108TH CONGRESS

1ST SESSION H. R. 2535

AN ACT

To reauthorize and improve the program authorized by the

Public Works and Economic Development Act of 1965.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Economic Development Administration Reauthorization

4 Act of 2003’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 this Act is as follows:

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.
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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.

TITLE VIII—APPALACHIAN REGIONAL DEVELOPMENT

Sec. 801. Additions to appalachian region.

Sec. 802. Authorization of appropriations.

1 SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC

2 DEVELOPMENT ACT OF 1965.

3 Except as otherwise expressly provided, whenever in

4 this Act an amendment or repeal is expressed in terms

5 of an amendment to, or a repeal of, a section or other

6 provision, the reference shall be considered to be made to

7 a section or other provision of the Public Works and Eco8 nomic Development Act of 1965 (42 U.S.C. 3121 et seq.).

9 TITLE I—GENERAL PROVISIONS

10 SEC. 101. FINDINGS AND DECLARATIONS.

11 Section 2 (42 U.S.C. 3121) is amended to read as

12 follows:

13 ‘‘SEC. 2. FINDINGS AND DECLARATIONS.

14 ‘‘(a) FINDINGS.—Congress finds the following:

15 ‘‘(1) There continue to be areas experiencing

16 chronic high unemployment, underemployment, out17 migration, and low per capita incomes, as well as

18 areas facing sudden and severe economic dislocations

19 due to structural economic changes, changing trade

20 patterns, certain Federal actions (including environ-
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1 mental requirements that result in the removal of

2 economic activities from a locality), and natural dis3 asters.

4 ‘‘(2) Economic growth in our Nation, States,

5 cities, and rural areas is produced by expanding eco6 nomic opportunities, expanding free enterprise

7 through trade, developing and strengthening public

8 infrastructure, and creating a climate for job cre9 ation and business development.

10 ‘‘(3) The goal of Federal economic development

11 programs is to raise the standard of living for all

12 citizens and increase the wealth and overall rate of

13 growth of the economy by encouraging communities

14 to develop a more competitive and diversified eco15 nomic base by—

16 ‘‘(A) creating an environment that pro17 motes economic activity by improving and ex18 panding public infrastructure;

19 ‘‘(B) promoting job creation through in20 creased innovation, productivity, and entrepre21 neurship; and

22 ‘‘(C) empowering local and regional com23 munities experiencing chronic high unemploy24 ment and low per capita income to develop pri-
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1 vate sector business and attract increased pri2 vate sector capital investment.

3 ‘‘(4) While economic development is an inher4 ently local process, the Federal Government should

5 work in partnership with public and private local, re6 gional, tribal, and State organizations to maximize

7 the impact of existing resources and enable regions,

8 communities, and citizens to participate more fully

9 in the American dream and national prosperity.

10 ‘‘(5) In order to avoid duplication of effort and

11 achieve meaningful, long-lasting results, Federal,

12 State, tribal, and local economic development activi13 ties should have a clear focus, improved coordina14 tion, a comprehensive approach, and simplified and

15 consistent requirements.

16 ‘‘(6) Federal economic development efforts will

17 be more effective if they are coordinated with, and

18 build upon, the trade, workforce investment, trans19 portation, and technology programs of the United

20 States.

21 ‘‘(b) DECLARATIONS.—In order to promote a strong

22 and growing economy throughout the United States, Con23 gress declares the following:
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1 ‘‘(1) Assistance under this Act should be made

2 available to both rural- and urban-distressed com3 munities.

4 ‘‘(2) Local communities should work in partner5 ship with neighboring communities, the States, In6 dian tribes, and the Federal Government to increase

7 their capacity to develop and implement comprehen8 sive economic development strategies to alleviate eco9 nomic distress and enhance competitiveness in the

10 global economy.

11 ‘‘(3) Whether suffering from long-term distress

12 or a sudden dislocation, distressed communities

13 should be encouraged to support entrepreneurship to

14 take advantage of the development opportunities af15 forded by technological innovation and expanding

16 newly opened global markets.’’.

17 SEC. 102. DEFINITIONS.

18 (a) ELIGIBLE RECIPIENT.—Section 3(4)(A) (42

19 U.S.C. 3122(4)(A)) is amended—

20 (1) by striking clause (i) and redesignating

21 clauses (ii) through (vii) as clauses (i) through (vi),

22 respectively; and

23 (2) in clause (iv) (as so redesignated) by insert24 ing ‘‘, including a special purpose unit of a State or
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1 local government engaged in economic or infrastruc2 ture development activities,’’ after ‘‘State’’.

3 (b) REGIONAL COMMISSIONS.—Section 3 (42 U.S.C.

4 3122) is amended—

5 (1) by redesignating paragraphs (8), (9), and

6 (10) as paragraphs (9), (10), and (11), respectively;

7 and

8 (2) by inserting after paragraph (7) the fol9 lowing:

10 ‘‘(8) REGIONAL COMMISSIONS.—The term ‘Re11 gional Commissions’ means the following entities:

12 ‘‘(A) The Appalachian Regional Commis13 sion established under chapter 143 of title 40,

14 United States Code.

15 ‘‘(B) The Delta Regional Authority estab16 lished under subtitle F of the Consolidated

17 Farm and Rural Development Act (7 U.S.C.

18 2009aa et seq.).

19 ‘‘(C) The Denali Commission established

20 under the Denali Commission Act of 1998 (42

21 U.S.C. 2131 note; 112 Stat. 2681–637 et seq.).

22 ‘‘(D) The Northern Great Plains Regional

23 Authority established under subtitle F of the

24 Consolidated Farm and Rural Development Act

25 (7 U.S.C. 2009bb et seq.).’’.
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1 (c) UNIVERSITY CENTER.—Section 3 (42 U.S.C.

2 3122) is amended by adding at the end the following:

3 ‘‘(12) UNIVERSITY CENTER.—The term ‘univer4 sity center’ means an institution of higher education

5 or a consortium of institutions of higher education

6 established as a University Center for Economic De7 velopment under section 207(a)(2)(D).’’.

8 SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT

9 PARTNERSHIPS.

10 Section 101 (42 U.S.C. 3131) is amended—

11 (1) in subsection (b) by striking ‘‘and multi12 State regional organizations’’ and inserting ‘‘multi13 State regional organizations, and nonprofit organiza14 tions’’; and

15 (2) in subsection (d)(1) by striking ‘‘adjoining’’

16 each place it appears.

17 SEC. 104. COORDINATION.

18 Section 103 (42 U.S.C. 3132) is amended—

19 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

20 ‘‘The Secretary’’;

21 (2) in subsection (a) (as so designated) by in22 serting ‘‘Indian tribes,’’ after ‘‘districts,’’; and

23 (3) by adding at the end the following:

24 ‘‘(b) MEETINGS.—To carry out the responsibilities in

25 subsection (a), or for any other purpose related to eco-
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1 nomic development activities, the Secretary may convene

2 meetings with Federal agencies, State and local govern3 ments, economic development districts, Indian tribes, and

4 other appropriate planning and development organiza5 tions.’’.

6 TITLE II—GRANTS FOR PUBLIC

7 WORKS AND ECONOMIC DE8 VELOPMENT

9 SEC. 201. GRANTS FOR PLANNING.

10 Section 203(d) (42 U.S.C. 3143(d)) is amended—

11 (1) in paragraph (1) by inserting ‘‘, to the max12 imum extent practicable,’’ after ‘‘developed’’ the sec13 ond place it appears;

14 (2) by striking paragraph (3) and inserting the

15 following:

16 ‘‘(3) COORDINATION.—Before providing assist17 ance for a State plan under this section, the Sec18 retary shall consider the extent to which the State

19 will consider local and economic development district

20 plans.’’; and

21 (3) in paragraph (4)—

22 (A) by striking ‘‘and’’ at the end of sub23 paragraph (C);

24 (B) by redesignating subparagraph (D) as

25 subparagraph (E); and
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1 (C) by adding after subparagraph (C) the

2 following:

3 ‘‘(D) assist in carrying out a State’s work4 force investment strategy; and’’.

5 SEC. 202. COST SHARING.

6 (a) FEDERAL SHARE.—Section 204(a) (42 U.S.C.

7 3144(a)) is amended to read as follows:

8 ‘‘(a) FEDERAL SHARE.—The Secretary shall issue

9 regulations to establish the Federal share of the cost of

10 projects carried out under this title based on the relative

11 needs of the areas in which the projects will be located.

12 Except as provided in subsection (c), the Federal share

13 of the cost of any project carried out under this title shall

14 not exceed 80 percent.’’.

15 (b) NON-FEDERAL SHARE.—Section 204(b) (42

16 U.S.C. 3144(b)) is amended by inserting ‘‘assumptions of

17 debt,’’ after ‘‘equipment,’’.

18 (c) INCREASE IN FEDERAL SHARE.—Section 204 (42

19 U.S.C. 3144) is amended by adding at the end the fol20 lowing:

21 ‘‘(c) INCREASE IN FEDERAL SHARE.—

22 ‘‘(1) INDIAN TRIBES.—In the case of a grant to

23 an Indian tribe for a project under this title, the

24 Secretary may increase the Federal share above the
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1 percentage specified in subsection (a) up to 100 per2 cent of the cost of the project.

3 ‘‘(2) CERTAIN STATES, POLITICAL SUBDIVI4 SIONS, AND NONPROFIT ORGANIZATIONS.—In the

5 case of a grant to a State, or a political subdivision

6 of a State, that the Secretary determines has ex7 hausted its effective taxing and borrowing capacity,

8 or in the case of a grant to a nonprofit organization

9 that the Secretary determines has exhausted its ef10 fective borrowing capacity, the Secretary may in11 crease the Federal share above the percentage speci12 fied in subsection (a) up to 100 percent of the cost

13 of the project.’’.

14 (d) PLANNING GRANTS.—Section 204 (42 U.S.C.

15 3144) is further amended by adding at the end the fol16 lowing:

17 ‘‘(d) PLANNING GRANTS.—Notwithstanding sub18 section (a), the Federal share of the costs of planning ac19 tivities under section 203 shall be at least 65 percent and

20 not more than 80 percent.’’.

21 SEC. 203. SUPPLEMENTARY GRANTS.

22 (a) IN GENERAL.—Section 205(b) (42 U.S.C.

23 3145(b)) is amended to read as follows:

24 ‘‘(b) SUPPLEMENTARY GRANTS.—Subject to sub25 section (c), in order to assist eligible recipients in taking
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1 advantage of designated Federal grant programs, on the

2 application of an eligible recipient, the Secretary may

3 make a supplementary grant for a project for which the

4 recipient is eligible but for which the recipient cannot pro5 vide the required non-Federal share because of the recipi6 ent’s economic situation.’’.

7 (b) REQUIREMENTS APPLICABLE TO SUPPLE8 MENTARY GRANTS.—Section 205(c) (42 U.S.C. 3145(c))

9 is amended—

10 (1) by striking paragraphs (1) and (2) and in11 serting the following:

12 ‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—

13 The share of the project cost supported by a supple14 mentary grant under this section may not exceed the

15 applicable Federal share under section 204.

16 ‘‘(2) FORM OF SUPPLEMENTARY GRANTS.—The

17 Secretary shall make supplementary grants by—

18 ‘‘(A) the payment of funds made available

19 under this Act to the heads of the Federal

20 agencies responsible for carrying out the appli21 cable Federal programs; or

22 ‘‘(B) the award of funds under this Act,

23 which will be combined with funds transferred

24 from other Federal agencies in projects admin25 istered by the Secretary.’’; and
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1 (2) by striking paragraph (4).

2 SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCA3 TIONS.

4 Section 206 (42 U.S.C. 3146) is amended—

5 (1) by striking ‘‘and’’ at the end of paragraph

6 (1)(B);

7 (2) by striking the period at the end of para8 graph (2) and inserting ‘‘; and’’; and

9 (3) by adding at the end the following:

10 ‘‘(3) grants made under this title promote job

11 creation and will have a high probability of meeting

12 or exceeding applicable performance requirements

13 established in connection with the grants.’’.

14 SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECH15 NICAL ASSISTANCE.

16 (a) IN GENERAL.—Section 207(a)(2) (42 U.S.C.

17 3147(a)(2)) is amended—

18 (1) by striking ‘‘and’’ at the end of subpara19 graph (F);

20 (2) by redesignating subparagraph (G) as sub21 paragraph (H); and

22 (3) by inserting after subparagraph (F) the fol23 lowing:
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1 ‘‘(G) studies that evaluate the effectiveness

2 of coordinating projects funded under this Act

3 with projects funded under other Acts; and’’.

4 (b) COOPERATION REQUIREMENT.—Section 207(a)

5 (42 U.S.C. 3147(a)) is amended by adding at the end the

6 following:

7 ‘‘(4) COOPERATION REQUIREMENT.—In the

8 case of a project assisted under this section that is

9 national or regional in scope, the Secretary may

10 waive the provision in section 3(4)(A)(vi) requiring

11 a nonprofit organization or association to act in co12 operation with officials of a political subdivision of

13 a State.’’.

14 SEC. 206. PREVENTION OF UNFAIR COMPETITION.

15 Section 208 (42 U.S.C. 3148), and the item relating

16 to section 208 in the table of contents contained in section

17 1(b), are repealed.

18 SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

19 (a) DIRECT EXPENDITURE OR REDISTRIBUTION BY

20 RECIPIENT.—Section 209(d) (42 U.S.C. 3149(d)) is

21 amended by striking ‘‘an eligible recipient’’ each place it

22 appears and inserting ‘‘a recipient’’.

23 (b) SPECIAL PROVISIONS RELATING TO REVOLVING

24 LOAN FUND GRANTS.—Section 209 (42 U.S.C. 3149) is

25 amended by adding at the end the following:
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1 ‘‘(e) SPECIAL PROVISIONS RELATING TO REVOLVING

2 LOAN FUND GRANTS.—

3 ‘‘(1) IN GENERAL.—The Secretary shall issue

4 regulations to maintain the proper operation and fi5 nancial integrity of revolving loan funds established

6 by recipients with assistance under this section.

7 ‘‘(2) EFFICIENT ADMINISTRATION.—The Sec8 retary may—

9 ‘‘(A) at the request of a grantee, amend

10 and consolidate grant agreements governing re11 volving loan funds to provide flexibility with re12 spect to lending areas and borrower criteria;

13 ‘‘(B) assign or transfer assets of a revolv14 ing loan fund to a third party for the purpose

15 of liquidation, and a third party may retain as16 sets of the fund to defray costs related to liq17 uidation; and

18 ‘‘(C) take such actions as are appropriate

19 to enable revolving loan fund operators to sell

20 or securitize loans (except that the actions may

21 not include issuance of a Federal guaranty by

22 the Secretary).

23 ‘‘(3) TREATMENT OF ACTIONS.—An action

24 taken by the Secretary under this subsection with

25 respect to a revolving loan fund shall not constitute
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1 a new obligation if all grant funds associated with

2 the original grant award have been disbursed to the

3 recipient.

4 ‘‘(4) PRESERVATION OF SECURITIES LAWS.—

5 ‘‘(A) NOT TREATED AS EXEMPTED SECU6 RITIES.—No securities issued pursuant to para7 graph (2)(C) shall be treated as exempted secu8 rities for purposes of the Securities Act of 1933

9 or the Securities Exchange Act of 1934, unless

10 exempted by rule or regulation of the Securities

11 and Exchange Commission.

12 ‘‘(B) PRESERVATION.—Except as provided

13 in subparagraph (A), no provision of this sub14 section or any regulation issued by the Sec15 retary under this subsection shall supersede or

16 otherwise affect the application of the securities

17 laws (as such term is defined in section

18 2(a)(47) of the Securities Exchange Act of

19 1934) or the rules, regulations, or orders of the

20 Securities and Exchange Commission or a self21 regulatory organization thereunder.’’.

22 SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED

23 UNDER PROJECTED COST.

24 Section 211 (42 U.S.C. 3151) is amended to read as

25 follows:
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1 ‘‘SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED

2 UNDER PROJECTED COST.

3 ‘‘(a) IN GENERAL.—In the case of a grant to a recipi4 ent for a construction project under section 201 or 209,

5 if the Secretary determines, before closeout of the project,

6 that the cost of the project, based on the designs and spec7 ifications that were the basis of the grant, has decreased

8 because of decreases in costs, the Secretary may approve,

9 without further appropriations action, the use of the ex10 cess funds (or a portion of the excess funds) by the recipi11 ent to increase the Federal share of the cost of a project

12 under this title to the maximum percentage allowable

13 under section 204 or to improve the project.

14 ‘‘(b) OTHER USES OF EXCESS FUNDS.—Any amount

15 of excess funds remaining after application of subsection

16 (a) may be used by the Secretary for providing assistance

17 under this Act.

18 ‘‘(c) TRANSFERRED FUNDS.—In the case of excess

19 funds described in subsection (a) in projects utilizing

20 funds transferred from other Federal agencies pursuant

21 to section 604, the Secretary shall—

22 ‘‘(1) utilize the funds in accordance with sub23 section (a), with the approval of the originating

24 agency; or

25 ‘‘(2) return the funds to the originating agen26 cy.’’.
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1 SEC. 209. SPECIAL IMPACT AREAS.

2 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

3 is amended by adding at the end the following:

4 ‘‘SEC. 214. SPECIAL IMPACT AREAS.

5 ‘‘(a) IN GENERAL.—On the application of an eligible

6 recipient, the Secretary may determine that the recipient

7 is unable to comply with the requirements of section 302

8 and designate the area represented by the recipient as a

9 special impact area.

10 ‘‘(b) WAIVERS.—Subject to the requirements of this

11 section, the Secretary may waive, in whole or in part, as

12 appropriate, the requirements of section 302 with respect

13 to a special impact area designated under subsection (a)

14 if the Secretary determines that the waiver will carry out

15 the purposes of the Act.

16 ‘‘(c) NOTIFICATION REQUIREMENT.—At least 30

17 days before issuing a waiver under this section, the Sec18 retary shall transmit to the Committee on Transportation

19 and Infrastructure of the House of Representatives and

20 the Committee on Environment and Public Works of the

21 Senate a written notice of the waiver, including a justifica22 tion for the waiver.’’.

23 (b) CONFORMING AMENDMENT.—The table of con24 tents contained in section 1(b) is amended by inserting

25 after the item relating to section 213 the following:

‘‘Sec. 214. Special impact areas.’’.
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1 SEC. 210. PERFORMANCE AWARDS.

2 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

3 is further amended by adding at the end the following:

4 ‘‘SEC. 215. PERFORMANCE AWARDS.

5 ‘‘(a) IN GENERAL.—The Secretary may make a per6 formance award in connection with a grant made, on or

7 after the date of enactment of this section, to an eligible

8 recipient for a project under section 201 or 209.

9 ‘‘(b) PERFORMANCE MEASURES.—

10 ‘‘(1) REGULATIONS.—The Secretary shall issue

11 regulations to establish performance measures for

12 making performance awards under subsection (a).

13 ‘‘(2) CONSIDERATIONS.—In issuing regulations

14 under paragraph (1), the Secretary shall consider in15 cluding performance measures that assess the fol16 lowing factors:

17 ‘‘(A) Whether the recipient meets or ex18 ceeds scheduling goals.

19 ‘‘(B) Whether the recipient meets or ex20 ceeds job creation goals.

21 ‘‘(C) Amounts of private sector capital in22 vestments leveraged.

23 ‘‘(D) Such other factors as the Secretary

24 determines appropriate.

25 ‘‘(c) AMOUNT OF AWARDS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall base

2 the amount of a performance award made under

3 subsection (a) in connection with a grant on the ex4 tent to which a recipient meets or exceeds perform5 ance measures established in connection with the

6 grant.

7 ‘‘(2) MAXIMUM AMOUNT.—The amount of a

8 performance award may not exceed 10 percent of

9 the amount of the grant.

10 ‘‘(d) USE OF AWARDS.—A recipient of a performance

11 award under subsection (a) may use the award for any

12 eligible purpose under this Act, in accordance with section

13 602 and such regulations as the Secretary may prescribe.

14 ‘‘(e) FEDERAL SHARE.—Notwithstanding section

15 204, the amounts of a performance award may be used

16 for up to 100 percent of the cost of an eligible project

17 or activity.

18 ‘‘(f) TREATMENT IN MEETING NON-FEDERAL

19 SHARE REQUIREMENTS.—For the purposes of meeting

20 the non-Federal share requirements of this Act, or any

21 other Act, the amounts of a performance award shall be

22 treated as funds from a non-Federal source.

23 ‘‘(g) TERMS AND CONDITIONS.— In making perform24 ance awards under subsection (a), the Secretary shall es-
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1 tablish such terms and conditions as the Secretary con2 siders appropriate.

3 ‘‘(h) FUNDING.—The Secretary shall carry out this

4 section using any amounts made available for economic

5 development assistance programs.

6 ‘‘(i) REPORTING REQUIREMENT.—The Secretary

7 shall include information regarding performance awards

8 made under this section in the annual report required

9 under section 603.

10 ‘‘(j) REVIEW BY COMPTROLLER GENERAL.—

11 ‘‘(1) REVIEW.—The Comptroller General shall

12 review the implementation of this section in each fis13 cal year.

14 ‘‘(2) ANNUAL REPORT.—Not later than one

15 year after the date of enactment of this section, and

16 annually thereafter, the Comptroller General shall

17 transmit to the Committee on Transportation and

18 Infrastructure of the House of Representatives and

19 the Committee on Environment and Public Works of

20 the Senate a report on the Comptroller’s findings

21 under this subsection.’’.

22 (b) CONFORMING AMENDMENT.—The table of con23 tents contained in section 1(b) is amended by inserting

24 after the item relating to section 214 the following:

‘‘Sec. 215. Performance awards.’’.
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1 SEC. 211. PLANNING PERFORMANCE AWARDS.

2 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

3 is further amended by adding at the end the following:

4 ‘‘SEC. 216. PLANNING PERFORMANCE AWARDS.

5 ‘‘(a) IN GENERAL.—The Secretary may make a plan6 ning performance award in connection with a grant made,

7 on or after the date of enactment of this section, to an

8 eligible recipient for a project under this title located in

9 an economic development district.

10 ‘‘(b) ELIGIBILITY.—The Secretary may make a plan11 ning performance award to an eligible recipient under sub12 section (a) in connection with a grant for a project if the

13 Secretary determines before closeout of the project that—

14 ‘‘(1) the recipient actively participated in the

15 economic development activities of the economic de16 velopment district in which the project is located;

17 ‘‘(2) the project is consistent with the com18 prehensive economic development strategy of the dis19 trict;

20 ‘‘(3) the recipient worked with Federal, State,

21 and local economic development entities throughout

22 the development of the project; and

23 ‘‘(4) the project was completed in accordance

24 with the comprehensive economic development strat25 egy of the district.
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1 ‘‘(c) MAXIMUM AMOUNT.—The amount of a planning

2 performance award made under subsection (a) in connec3 tion with a grant may not exceed 5 percent of the amount

4 of the grant.

5 ‘‘(d) USE OF AWARDS.—A recipient of a planning

6 performance award under subsection (a) shall use the

7 award to increase the Federal share of the cost of a project

8 under this title.

9 ‘‘(e) FEDERAL SHARE.—Notwithstanding section

10 204, the amounts of a planning performance award may

11 be used for up to 100 percent of the cost of a project

12 under this title.

13 ‘‘(f) FUNDING.—The Secretary shall carry out this

14 section using any amounts made available for economic

15 development assistance programs.’’.

16 (b) CONFORMING AMENDMENT.—The table of con17 tents contained in section 1(b) is amended by inserting

18 after the item relating to section 215 the following:

‘‘Sec. 216. Planning performance awards.’’.

19 SEC. 212. SUBGRANTS.

20 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

21 is further amended by adding at the end the following:

22 ‘‘SEC. 217. SUBGRANTS.

23 ‘‘(a) IN GENERAL.—Subject to subsection (b), a re24 cipient of a grant under section 201, 203, or 207 may
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1 directly expend the grant funds or may redistribute the

2 funds in the form of a subgrant to other eligible recipients

3 to fund required components of the scope of work ap4 proved for the project.

5 ‘‘(b) LIMITATION.—A recipient may not redistribute

6 grant funds received under section 201 or 203 to a for7 profit entity.’’.

8 (b) CONFORMING AMENDMENT.—The table of con9 tents contained in section 1(b) is amended by inserting

10 after the item relating to section 216 the following:

‘‘Sec. 217. Subgrants.’’.

11 SEC. 213. BROWNFIELDS REDEVELOPMENT.

12 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

13 is further amended by adding at the end the following:

14 ‘‘SEC. 218. BROWNFIELDS REDEVELOPMENT.

15 ‘‘(a) IN GENERAL.—On the application of a qualified

16 eligible recipient, the Secretary may make grants under

17 sections 201, 203, 207, and 209 for projects to expand,

18 redevelop, or reuse brownfield sites.

19 ‘‘(b) LIMITATIONS.—Projects carried out under this

20 section shall be subject to the limitations of section

21 104(k)(4)(B) of the Comprehensive Environmental Re22 sponse, Compensation, and Liability Act of 1980 (42

23 U.S.C. 9604(k)(4)(B)); except that recipients may use

24 grant funds awarded under this section for the adminis25 trative costs of economic development activities.
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1 ‘‘(c) DEFINITIONS.—In this section, the following

2 definitions apply:

3 ‘‘(1) BROWNFIELD SITE.—The term ‘brownfield

4 site’ has the meaning given such term in section

5 101(39) of the Comprehensive Environmental Re6 sponse, Compensation, and Liability Act of 1980 (42

7 U.S.C. 9601(39)).

8 ‘‘(2) QUALIFIED ELIGIBLE RECIPIENT.—The

9 term ‘qualified eligible recipient’ means an eligible

10 recipient that meets the definition of ‘eligible entity’

11 in section 104(k)(1) of the Comprehensive Environ12 mental Response, Compensation, and Liability Act

13 of 1980 (42 U.S.C. 9604(k)(1)); except that for any

14 project undertaken under this section the term may

15 include a nonprofit organization acting in coopera16 tion with officials of a political subdivision of a

17 State.’’.

18 (b) CONFORMING AMENDMENT.—The table of con19 tents contained in section 1(b) is amended by inserting

20 after the item relating to section 217 the following:

‘‘Sec. 218. Brownfields redevelopment.’’.

21 SEC. 214. BRIGHTFIELDS DEMONSTRATION PROGRAM.

22 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.)

23 is further amended by adding at the end the following:
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1 ‘‘SEC. 219. BRIGHTFIELDS DEMONSTRATION PROGRAM.

2 ‘‘(a) IN GENERAL.—On the application of a qualified

3 eligible recipient, the Secretary may make a grant for a

4 project for the development of brightfield sites if the Sec5 retary determines that the project will—

6 ‘‘(1) utilize solar energy technologies to develop

7 abandoned or contaminated sites for commercial use;

8 and

9 ‘‘(2) improve the commercial and economic op10 portunities in the area where the project is located.

11 ‘‘(b) LIMITATIONS.—Projects carried out under this

12 section shall be subject to the limitations of section

13 104(k)(4)(B) of the Comprehensive Environmental Re14 sponse, Compensation, and Liability Act of 1980 (42

15 U.S.C. 9604(k)(4)(B)); except that recipients may use

16 grant funds awarded under this section for the adminis17 trative costs of economic development activities.

18 ‘‘(c) DEFINITIONS.—In this section, the following

19 definitions apply:

20 ‘‘(1) BRIGHTFIELD SITE.—The term

21 ‘brightfield site’ means a brownfield site (as defined

22 in section 217) that is redeveloped through the in23 corporation of solar energy technologies.

24 ‘‘(2) QUALIFIED ELIGIBLE RECIPIENT.—The

25 term ‘qualified eligible recipient’ has the meaning

26 given such term in section 217; except that for any
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1 project undertaken under this section the term may

2 include a nonprofit organization acting in coopera3 tion with officials of a political subdivision of a

4 State.

5 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

6 is authorized to be appropriated to carry out this section

7 $5,000,000 for each of fiscal years 2004 through 2008.

8 Such sums shall remain available until expended.’’.

9 (b) CONFORMING AMENDMENT.—The table of con10 tents contained in section 1(b) is amended by inserting

11 after the item relating to section 218 the following:

‘‘Sec. 219. Brightfields demonstration program.’’.

12 TITLE III—COMPREHENSIVE

13 ECONOMIC DEVELOPMENT

14 STRATEGIES

15 SEC. 301. COMPREHENSIVE ECONOMIC DEVELOPMENT

16 STRATEGIES.

17 (a) IN GENERAL.—Section 302(a)(3)(A) (42 U.S.C.

18 3162(a)(3)(A)) is amended by inserting ‘‘maximizes effec19 tive development and use of the workforce consistent with

20 any applicable State or local workforce investment strat21 egy,’’ after ‘‘access,’’.

22 (b) APPROVAL OF OTHER PLAN.—Section 302(c) (42

23 U.S.C. 3162(c)) is amended by adding at the end the fol24 lowing: ‘‘To the maximum extent practicable, a plan sub25 mitted under this paragraph shall be consistent and co-
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1 ordinated with any existing comprehensive economic devel2 opment strategy for the area.’’.

3 TITLE IV—ECONOMIC

4 DEVELOPMENT DISTRICTS

5 SEC. 401. INCENTIVES.

6 Section 403 (42 U.S.C. 3173), and the item relating

7 to section 403 in the table of contents contained in section

8 1(b), are repealed.

9 SEC. 402. PROVISION OF COMPREHENSIVE ECONOMIC DE10 VELOPMENT STRATEGIES TO REGIONAL

11 COMMISSIONS.

12 (a) IN GENERAL.—Section 404 (42 U.S.C. 3174) is

13 amended to read as follows:

14 ‘‘SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DE15 VELOPMENT STRATEGIES TO REGIONAL

16 COMMISSIONS.

17 ‘‘If any part of an economic development district is

18 in a region covered by one or more of the Regional Com19 missions (as defined in section 3), the economic develop20 ment district shall ensure that a copy of the comprehen21 sive economic development strategy of the district is pro22 vided to the affected Regional Commission.’’.

23 (b) CONFORMING AMENDMENT.—The table of con24 tents contained in section 1(b) is amended by striking the

25 item relating to section 404 and inserting the following:
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‘‘Sec. 404. Provision of comprehensive economic development strategies to Regional Commissions.’’.

1 TITLE V—ADMINISTRATION

2 SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEAR3 INGHOUSE.

4 Section 502 (42 U.S.C. 3192) is amended—

5 (1) by striking paragraph (1) and inserting the

6 following:

7 ‘‘(1) maintain a central information clearing8 house on the Internet with—

9 ‘‘(A) information on economic develop10 ment, economic adjustment, disaster recovery,

11 defense conversion, and trade adjustment pro12 grams and activities of the Federal Govern13 ment;

14 ‘‘(B) links to State economic development

15 organizations; and

16 ‘‘(C) links to other appropriate economic

17 development resources;’’;

18 (2) by striking paragraph (2) and inserting the

19 following:

20 ‘‘(2) assist potential and actual applicants for

21 economic development, economic adjustment, dis22 aster recovery, defense conversion, and trade adjust23 ment assistance under Federal and State laws in lo24 cating and applying for the assistance;’’;
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1 (3) by striking the period at the end of para2 graph (3) and inserting ‘‘; and’’; and

3 (4) by adding at the end the following:

4 ‘‘(4) obtain appropriate information from other

5 Federal agencies needed to carry out the duties

6 under this Act.’’.

7 SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.

8 Section 505 (42 U.S.C. 3195), and the item relating

9 to section 505 in the table of contents contained in section

10 1(b), are repealed.

11 SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPI12 ENTS.

13 Section 506(c) (42 U.S.C. 3196(c)) is amended by

14 striking ‘‘after the effective date of the Economic Develop15 ment Administration Reform Act of 1998’’.

16 SEC. 504. CONFORMING AMENDMENTS.

17 (a) STANDARDS.—Section 602 (42 U.S.C. 3212) is

18 amended—

19 (1) in the first sentence by striking ‘‘in accord20 ance with’’ and all that follows before the period at

21 the end and inserting ‘‘in accordance with sub22 chapter IV of chapter 31 of title 40, United States

23 Code’’; and

24 (2) in the third sentence by striking ‘‘section 2

25 of the Act of June 13, 1934, as amended (40 U.S.C.
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1 276c)’’ and inserting ‘‘section 3145 of title 40,

2 United States Code’’.

3 (b) EVALUATION CRITERIA.—Section 506(d)(2) (42

4 U.S.C. 3196(d)(2)) is amended by inserting ‘‘program

5 performance,’’ after ‘‘applied research,’’.

6 TITLE VI—MISCELLANEOUS

7 SEC. 601. RELATIONSHIP TO ASSISTANCE UNDER OTHER

8 LAW.

9 Section 609 (42 U.S.C. 3219) is amended—

10 (1) by striking subsection (a); and

11 (2) by striking ‘‘(b) ASSISTANCE UNDER

12 OTHER ACTS.—’’.

13 SEC. 602. SENSE OF CONGRESS REGARDING ECONOMIC DE14 VELOPMENT REPRESENTATIVES.

15 (a) FINDINGS.—Congress finds the following:

16 (1) Planning and coordination among Federal

17 agencies, State and local governments, Indian tribes,

18 and economic development districts is vital to the

19 success of an economic development program.

20 (2) Economic Development Representatives of

21 the Economic Development Administration provide

22 distressed communities with the technical assistance

23 necessary to foster this planning and coordination.
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1 (3) In the past five years, the number of Eco2 nomic Development Representatives has declined by

3 almost 25 percent.

4 (b) SENSE OF CONGRESS.—It is the sense of Con5 gress that the Secretary should maintain a sufficient num6 ber of Economic Development Representatives to ensure

7 that the Economic Development Administration is able to

8 provide effective assistance to distressed communities and

9 foster economic growth and development among the

10 States.

11 TITLE VII—FUNDING

12 SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

13 Section 701 (42 U.S.C. 3231) is amended to read as

14 follows:

15 ‘‘SEC. 701. GENERAL AUTHORIZATION OF APPROPRIA16 TIONS.

17 ‘‘(a) ECONOMIC DEVELOPMENT ASSISTANCE PRO18 GRAMS.—There are authorized to be appropriated for eco19 nomic development assistance programs to carry out this

20 Act—

21 ‘‘(1) $400,000,000 for fiscal year 2004;

22 ‘‘(2) $425,000,000 for fiscal year 2005;

23 ‘‘(3) $450,000,000 for fiscal year 2006;

24 ‘‘(4) $475,000,000 for fiscal year 2007; and

25 ‘‘(5) $500,000,000 for fiscal year 2008.
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1 Such sums shall remain available until expended.

2 ‘‘(b) SALARIES AND EXPENSES.—There are author3 ized to be appropriated for salaries and expenses of admin4 istering this Act $33,377,000 for fiscal year 2004 and

5 such sums as may be necessary for each fiscal year there6 after. Such sums shall remain available until expended.’’.

7 TITLE VIII—APPALACHIAN

8 REGIONAL DEVELOPMENT

9 SEC. 801. ADDITIONS TO APPALACHIAN REGION.

10 (a) KENTUCKY.—Section 14102(a)(1)(C) of title 40,

11 United States Code, is amended—

12 (1) by inserting ‘‘Nicholas,’’ after ‘‘Morgan,’’;

13 and

14 (2) by inserting ‘‘Robertson,’’ after ‘‘Pulaski,’’.

15 (b) OHIO.—Section 14102(a)(1)(H) of such title is

16 amended—

17 (1) by inserting ‘‘Ashtabula,’’ after ‘‘Adams,’’;

18 (2) by inserting ‘‘Fayette,’’ after ‘‘Coshocton,’’;

19 (3) by inserting ‘‘Mahoning,’’ after ‘‘Law20 rence,’’; and

21 (4) by inserting ‘‘Trumbull,’’ after ‘‘Scioto,’’.

22 (c) TENNESSEE.—Section 14102(a)(1)(K) of such

23 title is amended—

24 (1) by inserting ‘‘Giles,’’ after ‘‘Franklin,’’; and
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1 (2) by inserting ‘‘Lawrence, Lewis, Lincoln,’’

2 after ‘‘Knox,’’.

3 (d) VIRGINIA.—Section 14102(a)(1)(L) of such title

4 is amended—

5 (1) by inserting ‘‘Henry,’’ after ‘‘Grayson,’’;

6 and

7 (2) by inserting ‘‘Patrick,’’ after ‘‘Mont8 gomery,’’.

9 SEC. 802. AUTHORIZATION OF APPROPRIATIONS.

10 Section 14703(a) of title 40, United States Code, is

11 amended by striking paragraphs (1) through (3) and in12 serting the following:

13 ‘‘(1) $88,000,000 for each of fiscal years 2002

14 and 2003.

15 ‘‘(2) $91,000,000 for fiscal year 2004.

16 ‘‘(3) $93,000,000 for fiscal year 2005.

17 ‘‘(4) $95,000,000 for fiscal year 2006.’’.

Passed the House of Representatives October 21,

2003.

Attest:

Clerk.
108TH CONGRESS

1ST SESSION H. R. 2535

AN ACT

To reauthorize and improve the program authorized

by the Public Works and Economic DevelopmentAct of 1965.