[Senate Report 112-15]
[From the U.S. Government Publishing Office]
Calendar No. 38
112th Congress Report
SENATE
1st Session 112-15
======================================================================
ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2011
_______
May 2, 2011.--Ordered to be printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
[To accompany S. 782]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, which
considered the bill (S. 782) to amend the Public Works and
Economic Development Act of 1965 to reauthorize that Act, and
for other purposes, having considered the same, reports
favorably thereon with amendment and recommends that the bill,
as amended, do pass.
Purpose of the Legislation
The Economic Development Revitalization Act of 2011 amends
the Public Works and Economic Development Act of 1965 to
authorize programs of the Economic Development Administration
(EDA) for an additional five years.
General Statement and Background
Established under the Public Works and Economic Development
Act of 1965, the Economic Development Administration (EDA) has
long worked to promote job creation and to accelerate
industrial and commercial growth in communities suffering from
limited job opportunities, low per capita income levels, or
similar economic distress.
Over the past four decades, EDA has established a history
of helping economically distressed communities foster the jobs
and businesses necessary to maintain strong, healthy
communities. Working in partnership with state and local
governments, regional economic development organizations,
public and private nonprofit organizations, universities, and
Indian tribes, EDA provides grants to help communities
establish foundations for sustained economic development.
EDA's work is particularly important today and can be of
significant help to communities in retaining existing jobs and
attracting new jobs. From providing funding for water and sewer
improvements to helping manufacturers and producers become more
competitive in a global marketplace, the EDA provides valuable
assistance to communities across our nation.
By design, EDA investments are targeted to spur large
amounts of private sector investment. Between 2005 and 2010,
EDA awarded $1.2 billion in construction-related and revolving
loan fund projects through its regular appropriations. The
approximately 925 investments are expected to create more than
314,000 jobs, and to leverage large amounts of private sector
investment. Based on past research, each dollar of EDA funding
is expected to attract nearly seven dollars in private sector
investment.
Reauthorization of the EDA will help ensure that the agency
is able to continue investing in and creating jobs in
distressed communities nationwide.
The Economic Development Revitalization Act of 2011 makes
several changes to EDA programs including: changing the current
cost sharing requirements to allow an increased federal share
for areas in which unemployment is especially high and per
capita income is especially low; allowing for increases in the
amount of planning program assistance; modifying the existing
Revolving Loan Fund program to allow recipients to convert an
existing, but no longer needed revolving loan fund, to carry
out another EDA eligible project; and modifying existing
maintenance of effort rules to allow recipients of grants that
are more than 10 years old to buy out the Government's interest
using a depreciated figure based on the project's estimated
useful life.
Section-by-Section Analysis
Section 1. Short title
Section 1 designates the short title of the Act as the
`Economic Development Revitalization Act of 2011'.
Section 2. Findings and declarations
Section 2 updates the findings of the Public Works and
Economic Development Act of 1965 (the Act) to include the
location of information technology and manufacturing jobs in
the United States as one of the means by which communities can
develop a more competitive and diversified economic base.
This section also modifies the Act's declarations to state
that distressed communities should be encouraged to promote the
formation of business incubators, as appropriate, to promote
innovation and entrepreneurship.
Section 3. Definitions
Section 3 adds the Southeast Crescent Regional Commission,
Northern Border Regional Commission, and Southwest Border
Regional Commission established by section 15301(a) of title
40, U.S.C. to the definition of Regional Commissions.
Section 4. Economic development partnerships
Subsection (1) lists economic development districts (EDDs)
and university centers as eligible to receive technical
assistance from the Secretary of Commerce (the Secretary), and
adds promoting innovation, entrepreneurship and beneficial
development as eligible purposes for which the Secretary can
provide technical assistance.
Subsection (2) adds EDDs to the list of entities to which
the Secretary must provide reasonable opportunity to review and
comment on proposed projects that may have a significant impact
on the economy in the area.
Section 5. Encouragement of certain coordination
Subsection (1) amends the Act to emphasize that EDA should
consult and cooperate with its Federal, State, and local
governmental partners.
Subsection (2) specifies that EDA should cooperate with the
Department of Labor on economic and workforce development
strategies and the promotion of regional innovation clusters.
Section 6. Additional support for enterprise development organizations
within the public works program
This section broadens the activities for which EDA can
provide grants through Section 201 of the Act to include
planning, technical assistance, business development assistance
and other forms of assistance the Secretary determines are
necessary or useful to support the establishment and operation
of public works, public service or development facilities.
Although this section provides EDA with additional
flexibility in the awarding of grants, the Committee believes
EDA should maintain the construction focus of this program for
the great majority of its investments.
Section 7. Grants for planning and grants for administrative expenses
Subsection (1) includes fostering innovation and
entrepreneurship, fostering regional collaboration, and
facilitating a stakeholder process that takes into account
local and regional assets and global economic change on the
list of items to be achieved through the EDA planning process.
Subsection (2) specifies that a state's economic
development planning should consider the ability of public
works to support development practices that enhance energy and
water efficiency, reduce the dependence of the United States on
foreign oil, and encourage efficient coordination and
leveraging of public and private investments.
Subsection (2) also requires states that receive planning
assistance from EDA to provide a copy of their annual report on
the planning process to each EDD within the state.
Subsection (3) adds a new subsection (e) to Section 203 of
the Act that authorizes the Secretary to provide additional
assistance to highly distressed regions that are eligible for a
grant rate of 80 percent or higher, and a new subsection (f)
that authorizes the Secretary to provide additional assistance
or a larger federal share to organizations who are planning on
a regional scale.
Section 8. Cost sharing
Subsection (a) modifies existing cost sharing requirements
to clarify that the Federal share shall not exceed 50 percent,
unless otherwise provided for.
Subsection (b) inserts a new (c)(1) in the Act which allows
for an increase in Federal share for communities that meet the
following requirements: the federal share may be increased up
to 60 percent for communities with a 24-month unemployment rate
of at least 150 percent of the national average or a per capita
income of not more than 70 percent of the national average; the
Federal share may be increased up to 70 percent for communities
with a 24-month unemployment rate of at least 175 percent of
the national average or a per capita income that is not more
than 60 percent of the national average; the Federal share may
be increased up to 80 percent for communities with a 24-month
unemployment rate of at least 200 percent of the national
average or a per capita income that is not more than 50 percent
of the national average.
Subsection (b) clarifies that the Secretary may establish
additional eligibility criteria that would allow for increased
federal share in areas impacted by severe outmigration, sudden
and severe economic dislocations, and other economic
circumstances, as long as the Federal shares established under
this criteria do not exceed 80 percent.
Subsection (b) amends subsection (c)(2) of the Act as
redesignated to strike `may' and require the Secretary to
provide to Indian Tribes a Federal share of 75 percent, which
may be increased to 100 percent. It also adds a new subsection
(c)(5) to the Act which allows the Secretary to increase the
Federal share up to 100 percent for an area that has had a
major disaster or emergency declared under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.) for up to 18 months following the disaster
or emergency designation.
Section 9. Grants for training, research, and technical assistance
Section 9 clarifies that the Secretary may make grants that
would be useful in alleviating or preventing unemployment,
outmigration, underemployment, or in assisting in the location
of information technology and manufacturing jobs in the United
States. In addition, this section states that grants may be
used for a peer exchange program to promote industry-leading
practices and innovations relating to the organizational
development, program delivery, and regional initiatives of
EDDs.
Section 10. Enhancement of recipient flexibility to deal with project
assets
Section 10(a) provides explicit authority for EDA to help
communities respond to economic adjustment problems caused by
the expansion of defense facilities, not just defense-related
closures and realignments.
Section 10(a) also specifies that communities whose
economies have been injured by the loss of information
technology, manufacturing, natural resources-based,
agricultural, or service sector jobs shall be eligible for
assistance to reinvest in and diversify their economies.
Section 10(b) requires that the Secretary shall
periodically solicit input on the revolving loan fund program
from fund grantees, national experts, and employees of Federal
agencies with knowledge of international, national, regional,
and statewide trends, innovations, and noteworthy practices
relating to business development finance, including public and
private lending and technical assistance intermediaries.
Section 10(b) also provides flexibility to the revolving
loan fund program by allowing the recipient of a revolving loan
fund that is no longer needed to submit to the Secretary a
request to approve the conversion of the revolving loan fund
assistance to other eligible projects. This subsection also
authorizes the Secretary to use up to 2 percent of the amounts
made available for grants under section 209 to improve the
management of the revolving loan fund program.
Section 11. Renewable energy program
Section 11 authorizes EDA to provide grants of up to $5
million for each of fiscal years 2011 through 2015 for the
redevelopment of brownfield sites through the use of one or
more renewable energy technologies including, but not limited
to, solar, wind, and geothermal technologies.
Section 12. Energy efficiency and economic development
Section 12 adds a new section to the Act which specifies
that EDA shall support economic development practices that
enhance energy and water efficiency, and reduce the dependence
of the United States on foreign oil.
Section 13. Comprehensive economic development strategies improvements
Section 13 makes minor technical changes to clarify that
comprehensive economic development strategies must address
economic development opportunities, as well as the economic
development problems communities' face, and that such
strategies must efficiently increase the effective use and
functionality of resources.
Section 14. Designation of economic development districts
Section 14 specifies that each EDD shall engage in a full
range of economic activities including: coordinating and
implementing economic development; carrying out economic
development research, planning, implementation and advisory
functions; and coordinating the development and implementation
of the comprehensive economic development strategy with other
Federal, State, local, and private organizations. This section
also allows EDDs to enter into contracts for services to
accomplish these activities.
One function of EDDs is to coordinate with other Federal,
State, local, and private organizations, including with Federal
agencies that provide grants or loans, or award a substantial
number of contracts to the communities in the EDD. For example,
EDDs should coordinate with the Forest Service, or other
relevant agencies, in the case of timber sale, service, or
stewardship contracts. Coordination should be executed in a
manner to help the communities understand the probable levels
of Federal support or contracts so that the communities can
adequately and accurately plan for their economic future.
Section 15. Consultation with other persons and agencies
Section 15 adds area and regional outmigration to the list
of items for which the Secretary may consult with other persons
and agencies who may be of assistance.
Section 16. Notification of reorganization
Section 16 moves the State of Montana from the purview of
the Denver Regional Office to the Seattle Regional Office.
Section 17. Administrative expenses
Section 17 amends Section 604 of the Act, which authorizes
EDA to delegate functions to other Federal agencies, and to
transfer to and receive funds from other Federal agencies. The
amendment allows EDA to use 3 percent of the transferred funds,
in the case of projects not involving construction, and 5
percent of the transferred funds, in the case of projects
involving construction, for administrative expenses incident to
projects associated with the transfers.
Section 18. Maintenance of effort
Section 18 modifies existing maintenance of effort rules to
allow recipients of grants that are more than 10 years old to
buy out the Government's interest using a depreciated figure
based on the project's estimated useful life.
Section 19. Extension of authorization of appropriations
Section 19 authorizes EDA for an additional five years
(fiscal year 2011 through fiscal year 2015) at $500 million per
year.
Section 20. Funding for grants for planning and grants for
administrative expenses
Section 20 provides that not less than the lesser of 12
percent and $31 million shall be provided each year for grants
for planning and administrative expenses. The amount made
available each year for grants for planning and administrative
expenses will increase to an amount equal to: the greater of
$32 million and 11 percent if $291 million or more is
appropriated for economic development assistance programs; the
greater of $33 million and 10 percent if $330 million or more
is appropriated for economic development assistance programs;
the greater of $34 million and 10 percent if $340 million or
more is appropriated for economic development assistance
programs; and, the greater of $35 million and 10 percent if
$350 million or more is appropriated for economic development
assistance programs.
Section 21. Report on duplicative programs
Section 21 requires the Government Accountability Office to
report to the Environment and Public Works Committee of the
Senate within 90 days after enactment with a list of programs
or portions of programs from other federal agencies, including
the Department of Housing and Urban Development, Department of
Agriculture, and the Small Business Administration, that are
duplicative of programs administered by EDA.
Legislative History
The most recent EDA authorization, the Economic Development
Administration Reauthorization Act of 2004, expired on
September 30, 2008. The Committee met on April 14, 2011, to
consider S. 782, the Economic Development Revitalization Act of
2011. Inhofe Amendment #1, directing the Government
Accountability Office to compile a list of programs from other
federal agencies that are duplicative of programs administered
by EDA, was adopted by unanimous consent. The bill was then
ordered to be reported favorably by voice vote.
Hearings
In the 110th Congress, the Committee held a hearing on
September 9, 2008, entitled, `Economic Development
Administration Oversight'. The Committee also met on September
17, 2008, to consider an original bill (S. 3551), the Economic
Development Revitalization Act of 2008, which is very similar
to this year's legislation. The bill was ordered to be reported
favorably by voice vote without amendment.
During the 111th Congress, on May 21, 2009, the Committee
held a hearing entitled, `Oversight of the Economic Development
Administration.' The purpose of the hearing was to examine the
Economic Development Administration's use of recent disaster
and stimulus funding and to explore issues and ideas for
reauthorization.
On November 18, 2009, the Committee met to consider S.
2778, the Economic Development Revitalization Act of 2009,
which is very similar to this year's legislation. A quorum of
the Committee being present, S. 2778 was reported favorably
with amendment by a roll call vote of 18 yeas and 1 not
recorded.
On May 18, 2010, the Committee held a hearing entitled,
`Federal Response to the Recent Oil Spill in the Gulf of
Mexico.' Assistant Secretary John Fernandez testified at that
hearing regarding EDA's response to the Oil Spill in the Gulf.
Roll Call Votes
The Committee on Environment and Public Works met to
consider S. 782, the Economic Development Revitalization Act on
April 14, 2011. A quorum of the Committee being present, S. 782
was reported favorably with amendment by voice vote.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee finds, consistent
with the findings of the Congressional Budget Office, that S.
782 does not create any new private sector mandates as defined
in the Unfunded Mandates Reform Act, nor will it cause any
adverse impact on the personal privacy of individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the committee finds, in accordance with the
findings of the Congressional Budget Office noted below, that
S. 782 would impose no Federal intergovernmental unfunded
mandates on State, local or tribal governments, and that the
bill contains no new private-sector mandates as defined in
UMRA.
April 26, 2011.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 782, the Economic
Development Revitalization Act of 2011.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 782--Economic Development Revitalization Act of 2011
Summary: S. 782 would reauthorize funding for existing
programs of the Economic Development Administration (EDA)
through 2015. Assuming appropriation of the specified amounts,
CBO estimates that implementing this bill would cost about $1.5
billion through 2016 and an additional $760 million after that
year. Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
S. 782 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 782 is shown in the following table. The
costs of this legislation fall within budget function 450
(community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2011 2012 2013 2014 2015 2016 2011-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Levela...................................... 254 500 500 500 500 0 2,254
Estimated Outlays......................................... 0 38 190 300 456 510 1,494
----------------------------------------------------------------------------------------------------------------
aThe Congress provided $246 million to the EDA for fiscal year 2011 (see Public Law 112-10). CBO assumes that a
supplemental appropriation would be provided to increase the overall funding level for the agency to the
amount authorized by the bill.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted before the end of fiscal year 2011
and that amounts specified in the bill will be appropriated for
each year (including amounts authorized for the current fiscal
year).
S. 782 would authorize the appropriation of $500 million in
each of fiscal years 2011 through 2015 for EDA to provide
various types of assistance to encourage economic development
in distressed areas. For 2011, the Congress has thus far
provided a total of $246 million to EDA (see Public Law 112-
10), leaving $254 million remaining from the authorization
level in the bill for 2011 of $500 million.
Of amounts authorized by the bill for each year, at least
$31 million would be spent on a grant program for planning and
administrative expenses (the amount authorized for this
activity would vary based on actual appropriations). This
amount is roughly equivalent to the amount allocated for this
activity in 2011, CBO estimates. The bill also would allocate
$5 million per year for grants to redevelop abandoned or
underdeveloped property through the use of renewable energy
technologies.
Based on historical spending patterns, CBO estimates that
assistance provided by EDA would cost about $1.5 billion over
the 2011-2016 period, and $760 million after 2016.
S. 782 also would make several changes to the amount of
assistance that may be provided to each grantee. Under current
law, the federal government covers 50 percent of the cost for
most projects, plus up to an additional 30 percent based on the
relative needs of the region in which the project is located
(as measured by unemployment rates and per capita income). The
legislation would lower the threshold at which that additional
federal assistance would be provided. In addition, the minimum
federal share for grants made to Indian tribes would increase
from 50 percent to 75 percent, and the maximum federal share of
all projects located in a Presidentially declared disaster area
would increase to 100 percent. Such changes would not
significantly alter the pace of expenditures for EDA programs
and would have no effect on the federal budget, CBO estimates.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 782
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from grants and technical assistance authorized in the
bill for economic development projects. Any costs to those
governments, including matching funds, would be incurred
voluntarily as a condition of receiving federal assistance.
Estimate prepared by: Federal Costs: Daniel Hoople; Impact
on State, Local, and Tribal Governments: Melissa Merrell;
Impact on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill
as reported are shown as follows: Existing law proposed to be
omitted is enclosed in [black brackets], new matter is printed
in italic, existing law in which no change is proposed is shown
in roman:
* * * * * * *
PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965
* * * * * * *
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Public Works
and Economic Development Act of 1965''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and declarations.
Sec. 3. Definitions.
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
Sec. 101. Establishment of economic development partnerships.
Sec. 102. Cooperation of Federal agencies.
Sec. 103. Coordination.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Sec. 201. Grants for public works and economic development.
Sec. 202. Base closings and realignments.
Sec. 203. Grants for planning and grants for administrative expenses.
Sec. 204. Cost sharing.
Sec. 205. Supplementary grants.
Sec. 206. Regulations on relative needs and allocations.
Sec. 207. Grants for training, research, and technical assistance.
[Sec. 208. Repealed]
Sec. 209. Grants for economic adjustment.
Sec. 210. Changed project circumstances.
Sec. 211. Use of funds in projects constructed under projected cost.
Sec. 212. Reports by recipients.
Sec. 213. Prohibition on use of funds for attorney's and consultant's
fees.
Sec. 214. Special impact areas.
Sec. 215. Performance awards.
Sec. 216. Planning performance awards.
Sec. 217. Direct expenditure or redistribution by recipient.
Sec. 218. Brightfields demonstration program.
Sec. 219. Energy efficiency and economic development.
* * * * * * *
SEC. 2. FINDINGS AND DECLARATIONS.
(a) Findings.--Congress finds that--
(1) there continue to be areas of the United States
experiencing chronic high unemployment,
underemployment, outmigration, and low per capita
incomes, as well as areas facing sudden and severe
economic dislocations because of structural economic
changes, changing trade patterns, certain Federal
actions (including environmental requirements that
result in the removal of economic activities from a
locality), and natural disasters;
(2) economic growth in the States, cities, and rural
areas of the United States is produced by expanding
economic opportunities, expanding free enterprise
through trade, developing and strengthening public
infrastructure, and creating a climate for job creation
and business development;
(3) the goal of Federal economic development programs
is to raise the standard of living for all citizens and
increase the wealth and overall rate of growth of the
economy by encouraging communities to develop a more
competitive and diversified economic base by--
(A) creating an environment that promotes
economic activity by improving and expanding
public infrastructure;
(B) promoting job creation through increased
innovation, productivity, and entrepreneurship;
and
(C) empowering local and regional communities
experiencing chronic high unemployment and low
per capita income to develop private sector
business and attract increased private sector
capital investment, including the location of
information technology and manufacturing jobs
in the United States;
* * * * * * *
(b) Declarations.--In order to promote a strong and growing
economy throughout the United States, Congress declares that--
(1) assistance under this Act should be made
available to both rural- and urban-distressed
communities;
(2) local communities should work in partnership with
neighboring communities, the States, Indian tribes, and
the Federal Government to increase the capacity of the
local communities to develop and implement
comprehensive economic development strategies to
alleviate economic distress and enhance competitiveness
in the global economy;
[(3) whether suffering from long-term distress or a
sudden dislocation, distressed communities should be
encouraged to support entrepreneurship to take
advantage of the development opportunities afforded by
technological innovation and expanding newly opened
global markets; and]
(3) whether suffering from long-term distress or a
sudden economic dislocation, distressed communities
should be encouraged to promote innovation and
entrepreneurship, including, as appropriate, the
support of the formation of business incubators in
economically distressed areas, so as to help regions to
create higher-skill, higher-wage jobs and foster the
participation of those regions in the global
marketplace; and
(4) assistance under this Act should be made
available to promote the productive reuse of abandoned
industrial facilities and the redevelopment of
brownfields.
SEC. 3. DEFINITIONS.
In this Act:
(1) Comprehensive economic development strategy.--The
term ``comprehensive economic development strategy''
means a comprehensive economic development strategy
approved by the Secretary under section 302.
(2) Department.--The term ``Department'' means the
Department of Commerce.
(3) Economic development district.--
(A) In general.--The term ``economic
development district'' means any area in the
United States that--
(i) is composed of areas described in
section 301(a) and, to the extent
appropriate, neighboring counties or
communities; and
(ii) has been designated by the
Secretary as an economic development
district under section 401.
(B) Inclusion.--The term ``economic
development district'' includes any economic
development district designated by the
Secretary under section 403 (as in effect on
the day before the effective date of the
Economic Development Administration Reform Act
of 1998).
(4) Eligible recipient.--
(A) In general.--The term ``eligible
recipient'' means--
(i) an economic development district;
(ii) an Indian tribe;
(iii) a State;
(iv) a city or other political
subdivision of a State, including a
special purpose unit of a State or
local government engaged in economic or
infrastructure development activities,
or a consortium of political
subdivisions;
(v) an institution of higher
education or a consortium of
institutions of higher education; or
(vi) a public or private nonprofit
organization or association acting in
cooperation with officials of a
political subdivision of a State.
(B) Training, research, and technical
assistance grants.--In the case of grants under
section 207, the term ``eligible recipient''
also includes private individuals and for-
profit organizations.
(5) Federal agency.--The term ``Federal agency''
means a department, agency, or instrumentality of the
United States.
(6) Grant.--The term ``grant'' includes a cooperative
agreement (within the meaning of chapter 63 of title
31, United States Code).
(7) Indian tribe.--The term ``Indian tribe'' means
any Indian tribe, band, nation, pueblo, or other
organized group or community, including any Alaska
Native village or Regional Corporation (as defined in
or established under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.)), that is
recognized as eligible for the special programs and
services provided by the United States to Indians
because of their status as Indians.
(8) Regional commissions.--The term ``Regional
Commissions'' means--
(A) the Appalachian Regional Commission
established under chapter 143 of title 40,
United States Code;
(B) the Delta Regional Authority established
under subtitle F of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009aa et
seq.);
(C) the Denali Commission established under
the Denali Commission Act of 1998 (42 U.S.C.
3121 note; 112 Stat. 2681-637 et seq.); [and]
(D) the Northern Great Plains Regional
Authority established under subtitle G of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2009bb et seq.)[.]; and
(E) the Southeast Crescent Regional
Commission established by section 15301(a)(1)
of title 40, United States Code;
(F) the Northern Border Regional Commission
established by section 15301(a)(3) of title 40,
United States Code; and
(G) the Southwest Border Regional Commission
established by section 15301(a)(2) of title 40,
United States Code.
* * * * * * *
SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
(a) In General.--In providing assistance under this title,
the Secretary shall cooperate with States and other entities to
ensure that, consistent with national objectives, Federal
programs are compatible with and further the objectives of
State, regional, and local economic development plans and
comprehensive economic development strategies.
(b) Technical Assistance.--The Secretary may provide such
technical assistance to States, political subdivisions of
States, sub-State regional organizations (including
organizations that cross State boundaries), and multi-State
regional organizations, economic development districts,
university centers, as the Secretary determines is appropriate
to--
(1) alleviate economic distress;
[(2) encourage and support public-private
partnerships for the formation and improvement of
economic development strategies that sustain and
promote economic development across the United States;
and]
(2) encourage and support public-private partnerships
for the formation and improvement of regional economic
development strategies that sustain and promote
innovation and entrepreneurship that is critical to
economic competitiveness across the United States; and
(3) promote investment in infrastructure, innovation,
entrepreneurship, beneficial development, and
technological capacity to keep pace with the changing
global economy.
(c) Intergovernmental Review.--The Secretary shall promulgate
regulations to ensure that appropriate State and local
government agencies (including economic development districts)
have been given a reasonable opportunity to review and comment
on proposed projects under this title that the Secretary
determines may have a significant direct impact on the economy
of the area.
* * * * * * *
SEC. 102. COOPERATION OF FEDERAL AGENCIES.
[In accordance with]
(a) In General.--In accordance with applicable laws and
subject to the availability of appropriations, each Federal
agency shall exercise its powers, duties and functions, and
shall cooperate with the Secretary, in such manner as will
assist the Secretary in carrying out this title.
(b) Governmental Cooperation.--
(1) In general.--The Secretary is authorized and
encouraged to consult and cooperate with other
agencies, including representatives of the Federal
Government, State and local governments, and consortia
of governmental organizations, that can assist in
addressing challenges and capitalize on opportunities
that require intergovernmental coordination.
(2) Labor.--In carrying out paragraph (1), the
Secretary shall cooperate with the Secretary of Labor
to support economic and workforce development
strategies and the promotion of regional innovation
clusters.
* * * * * * *
SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants for--
(1) acquisition or development of land and
improvements for use for a public works, public
service, or development facility; [and]
(2) acquisition, design and engineering,
construction, rehabilitation, alteration, expansion, or
improvement of such a facility, including related
machinery and equipment[.]; and
(3) other activities the conduct of which the
Secretary determines would be necessary or useful to
support the establishment and operation of those
facilities on an ongoing basis, including--
(A) related planning, technical assistance,
and business development assistance to enable
the recipient to bring together regional assets
and encourage entrepreneurial development; and
(B) to the extent needed to support
entrepreneurial development, revolving loan
funds pursuant to section 209.
* * * * * * *
SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants to pay the costs of economic
development planning and the administrative expenses of
organizations that carry out the planning.
(b) Planning Process.--Planning assisted under this title
shall be a continuous process involving public officials and
private citizens in--
(1) analyzing local economies;
(2) defining economic development goals;
(3) determining project opportunities; [and]
[(4) formulating and implementing an economic
development program that includes systematic efforts to
reduce unemployment and increase incomes.]
(4) formulating and implementing an economic
development program that includes systematic efforts to
reduce unemployment and increase incomes by fostering
innovation and entrepreneurship;
(5) fostering regional collaboration among local
jurisdictions and organizations; and
(6) facilitating a stakeholder process that assists
the community or region in creating an economic
development vision that takes into account local and
regional assets (including natural, social, community,
and geographical resources) and global economic change.
(c) Use of Planning Assistance.--Planning assistance under
this title shall be used in conjunction with any other
available Federal planning assistance to ensure adequate and
effective planning and economical use of funds.
(d) State Plans.--
(1) Development.--Any State plan developed with
assistance under this section shall be developed, to
the maximum extent practicable, cooperatively by the
State, political subdivisions of the State, and the
economic development districts located wholly or
partially in the State.
(2) Comprehensive economic development strategy.--As
a condition of receipt of assistance for a State plan
under this subsection, the State shall have or develop
a comprehensive economic development strategy.
(3) Coordination.--Before providing assistance for a
State plan under this section, the Secretary shall
consider the extent to which the State will consider
local and economic development district plans.
(4) Comprehensive planning process.--Any overall
State economic development planning assisted under this
section shall be a part of a comprehensive planning
process that shall consider the provision of public
works to--
(A) promote economic development and
opportunity;
(B) foster effective transportation access;
(C) enhance and protect the environment;
(D) assist in carrying out the workforce
investment strategy of a State;
(E) promote the use of technology in economic
development, including access to high-speed
telecommunications; [and]
(F) balance resources through the sound
management of physical development[.]; and
(G) support development practices that--
(i) enhance energy and water
efficiency;
(ii) reduce the dependence of the
United States on foreign oil; and
(iii) encourage efficient
coordination and leveraging of public
and private investments.
(5) Report to secretary.--Each State that receives
assistance for the development of a plan under this
[subsection shall submit to the Secretary an annual
report on the planning process assisted under this
subsection.]subsection shall--
(A) submit to the Secretary an annual report
on the planning process assisted under this
subsection; and
(B) provide a copy of each annual report to
each economic development district within the
State.
(e) Additional Amounts To Address Severe Need.--In
determining the amount of funds to provide a recipient for
planning assistance under this section, the Secretary shall
take into account those recipients located in regions that
are--
(1) eligible for an investment rate of 80 percent or
higher; or
(2) experiencing severe need due to long-term
economic deterioration or sudden and severe economic
distress.
(f) Encouraging Planning Assistance on a Broader Regional
Scale.--In order to encourage district organizations to develop
regional economic competitiveness strategies on a broader basis
in collaboration with other district organizations and entities
outside the confines of a single economic development district,
the Secretary may increase--
(1) the Federal share otherwise applicable to the
recipients; or
(2) the amount of Federal assistance to the
recipients.
* * * * * * *
SEC. 204. COST SHARING.
(a) Federal Share.--Except as provided in subsection (c), the
Federal share of the cost of any project carried out under this
title [shall not exceed--
[(1) 50 percent; plus
[(2) an additional percent that--
[(A) shall not exceed 30 percent; and
[(B) is based on the relative needs of the
area in which the project will be located, as
determined in accordance with regulations
promulgated by the Secretary.]shall not exceed
50 percent, except as otherwise expressly
provided in this Act.
* * * * * * *
(c) Increase in Federal Share.--
(1) Relative needs of an area.--
(A) 150-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 150
percent of the national average or the per
capita income is not more than 70 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 60 percent of
the cost of the project.
(B) 175-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 175
percent of the national average or the per
capita income is not more than 60 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 70 percent of
the cost of the project.
(C) 200-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 200
percent of the national average or the per
capita income is not more than 50 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 80 percent of
the cost of the project.
(D) Additional criteria.--The Secretary may
establish eligibility criteria in addition to
the criteria described in this paragraph to
address areas impacted by severe outmigration,
sudden and severe economic dislocations, and
other economic circumstances, on the condition
that a Federal share established for such
eligibility criteria shall not exceed 80
percent.
[(1)](2) Indian tribes.--In the case of a grant to an
Indian tribe for a project under this title, the
Secretary [may]shall increase the Federal share above
the percentage specified in subsection (a) to 75
percent of the cost of the project, and may increase up
to 100 percent of the cost of the project.
[(2)](3) Certain states, political subdivisions, and
nonprofit organizations.--In the case of a grant to a
State, or a political subdivision of a State, that the
Secretary determines has exhausted the effective taxing
and borrowing capacity of the State or political
subdivision, or in the case of a grant to a nonprofit
organization that the Secretary determines has
exhausted the effective borrowing capacity of the
nonprofit organization, the Secretary may increase the
Federal share above the percentage specified in
subsection (a) up to 100 percent of the cost of the
project.
[(3)](4) Training, research, and technical
assistance.--In the case of a grant provided under
section 207, the Secretary may increase the Federal
share above the percentage specified in subsection (a)
up to 100 percent of the cost of the project if the
Secretary determines that the project funded by the
grant merits, and is not feasible without, such an
increase.
(5) Federally declared disaster areas.--In the case
of a grant for an area with respect to which a major
disaster or emergency has been declared under the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) during the 18-
month period ending on the date on which the Federal
share is determined, the Secretary may increase the
Federal share above the percentage specified in
subsection (a) up to 100 percent of the cost of the
project.
* * * * * * *
SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) In General.--
(1) Grants.--On the application of an eligible
recipient, the Secretary may make grants for training,
research, and technical assistance, including grants
for program evaluation and economic impact analyses,
that would be useful in alleviating or preventing
conditions of excessive unemployment [or
underemployment], outmigration, or underemployment, or
in assisting in the location of information technology
and manufacturing jobs in the United States.
(2) Types of assistance.--Grants under paragraph (1)
may be used for--
(A) project planning and feasibility studies;
(B) demonstrations of innovative activities
or strategic economic development investments;
(C) management and operational assistance;
(D) establishment of university centers;
(E) establishment of business outreach
centers;
(F) studies evaluating the needs of, and
development potential for, economic growth of
areas that the Secretary determines have
substantial need for the assistance;
(G) studies that evaluate the effectiveness
of coordinating projects funded under this Act
with projects funded under other Acts;
(H) assessment, marketing, and establishment
of business clusters; [and]
(I) a peer exchange program to promote
industry-leading practices and innovations
relating to the organizational development,
program delivery, and regional initiatives of
economic development districts; and
[(I)](J) other activities determined by the
Secretary to be appropriate.
(3) Cooperation requirement.--In the case of a
project assisted under this section that is national or
regional in scope, the Secretary may waive the
provision in section 3(4)(A)(vi) requiring a nonprofit
organization or association to act in cooperation with
officials of a political subdivision of a State.
(b) Methods of Provision of Assistance.--In providing
research and technical assistance under this section, the
Secretary, in addition to making grants under subsection (a),
may--
(1) provide research and technical assistance through
officers or employees of the Department;
(2) pay funds made available to carry out this
section to Federal agencies; or
(3) employ private individuals, partnerships,
businesses, corporations, or appropriate institutions
under contracts entered into for that purpose.
* * * * * * *
SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants for development of public
facilities, public services, business development (including
funding of a revolving loan fund), planning, technical
assistance, training, and any other assistance to alleviate
long-term economic deterioration and sudden and severe economic
dislocation and further the economic adjustment objectives of
this title.
(b) Criteria for Assistance.--The Secretary may provide
assistance under this section only if the Secretary determines
that--
(1) the project will help the area to meet a special
need arising from--
(A) actual or threatened severe unemployment;
or
(B) economic adjustment problems resulting
from severe changes in economic conditions; and
(2) the area for which a project is to be carried out
has a comprehensive economic development strategy and
the project is consistent with the strategy, except
that this paragraph shall not apply to planning
projects.
(c) Particular Community Assistance.--Assistance under this
section may include assistance provided for activities
identified by communities, the economies of which are
[injured]impacted by--
[(1) military base closures or realignments, defense
contractor reductions in force, or Department of Energy
defense-related funding reductions, for help in
diversifying their economies through projects to be
carried out on Federal Government installations or
elsewhere in the communities;]
(1) military base closures, realignments, or mission
growth, defense contractor reductions in force, or
Department of Energy defense-related funding
reductions, for help in--
(A) diversifying the economies of the
communities; or
(B) otherwise supporting the economic
adjustment activities of the Secretary of
Defense through projects to be carried out on
Federal Government installations or elsewhere
in the communities;
(2) disasters or emergencies, in areas with respect
to which a major disaster or emergency has been
declared under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
for post-disaster economic recovery;
(3) international trade, for help in economic
restructuring of the communities;
(4) fishery failures, in areas with respect to which
a determination that there is a commercial fishery
failure has been made under section 312(a) of the
Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1861a(a)); or
[(5) the loss of manufacturing jobs, for reinvesting
in and diversifying the economies of the communities.]
(5) the loss of information technology,
manufacturing, natural resource-based, agricultural, or
service sector jobs, for reinvesting in and
diversifying the economies of the communities.
(d) Special Provisions Relating to Revolving Loan Fund
Grants.--
(1) In general.--The Secretary shall promulgate
regulations to maintain the proper operation and
financial integrity of revolving loan funds established
by recipients with assistance under this section.
(2) Comments.--
(A) In general.--The Secretary shall
periodically solicit from the individuals and
entities described in subparagraph (B)--
(i) comments regarding the guidelines
and performance requirements for the
revolving loan fund program; and
(ii) recommendations for improving
the performance of the program and
grantees under the program.
(B) Description of individuals and
entities.--The individuals and entities
referred to in subparagraph (A) are--
(i) the public; and
(ii) in particular, revolving loan
fund grantees, national experts, and
employees of Federal agencies with
knowledge of international, national,
regional, and statewide trends,
innovations, and noteworthy practices
relating to business development
finance, including public and private
lending and technical assistance
intermediaries.
[(2)](3) Efficient administration.--The Secretary
may--
(A) at the request of a grantee, amend and
consolidate grant agreements governing
revolving loan funds to provide flexibility
with respect to lending areas and borrower
criteria;
(B) assign or transfer assets of a revolving
loan fund to third party for the purpose of
liquidation, and the third party may retain
assets of the fund to defray costs related to
liquidation; and
(C) take such actions as are appropriate to
enable revolving loan fund operators to sell or
securitize loans (except that the actions may
not include issuance of a Federal guaranty by
the Secretary).
[(3)](4) Treatment of actions.--An action taken by
the Secretary under this subsection with respect to a
revolving loan fund shall not constitute a new
obligation if all grant funds associated with the
original grant award have been disbursed to the
recipient.
[(4)](5) Preservation of securities laws.--
(A) Not treated as exempted securities.--No
securities issued pursuant to [paragraph
(2)(C)]paragraph (3)(C) shall be treated as
exempted securities for purposes of the
Securities Act of 1933 (15 U.S.C. 77a et seq.)
or the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), unless exempted by rule or
regulation of the Securities and Exchange
Commission.
(B) Preservation.--Except as provided in
subparagraph (A), no provision of this
subsection or any regulation promulgated by the
Secretary under this subsection supersedes or
otherwise affects the application of the
securities laws (as the term is defined in
section 3(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a))) or the rules,
regulations, or orders of the Securities and
Exchange Commission or a self-regulatory
organization under that Commission.
(6) Conversion of project assets.--
(A) Request.--If a recipient determines that
a revolving loan fund established using
assistance provided under this section is no
longer needed, or that the recipient could make
better use of the assistance in light of the
current economic development needs of the
recipient if the assistance was made available
to carry out any other project that meets the
requirements of this Act, the recipient may
submit to the Secretary a request to approve
the conversion of the assistance.
(B) Methods of conversion.--A recipient
request to convert assistance that is approved
under subparagraph (A) may accomplish the
conversion by--
(i) selling to a third party any
assets of the applicable revolving loan
fund; or
(ii) retaining repayments of
principal and interest amounts on loans
provided through the applicable
revolving loan fund.
(C) Requirements.--
(i) Sale.--
(I) In general.--Subject to
subclause (II), a recipient
shall use the net proceeds from
a sale of assets under
subparagraph (B)(i) to pay any
portion of the costs of 1 or
more projects that meet the
requirements of this Act.
(II) Treatment.--For purposes
of subclause (I), a project
described in that subclause
shall be considered to be
eligible under section 301.
(ii) Retention of repayments.--
Retention by a recipient of any
repayment under subparagraph (B)(ii)
shall be carried out in accordance with
a strategic reuse plan approved by the
Secretary that provides for the
increase of capital over time until
sufficient amounts (including interest
earned on the amounts) are accumulated
to fund other projects that meet the
requirements of this Act.
(D) Terms and conditions.--The Secretary may
require such terms and conditions regarding a
proposed conversion of the use of assistance
under this paragraph as the Secretary
determines to be appropriate.
(E) Expediency requirement.--The Secretary
shall ensure that any assistance intended to be
converted for use pursuant to this paragraph is
used in an expeditious manner.
(7) Program administration.--The Secretary may
allocate not more than 2 percent of the amounts made
available for grants under this section for the
development and maintenance of an automated tracking
and monitoring system to ensure the proper operation
and financial integrity of the revolving loan program
established under this section.
* * * * * * *
SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.
[(a) Definition of Brightfield Site.--In this section, the
term ``brightfield site'' means a brownfield site that is
redeveloped through the incorporation of 1 or more solar energy
technologies.]
(a) Definition of Renewable Energy Site.--In this section,
the term `renewable energy site' means a brownfield site that
is redeveloped through the incorporation of 1 or more renewable
energy technologies, including, but not limited to, solar,
wind, and geothermal technologies.
(b) Demonstration Program.--On the application of an eligible
recipient, the Secretary may make a grant for a project for the
development of a [brightfield]renewable energy site if the
Secretary determines that the project will--
(1) use 1 or more [solar energy
technologies]renewable energy technologies, including,
but not limited to, solar, wind, and geothermal
technologies to develop abandoned or contaminated sites
for commercial use; and
(2) improve the commercial and economic opportunities
in the area in which the project is located.
(c) Savings Clause.--To the extent that any portion of a
grant awarded under subsection (b) involves remediation, the
remediation shall be subject to section 612.
(d) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years [2004 through 2008]2011 through 2015, to remain
available until expended.
SEC. 219. ENERGY EFFICIENCY AND ECONOMIC DEVELOPMENT.
In administering programs under this Act, the Secretary shall
support activities that employ economic development practices
that--
(1) enhance energy and water efficiency; and
(2) reduce the dependence of the United States on
foreign oil.
* * * * * * *
TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
* * * * * * *
SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
(a) In General.--The Secretary may provide assistance under
section 201 or 209 (except for planning assistance under
section 209) to an eligible recipient for a project only if the
eligible recipient submits to the Secretary, as part of an
application for the assistance--
(1) an identification of the economic development
problems and opportunities to be addressed using the
assistance;
(2) an identification of the past, present, and
projected future economic development investments in
the area receiving the assistance and public [and
private], private, and nonprofit participants and
sources of funding for the investments; and
(3)(A) a comprehensive economic development strategy
for addressing the economic problems and opportunities
identified under paragraph (1) in a manner that
promotes economic development and opportunity, fosters
effective transportation access, maximizes effective
development and use of the workforce consistent with
any applicable State or local workforce investment
strategy, [promotes the use]promotes the effective use
of technology in economic development (including access
to high-speed telecommunications), enhances and
protects the environment, and [balances]optimizes
resources through sound management of development; and
(B) a description of how the strategy will solve the
problems and take advantage of the opportunities.
(b) Approval of Comprehensive Economic Development
Strategy.--The Secretary shall approve a comprehensive economic
development strategy that meets the requirements of subsection
(a) to the satisfaction of the Secretary.
(c) Approval of Other Plan.--
(1) In general.--The Secretary may accept as a
comprehensive economic development strategy a
satisfactory plan developed under another federally,
State, or locally supported program.
(2) Existing strategy.--To the maximum extent
practicable, a plan submitted under this paragraph
shall be consistent and coordinated with any existing
comprehensive economic development strategy for the
area.
* * * * * * *
SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
(a) In General.--In order that economic development projects
of broad geographic significance may be planned and carried
out, the Secretary may designate appropriate economic
development districts in the United States, with the
concurrence of the States in which the districts will be wholly
or partially located, if--
(1) the proposed district is of sufficient size or
population, and contains sufficient resources, to
foster economic development on a scale involving more
than a single area described in section 301(a);
(2) the proposed district contains at least 1 area
described in section 301(a); and
(3) the proposed district has a comprehensive
economic development strategy that--
(A) contains a specific program for intra-
district cooperation, self-help, and public
investment; and
(B) is approved by each affected State and by
the Secretary.
(b) Authorities.--The Secretary may, under regulations
promulgated by the Secretary--
(1) invite the States to determine boundaries for
proposed economic development districts;
(2) cooperate with the States--
(A) in sponsoring and assisting district
economic planning and economic development
groups; and
(B) in assisting the district groups in
formulating comprehensive economic development
strategies for districts; and
(3) encourage participation by appropriate local
government entities in the economic development
districts.
(c) Operations.--
(1) In general.--Each economic development district
shall engage in the full range of economic development
activities included in the list contained in the
comprehensive economic development strategy of the
economic development district that has been approved by
the Economic Development Administration, including--
(A) coordinating and implementing economic
development activities in the economic
development district;
(B) carrying out economic development
research, planning, implementation, and
advisory functions identified in the
comprehensive economic development strategy;
and
(C) coordinating the development and
implementation of the comprehensive economic
development strategy with other Federal, State,
local, and private organizations.
(2) Contracts.--An economic development district may
elect to enter into contracts for services to
accomplish the activities described in paragraph (1).
* * * * * * *
SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
(a) Consultation on Problems Relating to Employment.--The
Secretary may consult with any persons, including
representatives of labor, management, agriculture, and
government, who can assist in addressing the problems of area
and regional unemployment, outmigration, or underemployment.
(b) Consultation on Administration of Act.--The Secretary may
provide for such consultation with interested Federal agencies
as the Secretary determines to be appropriate in the
performance of the duties of the Secretary under this Act.
* * * * * * *
SEC. 507. NOTIFICATION OF REORGANIZATION.
[Not later than]
(a) Notification.--Not later than 30 days before the date of
any reorganization of the offices, programs, or activities of
the Economic Development Administration, the Secretary shall
provide notification of the reorganization to the Committee on
Environment and Public Works and the Committee on
Appropriations of the Senate, and the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives.
(b) State of Montana.--The State of Montana shall be served
by the Seattle office of the Economic Development
Administration.
* * * * * * *
SEC. 604. DELEGATION OF FUNCTIONS AND TRANSFER OF FUNDS AMONG FEDERAL
AGENCIES.
(a) Delegation of Functions to Other Federal Agencies.--The
Secretary may--
(1) delegate to the heads of other Federal agencies
such functions, powers, and duties of the Secretary
under this Act as the Secretary determines to be
appropriate; and
(2) authorize the redelegation of the functions,
powers, and duties by the heads of the agencies.
(b) Transfer of Funds to Other Federal Agencies.--Funds
authorized to be appropriated to carry out this Act may be
transferred between Federal agencies, if the funds are used for
the purposes for which the funds are specifically authorized
and appropriated.
(c) Transfer of Funds From Other Federal Agencies.--
(1) In general.--Subject to paragraph (2), for the
purposes of this Act, the Secretary may accept
transfers of funds from other Federal agencies if the
funds are used for the purposes for which (and in
accordance with the terms under which) the funds are
specifically authorized and appropriated.
(2) Use of funds.--The transferred funds--
(A) shall remain available until expended;
[and]
(B) may be used for administrative expenses
incident to the projects associated with the
transfers to the extent that the expenses do
not exceed--
(i) 3 percent, in the case of
projects not involving construction;
and
(ii) 5 percent, in the case of
projects involving construction; and
[(B)](C) may, to the extent necessary to
carry out this Act, be transferred to and
merged by the Secretary with the appropriations
for salaries and expenses.
* * * * * * *
SEC. 612. SAVINGS CLAUSE.
To the extent that any portion of grants made under this Act
are used for an economic development project that involves
remediation, the remediation shall be conducted in compliance
with all applicable Federal, State, and local laws and
standards.
SEC. 613. MAINTENANCE OF EFFORT.
(a) Expected Period of Best Efforts.--
(1) Establishment.--To carry out the purposes of this
Act, before providing investment assistance for a
construction project under this Act, the Secretary
shall establish the expected period during which the
recipient of the assistance shall make best efforts to
achieve the economic development objectives of the
assistance.
(2) Treatment of property.--To obtain the best
efforts of a recipient during the period established
under paragraph (1), during that period--
(A) any property that is acquired or
improved, in whole or in part, using investment
assistance under this Act shall be held in
trust by the recipient for the benefit of the
project; and
(B) the Secretary shall retain an undivided
equitable reversionary interest in the
property.
(3) Termination of federal interest.--
(A) In general.--Beginning on the date on
which the Secretary determines that a recipient
has fulfilled the obligations of the recipient
for the applicable period under paragraph (1),
taking into consideration the economic
conditions existing during that period, the
Secretary may terminate the reversionary
interest of the Secretary in any applicable
property under paragraph (2)(B).
(B) Alternative method of termination.--
(i) In general.--On a determination
by a recipient that the economic
development needs of the recipient have
changed during the period beginning on
the date on which investment assistance
for a construction project is provided
under this Act and ending on the
expiration of the expected period
established for the project under
paragraph (1), the recipient may submit
to the Secretary a request to terminate
the reversionary interest of the
Secretary in property of the project
under paragraph (2)(B) before the date
described in subparagraph (A).
(ii) Approval.--The Secretary may
approve a request of a recipient under
clause (i) if--
(I) in any case in which the
request is submitted during the
10-year period beginning on the
date on which assistance is
initially provided under this
Act for the applicable project,
the recipient repays to the
Secretary an amount equal to
100 percent of the fair market
value of the pro rata Federal
share of the project; or
(II) in any case in which the
request is submitted after the
expiration of the 10-year
period described in subclause
(I), the recipient repays to
the Secretary an amount equal
to the fair market value of the
pro rata Federal share of the
project as if that value had
been amortized over the period
established under paragraph
(1), based on a straight-line
depreciation of the project
throughout the estimated useful
life of the project.
(b) Terms and Conditions.--The Secretary may establish such
terms and conditions under this section as the Secretary
determines to be appropriate, including by extending the period
of a reversionary interest of the Secretary under subsection
(a)(2)(B) in any case in which the Secretary determines that
the performance of a recipient is unsatisfactory.
(c) Previously Extended Assistance.--With respect to any
recipient to which the term of provision of assistance was
extended under this Act before the date of enactment of this
section, the Secretary may approve a request of the recipient
under subsection (a) in accordance with the requirements of
this section to ensure uniform administration of this Act,
notwithstanding any estimated useful life period that otherwise
relates to the assistance.
(d) Conversion of Use.--If a recipient of assistance under
this Act demonstrates to the Secretary that the intended use of
the project for which assistance was provided under this Act no
longer represents the best use of the property used for the
project, the Secretary may approve a request by the recipient
to convert the property to a different use for the remainder of
the term of the Federal interest in the property, subject to
the condition that the new use shall be consistent with the
purposes of this Act.
(e) Status of Authority.--The authority of the Secretary
under this section is in addition to any authority of the
Secretary pursuant to any law or grant agreement in effect on
the date of enactment of this section.
* * * * * * *
TITLE VII--FUNDING
SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
(a) Economic Development Assistance Programs.--There are
authorized to be appropriated for economic development
assistance programs to carry out this Act, to remain available
until [expended--
[(1) $400,000,000 for fiscal year 2004;
[(2) $425,000,000 for fiscal year 2005;
[(3) $450,000,000 for fiscal year 2006;
[(4) $475,000,000 for fiscal year 2007; and
[(5) $500,000,000 for fiscal year 2008.'']expended,
$500,000,000 for each of fiscal years 2011 through
2015.
(b) Salaries and Expenses.--There are authorized to be
appropriated for salaries and expenses of administering this
Act, to remain available until expended--
(1) $33,377,000 for fiscal year 2004; and
(2) such sums as are necessary for each fiscal year
thereafter.
* * * * * * *
[SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR
ADMINISTRATIVE EXPENSES.
Of the amounts made available under section 701 for each
fiscal year, not less than $27,000,000 shall be made available
for grants provided under section 203.]
SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE
EXPENSES.
(a) In General.--Subject to subsection (b), of the amounts
made available under section 701 for each fiscal year, there
shall be made available to provide grants under section 203 an
amount equal to not less than the lesser of--
(1) 12 percent; and
(2) $31,000,000.
(b) Subject to Total Appropriations.--For any fiscal year,
the amount made available pursuant to subsection (a) shall be
increased to--
(1) if the total amount made available under section
701(a) for the fiscal year is equal to or greater than
$291,000,000, an amount equal to the greater of--
(A) $32,000,000; and
(B) 11 percent of the total amount made
available under section 701(a) for the fiscal
year;
(2) if the total amount made available under section
701(a) for the fiscal year is equal to or greater than
$330,000,000, an amount equal to the greater of--
(A) $33,000,000; and
(B) 10 percent of the total amount made
available under section 701(a) for the fiscal
year;
(3) if the total amount made available under section
701(a) for the fiscal year is equal to or greater than
$340,000,000, an amount equal to the greater of--
(A) $34,000,000; and
(B) 10 percent of the total amount made
available under section 701(a) for the fiscal
year; or
(4) if the total amount made available under section
701(a) for the fiscal year is equal to or greater than
$350,000,000, an amount equal to the greater of--
(A) $35,000,000; and
(B) 10 percent of the total amount made
available under section 701(a) for the fiscal
year.
* * * * * * *