[Senate Report 111-114]
[From the U.S. Government Publishing Office]
Calendar No. 254
111th Congress Report
SENATE
2d Session 111-114
======================================================================
ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2009
_______
January 20, 2010.--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. 2778]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, which
considered the bill (S. 2778) 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 amendments and recommends that the bill,
as amended, do pass.
Purpose of the Legislation
The Economic Development Revitalization Act of 2009 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
With the Public Works and Economic Development Act of 1965,
Congress and President Lyndon Johnson created the Economic
Development Administration (EDA) for job promotion and to
accelerate industrial and commercial growth in communities
suffering from limited job opportunities, low per capita income
levels, or similar economic distress.
As a federal agency whose main focus is on promoting
private sector job growth in economically underserved
communities, EDA pursues regional comprehensive strategic
development. Working in partnership with state and local
governments, regional economic development organizations,
public and private nonprofit organizations, universities, and
Indian tribes, EDA provides grants (``investments'') to help
communities establish foundations for sustained economic
development.
The EDA has a long history of helping economically
distressed communities foster the jobs and businesses necessary
to maintain strong, healthy communities, and the work of EDA is
particularly important today. During this time of economic
distress a strong EDA 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, these investments are
targeted to spur large amounts of private sector investment.
EDA awarded nearly $1 billion in construction related and
revolving loan fund (RLF) projects from 2004 to 2008. These
investments are expected to create approximately 172,000 jobs
at an average cost of about $5,700 per job over the next nine
years. Additionally, these construction and RLF investments are
expected to leverage large amounts of private sector
investment. Based on past research, it is expected that each
dollar of EDA funding attracts at least $10 in private sector
investment.
Reauthorization of the Economic Development Administration
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 2009 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 2009'.
Section 2. Findings and declarations
Section 2 updates the Public Works and Economic Development
Act's (the Act) findings 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 15401(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, and highlights
promoting innovation, entrepreneurship, and sustainable
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. Grants for planning and grants for administrative expenses
Subsection (1) includes ``fostering regional collaboration
among local jurisdictions and organizations'' in the list of
items to be achieved through the EDA planning process, which
involves public officials and private citizens.
Subsection (2) 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.
Section 6. 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 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.
This subsection also 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.
Subsection (b) 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 7. Grants for training, research, and technical assistance
Section 7 clarifies that the Secretary may make grants that
would be useful in alleviating or preventing 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 8. Enhancement of recipient flexibility to deal with project
assets
Section 8(a) 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 8(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 8(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 be used to
improve the management of the revolving loan fund program.
Section 9. Brightfields demonstration program
Section 9 extends authorization for the Brightfields
Demonstration Program through fiscal year 2013.
Section 10. Designation of economic development districts
Section 10 specifies that each EDD shall engage in a full
range of economic activities including: coordinating and
implementing economic development activities; carrying out
economic development research, planning, implementation and
advisory funding; and coordinating the development and
implementation of the comprehensive economic development
strategy with other local, State, Federal, 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 11. Consultation with other persons and agencies
Section 11 includes area and regional outmigration as an
issue regarding which the Secretary may consult with other
persons and agencies who may be of assistance.
Section 12. Notification of reorganization
Section 12 moves the State of Montana from the purview of
the Denver Regional Office to the Seattle Regional Office.
Section 13. Maintenance of effort
Section 13 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 14. Extension of authorization of appropriations
Section 14 authorizes EDA for an additional five years
(fiscal year 2009 through fiscal year 2013) at $500 million per
year.
Section 15. Funding for grants for planning and grants for
administrative expenses
Section 15 maintains the current requirement that $27
million shall be available each year for grants for planning
and administrative expenses and requires an increase to $28
million if appropriations for the economic development
assistance programs are equal to or greater than $280 million,
to $29.5 million if appropriations for the economic development
assistance programs are equal to or greater than $320 million,
to $31 million if appropriations for the economic development
assistance programs are equal to or greater than $350 million,
to $32.5 million if appropriations for the economic development
assistance programs are equal to or greater than $380 million,
and to $34.5 million if appropriations for the economic
development assistance programs are equal to or greater than
$420 million.
Legislative History
The most recent EDA authorization, the Economic Development
Administration Reauthorization Act of 2004, expired on
September 30, 2008. The Committee met on November 18, 2009, to
consider S. 2778, the Economic Development Revitalization Act
of 2009. Boxer Amendment #1, to encourage the location of
information technology and manufacturing jobs in the United
States, was adopted by voice vote. The bill was then ordered to
be reported favorably with amendment by a roll call vote of 18
yeas and 1 not recorded.
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. ____), 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.
Rollcall Votes
The Committee on Environment and Public Works met to
consider S. 2778, the Economic Development Revitalization Act
on November 18, 2009. 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.
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.
2778 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. 2778 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.
S. 2778--Economic Development Revitalization Act of 2009
Summary: S. 2778 would reauthorize funding for existing
programs of the Economic Development Administration (EDA)
through 2013. The legislation also would authorize
appropriations for EDA to rebuild certain abandoned or
underutilized property using solar energy technology
(brightfields). Assuming appropriation of the specified
amounts, CBO estimates that implementing this bill would cost
about $1.3 billion over the next five years and an additional
$760 million after 2014. Enacting S. 2778 would not affect
direct spending or revenues.
S. 2778 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. 2778 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--
---------------------------------------------------------
2010 2011 2012 2013 2014 2010-2014
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Economic Development Assistance Programs:
Authorization Level............................... 500 500 500 500 0 2,000
Estimated Outlays................................. 25 135 245 385 460 1,250
Brightfields Demonstration Program:
Authorization Level............................... 5 5 5 5 0 20
Estimated Outlays................................. 0 1 2 4 5 12
Total Changes:
Authorization Level........................... 505 505 505 505 0 2,020
Estimated Outlays............................. 25 136 247 389 465 1,262
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500.000.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the middle of fiscal year 2010
and that amounts specified in the bill will be appropriated for
each year.
Economic development assistance programs
S. 2778 would authorize the appropriation of $500 million
in each of fiscal years 2010 through 2013 for EDA to provide
various types of assistance to encourage economic development
in distressed areas. For 2009, the Congress provided a total of
$430 million to EDA, including $150 million that was provided
by the American Recovery and Reinvestment Act of 2009 and $40
million for the new Trade Adjustment Assistance for Communities
program (see Public Laws 111-5, 111-8, and 111-32).
Of amounts authorized by the bill, $34.5 million would be
spent on grants for planning and administrative expenses (the
amount would vary based on actual appropriations). Based on
historical spending patterns of EDA programs, CBO estimates
that assistance provided under this legislation would cost
$1.25 billion over the next five years, with residual spending
of about $750 million occurring in later years.
Brightfields demonstration program
S. 2778 would authorize the appropriation of $5 million in
each of fiscal years 2010 through 2013 for EDA to establish a
demonstration program to develop brownfield sites (abandoned or
underutilized property where redevelopment is hampered by
actual or potential environmental contamination) using solar
energy technologies. Based on the spending patterns of similar
EDA projects, CBO estimates that implementing this program
would cost $12 million over the 2010-2014 period, with residual
spending occurring in later years.
Other changes
The legislation would increase the maximum federal cost for
EDA projects. Under current law, the federal government covers
50 percent of a project's cost, 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). S. 2778 would lower the threshold at which
additional federal assistance could be triggered due to
relative need. The legislation also would increase the minimum
federal share for projects of Indian tribes from 50 percent to
75 percent and increase the maximum federal share of all
projects located in a Presidentially declared disaster area to
100 percent.
CBO does not expect that these changes would significantly
alter the expenditures of EDA programs. As such, we estimate
that implementing these provisions would have no effect on the
federal budget over the next five years.
Intergovernmental and private-sector impact: S. 2778
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from grants and technical assistance for economic
development projects. Any costs to these governments, including
matching funds, would be incurred voluntarily as a condition of
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
* * * * * * *
SEC. 2. 42 U.S.C. 3121 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;
* * * * * * *
SEC. 3. 42 U.S.C. 3122 DEFINITIONS.
In this Act:
(1) * * *
* * * * * * *
(8) Regional commissions.--The term ``Regional
Commission'' 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. 2009 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, Northern Border Regional
Commission, and Southwest Border Regional
Commission established by section 15301(a) of
title 40, United States Code.
* * * * * * *
SEC. 101. 42 U.S.C. 3131 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 organizationseconomic 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
(3) promote investment in infrastructure,innovation,
entrepreneurship, sustainable 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.
(d) Cooperation Agreements.--
(1) In general.--The Secretary may enter into a
cooperation agreement with any 2 or more adjoining
States, or an organization of any 2 or more adjoining
States, in support of effective economic development.
(2) Participation.--Each cooperation agreement shall
provide for suitable participation by other
governmental and non-governmental entities that are
representative of significant interests in and
perspectives on economic development in an area.
* * * * * * *
SEC. 203. 42 U.S.C. 3143 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[.];and
(5) fostering regional collaboration among local
jurisdictions and organizations.
(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
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) Certification to the Secretary.--On completion of
a State plan developed with assistance under this
section, the State shall--
(A) certify to the Secretary that, in the
development of the State plan, local and
economic development district plans were
considered and, to the maximum extent
practicable, the State plan is consistent with
the local and economic development district
plans; and
(B) identify any inconsistencies between the
State plan and the local and economic
development district plans and provide a
justification for each inconsistency.
(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; and
(D) balance resources through the sound
management of physical development.
(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.
* * * * * * *
SEC. 204. 42 U.S.C. 3144 COST SHARING.
(a) Federal Share.--Subject to section 205, the amount of a
grant for a project under this title [shall not exceed 50
percent of the cost of the project.]shall not exceed 50
percent, except as otherwise expressly provided in this Act.
(b) Non-Federal Share.--In determining the amount of the
non-Federal share of the cost of a project, the Secretary may
provide credit toward the non-Federal share for all
contributions both in cash and in-kind, fairly evaluated,
including contributions of space, equipment, and services.
(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 out-migration,
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. 42 U.S.C. 3147 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. 42 U.S.C. 3149 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
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;
(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.
(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 the
request to convert assistance of which 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.
(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.
* * * * * * *
SEC. 218. 42 U.S.C. 3154D 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.
(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 site if the
Secretary determines that the project will--
(1) use 1 or more solar energy 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]2009 through 2013, to
remain available until expended.
* * * * * * *
SEC. 401. 42 U.S.C. 3171 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. 42 U.S.C. 3193 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. 42 U.S.C. 3197 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.
TITLE VI--MISCELLANEOUS
SEC. 601. 42 U.S.C. 3211 POWERS OF SECRETARY.
(a) In General.--In carrying out the duties of the
Secretary under this Act, the Secretary may--
(1) * * *
* * * * * * *
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.
* * * * * * *
SEC. 701. 42 U.S.C. 3231 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 2009 through
2013.
* * * * * * *
[SEC. 704. 42 U.S.C. 3234 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, not less
than $27,000,000 shall be made available to provide grants
under section 203.
(b) Subject to Total Appropriations.--For any fiscal year,
the amount made available pursuant to subsection (a) shall be
increased to--
(1) $28,000,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $280,000,000;
(2) $29,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $320,000,000;
(3) $31,000,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $350,000,000;
(4) $32,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $380,000,000; and
(5) $34,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $420,000,000.
* * * * * * *