PUBLIC LAW 108–373—OCT. 27, 2004

ECONOMIC DEVELOPMENT ADMINISTRATION

REAUTHORIZATION ACT OF 2004

118 STAT. 1756 PUBLIC LAW 108–373—OCT. 27, 2004

Public Law 108–373

108th Congress

An Act

To reauthorize and improve the program authorized by the Public Works and

Economic Development Act of 1965.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Development Administration Reauthorization Act of 2004’’.

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

is as follows:

Sec. 1. Short title; table of contents.

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. Direct expenditure or redistribution by recipient.

Sec. 213. Brightfields demonstration program.

TITLE III—COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

Sec. 301. Eligibility of areas.

Sec. 302. Comprehensive Economic Development strategies.

TITLE IV—ECONOMIC DEVELOPMENT DISTRICTS

Sec. 401. Incentives.

Sec. 402. Provision of comprehensive Economic Development strategies to Regional

Commissions.

TITLE V—ADMINISTRATION

Sec. 501. Economic Development information clearinghouse.

Sec. 502. Businesses desiring Federal contracts.

Sec. 503. Performance evaluations of grant recipients.

Sec. 504. Conforming amendments.

TITLE VI—MISCELLANEOUS

Sec. 601. Annual report to Congress.

Sec. 602. Relationship to assistance under other law.

42 USC 3121

note.

Economic

Development

Administration

Reauthorization

Act of 2004.

Rural and urban

areas.

Oct. 27, 2004

[S. 1134]

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1757

Sec. 603. Brownfields redevelopment report.

Sec. 604. Savings clause.

Sec. 605. Sense of Congress regarding Economic Development Representatives.

TITLE VII—FUNDING

Sec. 701. Authorization of appropriations.

Sec. 702. Funding for grants for planning and grants for administrative expenses.

TITLE I—GENERAL PROVISIONS

SEC. 101. FINDINGS AND DECLARATIONS.

Section 2 of the Public Works and Economic Development Act

of 1965 (42 U.S.C. 3121) is amended to read as follows:

‘‘SEC. 2. FINDINGS AND DECLARATIONS.

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) there continue to be areas of the United States experiencing chronic high unemployment, underemployment, outmigration, and low per capita incomes, as well as areas facing

sudden and severe economic dislocations because of structural

economic changes, changing trade patterns, certain Federal

actions (including environmental requirements that result in

the removal of economic activities from a locality), and natural

disasters;

‘‘(2) economic growth in the States, cities, and rural areas

of the United States is produced by expanding economic

opportunities, expanding free enterprise through trade, developing and strengthening public infrastructure, and creating

a climate for job creation and business development;

‘‘(3) the goal of Federal economic development programs

is to raise the standard of living for all citizens and increase

the wealth and overall rate of growth of the economy by encouraging communities to develop a more competitive and diversified economic base by—

‘‘(A) creating an environment that promotes economic

activity by improving and expanding public infrastructure;

‘‘(B) promoting job creation through increased innovation, productivity, and entrepreneurship; and

‘‘(C) empowering local and regional communities

experiencing chronic high unemployment and low per

capita income to develop private sector business and attract

increased private sector capital investment;

‘‘(4) while economic development is an inherently local

process, the Federal Government should work in partnership

with public and private State, regional, tribal, and local

organizations to maximize the impact of existing resources

and enable regions, communities, and citizens to participate

more fully in the American dream and national prosperity;

‘‘(5) in order to avoid duplication of effort and achieve

meaningful, long-lasting results, Federal, State, tribal, and local

economic development activities should have a clear focus,

improved coordination, a comprehensive approach, and simplified and consistent requirements; and

‘‘(6) Federal economic development efforts will be more

effective if the efforts are coordinated with, and build upon,

the trade, workforce investment, transportation, and technology

programs of the United States.

118 STAT. 1758 PUBLIC LAW 108–373—OCT. 27, 2004

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

economy throughout the United States, Congress declares that—

‘‘(1) assistance under this Act should be made available

to both rural- and urban-distressed communities;

‘‘(2) local communities should work in partnership with

neighboring communities, the States, Indian tribes, and the

Federal Government to increase the capacity of the local

communities to develop and implement comprehensive economic

development strategies to alleviate economic distress and

enhance competitiveness in the global economy;

‘‘(3) whether suffering from long-term distress or a sudden

dislocation, distressed communities should be encouraged to

support entrepreneurship to take advantage of the development

opportunities afforded by technological innovation and

expanding newly opened global markets; and

‘‘(4) assistance under this Act should be made available

to promote the productive reuse of abandoned industrial facilities and the redevelopment of brownfields.’’.

SEC. 102. DEFINITIONS.

(a) ELIGIBLE RECIPIENT.—Section 3(4)(A) of the Public Works

and Economic Development Act of 1965 (42 U.S.C. 3122(4)(A)) is

amended—

(1) by striking clause (i) and redesignating clauses (ii)

through (vii) as clauses (i) through (vi), respectively; and

(2) in clause (iv) (as redesignated by paragraph (1)) by

inserting ‘‘, including a special purpose unit of a State or

local government engaged in economic or infrastructure

development activities,’’ after ‘‘State’’.

(b) REGIONAL COMMISSIONS; UNIVERSITY CENTER.—Section 3

of the Public Works and Economic Development Act of 1965 (42

U.S.C. 3122) is amended—

(1) by redesignating paragraphs (8), (9), and (10) as paragraphs (9), (10), and (11), respectively;

(2) by inserting after paragraph (7) the following:

‘‘(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

(3) by adding at the end the following:

‘‘(12) UNIVERSITY CENTER.—The term ‘university center’

means an institution of higher education or a consortium of

institutions of higher education established as a University

Center for Economic Development under section 207(a)(2)(D).’’.

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1759

SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

Section 101 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3131) is amended—

(1) in subsection (b), by striking ‘‘and multi-State regional

organizations’’ and inserting ‘‘multi-State regional organizations, and nonprofit organizations’’; and

(2) in subsection (d)(1), by striking ‘‘adjoining’’ each place

it appears.

SEC. 104. COORDINATION.

Section 103 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3132) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary’’;

(2) in subsection (a) (as designated by paragraph (1)), by

inserting ‘‘Indian tribes,’’ after ‘‘districts,’’; and

(3) by adding at the end the following:

‘‘(b) MEETINGS.—To carry out subsection (a), or for any other

purpose relating to economic development activities, the Secretary

may convene meetings with Federal agencies, State and local

governments, economic development districts, Indian tribes, and

other appropriate planning and development organizations.’’.

TITLE II—GRANTS FOR PUBLIC WORKS

AND ECONOMIC DEVELOPMENT

SEC. 201. GRANTS FOR PLANNING.

Section 203(d) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3143(d)) is amended—

(1) in paragraph (1), by inserting ‘‘, to the maximum extent

practicable,’’ after ‘‘developed’’ the second place it appears;

(2) by striking paragraph (3) and inserting the following:

‘‘(3) COORDINATION.—Before providing assistance for a

State plan under this section, the Secretary shall consider

the extent to which the State will consider local and economic

development district plans.’’; and

(3) in paragraph (4)—

(A) by striking ‘‘and’’ at the end of subparagraph (C);

(B) by redesignating subparagraph (D) as subparagraph (F); and

(C) by adding after subparagraph (C) the following:

‘‘(D) assist in carrying out the workforce investment

strategy of a State;

‘‘(E) promote the use of technology in economic development, including access to high-speed telecommunications;

and’’.

SEC. 202. COST SHARING.

(a) FEDERAL SHARE.—Section 204 of the Public Works and

Economic Development Act of 1965 (42 U.S.C. 3144) is amended

by striking subsection (a) and inserting the following:

‘‘(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—

42 USC 3133.

118 STAT. 1760 PUBLIC LAW 108–373—OCT. 27, 2004

‘‘(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.’’.

(b) NON-FEDERAL SHARE.—Section 204(b) of the Public Works

and Economic Development Act of 1965 (42 U.S.C. 3144(b)) is

amended by inserting ‘‘assumptions of debt,’’ after ‘‘equipment,’’.

(c) INCREASE IN FEDERAL SHARE.—Section 204 of the Public

Works and Economic Development Act of 1965 (42 U.S.C. 3144)

is amended by adding at the end the following:

‘‘(c) INCREASE IN FEDERAL SHARE.— ‘‘(1) INDIAN TRIBES.—In the case of a grant to an Indian

tribe for a project under this title, the Secretary may increase

the Federal share above the percentage specified in subsection

(a) up to 100 percent of the cost of the project.

‘‘(2) CERTAIN STATES, POLITICAL SUBDIVISIONS, AND NONPROFIT ORGANIZATIONS.—In the case of a grant to a State,

or a political subdivision of a State, that the Secretary determines has exhausted 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) 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.’’.

SEC. 203. SUPPLEMENTARY GRANTS.

(a) IN GENERAL.—Section 205 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3145) is amended by striking

subsection (b) and inserting the following:

‘‘(b) SUPPLEMENTARY GRANTS.—Subject to subsection (c), in

order to assist eligible recipients in taking advantage of designated

Federal grant programs, on the application of an eligible recipient,

the Secretary may make a supplementary grant for a project for

which the recipient is eligible but for which the recipient cannot

provide the required non-Federal share because of the economic

situation of the recipient.’’.

(b) REQUIREMENTS APPLICABLE TO SUPPLEMENTARY GRANTS.—

Section 205(c) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3145(c)) is amended—

(1) by striking paragraphs (1) and (2) and inserting the

following:

‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—The share of

the project cost supported by a supplementary grant under

this section may not exceed the applicable Federal share under

section 204.

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

shall make supplementary grants by—

‘‘(A) the payment of funds made available under this

Act to the heads of the Federal agencies responsible for

carrying out the applicable Federal programs; or

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1761

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

be combined with funds transferred from other Federal

agencies in projects administered by the Secretary.’’; and

(2) by striking paragraph (4).

SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

Section 206 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3146) is amended—

(1) in paragraph (1)(C), by striking ‘‘and’’ at the end;

(2) in paragraph (2), by striking the period at the end

and inserting a semicolon; and

(3) by adding at the end the following:

‘‘(3)(A) rural and urban economically distressed areas are

not harmed by the establishment or implementation by the

Secretary of a private sector leveraging goal for a project under

this title;

‘‘(B) any private sector leveraging goal established by the

Secretary does not prohibit or discourage grant applicants

under this title from public works in, or economic development

of, rural or urban economically distressed areas; and

‘‘(C) the relevant Committees of Congress are notified prior

to making any changes to any private sector leveraging goal;

and

‘‘(4) grants made under this title promote job creation and

will have a high probability of meeting or exceeding applicable

performance requirements established in connection with the

grants.’’.

SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

(a) IN GENERAL.—Section 207(a)(2) of the Public Works and

Economic Development Act of 1965 (42 U.S.C. 3147(a)(2)) is

amended—

(1) by striking ‘‘and’’ at the end of subparagraph (F);

(2) by redesignating subparagraph (G) as subparagraph

(I); and

(3) by inserting after subparagraph (F) the following:

‘‘(G) studies that evaluate the effectiveness of coordinating projects funded under this Act with projects funded

under other Acts;

‘‘(H) assessment, marketing, and establishment of business clusters; and’’.

(b) COOPERATION REQUIREMENT.—Section 207(a) of the Public

Works and Economic Development Act of 1965 (42 U.S.C. 3147(a))

is amended by striking paragraph (3) and inserting the following:

‘‘(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. 206. PREVENTION OF UNFAIR COMPETITION.

(a) IN GENERAL.—Section 208 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3148) is repealed.

(b) CONFORMING AMENDMENT.—The table of contents in section

1(b) of the Public Works and Economic Development Act of 1965

(42 U.S.C. 3121 note) is amended by striking the item relating

to section 208.

118 STAT. 1762 PUBLIC LAW 108–373—OCT. 27, 2004

SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

(a) ASSISTANCE TO MANUFACTURING COMMUNITIES.—Section

209(c) of the Public Works and Economic Development Act of 1965

(42 U.S.C. 3149(c)) is amended—

(1) in paragraph (3), by striking ‘‘or’’;

(2) in paragraph (4), by striking the period at the end

and inserting ‘‘; or’’; and

(3) by adding at the end the following:

‘‘(5) the loss of manufacturing jobs, for reinvesting in and

diversifying the economies of the communities.’’.

(b) DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT;

SPECIAL PROVISIONS RELATING TO REVOLVING LOAN FUND

GRANTS.—Section 209 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149) is amended by striking subsection

(d) and inserting the following:

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

‘‘(A) NOT TREATED AS EXEMPTED SECURITIES.—No securities issued pursuant to paragraph (2)(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.’’.

Regulations.

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1763

SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

Section 211 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3151) is amended to read as follows:

‘‘SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

‘‘(a) IN GENERAL.—In the case of a grant to a recipient for

a construction project under section 201 or 209, if the Secretary

determines, before closeout of the project, that the cost of the

project, based on the designs and specifications that were the basis

of the grant, has decreased because of decreases in costs, the Secretary may approve, without further appropriation, the use of the

excess funds (or a portion of the excess funds) by the recipient—

‘‘(1) to increase the Federal share of the cost of a project

under this title to the maximum percentage allowable under

section 204; or

‘‘(2) to improve the project.

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

funds remaining after application of subsection (a) may be used

by the Secretary for providing assistance under this Act.

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

in subsection (a) in projects using funds transferred from other

Federal agencies pursuant to section 604, the Secretary shall—

‘‘(1) use the funds in accordance with subsection (a), with

the approval of the originating agency; or

‘‘(2) return the funds to the originating agency.

‘‘(d) REVIEW BY COMPTROLLER GENERAL.—

‘‘(1) REVIEW.—The Comptroller General of the United

States shall regularly review the implementation of this section.

‘‘(2) REPORT.—Not later than 1 year after the date of enactment of this subsection, the Comptroller General shall submit

to the Committee on Environment and Public Works of the

Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the findings

of the Comptroller General on implementation of this subsection.’’.

SEC. 209. SPECIAL IMPACT AREAS.

(a) IN GENERAL.—Title II of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended

by adding at the end the following:

‘‘SEC. 214. SPECIAL IMPACT AREAS.

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

that is determined by the Secretary to be unable to comply with

the requirements of section 302, the Secretary may waive, in whole

or in part, the requirements of section 302 and designate the

area represented by the recipient as a special impact area.

‘‘(b) CONDITIONS.—The Secretary may make a designation

under subsection (a) only after determining that—

‘‘(1) the project will fulfill a pressing need of the area;

and

‘‘(2) the project will—

‘‘(A) be useful in alleviating or preventing conditions

of excessive unemployment or underemployment; or

42 USC 3154.

118 STAT. 1764 PUBLIC LAW 108–373—OCT. 27, 2004

‘‘(B) assist in providing useful employment opportunities for the unemployed or underemployed residents in

the area.

‘‘(c) NOTIFICATION.—At the time of the designation under subsection (a), the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on

Transportation and Infrastructure of the House of Representatives

a written notice of the designation, including a justification for

the designation.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 213 the following:

‘‘Sec. 214. Special impact areas.’’.

SEC. 210. PERFORMANCE AWARDS.

(a) IN GENERAL.—Title II of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended

by section 209) is amended by adding at the end the following:

‘‘SEC. 215. PERFORMANCE AWARDS.

‘‘(a) IN GENERAL.—The Secretary may make a performance

award in connection with a grant made, on or after the date of

enactment of this section, to an eligible recipient for a project

under section 201 or 209.

‘‘(b) PERFORMANCE MEASURES.—

‘‘(1) REGULATIONS.—The Secretary shall promulgate regulations to establish performance measures for making performance awards under subsection (a).

‘‘(2) CONSIDERATIONS.—In promulgating regulations under

paragraph (1), the Secretary shall consider the inclusion of

performance measures that assess—

‘‘(A) whether the recipient meets or exceeds scheduling

goals;

‘‘(B) whether the recipient meets or exceeds job creation

goals;

‘‘(C) amounts of private sector capital investments

leveraged; and

‘‘(D) such other factors as the Secretary determines

to be appropriate.

‘‘(c) AMOUNT OF AWARDS.—

‘‘(1) IN GENERAL.—The Secretary shall base the amount

of a performance award made under subsection (a) in connection

with a grant on the extent to which a recipient meets or

exceeds performance measures established in connection with

the grant.

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

award may not exceed 10 percent of the amount of the grant.

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

under subsection (a) may use the award for any eligible purpose

under this Act, in accordance with section 602 and such regulations

as the Secretary may promulgate.

‘‘(e) FEDERAL SHARE.—Notwithstanding section 204, the funds

of a performance award may be used to pay up to 100 percent

of the cost of an eligible project or activity.

42 USC 3154a.

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1765

‘‘(f) TREATMENT IN MEETING NON-FEDERAL SHARE REQUIREMENTS.—For the purposes of meeting the non-Federal share requirements under this, or any other, Act the funds of a performance

award shall be treated as funds from a non-Federal source.

‘‘(g) TERMS AND CONDITIONS.—In making performance awards

under subsection (a), the Secretary shall establish such terms and

conditions as the Secretary considers to be appropriate.

‘‘(h) FUNDING.—The Secretary shall use any amounts made

available for economic development assistance programs to carry

out this section.

‘‘(i) REPORTING REQUIREMENT.—The Secretary shall include

information regarding performance awards made under this section

in the annual report required under section 603.

‘‘(j) REVIEW BY COMPTROLLER GENERAL.—

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

review the implementation of this section.

‘‘(2) REPORT.—Not later than 1 year after the date of enactment of this section, the Comptroller General shall submit

to the Committee on Environment and Public Works of the

Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the findings

of the Comptroller on implementation of this subsection.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 214 the following:

‘‘Sec. 215. Performance awards.’’.

SEC. 211. PLANNING PERFORMANCE AWARDS.

(a) IN GENERAL.—Title II of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended

by section 210) is amended by adding at the end the following:

‘‘SEC. 216. PLANNING PERFORMANCE AWARDS.

‘‘(a) IN GENERAL.—The Secretary may make a planning

performance award in connection with a grant made, on or after

the date of enactment of this section, to an eligible recipient for

a project under this title located in an economic development district.

‘‘(b) ELIGIBILITY.—The Secretary may make a planning performance award to an eligible recipient under subsection (a) in connection with a grant for a project if the Secretary determines before

closeout of the project that—

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

development activities of the economic development district

in which the project is located;

‘‘(2) the project is consistent with the comprehensive economic development strategy of the district;

‘‘(3) the recipient worked with Federal, State, and local

economic development entities throughout the development of

the project; and

‘‘(4) the project was completed in accordance with the comprehensive economic development strategy of the district.

‘‘(c) MAXIMUM AMOUNT.—The amount of a planning performance award made under subsection (a) in connection with a grant

may not exceed 5 percent of the amount of the grant.

42 USC 3154b.

118 STAT. 1766 PUBLIC LAW 108–373—OCT. 27, 2004

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

award under subsection (a) shall use the award to increase the

Federal share of the cost of a project under this title.

‘‘(e) FEDERAL SHARE.—Notwithstanding section 204, the funds

of a planning performance award may be used to pay up to 100

percent of the cost of a project under this title.

‘‘(f) FUNDING.—The Secretary shall use any amounts made

available for economic development assistance programs to carry

out this section.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 215 the following:

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

SEC. 212. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

(a) IN GENERAL.—Title II of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended

by section 211) is amended by adding at the end the following:

‘‘SEC. 217. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

‘‘(a) IN GENERAL.—Subject to subsection (b), a recipient of a

grant under section 201, 203, or 207 may directly expend the

grant funds or may redistribute the funds in the form of a subgrant

to other eligible recipients to fund required components of the

scope of work approved for the project.

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

received under section 201 or 203 to a for-profit entity.

‘‘(c) ECONOMIC ADJUSTMENT.—Subject to subsection (d), a

recipient of a grant under section 209 may directly expend the

grant funds or may redistribute the funds to public and private

entities in the form of a grant, loan, loan guarantee, payment

to reduce interest on a loan guarantee, or other appropriate assistance.

‘‘(d) LIMITATION.—Under subsection (c), a recipient may not

provide any grant to a private for-profit entity.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 216 the following:

‘‘Sec. 217. Direct expenditure or redistribution by recipient.’’.

SEC. 213. BRIGHTFIELDS DEMONSTRATION PROGRAM.

(a) IN GENERAL.—Title II of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended

by section 212) is amended by adding at the end the following:

‘‘SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.

‘‘(a) DEFINITION OF BRIGHTFIELD SITE.—In this section, the

term ‘brightfield site’ means a brownfield site that is redeveloped

through the incorporation of 1 or more solar energy technologies.

‘‘(b) DEMONSTRATION PROGRAM.—On the application of an

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

for the development of a brightfield site if the Secretary determines

that the project will—

‘‘(1) use 1 or more solar energy technologies to develop

abandoned or contaminated sites for commercial use; and

42 USC 3154d.

42 USC 3154c.

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1767

‘‘(2) improve the commercial and economic opportunities

in the area in which the project is located.

‘‘(c) SAVINGS CLAUSE.—To the extent that any portion of a

grant awarded under subsection (b) involves remediation, the

remediation shall be subject to section 612.

‘‘(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, to remain available until

expended.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 217 (as added by section 212(b)) the

following:

‘‘Sec. 218. Brightfields demonstration program.’’.

TITLE III—COMPREHENSIVE ECONOMIC

DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS.

Section 301(c)(1) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3161(c)(1)) is amended by inserting

after ‘‘most recent Federal data available’’ the following: ‘‘(including

data available from the Bureau of Economic Analysis, the Bureau

of Labor Statistics, the Census Bureau, the Bureau of Indian

Affairs, or any other Federal source determined by the Secretary

to be appropriate)’’.

SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

(a) IN GENERAL.—Section 302(a)(3)(A) of the Public Works and

Economic Development Act of 1965 (42 U.S.C. 3162(a)(3)(A)) is

amended by inserting ‘‘maximizes effective development and use

of the workforce consistent with any applicable State or local

workforce investment strategy, promotes the use of technology in

economic development (including access to high-speed telecommunications),’’ after ‘‘access,’’.

(b) APPROVAL OF OTHER PLAN.—Section 302(c) of the Public

Works and Economic Development Act of 1965 (42 U.S.C. 3162(c))

is amended—

(1) by striking ‘‘The Secretary’’ and inserting the following:

‘‘(1) IN GENERAL.—The Secretary’’; and

(2) by adding at the end the following:

‘‘(2) EXISTING STRATEGY.—To the maximum extent

practicable, a plan submitted under this paragraph shall be

consistent and coordinated with any existing comprehensive

economic development strategy for the area.’’.

TITLE IV—ECONOMIC DEVELOPMENT

DISTRICTS

SEC. 401. INCENTIVES.

(a) IN GENERAL.—Section 403 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3173) is repealed.

118 STAT. 1768 PUBLIC LAW 108–373—OCT. 27, 2004

(b) CONFORMING AMENDMENT.—The table of contents in section

1(b) of the Public Works and Economic Development Act of 1965

(42 U.S.C. 3121 note) is amended by striking the item relating

to section 403.

SEC. 402. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT

STRATEGIES TO REGIONAL COMMISSIONS.

(a) IN GENERAL.—Section 404 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3174) is amended to read

as follows:

‘‘SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT

STRATEGIES TO REGIONAL COMMISSIONS.

‘‘If any part of an economic development district is in a region

covered by 1 or more of the Regional Commissions, the economic

development district shall ensure that a copy of the comprehensive

economic development strategy of the district is provided to the

affected Regional Commission.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by striking the

item relating to section 404 and inserting the following:

‘‘Sec. 404. Provision of comprehensive economic development strategies to Regional Commissions.’’.

TITLE V—ADMINISTRATION

SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

Section 502 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3192) is amended—

(1) by striking paragraph (1) and inserting the following:

‘‘(1) maintain a central information clearinghouse on the

Internet with—

‘‘(A) information on economic development, economic

adjustment, disaster recovery, defense conversion, and

trade adjustment programs and activities of the Federal

Government;

‘‘(B) links to State economic development organizations;

and

‘‘(C) links to other appropriate economic development

resources;’’;

(2) by striking paragraph (2) and inserting the following:

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

development, economic adjustment, disaster recovery, defense

conversion, and trade adjustment assistance under Federal and

State laws in locating and applying for the assistance;’’;

(3) by striking the period at the end of paragraph (3)

and inserting ‘‘; and’’; and

(4) by adding at the end the following:

‘‘(4) obtain appropriate information from other Federal

agencies needed to carry out the duties under this Act.’’.

SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.

(a) IN GENERAL.—Section 505 of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3195) is repealed.

(b) CONFORMING AMENDMENT.—The table of contents in section

1(b) of the Public Works and Economic Development Act of 1965

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1769

(42 U.S.C. 3121 note) is amended by striking the item relating

to section 505.

SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

(a) IN GENERAL.—Section 506(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3196(c)) is amended

by striking ‘‘after the effective date of the Economic Development

Administration Reform Act of 1998’’.

(b) EVALUATION CRITERIA.—Section 506(d)(2) of the Public

Works and Economic Development Act of 1965 (42 U.S.C. 3196(d)(2))

is amended by inserting ‘‘program performance,’’ after ‘‘applied

research,’’.

SEC. 504. CONFORMING AMENDMENTS.

Section 602 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3212) is amended—

(1) in the first sentence, by striking ‘‘in accordance with’’

and all that follows before the period at the end and inserting

‘‘in accordance with subchapter IV of chapter 31 of title 40,

United States Code’’; and

(2) in the third sentence, by striking ‘‘section 2 of the

Act of June 13, 1934, as amended (40 U.S.C. 276c)’’ and

inserting ‘‘section 3145 of title 40, United States Code’’.

TITLE VI—MISCELLANEOUS

SEC. 601. ANNUAL REPORT TO CONGRESS.

Section 603 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3213) is amended—

(1) by striking ‘‘Not later’’ and inserting the following:

‘‘(a) IN GENERAL.—Not later’’; and

(2) by adding at the end the following:

‘‘(b) INCLUSIONS.—Each report required under subsection (a)

shall—

‘‘(1) include a list of all grant recipients by State, including

the projected private sector dollar to Federal dollar investment

ratio for each grant recipient;

‘‘(2) include a discussion of any private sector leveraging

goal with respect to grants awarded to—

‘‘(A) rural and urban economically distressed areas;

and

‘‘(B) highly distressed areas; and

‘‘(3) after the completion of a project, include the realized

private sector dollar to Federal dollar investment ratio for

the project.’’.

SEC. 602. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

Section 609 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3219) is amended—

(1) by striking subsection (a); and

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

ACTS.—’’.

SEC. 603. BROWNFIELDS REDEVELOPMENT REPORT.

(a) IN GENERAL.—Title VI of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3171 et seq.) is amended

by adding at the end the following:

Records.

118 STAT. 1770 PUBLIC LAW 108–373—OCT. 27, 2004

‘‘SEC. 611. BROWNFIELDS REDEVELOPMENT REPORT.

‘‘(a) DEFINITION OF BROWNFIELD SITE.—In this section, the

term ‘brownfield site’ has the meaning given the term in section

101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39)).

‘‘(b) REPORT.—

‘‘(1) IN GENERAL.—Not later than 1 year after the date

of enactment of this section, the Comptroller General shall

prepare a report that evaluates the grants made by the Economic Development Administration for the economic development of brownfield sites.

‘‘(2) CONTENTS.—The report shall—

‘‘(A) identify each project conducted during the previous

10-year period in which grant funds have been used for

brownfield sites redevelopment activities; and

‘‘(B) include for each project a description of—

‘‘(i) the type of economic development activities

conducted;

‘‘(ii) if remediation activities were conducted—

‘‘(I) the type of remediation activities; and

‘‘(II) the amount of grant money used for those

activities in dollars and as a percentage of the

total grant award;

‘‘(iii) the economic development and environmental

standards applied, if applicable;

‘‘(iv) the economic development impact of the

project;

‘‘(v) the role of Federal, State, or local environmental agencies, if any; and

‘‘(vi) public participation in the project.

‘‘(3) SUBMISSION OF REPORT.—The Comptroller General

shall submit to the Committee on Environment and Public

Works of the Senate and the Committee on Transportation

and Infrastructure of the House of Representatives a copy

of the report.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 610 the following:

‘‘Sec. 611. Brownfields redevelopment report.’’.

SEC. 604. SAVINGS CLAUSE.

(a) IN GENERAL.—Title VI of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3171 et seq.) (as amended

by section 603(a)) is amended by adding at the end the following:

‘‘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.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 611 (as added by section 603(b)) the

following:

‘‘Sec. 612. Savings clause.’’.

42 USC 3222.

42 USC 3221.

PUBLIC LAW 108–373—OCT. 27, 2004 118 STAT. 1771

SEC. 605. SENSE OF CONGRESS REGARDING ECONOMIC DEVELOPMENT

REPRESENTATIVES.

(a) FINDINGS.—Congress finds that—

(1) planning and coordination among Federal agencies,

State and local governments, Indian tribes, and economic

development districts is vital to the success of an economic

development program;

(2) economic development representatives of the Economic

Development Administration provide distressed communities

with the technical assistance necessary to foster this planning

and coordination; and

(3) in the 5 years preceding the date of enactment of

this Act, the number of economic development representatives

has declined by almost 25 percent.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the Secretary should maintain a sufficient number of economic

development representatives to ensure that the Economic Development Administration is able to provide effective assistance to distressed communities and foster economic growth and development

among the States.

TITLE VII—FUNDING

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

Section 701 of the Public Works and Economic Development

Act of 1965 (42 U.S.C. 3231) is amended to read as follows:

‘‘SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS.—There

are authorized to be appropriated for economic development assistance programs to carry out this Act, to remain available until

expended—

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

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

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

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

‘‘(5) $500,000,000 for fiscal year 2008.’’

‘‘(b) SALARIES AND EXPENSES.—There are authorized to be

appropriated for salaries and expenses of administering this Act,

to remain available until expended—

‘‘(1) $33,377,000 for fiscal year 2004; and

‘‘(2) such sums as are necessary for each fiscal year thereafter.’’.

SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR

ADMINISTRATIVE EXPENSES.

(a) IN GENERAL.—Title VII of the Public Works and Economic

Development Act of 1965 (42 U.S.C. 3231 et seq.) is amended

by adding at the end the following:

‘‘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.’’.

(b) CONFORMING AMENDMENT.—The table of contents contained

in section 1(b) of the Public Works and Economic Development

42 USC 3234.

118 STAT. 1772 PUBLIC LAW 108–373—OCT. 27, 2004

LEGISLATIVE HISTORY—S. 1134 (H.R. 2535):

HOUSE REPORTS: No. 108–242, Pt. 1 accompanying H.R. 2535 (Comm. on Transportation and Infrastructure).

SENATE REPORTS: No. 108–382 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 150 (2004):

Oct. 6, considered and passed Senate.

Oct. 7, considered and passed House.

Æ

Act of 1965 (42 U.S.C. 3121 note) is amended by inserting after

the item relating to section 703 the following:

‘‘Sec. 704. Funding for grants for planning and grants for administrative expenses.’’.

Approved October 27, 2004.