[House Report 108-242]
[From the U.S. Government Publishing Office]
108th Congress Rept. 108-242
HOUSE OF REPRESENTATIVES
1st Session Part 1
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ECONOMIC DEVELOPMENT ADMINISTRATION REAUTHORIZATION ACT OF 2003
_______
July 25, 2003.--Ordered to be printed
_______
Mr. Young of Alaska, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 2535]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 2535) to reauthorize and improve
the program authorized by the Public Works and Economic
Development Act of 1965, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic Development
Administration Reauthorization Act of 2003''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to Public Works and Economic Development Act of
1965.
TITLE I--GENERAL PROVISIONS
Sec. 101. Findings and declarations.
Sec. 102. Definitions.
Sec. 103. Establishment of economic development partnerships.
Sec. 104. Coordination.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Sec. 201. Grants for planning.
Sec. 202. Cost sharing.
Sec. 203. Supplementary grants.
Sec. 204. Regulations on relative needs and allocations.
Sec. 205. Grants for training, research, and technical assistance.
Sec. 206. Prevention of unfair competition.
Sec. 207. Grants for economic adjustment.
Sec. 208. Use of funds in projects constructed under projected cost.
Sec. 209. Special impact areas.
Sec. 210. Performance awards.
Sec. 211. Planning performance awards.
Sec. 212. Subgrants.
Sec. 213. Brownfields redevelopment.
Sec. 214. Brightfields demonstration program.
TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
Sec. 301. Comprehensive economic development strategies.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
Sec. 401. Incentives.
Sec. 402. Provision of comprehensive economic development strategies to
regional commissions.
TITLE V--ADMINISTRATION
Sec. 501. Economic development information clearinghouse.
Sec. 502. Businesses desiring Federal contracts.
Sec. 503. Performance evaluations of grant recipients.
Sec. 504. Conforming amendments.
TITLE VI--MISCELLANEOUS
Sec. 601. Relationship to assistance under other law.
Sec. 602. Sense of Congress regarding economic development
representatives.
TITLE VII--FUNDING
Sec. 701. Authorization of appropriations.
SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF
1965.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or a
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Public
Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.).
TITLE I--GENERAL PROVISIONS
SEC. 101. FINDINGS AND DECLARATIONS.
Section 2 (42 U.S.C. 3121) is amended to read as follows:
``SEC. 2. FINDINGS AND DECLARATIONS.
``(a) Findings.--Congress finds the following:
``(1) There continue to be areas experiencing chronic high
unemployment, underemployment, outmigration, and low per capita
incomes, as well as areas facing sudden and severe economic
dislocations due to 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 our Nation, States, cities, and
rural areas 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.
``(4) While economic development is an inherently local
process, the Federal Government should work in partnership with
public and private local, regional, tribal, and State
organizations to maximize the impact of existing resources and
enable regions, communities, and citizens to participate more
fully in the American dream and national prosperity.
``(5) In order to avoid duplication of effort and achieve
meaningful, long-lasting results, Federal, State, tribal, and
local economic development activities should have a clear
focus, improved coordination, a comprehensive approach, and
simplified and consistent requirements.
``(6) Federal economic development efforts will be more
effective if they are coordinated with, and build upon, the
trade, workforce investment, transportation, and technology
programs of the United States.
``(b) Declarations.--In order to promote a strong and growing economy
throughout the United States, Congress declares the following:
``(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 their capacity 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.''.
SEC. 102. DEFINITIONS.
(a) Eligible Recipient.--Section 3(4)(A) (42 U.S.C. 3122(4)(A)) is
amended--
(1) by striking clause (i) and redesignating clauses (ii)
through (vii) as clauses (i) through (vi), respectively; and
(2) in clause (iv) (as so redesignated) by inserting ``,
including a special purpose unit of a State or local government
engaged in economic or infrastructure development activities,''
after ``State''.
(b) Regional Commissions.--Section 3 (42 U.S.C. 3122) is amended--
(1) by redesignating paragraphs (8), (9), and (10) as
paragraphs (9), (10), and (11), respectively; and
(2) by inserting after paragraph (7) the following:
``(8) Regional commissions.--The term `Regional Commissions'
means the following entities:
``(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. 2131 note; 112
Stat. 2681-637 et seq.).
``(D) The Northern Great Plains Regional Authority
established under subtitle F of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2009bb et seq.).''.
(c) University Center.--Section 3 (42 U.S.C. 3122) is amended by
adding at the end the following:
``(12) University center.--The term `university center' means
an institution of higher education or a consortium of
institutions of higher education established as a University
Center for Economic Development under section 207(a)(2)(D).''.
SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
Section 101 (42 U.S.C. 3131) is amended--
(1) in subsection (b) by striking ``and multi-State regional
organizations'' and inserting ``multi-State regional
organizations, and nonprofit organizations''; and
(2) in subsection (d)(1) by striking ``adjoining'' each place
it appears.
SEC. 104. COORDINATION.
Section 103 (42 U.S.C. 3132) is amended--
(1) by inserting ``(a) In General.--'' before ``The
Secretary'';
(2) in subsection (a) (as so designated) by inserting
``Indian tribes,'' after ``districts,''; and
(3) by adding at the end the following:
``(b) Meetings.--To carry out the responsibilities in subsection (a),
or for any other purpose related to economic development activities,
the Secretary may convene meetings with Federal agencies, State and
local governments, economic development districts, Indian tribes, and
other appropriate planning and development organizations.''.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
SEC. 201. GRANTS FOR PLANNING.
Section 203(d) (42 U.S.C. 3143(d)) is amended--
(1) in paragraph (1) by inserting ``, to the maximum extent
practicable,'' after ``developed'' the second place it appears;
(2) by striking paragraph (3) and inserting the following:
``(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.''; and
(3) in paragraph (4)--
(A) by striking ``and'' at the end of subparagraph
(C);
(B) by redesignating subparagraph (D) as subparagraph
(E); and
(C) by adding after subparagraph (C) the following:
``(D) assist in carrying out a State's workforce
investment strategy; and''.
SEC. 202. COST SHARING.
(a) Federal Share.--Section 204(a) (42 U.S.C. 3144(a)) is amended to
read as follows:
``(a) Federal Share.--The Secretary shall issue regulations to
establish the Federal share of the cost of projects carried out under
this title based on the relative needs of the areas in which the
projects will be located. Except as provided in subsection (c), the
Federal share of the cost of any project carried out under this title
shall not exceed 80 percent.''.
(b) Non-Federal Share.--Section 204(b) (42 U.S.C. 3144(b)) is amended
by inserting ``assumptions of debt,'' after ``equipment,''.
(c) Increase in Federal Share.--Section 204 (42 U.S.C. 3144) is
amended by adding at the end the following:
``(c) Increase in Federal Share.--
``(1) Indian tribes.--In the case of a grant to an Indian
tribe for a project under this title, the Secretary may
increase the Federal share above the percentage specified in
subsection (a) up to 100 percent of the cost of the project.
``(2) 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 its effective taxing and borrowing capacity, or
in the case of a grant to a nonprofit organization that the
Secretary determines has exhausted its effective borrowing
capacity, the Secretary may increase the Federal share above
the percentage specified in subsection (a) up to 100 percent of
the cost of the project.''.
(d) Planning Grants.--Section 204 (42 U.S.C. 3144) is further amended
by adding at the end the following:
``(d) Planning Grants.--Notwithstanding subsection (a), the Federal
share of the costs of planning activities under section 203 shall be at
least 65 percent and not more than 80 percent.''.
SEC. 203. SUPPLEMENTARY GRANTS.
(a) In General.--Section 205(b) (42 U.S.C. 3145(b)) is amended to
read as follows:
``(b) Supplementary Grants.--Subject to subsection (c), in order to
assist eligible recipients in taking advantage of designated Federal
grant programs, on the application of an eligible recipient, the
Secretary may make a supplementary grant for a project for which the
recipient is eligible but for which the recipient cannot provide the
required non-Federal share because of the recipient's economic
situation.''.
(b) Requirements Applicable to Supplementary Grants.--Section 205(c)
(42 U.S.C. 3145(c)) is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Amount of supplementary grants.--The share of the
project cost supported by a supplementary grant under this
section may not exceed the applicable Federal share under
section 204.
``(2) Form of supplementary grants.--The Secretary shall make
supplementary grants by--
``(A) the payment of funds made available under this
Act to the heads of the Federal agencies responsible
for carrying out the applicable Federal programs; or
``(B) the award of funds under this Act, which will
be combined with funds transferred from other Federal
agencies in projects administered by the Secretary.'';
and
(2) by striking paragraph (4).
SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.
Section 206 (42 U.S.C. 3146) is amended--
(1) by striking ``and'' at the end of paragraph (1)(B);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) grants made under this title promote job creation and
will have a high probability of meeting or exceeding applicable
performance requirements established in connection with the
grants.''.
SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) In General.--Section 207(a)(2) (42 U.S.C. 3147(a)(2)) is
amended--
(1) by striking ``and'' at the end of subparagraph (F);
(2) by redesignating subparagraph (G) as subparagraph (H);
and
(3) by inserting after subparagraph (F) the following:
``(G) studies that evaluate the effectiveness of
coordinating projects funded under this Act with
projects funded under other Acts; and''.
(b) Cooperation Requirement.--Section 207(a) (42 U.S.C. 3147(a)) is
amended by adding at the end the following:
``(4) 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.''.
SEC. 206. PREVENTION OF UNFAIR COMPETITION.
Section 208 (42 U.S.C. 3148), and the item relating to section 208 in
the table of contents contained in section 1(b), are repealed.
SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) Direct Expenditure or Redistribution by Recipient.--Section
209(d) (42 U.S.C. 3149(d)) is amended by striking ``an eligible
recipient'' each place it appears and inserting ``a recipient''.
(b) Special Provisions Relating to Revolving Loan Fund Grants.--
Section 209 (42 U.S.C. 3149) is amended by adding at the end the
following:
``(e) Special Provisions Relating to Revolving Loan Fund Grants.--
``(1) In general.--The Secretary shall issue regulations to
maintain the proper operation and financial integrity of
revolving loan funds established by recipients with assistance
under this section.
``(2) 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 a third party for the purpose of liquidation,
and a 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) 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.''.
SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
Section 211 (42 U.S.C. 3151) is amended to read as follows:
``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
``(a) In General.--In the case of a grant to a recipient for a
construction project under section 201 or 209, if the Secretary
determines, before closeout of the project, that the cost of the
project, based on the designs and specifications that were the basis of
the grant, has decreased because of decreases in costs, the Secretary
may approve, without further appropriations action, the use of the
excess funds (or a portion of the excess funds) by the recipient to
increase the Federal share of the cost of a project under this title to
the maximum percentage allowable under section 204 or to improve the
project.
``(b) Other Uses of Excess Funds.--Any amount of excess funds
remaining after application of subsection (a) may be used by the
Secretary for providing assistance under this Act.
``(c) Transferred Funds.--In the case of excess funds described in
subsection (a) in projects utilizing funds transferred from other
Federal agencies pursuant to section 604, the Secretary shall--
``(1) utilize the funds in accordance with subsection (a),
with the approval of the originating agency; or
``(2) return the funds to the originating agency.''.
SEC. 209. SPECIAL IMPACT AREAS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is amended by
adding at the end the following:
``SEC. 214. SPECIAL IMPACT AREAS.
``(a) In General.--On the application of an eligible recipient, the
Secretary may determine that the recipient is unable to comply with the
requirements of section 302 and designate the area represented by the
recipient as a special impact area.
``(b) Waivers.--Subject to the requirements of this section, the
Secretary may waive, in whole or in part, as appropriate, the
requirements of section 302 with respect to a special impact area
designated under subsection (a) if the Secretary determines that the
waiver will carry out the purposes of the Act.
``(c) Notification Requirement.--At least 30 days before issuing a
waiver under this section, the Secretary shall transmit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public Works of
the Senate a written notice of the waiver, including a justification
for the waiver.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 213 the
following:
``Sec. 214. Special impact areas.''.
SEC. 210. PERFORMANCE AWARDS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is further amended
by adding at the end the following:
``SEC. 215. PERFORMANCE AWARDS.
``(a) In General.--The Secretary may make a performance award in
connection with a grant made, on or after the date of enactment of this
section, to an eligible recipient for a project under section 201 or
209.
``(b) Performance Measures.--
``(1) Regulations.--The Secretary shall issue regulations to
establish performance measures for making performance awards
under subsection (a).
``(2) Considerations.--In issuing regulations under paragraph
(1), the Secretary shall consider including performance
measures that assess the following factors:
``(A) Whether the recipient meets or exceeds
scheduling goals.
``(B) Whether the recipient meets or exceeds job
creation goals.
``(C) Amounts of private sector capital investments
leveraged.
``(D) Such other factors as the Secretary determines
appropriate.
``(c) Amount of Awards.--
``(1) In general.--The Secretary shall base the amount of a
performance award made under subsection (a) in connection with
a grant on the extent to which a recipient meets or exceeds
performance measures established in connection with the grant.
``(2) Maximum amount.--The amount of a performance award may
not exceed 10 percent of the amount of the grant.
``(d) Use of Awards.--A recipient of a performance award under
subsection (a) may use the award for any eligible purpose under this
Act, in accordance with section 602 and such regulations as the
Secretary may prescribe.
``(e) Federal Share.--Notwithstanding section 204, the amounts of a
performance award may be used for up to 100 percent of the cost of an
eligible project or activity.
``(f) Treatment in Meeting Non-Federal Share Requirements.--For the
purposes of meeting the non-Federal share requirements of this Act, or
any other Act, the amounts of a performance award shall be treated as
funds from a non-Federal source.
``(g) Terms and Conditions.-- In making performance awards under
subsection (a), the Secretary shall establish such terms and conditions
as the Secretary considers appropriate.
``(h) Funding.--The Secretary shall carry out this section using any
amounts made available for economic development assistance programs.
``(i) Reporting Requirement.--The Secretary shall include information
regarding performance awards made under this section in the annual
report required under section 603.
``(j) Review by Comptroller General.--
``(1) Review.--The Comptroller General shall review the
implementation of this section in each fiscal year.
``(2) Annual report.--Not later than one year after the date
of enactment of this section, and annually thereafter, the
Comptroller General shall transmit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works of the Senate a report on the Comptroller's findings
under this subsection.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 214 the
following:
``Sec. 215. Performance awards.''.
SEC. 211. PLANNING PERFORMANCE AWARDS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is further amended
by adding at the end the following:
``SEC. 216. PLANNING PERFORMANCE AWARDS.
``(a) In General.--The Secretary may make a planning performance
award in connection with a grant made, on or after the date of
enactment of this section, to an eligible recipient for a project under
this title located in an economic development district.
``(b) Eligibility.--The Secretary may make a planning performance
award to an eligible recipient under subsection (a) in connection with
a grant for a project if the Secretary determines before closeout of
the project that--
``(1) the recipient actively participated in the economic
development activities of the economic development district in
which the project is located;
``(2) the project is consistent with the comprehensive
economic development strategy of the district;
``(3) the recipient worked with Federal, State, and local
economic development entities throughout the development of the
project; and
``(4) the project was completed in accordance with the
comprehensive economic development strategy of the district.
``(c) Maximum Amount.--The amount of a planning performance award
made under subsection (a) in connection with a grant may not exceed 5
percent of the amount of the grant.
``(d) Use of Awards.--A recipient of a planning performance award
under subsection (a) shall use the award to increase the Federal share
of the cost of a project under this title.
``(e) Federal Share.--Notwithstanding section 204, the amounts of a
planning performance award may be used for up to 100 percent of the
cost of a project under this title.
``(f) Funding.--The Secretary shall carry out this section using any
amounts made available for economic development assistance programs.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 215 the
following:
``Sec. 216. Planning performance awards.''.
SEC. 212. SUBGRANTS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is further amended
by adding at the end the following:
``SEC. 217. SUBGRANTS.
``(a) In General.--Subject to subsection (b), a recipient of a grant
under section 201, 203, or 207 may directly expend the grant funds or
may redistribute the funds in the form of a subgrant to other eligible
recipients to fund required components of the scope of work approved
for the project.
``(b) Limitation.--A recipient may not redistribute grant funds
received under section 201 or 203 to a for-profit entity.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 216 the
following:
``Sec. 217. Subgrants.''.
SEC. 213. BROWNFIELDS REDEVELOPMENT.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is further amended
by adding at the end the following:
``SEC. 218. BROWNFIELDS REDEVELOPMENT.
``(a) In General.--On the application of a qualified eligible
recipient, the Secretary may make grants under sections 201, 203, 207,
and 209 for projects to expand, redevelop, or reuse brownfield sites.
``(b) Limitations.--Projects carried out under this section shall be
subject to the limitations of section 104(k)(4)(B) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9604(k)(4)(B)).
``(c) Definitions.--In this section, the following definitions apply:
``(1) Brownfield site.--The term `brownfield site' has the
meaning given such term in section 101(39) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601(39)).
``(2) Qualified eligible recipient.--The term `qualified
eligible recipient' means an eligible recipient that meets the
definition of `eligible entity' in section 104(k)(1) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9604(k)(1)); except that for
any project undertaken under this section the term may include
a nonprofit organization acting in cooperation with officials
of a political subdivision of a State.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 217 the
following:
``Sec. 218. Brownfields redevelopment.''.
SEC. 214. BRIGHTFIELDS DEMONSTRATION PROGRAM.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is further amended
by adding at the end the following:
``SEC. 219. BRIGHTFIELDS DEMONSTRATION PROGRAM.
``(a) In General.--On the application of a qualified eligible
recipient, the Secretary may make a grant for a project for the
development of brightfield sites if the Secretary determines that the
project will--
``(1) utilize solar energy technologies to develop abandoned
or contaminated sites for commercial use; and
``(2) improve the commercial and economic opportunities in
the area where the project is located.
``(b) Limitations.--Projects carried out under this section shall be
subject to the limitations of section 104(k)(4)(B) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9604(k)(4)(B)).
``(c) Definitions.--In this section, the following definitions apply:
``(1) Brightfield site.--The term `brightfield site' means a
brownfield site (as defined in section 217) that is redeveloped
through the incorporation of solar energy technologies.
``(2) Qualified eligible recipient.--The term `qualified
eligible recipient' has the meaning given such term in section
217; except that for any project undertaken under this section
the term may include a nonprofit organization acting in
cooperation with officials of a political subdivision of a
State.
``(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. Such sums shall remain available until
expended.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by inserting after the item relating to section 218 the
following:
``Sec. 219. Brightfields demonstration program.''.
TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
SEC. 301. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
(a) In General.--Section 302(a)(3)(A) (42 U.S.C. 3162(a)(3)(A)) is
amended by inserting ``maximizes effective development and use of the
workforce consistent with any applicable State or local workforce
investment strategy,'' after ``access,''.
(b) Approval of Other Plan.--Section 302(c) (42 U.S.C. 3162(c)) is
amended by adding at the end the following: ``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.''.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
SEC. 401. INCENTIVES.
Section 403 (42 U.S.C. 3173), and the item relating to section 403 in
the table of contents contained in section 1(b), are repealed.
SEC. 402. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO
REGIONAL COMMISSIONS.
(a) In General.--Section 404 (42 U.S.C. 3174) is amended to read as
follows:
``SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
TO REGIONAL COMMISSIONS.
``If any part of an economic development district is in a region
covered by one or more of the Regional Commissions (as defined in
section 3), the economic development district shall ensure that a copy
of the comprehensive economic development strategy of the district is
provided to the affected Regional Commission.''.
(b) Conforming Amendment.--The table of contents contained in section
1(b) is amended by striking the item relating to section 404 and
inserting the following:
``Sec. 404. Provision of comprehensive economic development strategies
to Regional Commissions.''.
TITLE V--ADMINISTRATION
SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.
Section 502 (42 U.S.C. 3192) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) maintain a central information clearinghouse on the
Internet with--
``(A) information on economic development, economic
adjustment, disaster recovery, defense conversion, and
trade adjustment programs and activities of the Federal
Government;
``(B) links to State economic development
organizations; and
``(C) links to other appropriate economic development
resources;'';
(2) by striking paragraph (2) and inserting the following:
``(2) assist potential and actual applicants for economic
development, economic adjustment, disaster recovery, defense
conversion, and trade adjustment assistance under Federal and
State laws in locating and applying for the assistance;'';
(3) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(4) by adding at the end the following:
``(4) obtain appropriate information from other Federal
agencies needed to carry out the duties under this Act.''.
SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.
Section 505 (42 U.S.C. 3195), and the item relating to section 505 in
the table of contents contained in section 1(b), are repealed.
SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.
Section 506(c) (42 U.S.C. 3196(c)) is amended by striking ``after the
effective date of the Economic Development Administration Reform Act of
1998''.
SEC. 504. CONFORMING AMENDMENTS.
(a) Standards.--Section 602 (42 U.S.C. 3212) is amended--
(1) in the first sentence by striking ``in accordance with''
and all that follows before the period at the end and inserting
``in accordance with subchapter IV of chapter 31 of title 40,
United States Code''; and
(2) in the third sentence by striking ``section 2 of the Act
of June 13, 1934, as amended (40 U.S.C. 276c)'' and inserting
``section 3145 of title 40, United States Code''.
(b) Evaluation Criteria.--Section 506(d)(2) (42 U.S.C. 3196(d)(2)) is
amended by inserting ``program performance,'' after ``applied
research,''.
TITLE VI--MISCELLANEOUS
SEC. 601. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.
Section 609 (42 U.S.C. 3219) is amended--
(1) by striking subsection (a); and
(2) by striking ``(b) Assistance Under Other Acts.--''.
SEC. 602. SENSE OF CONGRESS REGARDING ECONOMIC DEVELOPMENT
REPRESENTATIVES.
(a) Findings.--Congress finds the following:
(1) Planning and coordination among Federal agencies, State
and local governments, Indian tribes, and economic development
districts is vital to the success of an economic development
program.
(2) Economic Development Representatives of the Economic
Development Administration provide distressed communities with
the technical assistance necessary to foster this planning and
coordination.
(3) In the past five years, the number of Economic
Development Representatives has declined by almost 25 percent.
(b) Sense of Congress.--It is the sense of Congress that the
Secretary should maintain a sufficient number of Economic Development
Representatives to ensure that the Economic Development Administration
is able to provide effective assistance to distressed communities and
foster economic growth and development among the States.
TITLE VII--FUNDING
SEC. 701. AUTHORIZATION OF APPROPRIATIONS.
Section 701 (42 U.S.C. 3231) is amended to read as follows:
``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--
``(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.
Such sums shall remain available until expended.
``(b) Salaries and Expenses.--There are authorized to be appropriated
for salaries and expenses of administering this Act $33,377,000 for
fiscal year 2004 and such sums as may be necessary for each fiscal year
thereafter. Such sums shall remain available until expended.''.
Purpose of the Legislation
H.R. 2535 reauthorizes the Economic Development
Administration for five years and authorizes $2.25 billion over
five years for program operations. The legislation updates the
findings and declarations; revises several definitions; and
allows the inclusion of non-profit entities as an eligible
economic development entity. The legislation grants the
Secretary of Commerce new authority to implement a performance
based incentive plan, to issue new regulations relating to the
operation of revolving loan funds, to make grants for the
redevelopment of brownfield sites and for the development of
brightfield sites, to waive planning requirements for isolated
areas, to convene meetings to improve coordination between
federal agencies, to increase the federal share of grants, to
allow for increased retention of funds, and to issue new
performance regulations. The legislation also repeals a number
of obsolete provisions.
Background and Need for the Legislation
Established by the Public Works and Economic Development
Act of 1965, the Economic Development Administration (EDA) was
created to alleviate conditions of substantial and persistent
unemployment in economically distressed areas and regions. The
mission of EDA today remains much the same as it was when
originally founded, ``To enhance community success in
attracting private capital investment and lucrative job
opportunities.'' EDA has stated that to fulfill its mission, it
must be, ``. . . guided by the principle that distressed
communities must be empowered to develop and implement their
own economic development and revitalization strategies.''
The initial authorization of EDA, which was only for five
years, expired in 1970. From 1970 through 1980, EDA continued
to operate without a reauthorization, though there were several
legislative efforts to reorganize and reorient the Agency.
During this time, the agency continued to receive
appropriations, including $6 billion for public works projects
in 1976 and 1977. In 1980, EDA's programs were reauthorized,
however, that reauthorization expired in 1982, and until 1998,
the Agency went without an authorization, surviving only on
year-to-year appropriations.
The Economic Development Administration and Appalachian
Regional Development Reform Act of 1998 reauthorized the Agency
for a period of five years, and authorized funding levels that
progressively declined from an initial amount of $398 million
for FY '99 to $335 million in FY '03. Additionally, this
reauthorization put into place a number of the management and
administrative reforms already underway, such as efforts to
target the most distressed areas and encourage regional
cooperation.
EDA provides assistance for projects through a variety of
programs: Planning; Technical Assistance; Public Works;
Economic Adjustment; Research and Evaluation; and Trade
Adjustment Assistance. Projects are located in areas exhibiting
economic distress at the time of application. Projects located
outside these areas may be considered if they directly benefit
a distressed area. All Public Works and Economic Adjustment
projects must be consistent with an EDA-approved Comprehensive
Economic Development Strategy (CEDS). EDA may fund up to 50% of
project costs, however, certain conditions of high economic
distress or an applicant's inability to provide the matching
share may permit a higher grant rate.
Planning grants support the design and implementation of
effective economic development policies and programs by local
organizations. Through the use of these grants, organizations
are able to support development of CEDS, implement provisions
of this strategy, and provide planning and other technical
assistance to communities and local governments.
Grants are made to university centers that provide
technical assistance to public bodies, nonprofit organizations,
and businesses to plan and implement activities designed to
generate jobs and income in distressed areas. The information
developed by these centers also assists EDA to support other
economic development practitioners across the country. In
addition to direct support and assistance for ongoing programs,
these centers work to assist in measuring the performance of
economic development programs.
Public works grants provide for infrastructure projects
that foster the establishment or expansion of industrial and
commercial businesses generating employment in communities
experiencing high unemployment, underemployment, low per-capita
income, or out-migration. The grants provided by this program
support locally developed plans and provide limited assistance
for specific projects such as the expansion and strengthening
of public infrastructure (water, sewer, etc.), construction of
business incubators, and skill training facilities.
Economic adjustment investments provide a package of
assistance tools, including planning, technical assistance,
revolving loan funds and infrastructure development, to help
communities counteract either a gradual erosion or a sudden
dislocation of their local economic structure as a result of
natural disasters, international trade competition, or major
plant closings. This assistance also encompasses assistance
provided in the event of a military base closure, and grants to
support redevelopment of brownfields.
Research evaluation investments support studies about the
causes of economic distress and approaches to alleviating and
preventing such problems, national demonstrations of innovative
economic development techniques, and dissemination of economic
development information. These grants may be provided to
nonprofit organizations, universities, private individuals, and
other research institutions.
Trade adjustment assistance provides technical assistance,
through a national network of 12 Trade Adjustment Assistance
Centers (TAAC), to certified U.S. manufacturing firms and
industries economically injured as the result of international
trade competition.
Each of these programs operates to address a different need
within the sphere of economic development activities to
communities that meet the definition of distressed, which has
been established by regulation. These regulations limit
eligibility to communities in distress as well as projects in
otherwise ineligible communities that will benefit communities
in distress. In general, EDA defines an ``economically
distressed area'' as one that has (for the most recent period
for which data is available): unemployment rate one percent
greater than the national average; per-capita income 80 percent
or less of the national average; or a special need as
determined by EDA, such as outmigration, the negative effects
of international trade, or loss of a major economic resource.
Typically EDA limits assistance to clearly defined political
boundaries, however, these restrictions may be waived for
isolated pockets of distress in otherwise ineligible
communities.
As of fiscal year 2001, EDA has funded more than 43,000
projects, investing over $17 billion in more than 8,000
communities nationwide. The Agency estimates that its
assistance has directly created or helped to create over 4
million jobs and leveraged more than $130 billion in private
sector investment.
In addition to activities coordinated directly with State
and local governments, EDA has a long history of working with
other organizations to meet its mission. EDA works with Local
Development Districts (LDD's), which are often the recipient of
grant assistance, and work on a multi-county level to address
economic development needs in areas of distress. In addition,
EDA has worked in the past with each of the existing and
operational regional development authorities, including the
Appalachian Regional Commission (ARC), Delta Regional Authority
(DRA) and Denali Commission (Denali) to deliver planning
assistance and guidance on regional planning issues.
This work has been achieved through both Memoranda of
Understanding (MOU's), as is the case with ARC, and through
cooperative work, as is the case with Denali and DRA. In each
of these cases however, EDA has worked to achieve a different
mission than those established by the regional authorities,
which have been established by law to operate independently.
The present reauthorization legislation continues many of
the important reforms put into place by the 1998
reauthorization (P.L. 105-393), and builds upon the success of
these reforms by providing increased resources and flexible new
authorities to the Secretary of Commerce.
Summary of the Legislation
Section 1. Section 1 provides that the short title for the
legislation is the Economic Development Administration
Reauthorization Act of 2003.
Section 2. Section 2 clarifies that the amendments included
in the bill are amendments to the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3121 et seq.) as amended
(PWEDA).
TITLE I--GENERAL PROVISIONS
Section 101. Findings and declarations
Revises the findings to reflect the different economy in
2003 compared to 1998 when the Economic Development
Administration (EDA) was last re-authorized. The new findings
also provide an emphasis on the need to increase innovation,
productivity and entrepreneurship and attract private sector
capital investment in order to create jobs and sustained
economic growth.
Section 102. Definitions
Section 102 revises the definition of ``eligible
recipient'' in section 3 of PWEDA. This is done since EDA looks
to organizational status, such as status as a city, State or
Indian tribe, to meet the requirements of paragraph (4)(A) of
this section. This section also clarifies that a city or other
political subdivision of a State under subparagraph (4)(A)(iv)
(as re-designated) includes a special purpose unit of State or
local government, engaged in economic or infrastructure
development activities.
This section also adds a new paragraph (8) that defines
Regional Commissions for purposes of section 403 of the Act.
The Regional Commissions are the Appalachian Regional
Commission, Delta Regional Authority, the Denali Commission,
and the Northern Great Plains Regional Authority. The
legislation amends section 403 to require economic development
districts to send a copy of their comprehensive economic
development strategies to the appropriate Regional Commission
as so defined.
A new paragraph (12) is added to include a new definition
of ``university centers'' to rename them as University Centers
for Economic Development, and clarifies that these must be
institutions of higher learning.
Section 103. Establishment of economic development partnerships
Section 103 amends section 101 of PWEDA (42 U.S.C.
Sec. 3131) which sets out EDA's authority to cooperate with
States and other entities in establishing economic development
partnerships that might be appropriate to alleviate economic
distress or promote investment in infrastructure and
technological development. Currently, the Secretary can work
with States, political subdivisions of States, sub-State
regional organizations and multi-State organizations, but not
other non-profit organizations. The legislation amends 101(b)
to allow non-profit organizations such as community development
corporations to be eligible to receive assistance under this
section.
This section also amends subsection (d) of this section,
which enables the Secretary to enter into cooperation
agreements with two or more adjoining States or organizations
of two or more adjoining States. Adjoining is stricken each
time it is used since this restriction precludes the EDA from
cooperating with two States that may have common problems in
connection with a given matter, but do not adjoin.
Section 104. Coordination
This section redesignates the existing Section 103 as
paragraph (a) and adds a paragraph (b) that allows the
Secretary to better coordinate the delivery of federal
assistance by convening meetings with all relevant
stakeholders. This section also includes Indian tribes as a
stakeholder to be included in the discussions.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Section 201. Grants for planning
This section clarifies that States need only coordinate
with local officials to the maximum extent practicable when
preparing their state plan. This change alleviates a
significant burden of large states, while at the same time
retaining an appropriate level of regional involvement. This
section also requires that prior to the Secretary granting
assistance under this section, the Secretary must consider the
extent to which a State plans to consider the local issues.
A new subparagraph (d)(3)(D) is also added to require that
any statewide planning assisted under section 203 be part of a
comprehensive planning process that also considers a State
workforce investment strategy. Such a process should include
consideration of the State plan required under section 112 of
the Workforce Investment Act of 1998 (29 U.S.C. Sec. 2822).
It is the Committee's belief that planning is the key to
successful economic development programs. Activities under this
section have been underfunded for many years, and therefore the
Committee supports increased funding for planning activities.
Section 202. Cost sharing
This Section re-works sections 204 and 205 of PWEDA (42
U.S.C. Sec. Sec. 3144, 3145), which authorizes the Secretary to
establish grant rates from 50 percent to 80 percent (and in
limited circumstances to 100 percent). EDA currently implements
this authority through section 301.4 of its regulations (title
13, Code of Federal Regulations).
This section also establishes in law the cost share for
planning activities funded under Section 203 of PWEDA. Under
this act, the Federal share of these activities shall be not
less than 65 percent and not more than 80 percent. It is the
Committee's expectation that the Secretary will issue
regulations to determine the criteria that must be met to
qualify for different levels of assistance. It is also the
Committee's expectation that this authority will not be used to
decrease the amount of money currently given to recipients.
Section 203. Supplementary grants
This Section eliminates the two-step process required by
Sections 204 and 205 in which EDA may only make a basic grant
of 50 percent of project cost and then, depending on the
economic distress of the area in which the project is located,
supplement that basic grant by 10, 20, or 30 percent, or more
in the case of projects of Indian tribes or in certain other
limited circumstances such as a natural disaster. This section
does not alter the substance of current law; grant rates will
continue to depend on the relative level of economic distress
as 13 CFR Sec. 301.4 requires, but it eliminates the two-step
process. As revised, supplementary grants will refer to only
those projects in which EDA is participating in a multi-agency
project and will transfer funds as a supplement to a sister
agency's funds.
Section 204. Regulations on relative needs and allocations
This Section adds a new paragraph (3) to section 206 of
PWEDA (42 U.S.C. Sec. 3146) to require the Secretary in
promulgating rules and procedures for grants under title II to
ensure that allocations of assistance promote job creation and
will meet or exceed applicable performance requirements.
Section 205. Grants for training, research, and technical assistance
This section amends Section 207 of PWEDA to require that
the agency conduct studies to evaluate the effectiveness of its
projects in coordination with projects funded under other acts.
This requirement applies specifically to those studies funded
by the Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801).
This section also clarifies the current requirement under
subparagraph 3(4)(A)(vi) (as re-designated) that ensures that
recipients of assistance under the Act have cooperated with
local officials. EDA is committed to ensuring that its economic
development activities in funding projects are consistent with
locally developed strategies and have broad community support.
However, EDA upon occasion extends technical assistance or
conducts research in which the focus is not local, but national
or regional. In such cases, there is no appropriate local
official with whom to cooperate. Accordingly, this section
recommends clarifying the applicability of this requirement for
such national or regional technical assistance or research
projects.
Grants under this section provide technical assistance to
communities across the nation to transition from failing
industries to those that can provide good paying jobs well into
the future. In order that this may be continued, the Committee
strongly encourages EDA to work with Trumbull and Mahoning
counties in the State of Ohio to complete a study for the
second phase of an economic development project that has the
potential to generate nearly 2,000 jobs and over $9 million in
tax revenue for Northeast Ohio.
The Committee strongly encourages EDA to continue to work
with the city of Fairfield, Maine to complete work on the
Fairfield Biotech Park, an economic development project that
has the potential to create jobs in the biotechnology industry
and contribute significantly to the diversification of Maine's
economy.
The Committee also strongly encourages EDA to work with the
Cedar City/Iron County Economic Development Group to complete
work on Phase III of the Cedar City Airport Industrial Park, an
economic development project that has the potential to create
much needed, high wage jobs in southwestern Utah.
Section 206. Prevention of unfair competition
This Section repeals section 208 of PWEDA (42 U.S.C.
Sec. 3148) as a matter of administrative convenience. Section
208 requires EDA to make a determination, before approving a
public works grant under section 201 of PWEDA or an economic
adjustment grant under section 209, that the financial
assistance will not increase the production of goods,
materials, or commodities, or the availability of services or
facilities, when there is not sufficient demand for such goods,
materials, commodities, services, or facilities, to employ the
efficient capacity of existing competitive commercial or
industrial enterprises. In practice it requires EDA to perform
complex studies of the potential economic impact of its
investments, even though EDA rarely determines that a potential
project implicates such competitive concerns. EDA's criteria
and Investment Policy Guidelines provide safeguards against
situations section 208 was intended to prevent.
Section 207. Grants for economic adjustment
This Section makes a minor wording change to subsection (d)
to section 209 of PWEDA (42 U.S.C. Sec. 3149) to strike
``eligible'' before ``recipient'' because in the context of the
subsection the provision relates to recipients who have been
awarded a grant.
This Section also adds a new subsection (e) to section 209
to improve the administration of economic adjustment grants,
which establish revolving loan funds (RLF's). Paragraph (1) of
new subsection (e) requires the Secretary to issue regulations
to maintain the proper operation and financial integrity of
RLF's. While the Committee appreciates and agrees that it is
important for EDA to require regular audits of RLF operators to
ensure good performance, it also believes that it is important
that these audits not become overly burdensome. It is the
Committee's expectation that regulations promulgated pursuant
to this section will require an audit schedule that reflects,
to the greatest extent practicable, the performance of an RLF,
and will take into consideration the burden being imposed by
requiring these audits on a regular basis.
This Section also gives the Secretary the authority, in
accordance with regulations issued for such purposes, and at
the request of a grantee, to amend and consolidate grant
agreements with respect to lending areas and borrower criteria;
transfer RLF assets to third parties when such transfer would
assist in the orderly liquidation of an RLF, which EDA is
terminating for reasons of poor performance or for the
convenience of the parties; and take such actions as are
necessary to allow RLF operators to sell their loans to a
secondary market.
Section 208. Use of funds in projects constructed under projected cost
This Section amends section 211 of PWEDA (42 U.S.C.
Sec. 3151) to provide additional flexibility in connection with
the use of excess grant funds in construction projects. Under
the current provision, EDA may approve a request by a grantee
to expend grant funds to improve a construction project when
the cost of the original project is less than originally
anticipated. Any funds remaining after the cost of the
improvement are returned to the Treasury. This amendment would
provide EDA with the authority to use these excess funds to
increase the Federal share of a project, improve the project,
or make additional economic development investments under EDA
program authorities (primarily sections 201 and 209 of PWEDA,
42 U.S.C. Sec. Sec. 3141, 3149) in keeping with the original
intent of the appropriations.
Section 209. Special impact areas
This Section amends PWEDA to add a new section 214 to PWEDA
to provide additional programmatic flexibility. On the
application of an eligible recipient, EDA may determine that
the recipient is unable to comply with therequirements of
section 302 and designate the area as a special impact area. Subject to
this requirement, the Secretary may waive the requirements of section
302 of PWEDA (42 U.S.C. Sec. 3162). However, prior to using this
authority, the Secretary must notify the Committee and provide a
justification for the waiver.
Section 210. Performance awards
This Section adds a new section 215 to PWEDA to provide new
authority to develop a performance incentive program. The
Secretary may make an award if it is determined that a grant
recipient has met performance measures promulgated in
regulations. The award would take the form of a grant to the
recipient in an amount of up to 10 percent of the original
project grant amount and may be used for any eligible purpose
allowed under the act. EDA would issue new regulations to
govern the performance incentive program and would address it
specifically as part of the annual report under section 603 of
the Act.
Section 211. Planning performance awards
This section adds a new Section 216 to PWEDA and
establishes in law a Planning Performance Award. This award
replaces the current district incentive that is provided
pursuant to Section 403 of PWEDA. The purpose of this change is
to emphasize the importance of not only participation in the
planning process, but also that the resulting plan is designed
to promote strong economic growth and contains a means of
measuring such a plan.
This award may be given prior to closeout of a grant
project to an eligible recipient in an Economic Development
District (EDD). To receive a planning performance award, a
recipient of an award must meet four criteria. The recipient
must have actively participated in the economic development
activities of the EDD, the project must be consistent with the
Comprehensive Economic Development Strategy (CEDS), the
recipient must have worked with economic development entities
throughout the project, and the project must have been
completed in accordance with the CEDS.
A Planning Performance Award may be up to five percent of
the cost of the project, and may only be used to increase the
federal share of the project up to 100 percent. Funding for the
award comes from any amounts made available for economic
development assistance programs.
Section 212. Subgrants
This Section amends PWEDA (42 U.S.C. Sec. 3141) to clarify
that recipients of assistance have the flexibility to spend the
funds directly, or if it would be more efficient, to re-
distribute grant funds to a subgrantee otherwise eligible under
the Act to fund required components of the scope of work
approved for the project. This amendment, which affects
assistance under Sections 201, 203, and 207, is patterned after
similar authority in connection with the economic adjustment
program under section 209 of the Act.
Section 213. Brownfields redevelopment
This Section allows the use of EDA grant funds for the
redevelopment of Brownfields, as current law defines that term.
The language in this Section is consistent with EDA's current
practice of funding Brownfield redevelopment. Additionally,
this section does not authorize new funding or require a
minimum level of funding for the program.
Section 214. Brightfields demonstration program
This Section creates a limited demonstration program for
Brightfields development. A Brightfield is defined as a
Brownfield redevelopment project that utilizes photovoltaic
technologies. This section authorizes $5 million a year for
five years to fund demonstration projects separate and apart
from the general authorization in title VII.
It is the Committee's expectation that at least one of the
projects funded under this section will be the Union Ship Canal
in the City of Buffalo, New York.
TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
Section 301. Comprehensive economic development strategies
This Section clarifies that the Comprehensive Economic
Development Strategy (CEDS) developed by this Section should be
consistent, to the extent practicable, with applicable State or
local workforce strategies.
This Section also requires that another plan approved by
the Secretary functioning as a CEDS, be, to the maximum extent
practicable, consistent, and coordinated with an existing plan
for the area.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
Section 401. Provision of comprehensive economic development strategies
to regional commissions
This Section clarifies that in any instance that an
Economic Development District (EDD) is in a Regional
Commission, that such EDD deliver a copy of their CEDS to the
Regional Commission.
TITLE V--ADMINISTRATION
Section 501. Economic development information clearinghouse
This Section makes minor clarifications to section 502 of
PWEDA (42 U.S.C. Sec. 3192) regarding the operation of the
economic development information clearinghouse. These changes
clarify that the clearinghouse will be maintained on the
Internet and delete references to links to local laws and
information as beyond what is realistically achievable by EDA.
Section 502. Businesses desiring federal contracts
This Section strikes section 505 of PWEDA (42 U.S.C.
Sec. 3195), which authorizes the Secretary to provide Federal
procurement officials with the names of businesses in
economically distressed areas. EDA has never received
appropriations to implement this section.
Section 503. Performance evaluations of grant recipients
This Section deletes a portion of Section 506 of PWEDA that
makes reference to the effective date of the previous
reauthorization in 1998.
Section 506 of PWEDA (as redesignated by the Act) also
addresses the criteria to be used when evaluating the
performance of grant recipients. This includes an evaluation of
University Centers. The Committee believes that University
Centers have effectively provided a wide range of technical
assistance not only to nonprofit entities, local governments,
and communities; but also to other economic development
organizations. One of the features of this program is that
University Centers design programs to fit the needs of the
service areas. In the current economic climate, where many
states have been forced to redefine their economic structures
and communities have suffered economic downturns with
substantial job losses, increased support by University Centers
offers the potential to greatly assist in economic development.
The Committee therefore urges the EDA to increase the
number of University Centers from the present number of 68 to a
number that will allow the maximum number of communities to
benefit from their efforts. The Committee believes that EDA
should also strive to increase the funding available for each
center. Funding for additional university centers comes from
amounts made available for economic development under this Act.
Section 505. Conforming amendments
Section 505 corrects two citations in section 602 of PWEDA
to reflect changes made by Public Law No. 107-217.
TITLE VI--MISCELLANEOUS
Section 601. Relationship to assistance under other law
Section 601 strikes subsection (a) of section 609 regarding
assistance previously authorized under the Act prior to the
1998 amendments. This provision is no longer needed.
TITLE VII--FUNDING
Section 701. Authorization of appropriations
Section 701 amends section 701 of PWEDA (42 U.S.C.
Sec. 3231) to authorize appropriations at levels that will
allow the agency to fully perform its mission and carry out
programs authorized under this Act. The agency is authorized
$400 million for fiscal year 2004; $425 million for FY 2005;
$450 million for FY 2006; $475 million for FY 2007; and $500
million for FY 2008. Additionally, the agency is authorized
$33,377,000 for fiscal year 2004 for salaries and expenses, and
such sums as may be necessary thereafter.
Legislative History and Committee Consideration
The Subcommittee on Economic Development, Public Buildings
and Emergency Management held a series of hearings in
connection with the introduction and consideration of H.R.
2535. These hearings focused on the many different aspects of
the Economic Development Administration and its programs. On
April 2, the Subcommittee held a hearing to examine local
economic development issues; on April 9, the Subcommittee
considered regional economic development issues; and on June 4,
the Subcommittee considered the Administration's proposal for
reauthorization of EDA.
On June 19, 2003, Mr. LaTourette, Ms. Norton, Mr. Young of
Alaska, and Mr. Oberstar introduced H.R. 2535, a bill to
reauthorize and improve the program authorized by the Public
Works and Economic Development Act of 1965. On June 18, 2003,
the Subcommittee met in open session and considered H.R. 2535.
A motion by Ms. Norton to order H.R. 2535 favorably reported to
the Full Committee was agreed to unanimously, by voice vote
with a quorum present. There were no recorded votes taken
during Subcommittee consideration of H.R. 2535.
On June 25, 2003, the Full Committee met in open session
and considered H.R. 2535. An amendment offered by Mr.
LaTourette and Ms. Norton, making several changes to the
legislation as introduced, was adopted by voice vote, with a
quorum present. A motion by Mr. LaTourette to order H.R. 2535,
as amended, favorably reported to the House was agreed to
unanimously, by voice vote with a quorum present. There were no
recorded votes taken during consideration of H.R. 2535, as
amended.
Rollcall Votes
Clause 3(b) of rule XIII of the House of Representatives
requires each committee report to include the total number of
votes cast for and against on each rollcall vote on a motion to
report and on any amendment offered to the measure or matter,
and the names of those members voting for and against. There
were no rollcall votes taken during consideration of H.R. 2535.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
308(a) of the Congressional Budget Act of 1974, the Committee
references the report of the Congressional Budget Office
included below.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objective of this legislation are to
reauthorize and improve the program authorized by the Public
Works and Economic Development Act of 1965 by promoting
administrative flexibility, creating a performance based
incentive program, promoting, requiring the adoption of
performance goals, and increasing coordination among
participating organizations.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
2535 from the Director of the Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 15, 2003.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2535, the Economic
Development Administration Reauthorization Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 2535--Economic Development Administration Reauthorization Act of
2003
Summary: H.R. 2535 would reauthorize the Economic
Development Administration (EDA) for an additional five years
and provide funding for existing grant programs and new grant
programs established under the bill. CBO estimates that
implementing this legislation would cost about $1.3 billion
over the 2004-2008 period and an additional $1.2 billion after
2008, assuming appropriation of the necessary amounts. Enacting
H.R. 2535 would not affect direct spending or revenues.
Over the 2004-2008 period, about $1.1 billion would be used
by EDA to provide various types of grants that support
activities associated with economic development and assistance
for distressed communities, including a new incentive grant
program that would reward grant recipients who have met certain
performance measures. About $200 million over the next five
years would be used by EDA to fund its salaries and expenses
($175 million) and to establish a demonstration program ($25
million) for the redevelopment of brownfield sites using solar
energy technologies (such sites are known as brightfield
sites).
H.R. 2535 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The grants and incentive awards authorized in the bill would
provide financial benefits to state, local, and tribal
governments that participate in the economic development and
planning programs. And additional costs or requirements would
be conditions of aid.
Estimated Cost to the Federal Government: CBO estimates
that implementing the bill would cost $1.29 billion over the
2004-2008 period, assuming appropriation of the necessary
amounts each year. Those estimated outlays are based on
historical patterns for similar activities. The estimated
budgetary impact of H.R. 2535 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
----------------------------------------------------------------------------------------------------------------
By Fiscal Year (millions of dollars)
-----------------------------------------------------
2003 2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending under current law:
Budget authority \1\.................................. 319 0 0 0 0 0
Estimated outlays..................................... 391 349 270 181 58 9
Proposed changes:
Economic development assistance programs:
Authorization level............................... 0 400 425 450 475 500
Estimated outlays................................. 0 20 109 204 328 428
Economic development administration S&E:
Estimated authorization level \2\................. 0 33 34 35 36 37
Estimated outlays................................. 0 30 34 35 36 37
Brightfields demonstration program:
Authorization level............................... 0 5 5 5 5 5
Estimated outlays................................. 0 5 5 5 5 5
Total proposed changes:
Estimated authorization level..................... 0 438 464 490 516 542
Estimated outlays................................. 0 55 148 244 369 469
Spending under H.R. 2535:
Estimated authorization level..................... 319 438 464 490 516 542
Estimated outlays................................. 391 404 418 425 427 478
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for EDA assistance programs and EDA's salaries and expenses.
\2\ The 2004 amount for administration costs is specified by the bill, amounts over the 2005-2008 period were
estimated by adjusting the 2004 level for anticipated inflation.
Intergovernmental and Private-Sector Impact: H.R. 2535
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from additional grant programs for economic
development, performance and planning awards, and the changes
to the requirements for state and local matches of federal
grants. Such changes would provide additional resources for
economic development projects. Any costs associated with
participating in these grant programs would be conditions of
aid and therefore voluntary.
Estimate Prepared by: Federal costs: Susanne S. Mehlman;
impact on state, local, and tribal governments: Melissa
Merrell; and impact on the private sector: Cecil McPherson.
Estimate Approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Constitutional Authority Statement
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act. (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1994
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 2535 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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) * * *
(b) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Sec. 201. Grants for public works and economic development.
* * * * * * *
[Sec. 208. Prevention of unfair competition.]
* * * * * * *
Sec. 214. Special impact areas.
Sec. 215. Performance awards.
Sec. 216. Planning performance awards.
Sec. 217. Subgrants.
Sec. 218. Brownfields redevelopment.
Sec. 219. Brightfields demonstration program.
* * * * * * *
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
Sec. 401. Designation of economic development districts.
* * * * * * *
[Sec. 403. Incentives.
[Sec. 404. Provision of comprehensive economic development strategies to
Appalachian Regional Commission.]
Sec. 404. Provision of comprehensive economic development strategies to
Regional Commissions.
* * * * * * *
TITLE V--ADMINISTRATION
Sec. 501. Assistant Secretary for Economic Development.
* * * * * * *
[Sec. 505. Businesses desiring Federal contracts.]
* * * * * * *
[SEC. 2. FINDINGS AND DECLARATIONS.
[(a) Findings.--Congress finds that--
[(1) while the economy of the United States is
undergoing a sustained period of economic growth
resulting in low unemployment and increasing incomes,
there continue to be areas suffering economic distress
in the form of high unemployment, low incomes,
underemployment, and outmigration as well as areas
facing sudden economic dislocations due to industrial
restructuring and relocation, defense base closures and
procurement cutbacks, certain Federal actions
(including environmental requirements that result in
the removal of economic activities from a locality),
and natural disasters;
[(2) as the economy of the United States continues to
grow, those distressed areas contain significant human
and infrastructure resources that are underused;
[(3) expanding international trade and the increasing
pace of technological innovation offer both a challenge
and an opportunity to the distressed communities of the
United States;
[(4) while economic development is an inherently
local process, the Federal Government should work in
partnership with public and private local, regional,
and State organizations to ensure that existing
resources are not wasted and all Americans have an
opportunity to participate in the economic growth of
the United States;
[(5) in order to avoid wasteful duplication of effort
and to limit the burden on distressed communities,
Federal, State, and local economic development
activities should be better planned and coordinated and
Federal program requirements should be simplified and
made more consistent;
[(6) the goal of Federal economic development
activities should be to work in partnership with local,
regional, and State public and private organizations to
support the development of private sector businesses
and jobs in distressed communities;
[(7) Federal economic development efforts will be
more effective if they are coordinated with, and build
upon, the trade and technology programs of the United
States; and
[(8) under this Act, new employment opportunities
should be created by developing and expanding new and
existing public works and other facilities and
resources rather than by merely transferring jobs from
one area of the United States to another.
[(b) Declarations.--Congress declares that, in order to
promote a strong and growing economy throughout the United
States--
[(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, and the
Federal Government to increase their capacity to
develop and implement comprehensive economic
development strategies to address existing, or deter
impending, economic distress; and
[(3) whether suffering from long-term distress or a
sudden dislocation, distressed communities should be
encouraged to take advantage of the development
opportunities afforded by technological innovation and
expanding and newly opened global markets.]
SEC. 2. FINDINGS AND DECLARATIONS.
(a) Findings.--Congress finds the following:
(1) There continue to be areas experiencing chronic
high unemployment, underemployment, outmigration, and
low per capita incomes, as well as areas facing sudden
and severe economic dislocations due to 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 our Nation, States, cities,
and rural areas 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.
(4) While economic development is an inherently local
process, the Federal Government should work in
partnership with public and private local, regional,
tribal, and State organizations to maximize the impact
of existing resources and enable regions, communities,
and citizens to participate more fully in the American
dream and national prosperity.
(5) In order to avoid duplication of effort and
achieve meaningful, long-lasting results, Federal,
State, tribal, and local economic development
activities should have a clear focus, improved
coordination, a comprehensive approach, and simplified
and consistent requirements.
(6) Federal economic development efforts will be more
effective if they are coordinated with, and build upon,
the trade, workforce investment, transportation, and
technology programs of the United States.
(b) Declarations.--In order to promote a strong and growing
economy throughout the United States, Congress declares the
following:
(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 their capacity 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.
SEC. 3. DEFINITIONS.
In this Act:
(1) * * *
* * * * * * *
(4) Eligible recipient.--
(A) In general.--The term ``eligible
recipient'' means--
[(i) an area described in section
301(a);]
[(ii)] (i) an economic development
district;
[(iii)] (ii) an Indian tribe;
[(iv)] (iii) a State;
[(v)] (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;
[(vi)] (v) an institution of higher
education or a consortium of
institutions of higher education; or
[(vii)] (vi) a public or private
nonprofit organization or association
acting in cooperation with officials of
a political subdivision of a State.
* * * * * * *
(8) Regional commissions.--The term ``Regional
Commissions'' means the following entities:
(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.
2131 note; 112 Stat. 2681-637 et seq.).
(D) The Northern Great Plains Regional
Authority established under subtitle F of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2009bb et seq.).
[(8)] (9) Secretary.--The term ``Secretary'' means
the Secretary of Commerce.
[(9)] (10) State.--The term ``State'' means a State,
the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the
Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
[(10)] (11) United states.--The term ``United
States'' means all of the States.
(12) University center.--The term ``university
center'' means an institution of higher education or a
consortium of institutions of higher education
established as a University Center for Economic
Development under section 207(a)(2)(D).
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
(a) * * *
(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] multi-State regional organizations, and
nonprofit organizations as the Secretary determines is
appropriate to--
(1) * * *
* * * * * * *
(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.
* * * * * * *
SEC. 103. COORDINATION.
(a) In General.--The Secretary shall coordinate activities
relating to the preparation and implementation of comprehensive
economic development strategies under this Act with Federal
agencies carrying out other Federal programs, States, economic
development districts, Indian tribes, and other appropriate
planning and development organizations.
(b) Meetings.--To carry out the responsibilities in
subsection (a), or for any other purpose related to economic
development activities, the Secretary may convene meetings with
Federal agencies, State and local governments, economic
development districts, Indian tribes, and other appropriate
planning and development organizations.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
* * * * * * *
SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
(a) * * *
* * * * * * *
(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.
* * * * * * *
[(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.]
(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) * * *
* * * * * * *
(C) enhance and protect the environment;
[and]
(D) assist in carrying out a State's
workforce investment strategy; and
[(D)] (E) balance resources through the sound
management of physical development.
* * * * * * *
SEC. 204. 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.]
(a) Federal Share.--The Secretary shall issue regulations to
establish the Federal share of the cost of projects carried out
under this title based on the relative needs of the areas in
which the projects will be located. Except as provided in
subsection (c), the Federal share of the cost of any project
carried out under this title shall not exceed 80 percent.
(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, assumptions of
debt, and services.
(c) Increase in Federal Share.--
(1) Indian tribes.--In the case of a grant to an
Indian tribe for a project under this title, the
Secretary may increase the Federal share above the
percentage specified in subsection (a) up to 100
percent of the cost of the project.
(2) 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 its effective taxing
and borrowing capacity, or in the case of a grant to a
nonprofit organization that the Secretary determines
has exhausted its effective borrowing capacity, the
Secretary may increase the Federal share above the
percentage specified in subsection (a) up to 100
percent of the cost of the project.
(d) Planning Grants.--Notwithstanding subsection (a), the
Federal share of the costs of planning activities under section
203 shall be at least 65 percent and not more than 80 percent.
SEC. 205. SUPPLEMENTARY GRANTS.
(a) * * *
[(b) Supplementary Grants.--
[(1) In general.--On the application of an eligible
recipient, the Secretary may make a supplementary grant
for a project for which the eligible recipient is
eligible but, because of the eligible recipient's
economic situation, for which the eligible recipient
cannot provide the required non-Federal share.
[(2) Purposes of grants.--Supplementary grants under
paragraph (1) may be made for purposes that shall
include enabling eligible recipients to use--
[(A) designated Federal grant programs; and
[(B) direct grants authorized under this
title.]
(b) Supplementary Grants.--Subject to subsection (c), in
order to assist eligible recipients in taking advantage of
designated Federal grant programs, on the application of an
eligible recipient, the Secretary may make a supplementary
grant for a project for which the recipient is eligible but for
which the recipient cannot provide the required non-Federal
share because of the recipient's economic situation.
(c) Requirements Applicable to Supplementary Grants.--
[(1) Amount of supplementary grants.--Subject to
paragraph (4), the amount of a supplementary grant
under this title for a project shall not exceed the
applicable percentage of the cost of the project
established by regulations promulgated by the
Secretary, except that the non-Federal share of the
cost of a project (including assumptions of debt) shall
not be less than 20 percent.
[(2) Form of supplementary grants.--In accordance
with such regulations as the Secretary may promulgate,
the Secretary shall make supplementary grants by
increasing the amounts of grants authorized under this
title or by the payment of funds made available under
this Act to the heads of the Federal agencies
responsible for carrying out the applicable Federal
programs.]
(1) Amount of supplementary grants.--The share of the
project cost supported by a supplementary grant under
this section may not exceed the applicable Federal
share under section 204.
(2) Form of supplementary grants.--The Secretary
shall make supplementary grants by--
(A) the payment of funds made available under
this Act to the heads of the Federal agencies
responsible for carrying out the applicable
Federal programs; or
(B) the award of funds under this Act, which
will be combined with funds transferred from
other Federal agencies in projects administered
by the Secretary.
* * * * * * *
[(4) Lower non-federal share.--
[(A) Indian tribes.--In the case of a grant
to an Indian tribe, the Secretary may reduce
the non-Federal share below the percentage
specified in paragraph (1) or may waive the
non-Federal share.
[(B) 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 its effective taxing and borrowing
capacity, or in the case of a grant to a
nonprofit organization that the Secretary
determines has exhausted its effective
borrowing capacity, the Secretary may reduce
the non-Federal share below the percentage
specified in paragraph (1).]
SEC. 206. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.
In promulgating rules, regulations, and procedures for
assistance under this title, the Secretary shall ensure that--
(1) the relative needs of eligible areas are given
adequate consideration by the Secretary, as determined
based on, among other relevant factors--
(A) * * *
(B) the income levels and the extent of
underemployment in eligible areas; [and]
* * * * * * *
(2) allocations of assistance under this title are
prioritized to ensure that the level of economic
distress of an area, rather than a preference for a
geographic area or a specific type of economic
distress, is the primary factor in allocating the
assistance[.]; and
(3) grants made under this title promote job creation
and will have a high probability of meeting or
exceeding applicable performance requirements
established in connection with the grants.
SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) In General.--
(1) * * *
(2) Types of assistance.--Grants under paragraph (1)
may be used for--
(A) * * *
* * * * * * *
(F) studies evaluating the needs of, and
development potential for, economic growth of
areas that the Secretary determines have
substantial need for the assistance; [and]
(G) studies that evaluate the effectiveness
of coordinating projects funded under this Act
with projects funded under other Acts; and
[(G)] (H) other activities determined by the
Secretary to be appropriate.
* * * * * * *
(4) 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.
* * * * * * *
[SEC. 208. PREVENTION OF UNFAIR COMPETITION.
[No financial assistance under this Act shall be extended to
any project when the result would be to increase the production
of goods, materials, or commodities, or the availability of
services or facilities, when there is not sufficient demand for
such goods, materials, commodities, services, or facilities, to
employ the efficient capacity of existing competitive
commercial or industrial enterprises.]
SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) * * *
* * * * * * *
(d) Direct Expenditure or Redistribution by Recipient.--
(1) In general.--Subject to paragraph (2), [an
eligible recipient] a recipient of a grant under this
section may directly expend the grant funds or may
redistribute the funds to public and private entities
in the form of a grant, loan, loan guarantee, payment
to reduce interest on a loan guarantee, or other
appropriate assistance.
(2) Limitation.--Under paragraph (1), [an eligible
recipient] a recipient may not provide any grant to a
private for-profit entity.
(e) Special Provisions Relating to Revolving Loan Fund
Grants.--
(1) In general.--The Secretary shall issue
regulations to maintain the proper operation and
financial integrity of revolving loan funds established
by recipients with assistance under this section.
(2) 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 a third party for the purpose of
liquidation, and a 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) 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.
* * * * * * *
[SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
[In any case in which a grant (including a supplementary
grant described in section 205) has been made by the Secretary
under this title (or made under this Act, as in effect on the
day before the effective date of the Economic Development
Administration Reform Act of 1998) for a construction project,
and, after the grant has been made but before completion of the
project, the cost of the project based on the designs and
specifications that was the basis of the grant has decreased
because of decreases in costs--
[(1) the Secretary may approve, subject to the
availability of appropriations, the use of the excess
funds or a portion of the funds to improve the project;
and
[(2) any amount of excess funds remaining after
application of paragraph (1) shall be deposited in the
general fund of the Treasury.]
SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.
(a) In General.--In the case of a grant to a recipient for a
construction project under section 201 or 209, if the Secretary
determines, before closeout of the project, that the cost of
the project, based on the designs and specifications that were
the basis of the grant, has decreased because of decreases in
costs, the Secretary may approve, without further
appropriations action, the use of the excess funds (or a
portion of the excess funds) by the recipient to increase the
Federal share of the cost of a project under this title to the
maximum percentage allowable under section 204 or to improve
the project.
(b) Other Uses of Excess Funds.--Any amount of excess funds
remaining after application of subsection (a) may be used by
the Secretary for providing assistance under this Act.
(c) Transferred Funds.--In the case of excess funds described
in subsection (a) in projects utilizing funds transferred from
other Federal agencies pursuant to section 604, the Secretary
shall--
(1) utilize the funds in accordance with subsection
(a), with the approval of the originating agency; or
(2) return the funds to the originating agency.
* * * * * * *
SEC. 214. SPECIAL IMPACT AREAS.
(a) In General.--On the application of an eligible recipient,
the Secretary may determine that the recipient is unable to
comply with the requirements of section 302 and designate the
area represented by the recipient as a special impact area.
(b) Waivers.--Subject to the requirements of this section,
the Secretary may waive, in whole or in part, as appropriate,
the requirements of section 302 with respect to a special
impact area designated under subsection (a) if the Secretary
determines that the waiver will carry out the purposes of the
Act.
(c) Notification Requirement.--At least 30 days before
issuing a waiver under this section, the Secretary shall
transmit to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on
Environment and Public Works of the Senate a written notice of
the waiver, including a justification for the waiver.
SEC. 215. PERFORMANCE AWARDS.
(a) In General.--The Secretary may make a performance award
in connection with a grant made, on or after the date of
enactment of this section, to an eligible recipient for a
project under section 201 or 209.
(b) Performance Measures.--
(1) Regulations.--The Secretary shall issue
regulations to establish performance measures for
making performance awards under subsection (a).
(2) Considerations.--In issuing regulations under
paragraph (1), the Secretary shall consider including
performance measures that assess the following factors:
(A) Whether the recipient meets or exceeds
scheduling goals.
(B) Whether the recipient meets or exceeds
job creation goals.
(C) Amounts of private sector capital
investments leveraged.
(D) Such other factors as the Secretary
determines appropriate.
(c) Amount of Awards.--
(1) In general.--The Secretary shall base the amount
of a performance award made under subsection (a) in
connection with a grant on the extent to which a
recipient meets or exceeds performance measures
established in connection with the grant.
(2) Maximum amount.--The amount of a performance
award may not exceed 10 percent of the amount of the
grant.
(d) Use of Awards.--A recipient of a performance award under
subsection (a) may use the award for any eligible purpose under
this Act, in accordance with section 602 and such regulations
as the Secretary may prescribe.
(e) Federal Share.--Notwithstanding section 204, the amounts
of a performance award may be used for up to 100 percent of the
cost of an eligible project or activity.
(f) Treatment in Meeting Non-Federal Share Requirements.--For
the purposes of meeting the non-Federal share requirements of
this Act, or any other Act, the amounts of a performance award
shall be treated as funds from a non-Federal source.
(g) Terms and Conditions.--In making performance awards under
subsection (a), the Secretary shall establish such terms and
conditions as the Secretary considers appropriate.
(h) Funding.--The Secretary shall carry out this section
using any amounts made available for economic development
assistance programs.
(i) Reporting Requirement.--The Secretary shall include
information regarding performance awards made under this
section in the annual report required under section 603.
(j) Review by Comptroller General.--
(1) Review.--The Comptroller General shall review the
implementation of this section in each fiscal year.
(2) Annual report.--Not later than one year after the
date of enactment of this section, and annually
thereafter, the Comptroller General shall transmit to
the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Environment and Public Works of the Senate a report on
the Comptroller's findings under this subsection.
SEC. 216. PLANNING PERFORMANCE AWARDS.
(a) In General.--The Secretary may make a planning
performance award in connection with a grant made, on or after
the date of enactment of this section, to an eligible recipient
for a project under this title located in an economic
development district.
(b) Eligibility.--The Secretary may make a planning
performance award to an eligible recipient under subsection (a)
in connection with a grant for a project if the Secretary
determines before closeout of the project that--
(1) the recipient actively participated in the
economic development activities of the economic
development district in which the project is located;
(2) the project is consistent with the comprehensive
economic development strategy of the district;
(3) the recipient worked with Federal, State, and
local economic development entities throughout the
development of the project; and
(4) the project was completed in accordance with the
comprehensive economic development strategy of the
district.
(c) Maximum Amount.--The amount of a planning performance
award made under subsection (a) in connection with a grant may
not exceed 5 percent of the amount of the grant.
(d) Use of Awards.--A recipient of a planning performance
award under subsection (a) shall use the award to increase the
Federal share of the cost of a project under this title.
(e) Federal Share.--Notwithstanding section 204, the amounts
of a planning performance award may be used for up to 100
percent of the cost of a project under this title.
(f) Funding.--The Secretary shall carry out this section
using any amounts made available for economic development
assistance programs.
SEC. 217. SUBGRANTS.
(a) In General.--Subject to subsection (b), a recipient of a
grant under section 201, 203, or 207 may directly expend the
grant funds or may redistribute the funds in the form of a
subgrant to other eligible recipients to fund required
components of the scope of work approved for the project.
(b) Limitation.--A recipient may not redistribute grant funds
received under section 201 or 203 to a for-profit entity.
SEC. 218. BROWNFIELDS REDEVELOPMENT.
(a) In General.--On the application of a qualified eligible
recipient, the Secretary may make grants under sections 201,
203, 207, and 209 for projects to expand, redevelop, or reuse
brownfield sites.
(b) Limitations.--Projects carried out under this section
shall be subject to the limitations of section 104(k)(4)(B) of
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)).
(c) Definitions.--In this section, the following definitions
apply:
(1) Brownfield site.--The term ``brownfield site''
has the meaning given such term in section 101(39) of
the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601(39)).
(2) Qualified eligible recipient.--The term
``qualified eligible recipient'' means an eligible
recipient that meets the definition of ``eligible
entity'' in section 104(k)(1) of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9604(k)(1)); except that for any
project undertaken under this section the term may
include a nonprofit organization acting in cooperation
with officials of a political subdivision of a State.
SEC. 219. BRIGHTFIELDS DEMONSTRATION PROGRAM.
(a) In General.--On the application of a qualified eligible
recipient, the Secretary may make a grant for a project for the
development of brightfield sites if the Secretary determines
that the project will--
(1) utilize solar energy technologies to develop
abandoned or contaminated sites for commercial use; and
(2) improve the commercial and economic opportunities
in the area where the project is located.
(b) Limitations.--Projects carried out under this section
shall be subject to the limitations of section 104(k)(4)(B) of
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)).
(c) Definitions.--In this section, the following definitions
apply:
(1) Brightfield site.--The term ``brightfield site''
means a brownfield site (as defined in section 217)
that is redeveloped through the incorporation of solar
energy technologies.
(2) Qualified eligible recipient.--The term
``qualified eligible recipient'' has the meaning given
such term in section 217; except that for any project
undertaken under this section the term may include a
nonprofit organization acting in cooperation with
officials of a political subdivision of a State.
(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. Such sums shall remain
available until expended.
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) * * *
(3)(A) a comprehensive economic development strategy
for addressing the economic problems 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, enhances
and protects the environment, and balances resources
through sound management of development; and
* * * * * * *
(c) Approval of Other Plan.--The Secretary may accept as a
comprehensive economic development strategy a satisfactory plan
developed under another federally supported program. 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.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
* * * * * * *
[SEC. 403. INCENTIVES.
[(a) In General.--Subject to the non-Federal share
requirement under section 205(c)(1), the Secretary may increase
the amount of grant assistance for a project in an economic
development district by an amount that does not exceed 10
percent of the cost of the project, in accordance with such
regulations as the Secretary shall promulgate, if--
[(1) the project applicant is actively participating
in the economic development activities of the district;
and
[(2) the project is consistent with the comprehensive
economic development strategy of the district.
[(b) Review of Incentive System.--In promulgating regulations
under subsection (a), the Secretary shall review the current
incentive system to ensure that the system is administered in
the most direct and effective manner to achieve active
participation by project applicants in the economic development
activities of economic development districts.
[SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
TO APPALACHIAN REGIONAL COMMISSION.
[If any part of an economic development district is in the
Appalachian region (as defined in section 403 of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)),
the economic development district shall ensure that a copy of
the comprehensive economic development strategy of the district
is provided to the Appalachian Regional Commission established
under that Act.]
SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO
REGIONAL COMMISSIONS.
If any part of an economic development district is in a
region covered by one or more of the Regional Commissions (as
defined in section 3), the economic development district shall
ensure that a copy of the comprehensive economic development
strategy of the district is provided to the affected Regional
Commission.
* * * * * * *
TITLE V--ADMINISTRATION
* * * * * * *
SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.
In carrying out this Act, the Secretary shall--
[(1) maintain a central information clearinghouse on
matters relating to economic development, economic
adjustment, disaster recovery, defense conversion, and
trade adjustment programs and activities of the Federal
and State governments, including political subdivisions
of States;
[(2) assist potential and actual applicants for
economic development, economic adjustment, disaster
recovery, defense conversion, and trade adjustment
assistance under Federal, State, and local laws in
locating and applying for the assistance; and]
(1) maintain a central information clearinghouse on
the Internet with--
(A) information on economic development,
economic adjustment, disaster recovery, defense
conversion, and trade adjustment programs and
activities of the Federal Government;
(B) links to State economic development
organizations; and
(C) links to other appropriate economic
development resources;
(2) assist potential and actual applicants for
economic development, economic adjustment, disaster
recovery, defense conversion, and trade adjustment
assistance under Federal and State laws in locating and
applying for the assistance;
(3) assist areas described in section 301(a) and
other areas by providing to interested persons,
communities, industries, and businesses in the areas
any technical information, market research, or other
forms of assistance, information, or advice that would
be useful in alleviating or preventing conditions of
excessive unemployment or underemployment in the
areas[.]; and
(4) obtain appropriate information from other Federal
agencies needed to carry out the duties under this Act.
* * * * * * *
[SEC. 505. BUSINESSES DESIRING FEDERAL CONTRACTS.
[The Secretary may provide the procurement divisions of
Federal agencies with a list consisting of--
[(1) the names and addresses of businesses that are
located in areas described in section 301(a) and that
wish to obtain Federal Government contracts for the
provision of supplies or services; and
[(2) the supplies and services that each business
provides.]
SEC. 506. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.
(a) * * *
* * * * * * *
(c) Timing of Evaluations.--Evaluations under subsection (a)
shall be conducted on a continuing basis so that each grantee
is evaluated within 3 years after the first award of assistance
to the grantee [after the effective date of the Economic
Development Administration Reform Act of 1998], and at least
once every 3 years thereafter, so long as the grantee receives
the assistance.
(d) Evaluation Criteria.--
(1) * * *
(2) Evaluation criteria for university centers.--The
criteria for evaluation of a university center shall,
at a minimum, provide for an assessment of the center's
contribution to providing technical assistance,
conducting applied research, program performance, and
disseminating results of the activities of the center.
* * * * * * *
TITLE VI--MISCELLANEOUS
* * * * * * *
SEC. 602. MAINTENANCE OF STANDARDS.
All laborers and mechanics employed by contractors or
subcontractors on projects assisted by the Secretary under this
Act shall be paid wages at rates not less than those prevailing
on smiliar construction in the locality as determined by the
Secretary of Labor [in accordance with the Davis-Bacon Act, as
amended (40 U.S.C. 276a-276a-5)] in accordance with subchapter
IV of chapter 31 of title 40, United States Code. The Secretary
shall not extend any financial assistance under this Act, for
such project without first obtaining adequate assurance that
these labor standards will be maintained upon the cosntruction
work. The Secretary of Labor shall have, with respect to the
labor standards specified in this provision, the authority and
functions sent forth in Reorganization Plan Numbered 14 of 1950
(15 F.R. 3176; 64 Stat. 1267; 5 U.S.C. 133z-15), and [section 2
of the Act of June 13, 1934, as amended (40 U.S.C. 276c)]
section 3145 of title 40, United States Code.
* * * * * * *
SEC. 609. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.
[(a) Previously Authorized Assistance.--Except as otherwise
provided in this Act, all financial and technical assistance
authorized under this Act shall be in addition to any Federal
assistance authorized before the effective date of the Economic
Development Administration Reform Act of 1998.]
[(b) Assistance Under Other Acts.--]Nothing in this Act
authorizes or permits any reduction in the amount of Federal
assistance that any State or other entity eligible under this
Act is entitled to receive under any other Act.
* * * * * * *
TITLE VII--FUNDING
[SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
Act $397,969,000 for fiscal year 1999, $368,000,000 for fiscal
year 2000, $335,000,000 for fiscal year 2001, $335,000,000 for
fiscal year 2002, and $335,000,000 for fiscal year 2003, to
remain available until expended.]
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--
(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.
Such sums shall remain available until expended.
(b) Salaries and Expenses.--There are authorized to be
appropriated for salaries and expenses of administering this
Act $33,377,000 for fiscal year 2004 and such sums as may be
necessary for each fiscal year thereafter. Such sums shall
remain available until expended.
* * * * * * *