SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Appalachia Opportunity Grants Act of 
2018''.

SEC. 2. APPALACHIA INNOVATION GRANTS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) is amended by adding at the end the following:

``SEC. 379I. APPALACHIA INNOVATION GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        unit of local government in the region.
            ``(2) Region.--The term `region' means the Appalachian 
        region (as defined in section 14102(a) of title 40, United 
        States Code).
    ``(b) Grants.--The Secretary may award grants to eligible entities 
to convene groups of public and private entities to collaborate in 
carrying out regional projects to accomplish positive economic and 
community impacts in the region.
    ``(c) Collaborative Groups.--
            ``(1) In general.--To be eligible to receive a grant under 
        subsection (b), an eligible entity--
                    ``(A) shall convene as part of the collaborative 
                group representatives of each of--
                            ``(i) a local economic development board or 
                        office in the region;
                            ``(ii) a private company or association; 
                        and
                            ``(iii) an institution of higher education 
                        (as defined in section 101 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1001)) in the 
                        region; and
                    ``(B) may convene as part of the collaborative 
                group representatives of other entities (such as 
                venture capital firms, nonprofit organizations, and 
                philanthropic organizations) that the eligible entity 
                determines are important to the goal of the regional 
                project described in subsection (d)(2).
            ``(2) Referral process.--
                    ``(A) In general.--The Secretary may assist in the 
                formation of a collaborative group under paragraph (1) 
                by establishing a referral process under which a 
                private company or association seeking to invest in a 
                particular area in the region is matched with an 
                eligible entity located in that area.
                    ``(B) Database of potential investors.--In carrying 
                out subparagraph (A), the Secretary may--
                            ``(i) establish and maintain a database of 
                        private companies and associations seeking to 
                        invest in the region; and
                            ``(ii) coordinate with other Federal 
                        agencies, including the Department of Commerce, 
                        to register inquiries--
                                    ``(I) that are made to those 
                                agencies by private companies and 
                                associations seeking to invest in the 
                                region; and
                                    ``(II) in the database described in 
                                clause (i).
    ``(d) Project Requirements.--A regional project carried out by a 
collaborative group under subsection (b) shall--
            ``(1) involve not fewer than 2 municipalities that share a 
        border; and
            ``(2) complete a specific activity that has as a goal--
                    ``(A) job creation in the region;
                    ``(B) expansion of the capacity of post-secondary 
                education in the region;
                    ``(C) growth of tourism in the region;
                    ``(D) improving public health in the region; or
                    ``(E) upgrading regional infrastructure.
    ``(e) Applications.--
            ``(1) In general.--An eligible entity that has convened a 
        collaborative group described in subsection (c)(1) and 
        identified an activity for a regional project described in 
        subsection (d)(2) may submit to the Secretary an application 
        that includes--
                    ``(A) a detailed description of--
                            ``(i) a timeline for the completion of the 
                        regional project; and
                            ``(ii) the responsibilities of each member 
                        of the collaborative group in carrying out the 
                        regional project;
                    ``(B) evidence that the collaborative group is a 
                public-private partnership;
                    ``(C) evidence that the collaborative group will 
                maintain intermunicipality cooperation;
                    ``(D) a description of the reasons that the 
                eligible entity requires Federal funds;
                    ``(E) evidence that the eligible entity has 
                previously sought funding from State, local, or private 
                programs;
                    ``(F) a description of the source of non-Federal 
                funds for the regional project;
                    ``(G) a description of the positive economic or 
                community impact (including relating to education) of 
                the regional project;
                    ``(H) an assessment of the assets and weaknesses of 
                the community in which the regional project will be 
                implemented;
                    ``(I) a regional strategic plan that--
                            ``(i) takes into account the assessment 
                        described in subparagraph (H); and
                            ``(ii) includes an analysis of the 
                        alignment of the regional project with the 
                        regional strategic plan; and
                    ``(J) evidence, with full transparency and 
                credibility, of minimal obstruction to the completion 
                of the project design phase described in subsection 
                (f)(2)(A) by not later than 1 year after the date on 
                which the eligible entity receives the grant.
            ``(2) Priority.--The Secretary shall give priority to 
        applications submitted under paragraph (1) that describe a 
        positive, measurable economic impact.
    ``(f) Grant Funds.--
            ``(1) Limitation on grant amount.--A grant for a regional 
        project under subsection (b) shall be not more than $2,000,000.
            ``(2) Phases.--A grant under subsection (b) shall be 
        awarded in the following 2 phases:
                    ``(A) Project design.--An eligible entity may use 
                50 percent of the grant during the period beginning on 
                the date on which the eligible entity receives the 
                grant and ending not later than 1 year after that date 
                to continue the planning and design of the regional 
                project, including activities such as--
                            ``(i) workforce training;
                            ``(ii) building design;
                            ``(iii) permit approvals; and
                            ``(iv) real estate arrangements.
                    ``(B) Project development.--An eligible entity that 
                completes the planning and design of the regional 
                project under subparagraph (A) may use the remaining 
                grant funds for the completion of the construction and 
                implementation of the regional project.
            ``(3) Matching funds requirement.--An eligible entity that 
        receives a grant under subsection (b) shall provide non-Federal 
        funding equal to not less than 10 percent of the amount of the 
        grant.
            ``(4) Reservation of grant funds.--The Secretary shall 
        reserve 20 percent of the funds made available under subsection 
        (h) for each fiscal year to award grants to eligible entities 
        that convene collaborative groups that include a representative 
        of a private company or association that is located in the 
        region.
    ``(g) Review of Grant Program.--
            ``(1) Government accountability office review.--The 
        Comptroller General of the United States shall conduct a review 
        of the implementation of this section for--
                    ``(A) the 2-year period beginning on the date on 
                which the Secretary begins to accept applications for 
                grants under this section; and
                    ``(B) each 4-year period thereafter.
            ``(2) Reports to congress.--The Secretary shall submit to 
        Congress an annual report describing--
                    ``(A) funding decisions under this section;
                    ``(B) a justification for each grant awarded under 
                this section; and
                    ``(C) with respect to each regional project that 
                has received a grant under this section, the extent to 
                which--
                            ``(i) benchmarks for the project have been 
                        met in accordance with the timeline for the 
                        project; and
                            ``(ii) the project may be considered an 
                        example to other municipalities desiring a 
                        grant under this section.
    ``(h) Funding.--Of amounts made available for the Dislocated Worker 
National Reserve fund under section 132(a)(2)(A) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3172(a)(2)(A)), $100,000,000 
shall be used to carry out this section for each of fiscal years 2018 
through 2027.''.
Appalachia Opportunity Grants Act of 2018  This bill amends the Consolidated Farm and Rural Development Act to authorize the Department of Agriculture to award grants for units of local government in the Appalachian region of the eastern United States to convene groups of public and private entities to collaborate in carrying out regional projects to accomplish positive economic and community impacts in the region.  A regional project carried out by a collaborative group must: (1) involve at least two municipalities that share a border; and (2) complete a specific activity that has a goal of job creation, expansion of the capacity of post-secondary education, growth of tourism, improving public health, or upgrading regional infrastructure. 
Appalachia Opportunity Grants Act of 2018