agency. The Public Health Service determines which projects satisfy the criteria for propriety of Fed- eral aid and other requirements of the Act. The States determine which of the eligible proj- ects are entitled to priority on the basis of finan- cial as well as water pollution control needs, as required by the Act. Allotment of Federal grant funds among States to assist in the construction of treatment works under provisions Section 6 of the Federal Water Pollution Control Act STATE ALLOTMENTS Alabama $1,150,125 Arizona 566,725 Arkansas 1,047,925 California 2,053,325 Colorado 624,300 Connecticut 628,275 Delaware 350,350 District of Columbia 445,650 Florida 910,775 Georgia 1,137,700 Idaho 576,475 Illinois 1,752,825 Indiana 1,027,400 Iowa 873,075 Kansas 733,550 Kentucky 1,067,225 Louisiana 993,975 Maine 627,125 STATE ALLOTMENTS Maryland _ 750,350 Massachusetts 1,137,125 Michigan 1,389,675 Minnesota 929,450 Mississippi 1,180,375 Missouri 1,059,775 Montana 503,650 Nebraska 661,075 Nevada 325,775 New Hampshire 543,150 New Jersey 1,113,600 New Mexico 631,850 New York 2,749,675 Nortn Carolina 1,270,675 North Dakota 702,575 Ohio 1,653,325 Oklahoma 865,825 Oregon 647,125 STATE ALLOTMENTS Pennsylvania 2,097,650 Rhode Island 520,500 South Carolina 995,100 South Dakota 660,775 Tennessee 1,136,050 Texas 1,716,475 Utah 591,175 Vermont 575,325 Virginia 1,027,450 Washington 755,850 West Virginia 891,525 Wisconsin 971,725 Wyoming 440,375 Alaska 426,525 Hawaii 496,100 Puerto Rico h 1,185,550 Virgin Islands, 830,000 u. PUBLIC HEALTH SERVICE REGIONAL ENGINEERS S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE S. C. Martin U. S. Public Health Service 42 Broadway New York 4, New York C. H. Atkins U. S. Public Health Service 700 East Jefferson Street Charlottesville, Virginia H. W. Chapman U. S. Public Health Service 50 Seventh Street, N.E. Atlanta 23, Georgia D. W. Evans U. S. Public Health Service 69 Washington Street Chicago 2, Illinois G. J. Hopkins U. S. Public Health Service 911 Walnut Street Kansas City 6, Missouri Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont District of Columbia, Kentucky, Maryland, North Carolina, Virginia, West Virginia, Puerto Rico, Virgin Islands Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee Illinois, Indiana, Michigan, Ohio, Wisconsin Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota E. C. Warkentin U. S. Public Health Service 1114 Commerce Street Dallas 2, Texas Edmund Garthe U. S. Public Health Service 19th and Stout Streets Denver 2, Colorado R. W. Hart U. S. Public Health Service 447 Federal Office Building Civic Center San Francisco 2, California Arkansas, Louisiana, New Mexico, Oklahoma, Texas Colorado, Idaho, Montana, Utah, Wyoming Arizona, California, Nevada, Oregon, Washington, Alaska, Hawaii For further information: Jack Durham, Information Officer Water Supply & Water Pollution Control Program, Public Health Service Washington 25, D. C. Executive 3-6300, Extension 5840 57244— U.S. Dept. of Comm— DC— 1957 33 U. S. DEPARTMENT OF COMMERCE FIELD OFFICES SERVE THE BUSINESS COMMUNITY The Department of Commerce maintains Field Offices to enable the business community to avail itself locally of Government facilities designed to promote commerce. Working closely with various units in the Department and, when necessary, with other Government agencies, the Field Offices provide business services to manufacturers, wholesalers, retailers, trade publications, trade associa- tions, advertising agencies, research groups, financial institutions, and exporters and importers. Experienced personnel will gladly assist in the solution of specific problems, explain the scope and meaning of regulations administered by the Department, and provide practical assistance in the broad field of domestic and foreign commerce. Field offices act as official sales agents of the Super- intendent of Documents, and maintain an extensive business reference library containing periodicals, directories, publications and reports from official as well as private sources. Among the many services which businessmen have found of value are: GENERAL • Management and business aids • Establishing a new business BASIC ECONOMIC DATA • Census data, with national and often State and regional breakdowns, on manufacturing, wholesal- ing, retailing, service industries, employment and unemployment, population, housing, agriculture • Basic records of national income and product, regional trends, balance of payments, foreign aid MARKETING AND DISTRIBUTION • Development and maintenance of markets • Distribution channels, facilities and services • Marketing and distribution statistics PRODUCTION • Modernization of plant processes and other tech- nological aids • Development of new products • Government-owned patents for free license • Commodity standards FOREIGN TRADE AND INVESTMENT • Tariff and exchange regulations • Import and export quotas, licensing regulations • Statistics on imports and exports • Investment and trade opportunities abroad • Economic conditions in foreign countries COOPERATIVE OFFICES To make the services of the Department of Commerce more widely available, agreements have been entered into with more than 750 Chambers of Commerce, Manufacturers Associations, and similar business groups under which these organizations have become official Cooperative Offices of the Department. If specific information is not on hand in the Cooperative Office, your problem will be referred to the nearest Departmental field office. Department Field Offices Albuquerque, N. Mex., Post Office Bldg. Atlanta 3, Ga., 66 Luckie Street NW. Boston 9, Mass., Post Office and Courthouse Buffalo 3, N. Y., 117 Ellicott Street Charleston 4, S. C, Sergeant Jasper Bldg., West End Broad Street Cheyenne, Wyo., Federal Office Bldg. Chicago 6, III., 226 West Jackson Blvd. Cincinnati 2, Ohio, Post Office and Courthouse Cleveland 14, Ohio, 1 100 Chester Avenue Dallas, Tex., 300 South Ervay Street Denver 2, Colo., New Custom House Detroit 26, Mich., Federal Bldg. Greensboro, N. C, Post Office Bldg. Houston 2, Tex., 430 Lamar Avenue Jacksonville 1, Fla., Federal Bldg. Kansas City 6, Mo., Federal Office Bldg. For local telephone listing, consult Los Angeles 15, Calif., 1031 South Broadway Memphis 3, Tenn., 22 North Front Street Miami 32, Fla., 300 NE. First Avenue Minneapolis 1, Minn., Metropolitan Bldg. New Orleans 12, La., 333 St. Charles Avenue New York 17, N. Y., 110 E. 45th Street Philadelphia 7, Pa., 1015 Chestnut Street Phoenix, Ariz., 137 N. Second Avenue Pittsburgh 22, Pa., 107 Sixth Street Portland 4, Oreg., Old U. S. Courthouse Reno, Nev., 1479 Wells Avenue Richmond 19, Va., 1 103 East Main Street St. Louis 1, Mo., New Federal Bldg. Salt Lake City 1, Utah, 222 S. W. Temple Street San Francisco 1 1, Calif., 555 Battery Street Savannah, Ga., U. S. Courthouse and Post Office Bldg. Seattle 4, Wash., Federal Office Bldg. section devoted to U. S. Government "smut A00007iefl^3 ?3