A bill to amend the Public Works and Economic Development Act of 1965 to reauthorize that Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Development Administration 
Reauthorization Act of 2008''.

SEC. 2. ECONOMIC DEVELOPMENT PARTNERSHIPS.

    Section 101 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3131) is amended by adding at the end the following:
    ``(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- and faith-based social 
                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. 3. ENHANCEMENT OF RECIPIENT FLEXIBILITY TO DEAL WITH PROJECT 
              ASSETS.

    (a) Revolving Loan Fund Program Flexibility.--Section 209(d) of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(d)) 
is amended by adding at the end the following:
            ``(5) 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.
            ``(6) Program administration.--The Secretary may allocate 
        not more than 2 percent of the amounts made available for 
        grants under this section for the development and maintenance 
        of an automated tracking and monitoring system to ensure the 
        proper operation and financial integrity of the revolving loan 
        program established under this section.''.
    (b) Maintenance of Effort.--Title VI of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3211 et seq.) is amended by 
adding at the end the following:

``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.--
            ``(1) In general.--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.
            ``(2) Conversion of use.--If a recipient described in 
        paragraph (1) 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.
    ``(d) 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. 4. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.

    Section 701(a) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3231(a)) is amended--
            (1) in paragraph (1), by striking ``2004'' and inserting 
        ``2009'';
            (2) in paragraph (2), by striking ``2005'' and inserting 
        ``2010'';
            (3) in paragraph (3), by striking ``2006'' and inserting 
        ``2011'';
            (4) in paragraph (4), by striking ``2007'' and inserting 
        ``2012''; and
            (5) in paragraph (5), by striking ``2008'' and inserting 
        ``2013''.

SEC. 5. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
              EXPENSES.

    Section 704 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3234) is amended to read as follows:

``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 $300,000,000;
            ``(2) $29,500,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $340,000,000;
            ``(3) $31,000,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $380,000,000;
            ``(4) $32,500,000, if the total amount made available under 
        subsection 701(a) for the fiscal year is equal to or greater 
        than $420,000,000; 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 $460,000,000.''.

Summary: Economic Development Administration Reauthorization Act of 2008 - Amends the Public Works and Economic Development Act of 1965 to authorize the Secretary of Commerce to establish and carry out an Excellence in Economic Development Award Program to recognize innovative economic development strategies of national significance. Directs the Secretary to publicly solicit nominations of nonprofit organizations or institutions. Authorizes a recipient of an economic adjustment grant who determines that a revolving loan fund established using such assistance is no longer needed or that the recipient could make better use of the assistance to carry out another project that meets the requirements of the Act to request the Secretary to approve conversion of the assistance by: (1) selling fund assets to a third party. Or (2) retaining repayments of principal and interest on loans provided through the fund. Requires such a recipient to use the net proceeds from a sale of assets to pay any portion of the costs of one or more projects that meet Act requirements. Directs the Secretary, before providing investment assistance for a construction project under such Act, to establish the expected period during which the assistance recipient shall make best efforts to achieve economic development objectives. Requires acquired or improved property to be held in trust by the recipient for the benefit of the project, and requires the Secretary to retain a reversionary interest in the property, during that period. Extends the authorization of appropriations for economic development assistance programs. Increases the minimum level of funding for planning and grants for administrative expenses.