[DOCID: f:sr490.110]
From the Senate Reports Online via GPO Access
[wais.access.gpo.gov]
Calendar No. 1061
110th Congress Report
2d Session SENATE 110-490
======================================================================
ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2008
_______
September 24 (legislative day, September 17), 2008.--Ordered to be
printed
_______
Mrs. Boxer, from the Committee on Environment and Public Works,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 3551]
[Including cost estimate of the Congressional Budget Office]
The Committee on Environment and Public Works, which
considered an original bill (S. 3551) to amend the Public Works
and Economic Development Act of 1965, to reauthorize that Act,
and for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
Purpose of the Legislation
The Economic Development Revitalization Act of 2008 amends
the Public Works and Economic Development Act (PWEDA) of 1965
to authorize the programs of the Economic Development
Administration (EDA) for an additional five years. The current
EDA authorization, the Economic Development Administration
Reauthorization Act of 2004, expires on September 30, 2008.
General Statement and Background
With the Public Works and Economic Development Act of 1965,
Congress and President Lyndon Johnson created the Economic
Development Administration (EDA) for job promotion and to
accelerate industrial and commercial growth in communities
suffering from limited job opportunities, low per capita income
levels, or similar economic distress. An agency within the
Department of Commerce, EDA's stated mission is to ``lead the
federal economic development agenda by promoting innovation and
competitiveness, preparing American regions for growth and
success in the worldwide economy.''
As the only federal agency focused solely on promoting
private sector job growth in economically underserved
communities, EDA pursues regional comprehensive strategic
development. Working in partnership with state and local
governments, regional economic development organizations,
public and private nonprofit organizations, universities, and
Indian tribes, EDA provides grants (``investments'') to help
communities establish foundations for sustained economic
development.
As demonstrated by an independent auditor, EDA has
established a proven record of using increasingly limited
resources to complete projects in a timely manner that
leverages private sector investment. At a hearing before the
Subcommittee on Transportation and Infrastructure on September
9, 2008, Ben Erulkar, Deputy Assistant Secretary of Commerce
for Economic Development and EDA Chief Operating Officer,
testified that, ``From FY 2004 to date, EDA awarded over $1.29
billion in investments, of which $983 million was for
construction investments that are expected to create 392,413
jobs at an average cost of $2,507 per job. On average, for this
timeframe, every dollar in taxpayer money is expected to
attract $33 in private capital investment.''
The Economic Development Revitalization Act of 2008 makes
several changes to EDA programs including changing the current
cost sharing requirements to allow an increased federal share
for areas in which unemployment is especially high or per
capita income is especially low; allowing for increases in the
amount of planning program assistance; modifying the existing
Revolving Loan Fund program to allow recipients to convert an
existing, but no longer needed revolving loan fund, to carry
out another EDA eligible project; and modifying existing
maintenance of effort rules to allow recipients of grants that
are more than 10 years old to buy out the Government's interest
using a depreciated figure based on the project's estimated
useful life.
Section-by-Section Analysis
Section 1. Short title
Section 1 designates the short title of the Act as the
``Economic Development Revitalization Act of 2008''.
Section 2. Definitions
Section 2 amends section 3(8) of PWEDA to add the Southeast
Crescent Regional Commission, Northern Border Regional
Commission, and Southwest Border Regional Commission
established by section 15401(a) of title 40, U.S.C. to the
definition of Regional Commissions.
Section 3. Economic development partnerships
Section 3 amends section 101 of PWEDA in three primary
ways. First, it lists economic development districts and
university centers as eligible to receive technical assistance
from the Secretary of Commerce and highlights promoting
innovation, entrepreneurship, and sustainable development as
eligible purposes for which the Secretary may provide technical
assistance.
Second, it adds economic development districts to the list
of entities to which the Secretary must provide reasonable
opportunity to review and comment on proposed projects that may
have a significant impact on the economy in the area.
Third, it codifies the EDA's Excellence in Economic
Development Awards program and authorizes the use of no more
than $2,000 per year to purchase plaques, bowls or similar
articles that may be given to award winners to commemorate
their accomplishments.
Section 4. Grants for planning and grants for administrative expenses
Section 4 amends section 203 of PWEDA to include
``fostering regional collaboration among local jurisdictions
and organizations'' in the list of items the EDA planning
process, which involves public officials and private citizens,
should include and to require states that receive planning
assistance from EDA to provide a copy of their annual report on
the planning process to each economic development district
within the state.
Section 5. Cost sharing
Subsection (a) of Section 5 amends section 204(a) of PWEDA
to establish a Federal share of not to exceed 50 percent of the
cost of a project.
Subsection (b) amends section 204(c) of PWEDA to insert a
new (c)(1) to allow for an increase in Federal share for
communities that meet the following requirements: the federal
share may be increased up to 60 percent for communities with a
24 month unemployment rate of at least 150 percent of the
national average or per capita income of not more than 70
percent of the national average; the Federal share may be
increased up to 70 percent for communities with a 24 month
unemployment rate of at least 175 percent of the national
average or a per capita income that is not more than 60 percent
of the national average; the Federal share may be increased up
to 80 percent for communities with a 24 month unemployment rate
of at least 200 percent of the national average or a per capita
income that is not more than 50 percent of the national
average.
Subsection (b) amends subsection 204(c)(2) as redesignated
to require the Secretary to provide to Indian Tribes a Federal
share of 75 percent, which may be increased to 100 percent.
Subsection (b) also adds a new 204(c)(5) to allow the
Secretary to increase the Federal share up to 100 percent for
an area that has had a major disaster or emergency declared
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) for up to 18 months
following the disaster or emergency designation.
Section 6. Grants for training, research, and technical assistance
Section 6 amends section 207(a) of PWEDA to clarify that
the Secretary may make grants that would be useful in
alleviating or preventing outmigration, and that grants may be
used for a peer exchange program to promote industry-leading
practices and innovations relating to the organizational
development, program delivery, and regional initiatives of
economic development districts.
Section 7. Enhancement of recipient flexibility to deal with project
assets
Section 7(a) amends section 209(c)(5) of PWEDA to specify
that communities whose economies have been injured by the loss
of natural resources-based, agricultural, or service sector
jobs shall be eligible for assistance to reinvest in and
diversify their economies.
Section 7(b) amends section 209(d) of PWEDA to require that
the Secretary shall periodically solicit input on the revolving
loan fund program from fund grantees, national experts, and
employees of Federal agencies with knowledge of international,
national, regional, and statewide trends, innovations, and
noteworthy practices relating to business development finance,
including public and private lending and technical assistance
intermediaries.
Section 7(b) also provides flexibility to the revolving
loan fund program by allowing the Secretary to approve a
recipient's request to convert project assets to a different
EDA eligible use when the recipient determines project assets
could be better used elsewhere. This subsection also authorizes
the Secretary to use up to 2 percent of the amounts made
available for grants under section 209 to be used to improve
the management of the revolving loan fund program.
Section 8. Brightfields Demonstration Program
Section 8 amends section 218(d) of PWEDA to extend the
authorization for the Brightfields Demonstration Program
through fiscal year 2013.
Section 9. Designation of Economic Development Districts
Section 9 amends section 401 of PWEDA to specify that each
Economic Development District shall engage in a full range of
economic activities including: coordinating and implementing
economic development activities; carrying out economic
development research, planning, implementation and advisory
funding; and coordinating the development and implementation of
the comprehensive economic development strategy with other
local, State, Federal, and private organization. This section
also allows Economic Development Districts to enter into
contracts for services to accomplish these activities.
Section 10. Consultation with other persons and agencies
Section 10 amends section 503(a) of PWEDA to include area
and regional outmigration as an issue regarding which the
Secretary may consult with other persons and agencies who may
be of assistance.
Section 11. Notification of reorganization
Section 11 amends section 507 of PWEDA to move the State of
Montana from the purview of the Denver Regional Office to the
Seattle Regional Office.
Section 12. Maintenance of effort
Section 12 adds a new section to the end of Title VI of
PWEDA to modify existing maintenance of effort rules to allow
recipients of grants that are more than 10 years old to buy out
the Government's interest using a depreciated figure based on
the project's estimated useful life.
Section 13. Extension of authorization of appropriations
Section 13 amends section 701(a) of PWEDA to authorize the
programs of the EDA for an additional five years at the
following funding levels: $400 million for fiscal year 2009;
$425 million for fiscal year 2010; $450 million for fiscal year
2011; $475 million for fiscal year 2012; and $500 million for
fiscal year 2013.
Section 14. Funding for grants for planning and grants for
administrative expenses
Section 14 amends section 704 of PWEDA to maintain the
current requirement that a minimum of $27 million shall be
available each year for grants for planning and administrative
expenses and to require an increase as follows: to a minimum of
$28 million if appropriations for the economic development
assistance programs equal or exceed $280 million; to a minimum
of $29.5 million if appropriations equal or exceed $320
million; to a minimum of $31 million if appropriations equal or
exceed $350 million; to a minimum of $32.5 million if
appropriations equal or exceed $380 million; and to a minimum
of $34.5 million if appropriations equal or exceed $420
million.
Legislative History
The Committee met on September 17, 2008, to consider an
original bill, the Economic Development Revitalization Act of
2008. The bill was ordered to be reported favorably without
amendment.
Hearings
The Committee held a hearing on September 9, 2008,
entitled, ``Economic Development Administration Oversight''.
The purpose of the hearing was to explore issues relevant to
reauthorization of the Economic Development Administration.
Witnesses included Mr. Benjamin Erulkar, Deputy Assistant
Secretary of Commerce for Economic Development and U.S. EDA
Chief Operating Officer; the Honorable Todd J. Zinser,
Inspector General of the Department of Commerce; the Honorable
David Edgerley, Secretary of the Maryland Department of
Business and Economic Development; Ms. Leanne Mazer, Executive
Director of the Tri-County Council for Western Maryland on
behalf of the National Association of Development
Organizations; and the Honorable Larry Thoma, Mayor of the City
of Elgin, Oklahoma.
Rollcall Votes
There were no rollcall votes on this bill. The Committee on
Environment and Public Works met to consider an original bill,
the Economic Development Revitalization Act on September 17,
2008. A quorum of the Committee being present, the original
bill was reported favorably without amendment by voice vote.
Regulatory Impact Statement
In compliance with section 11(b) of rule XXVI of the
Standing Rules of the Senate, the committee finds that this
bill does not create any additional regulatory burdens, nor
will it cause any adverse impact on the personal privacy of
individuals.
Mandates Assessment
In compliance with the Unfunded Mandates Reform Act of 1995
(Public Law 104-4), the committee finds, in accordance with the
findings of the Congressional Budget Office noted below, that
this bill would impose no Federal intergovernmental unfunded
mandates on State, local or tribal governments, and that the
bill contains no new private-sector mandates as defined in
UMRA. Any costs these governments incur, including providing
matching funds, would be incurred voluntarily.
September 19, 2008.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for the Economic
Development Revitalization Act of 2008.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople, who can be reached at 226-2860.
Sincerely,
Peter R. Orszag.
Enclosure.
Congressional Budget Office Cost Estimate
S. 3551--Economic Development Revitalization Act of 2008
Summary: This legislation would reauthorize the Economic
Development Administration (EDA) through 2013. Assuming
appropriation of the specified amounts, CBO estimates that
implementing this bill would cost about $1.1 billion over the
2009-2013 period and about $1.2 billion thereafter. Enacting
this legislation would not affect direct spending or revenues.
This bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of the legislation is shown in the following
table. The costs of this legislation fall within budget
function 450 (community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2009 2010 2011 2012 2013 2008-2013
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATIONAuthorization Level..................................... 400 425 450 475 500 2,250
Estimated Outlays....................................... 20 109 204 328 428 1,089
----------------------------------------------------------------------------------------------------------------
Basis of estimate: This legislation would authorize the
appropriation of $400 million in 2009 and $2.25 billion over
the next five years for EDA to provide various types of grants
to encourage economic development in distressed communities.
The bill also would increase the federal share of the cost for
economic development projects undertaken by Indian tribes and
those located in disaster-declared areas. For fiscal year 2008,
the Congress provided about $350 million to EDA assistance
programs in regular and supplemental appropriations (see Public
Laws 110-161 and 110-252).
For this estimate CBO assumes this legislation will be
enacted at the beginning of fiscal year 2009 and amounts
specified in the bill will be appropriated. Based on historical
spending patterns of EDA programs, CBO estimates that
assistance provided by the EDA under this legislation would
cost about $1.1 billion over the next five years.
Intergovernmental and private-sector impact: This bill
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from funds for economic development activities
authorized by this bill. Any costs these governments incur,
including providing matching funds, would be incurred
voluntarily.
Estimate prepared by: Federal Costs: Daniel Hoople. Impact
on State, Local, and Tribal Governments: Melissa Merrell.
Impact on the Private Sector: Jacob Kuipers.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
ADDITIONAL VIEWS OF SENATOR JAMES M. INHOFE
I am pleased that the Economic Development Revitalization
Act of 2008 as reported by the Committee on Environment and
Public Works includes several provisions that were included in
the bill I introduced on July 15, 2008, to reauthorize the
Economic Development Administration (EDA) (S. 3264). I believe
the program improvements and funding levels in both bills will
allow EDA to continue its very successful work in assisting
local communities in creating wealth and minimizing poverty by
promoting favorable business environments to attract private
investment and encourage long-term economic growth.
I am disappointed, however, by the insensitivity shown to
faith-based organizations in this bill. As my bill did, this
bill codifies the Excellence in Economic Development Awards
program that was established by EDA in 1999. This award program
is intended to recognize projects and entities that demonstrate
innovative economic development strategies, best practices and
outstanding results.
The first three awards were bestowed in 2000, and the
program has been expanded to now include eight award
categories. One category established in 2003 is the ``Community
and Faith-Based Social Entrepreneurship'' award. Nominees and
winners of this award typically have been community and faith-
based organizations that provide job training for underserved
populations, such as the physically or mentally disabled.
In the bill as reported, this award category is amended to
be just the ``community entrepreneurship'' award. My bill
codified the current award category (Community and Faith-Based
Social Entrepreneurship). I see absolutely no reason why faith-
based organizations should be left out of this award program.
There can be no concerns with the issue of separation of church
and state as this program does not provide any federal
assistance as a reward, nor does it impact eligibility
requirements or criteria for evaluating EDA grant applications.
In fact, these award winners are not necessarily even previous
EDA grant recipients.
Faith-based organizations should not be given preference
under this award program, but neither should they purposely be
left out of consideration. It currently is a level playing
field, and Congress should not change that as this bill does.
James M. Inhofe.
Changes in Existing Law
In compliance with section 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill
as reported are shown as follows: Existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in
italic, existing law in which no change is proposed is shown in
roman:
* * * * * * *
PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965
* * * * * * *
SEC. 2. FINDINGS AND DECLARATIONS.
(a) Findings.--Congress finds that--
(1) * * *
* * * * * * *
SEC. 3. DEFINITIONS.
In this Act:
(1) Comprehensive economic development strategy.--* *
*
* * * * * * *
(8) Regional commissions.--The term ``Regional
Commissions'' means--
(A) the Appalachian Regional Commission
established under chapter 143 of title 40,
United States Code;
(B) the Delta Regional Authority established
under subtitle F of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009aa et
seq.);
(C) the Denali Commission established under
the Denali Commission Act of 1998 (42 U.S.C.
3121 note; 112 Stat. 2681-637 et seq.); [and]
(D) the Northern Great Plains Regional
Authority established under subtitle G of the
Consolidated Farm and Rural Development Act (7
U.S.C. 2009bb et seq.)[.]; and
(E) the Southeast Crescent Regional
Commission, Northern Border Regional
Commission, and Southwest Border Regional
Commission established by section 15301(a) of
title 40, United States Code.
* * * * * * *
SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
(a) In General.--In providing assistance under this title,
the Secretary shall cooperate with States and other entities to
ensure that, consistent with national objectives, Federal
programs are compatible with and further the objectives of
State, regional, and local economic development plans and
comprehensive economic development strategies.
(b) Technical Assistance.--The Secretary may provide such
technical assistance to States, political subdivisions of
States, sub-State regional organizations (including
organizations that cross State boundaries), multi-State
regional organizations, economic development districts,
university centers, and nonprofit organizations as the
Secretary determines is appropriate to--
(1) alleviate economic distress;
(2) encourage and support public-private partnerships
for the formation and improvement of economic
development strategies that sustain and promote
economic development across the United States; and
(3) promote investment in infrastructure, innovation,
entrepreneurship, sustainable development, and
technological capacity to keep pace with the changing
global economy.
(c) Intergovernmental Review.--The Secretary shall promulgate
regulations to ensure that appropriate State and local
government agencies (including economic development districts)
have been given a reasonable opportunity to review and comment
on proposed projects under this title that the Secretary
determines may have a significant direct impact on the economy
of the area.
(d) Cooperation Agreements.--
(1) In general.--The Secretary may enter into a
cooperation agreement with any 2 or more States, or an
organization of any 2 or more States, in support of
effective economic development.
(2) Participation.--Each cooperation agreement shall
provide for suitable participation by other
governmental and nongovernmental entities that are
representative of significant interests in and
perspectives on economic development in an area.
(e) Excellence in Economic Development Awards.--
(1) Establishment of program.--To recognize
innovative economic development strategies of national
significance, the Secretary may establish and carry out
a program, to be known as the ``Excellence in Economic
Development Award Program'' (referred to in this
subsection as the ``program'').
(2) Eligible entities.--To be eligible for
recognition under the program, an entity shall be an
eligible recipient that is not a for-profit
organization or institution.
(3) Nominations.--Before making an award under the
program, the Secretary shall solicit nominations
publicly, in accordance with such selection and
evaluation procedures as the Secretary may establish in
the solicitation.
(4) Categories.--The categories of awards under the
program shall include awards for--
(A) urban or suburban economic development;
(B) rural economic development;
(C) environmental or energy economic
development;
(D) economic diversification strategies that
respond to economic dislocations, including
economic dislocations caused by natural
disasters and military base realignment and
closure actions;
(E) university-led strategies to enhance
economic development;
(F) community entrepreneurship;
(G) historic preservation-led strategies to
enhance economic development; and
(H) such other categories as the Secretary
determines to be appropriate.
(5) Provision of awards.--The Secretary may provide
to each entity selected to receive an award under this
subsection a plaque, bowl, or similar article to
commemorate the accomplishments of the entity.
(6) Funding.--Of amounts made available to carry out
this Act, the Secretary may use not more than $2,000
for each fiscal year to carry out this subsection.
* * * * * * *
SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants to pay the costs of economic
development planning and the administrative expenses of
organizations that carry out the planning.
(b) Planning Process.--Planning assisted under this title
shall be a continuous process involving public officials and
private citizens in--
(1) analyzing local economies;
(2) defining economic development goals;
(3) determining project opportunities; [and]
(4) formulating and implementing an economic
development program that includes systematic efforts to
reduce unemployment and increase incomes[.]; and
(5) fostering regional collaboration among local
jurisdictions and organizations.
* * * * * * *
(d) State Plans.--
(1) Development.--* * *
* * * * * * *
(5) Report to secretary.--Each State that receives
assistance for the development of a plan under this
[subsection shall submit to the Secretary an annual
report on the planning process assisted under this
subsection.]subsection shall--
(A) submit to the Secretary an annual report
on the planning process assisted under this
subsection; and
(B) provide a copy of each annual report to
each economic development district within the
State.
* * * * * * *
SEC. 204. COST SHARING.
(a) Federal Share.--Except as provided in subsection (c), the
Federal share of the cost of any project carried out under this
title [shall not exceed--
[(1) 50 percent; plus
[(2) an additional percent that--
[(A) shall not exceed 30 percent; and
[(B) is based on the relative needs of the
area in which the project will be located, as
determined in accordance with regulations
promulgated by the Secretary.]shall not exceed
50 percent.
* * * * * * *
(c) Increase in Federal Share.--
(1) Relative needs of an area.--
(A) 150-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 150
percent of the national average or the per
capita income is not more than 70 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 60 percent of
the cost of the project.
(B) 175-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 175
percent of the national average or the per
capita income is not more than 60 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 70 percent of
the cost of the project.
(C) 200-percent higher unemployment rate.--In
the case of a grant made in an area for which
the 24-month unemployment rate is at least 200
percent of the national average or the per
capita income is not more than 50 percent of
the national average, the Secretary may
increase the Federal share above the percentage
specified in subsection (a) up to 80 percent of
the cost of the project.
(D) Additional criteria.--The Secretary may
establish eligibility criteria in addition to
the criteria described in this paragraph to
address areas impacted by severe outmigration,
sudden and severe economic dislocations, and
other related economic circumstances.
[(1)](2) Indian tribes.--In the case of a grant to an
Indian tribe for a project under this title, the
Secretary [may]shall increase the Federal share above
the percentage specified in subsection (a) to 75
percent of the cost of the project, and may increase up
to 100 percent of the cost of the project.
[(2)](3) Certain states, political subdivisions, and
nonprofit organizations.--In the case of a grant to a
State, or a political subdivision of a State, that the
Secretary determines has exhausted the effective taxing
and borrowing capacity of the State or political
subdivision, or in the case of a grant to a nonprofit
organization that the Secretary determines has
exhausted the effective borrowing capacity of the
nonprofit organization, the Secretary may increase the
Federal share above the percentage specified in
subsection (a) up to 100 percent of the cost of the
project.
[(3)](4) Training, research, and technical
assistance.--In the case of a grant provided under
section 207, the Secretary may increase the Federal
share above the percentage specified in subsection (a)
up to 100 percent of the cost of the project if the
Secretary determines that the project funded by the
grant merits, and is not feasible without, such an
increase.
(5) Federally declared disaster areas.--In the case
of a grant for an area with respect to which a major
disaster or emergency has been declared under the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) during the 18-
month period ending on the date on which the Federal
share is determined, the Secretary may increase the
Federal share above the percentage specified in
subsection (a) up to 100 percent of the cost of the
project.
* * * * * * *
SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) In General.--
(1) Grants.--On the application of an eligible
recipient, the Secretary may make grants for training,
research, and technical assistance, including grants
for program evaluation and economic impact analyses,
that would be useful in alleviating or preventing
conditions of excessive unemployment, outmigration, or
underemployment.
(2) Types of assistance.--Grants under paragraph (1)
may be used for--
(A) project planning and feasibility studies;
(B) demonstrations of innovative activities
or strategic economic development investments;
(C) management and operational assistance;
(D) establishment of university centers;
(E) establishment of business outreach
centers;
(F) studies evaluating the needs of, and
development potential for, economic growth of
areas that the Secretary determines have
substantial need for the assistance;
(G) studies that evaluate the effectiveness
of coordinating projects funded under this Act
with projects funded under other Acts;
(H) assessment, marketing, and establishment
of business clusters; [and]
(I) a peer exchange program to promote
industry-leading practices and innovations
relating to the organizational development,
program delivery, and regional initiatives of
economic development districts; and
[(I)](J) other activities determined by the
Secretary to be appropriate.
(3) Cooperation requirement.--In the case of a
project assisted under this section that is national or
regional in scope, the Secretary may waive the
provision in section 3(4)(A)(vi) requiring a nonprofit
organization or association to act in cooperation with
officials of a political subdivision of a State.
* * * * * * *
SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) In General.--* * *
* * * * * * *
(c) Particular Community Assistance.--Assistance under this
section may include assistance provided for activities
identified by communities, the economies of which are injured
by--
(1) * * *
* * * * * * *
(5) the loss of manufacturing, natural resource-
based, agricultural, or service sector jobs, for
reinvesting in and diversifying the economies of the
communities.
* * * * * * *
(d) Special Provisions Relating to Revolving Loan Fund
Grants.--
(1) In general.--The Secretary shall promulgate
regulations to maintain the proper operation and
financial integrity of revolving loan funds established
by recipients with assistance under this section.
(2) Comments.--
(A) In general.--The Secretary shall
periodically solicit from the individuals and
entities described in subparagraph (B)--
(i) comments regarding the guidelines
and performance requirements for the
revolving loan fund program; and
(ii) recommendations for improving
the performance of the program and
grantees under the program.
(B) Description of individuals and
entities.--The individuals and entities
referred to in subparagraph (A) are--
(i) the public; and
(ii) in particular, revolving loan
fund grantees, national experts, and
employees of Federal agencies with
knowledge of international, national,
regional, and statewide trends,
innovations, and noteworthy practices
relating to business development
finance, including public and private
lending and technical assistance
intermediaries.
[(2)](3) Efficient administration.--The Secretary
may--
(A) at the request of a grantee, amend and
consolidate grant agreements governing
revolving loan funds to provide flexibility
with respect to lending areas and borrower
criteria;
(B) assign or transfer assets of a revolving
loan fund to third party for the purpose of
liquidation, and the third party may retain
assets of the fund to defray costs related to
liquidation; and
(C) take such actions as are appropriate to
enable revolving loan fund operators to sell or
securitize loans (except that the actions may
not include issuance of a Federal guaranty by
the Secretary).
[(3)](4) Treatment of actions.--An action taken by
the Secretary under this subsection with respect to a
revolving loan fund shall not constitute a new
obligation if all grant funds associated with the
original grant award have been disbursed to the
recipient.
[(4)](5) Preservation of securities laws.--
(A) Not treated as exempted securities.--No
securities issued pursuant to [paragraph
(2)(C)]paragraph (3)(C) shall be treated as
exempted securities for purposes of the
Securities Act of 1933 (15 U.S.C. 77a et seq.)
or the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), unless exempted by rule or
regulation of the Securities and Exchange
Commission.
(B) Preservation.--Except as provided in
subparagraph (A), no provision of this
subsection or any regulation promulgated by the
Secretary under this subsection supersedes or
otherwise affects the application of the
securities laws (as the term is defined in
section 3(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a))) or the rules,
regulations, or orders of the Securities and
Exchange Commission or a self-regulatory
organization under that Commission.
(6) Conversion of project assets.--
(A) Request.--If a recipient determines that
a revolving loan fund established using
assistance provided under this section is no
longer needed, or that the recipient could make
better use of the assistance in light of the
current economic development needs of the
recipient if the assistance was made available
to carry out any other project that meets the
requirements of this Act, the recipient may
submit to the Secretary a request to approve
the conversion of the assistance.
(B) Methods of conversion.--A recipient the
request to convert assistance of which is
approved under subparagraph (A) may accomplish
the conversion by--
(i) selling to a third party any
assets of the applicable revolving loan
fund; or
(ii) retaining repayments of
principal and interest amounts on loans
provided through the applicable
revolving loan fund.
(C) Requirements.--
(i) Sale.--
(I) In general.--Subject to
subclause (II), a recipient
shall use the net proceeds from
a sale of assets under
subparagraph (B)(i) to pay any
portion of the costs of 1 or
more projects that meet the
requirements of this Act.
(II) Treatment.--For purposes
of subclause (I), a project
described in that subclause
shall be considered to be
eligible under section 301.
(ii) Retention of repayments.--
Retention by a recipient of any
repayment under subparagraph (B)(ii)
shall be carried out in accordance with
a strategic reuse plan approved by the
Secretary that provides for the
increase of capital over time until
sufficient amounts (including interest
earned on the amounts) are accumulated
to fund other projects that meet the
requirements of this Act.
(D) Terms and conditions.--The Secretary may
require such terms and conditions regarding a
proposed conversion of the use of assistance
under this paragraph as the Secretary
determines to be appropriate.
(E) Expediency requirement.--The Secretary
shall ensure that any assistance intended to be
converted for use pursuant to this paragraph is
used in an expeditious manner.
(7) Program administration.--The Secretary may
allocate not more than 2 percent of the amounts made
available for grants under this section for the
development and maintenance of an automated tracking
and monitoring system to ensure the proper operation
and financial integrity of the revolving loan program
established under this section.
* * * * * * *
SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.
(a) Definition of Brightfield Site.--* * *
* * * * * * *
(d) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years [2004 through 2008]2009 through 2013, to remain
available until expended.
* * * * * * *
SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
(a) In General.--* * *
* * * * * * *
(c) Operations.--
(1) In general.--Each economic development district
shall engage in the full range of economic development
activities included in the list contained in the
comprehensive economic development strategy of the
economic development district that has been approved by
the Economic Development Administration, including--
(A) coordinating and implementing economic
development activities in the economic
development district;
(B) carrying out economic development
research, planning, implementation, and
advisory functions identified in the
comprehensive economic development strategy;
and
(C) coordinating the development and
implementation of the comprehensive economic
development strategy with other local, State,
Federal, and private organizations.
(2) Contracts.--An economic development district may
elect to enter into contracts for services to
accomplish the activities described in paragraph (1).
* * * * * * *
SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
(a) Consultation on Problems Relating to Employment.--The
Secretary may consult with any persons, including
representatives of labor, management, agriculture, and
government, who can assist in addressing the problems of area
and regional unemployment, outmigration, or underemployment.
* * * * * * *
SEC. 507. NOTIFICATION OF REORGANIZATION.
[Not later than](a) Notification.--Not later than 30 days
before the date of any reorganization of the offices, programs,
or activities of the Economic Development Administration, the
Secretary shall provide notification of the reorganization to
the Committee on Environment and Public Works and the Committee
on Appropriations of the Senate, and the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives.
(b) State of Montana.--The State of Montana shall be served
by the Seattle office of the Economic Development
Administration.
* * * * * * *
TITLE VI--MISCELLANEOUS
SEC. 601. POWERS OF SECRETARY.
(a) In General.--* * *
* * * * * * *
SEC. 612. SAVINGS CLAUSE.
To the extent that any portion of grants made under this Act
are used for an economic development project that involves
remediation, the remediation shall be conducted in compliance
with all applicable Federal, State, and local laws and
standards.
SEC. 613. MAINTENANCE OF EFFORT.
(a) Expected Period of Best Efforts.--
(1) Establishment.--To carry out the purposes of this
Act, before providing investment assistance for a
construction project under this Act, the Secretary
shall establish the expected period during which the
recipient of the assistance shall make best efforts to
achieve the economic development objectives of the
assistance.
(2) Treatment of property.--To obtain the best
efforts of a recipient during the period established
under paragraph (1), during that period--
(A) any property that is acquired or
improved, in whole or in part, using investment
assistance under this Act shall be held in
trust by the recipient for the benefit of the
project; and
(B) the Secretary shall retain an undivided
equitable reversionary interest in the
property.
(3) Termination of federal interest.--
(A) In general.--Beginning on the date on
which the Secretary determines that a recipient
has fulfilled the obligations of the recipient
for the applicable period under paragraph (1),
taking into consideration the economic
conditions existing during that period, the
Secretary may terminate the reversionary
interest of the Secretary in any applicable
property under paragraph (2)(B).
(B) Alternative method of termination.--
(i) In general.--On a determination
by a recipient that the economic
development needs of the recipient have
changed during the period beginning on
the date on which investment assistance
for a construction project is provided
under this Act and ending on the
expiration of the expected period
established for the project under
paragraph (1), the recipient may submit
to the Secretary a request to terminate
the reversionary interest of the
Secretary in property of the project
under paragraph (2)(B) before the date
described in subparagraph (A).
(ii) Approval.--The Secretary may
approve a request of a recipient under
clause (i) if--
(I) in any case in which the
request is submitted during the
10-year period beginning on the
date on which assistance is
initially provided under this
Act for the applicable project,
the recipient repays to the
Secretary an amount equal to
100 percent of the fair market
value of the pro rata Federal
share of the project; or
(II) in any case in which the
request is submitted after the
expiration of the 10-year
period described in subclause
(I), the recipient repays to
the Secretary an amount equal
to the fair market value of the
pro rata Federal share of the
project as if that value had
been amortized over the period
established under paragraph
(1), based on a straight-line
depreciation of the project
throughout the estimated useful
life of the project.
(b) Terms and Conditions.--The Secretary may establish such
terms and conditions under this section as the Secretary
determines to be appropriate, including by extending the period
of a reversionary interest of the Secretary under subsection
(a)(2)(B) in any case in which the Secretary determines that
the performance of a recipient is unsatisfactory.
(c) Previously Extended Assistance.--With respect to any
recipient to which the term of provision of assistance was
extended under this Act before the date of enactment of this
section, the Secretary may approve a request of the recipient
under subsection (a) in accordance with the requirements of
this section to ensure uniform administration of this Act,
notwithstanding any estimated useful life period that otherwise
relates to the assistance.
(d) Conversion of Use.--If a recipient of assistance under
this Act demonstrates to the Secretary that the intended use of
the project for which assistance was provided under this Act no
longer represents the best use of the property used for the
project, the Secretary may approve a request by the recipient
to convert the property to a different use for the remainder of
the term of the Federal interest in the property, subject to
the condition that the new use shall be consistent with the
purposes of this Act.
(e) Status of Authority.--The authority of the Secretary
under this section is in addition to any authority of the
Secretary pursuant to any law or grant agreement in effect on
the date of enactment of this section.
* * * * * * *
SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
(a) Economic Development Assistance Programs.--There are
authorized to be appropriated for economic development
assistance programs to carry out this Act, to remain available
until expended--
(1) $400,000,000 for fiscal year [2004]2009;
(2) $425,000,000 for fiscal year [2005]2010;
(3) $450,000,000 for fiscal year [2006]2011;
(4) $475,000,000 for fiscal year [2007]2012; and
(5) $500,000,000 for fiscal year [2008]2013
* * * * * * *
[SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR
ADMINISTRATIVE EXPENSES.
[Of the amounts made available under section 701 for each
fiscal year, not less than $27,000,000 shall be made available
for grants provided under section 203.]
SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE
EXPENSES.
(a) In General.--Subject to subsection (b), of the amounts
made available under section 701 for each fiscal year, not less
than $27,000,000 shall be made available to provide grants
under section 203.
(b) Subject to Total Appropriations.--For any fiscal year,
the amount made available pursuant to subsection (a) shall be
increased to--
(1) $28,000,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $280,000,000;
(2) $29,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $320,000,000;
(3) $31,000,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $350,000,000;
(4) $32,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $380,000,000; and
(5) $34,500,000, if the total amount made available
under subsection 701(a) for the fiscal year is equal to
or greater than $420,000,000.
* * * * * * *
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