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[Senate Report 110-490]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 1061
110th Congress                                                   Report
  2d Session                 SENATE                             110-490
                                                      
======================================================================

 
            ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2008

                                _______
                                

  September 24 (legislative day, September 17), 2008.--Ordered to be 
                                printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 3551]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, which 
considered an original bill (S. 3551) to amend the Public Works 
and Economic Development Act of 1965, to reauthorize that Act, 
and for other purposes, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                       Purpose of the Legislation

    The Economic Development Revitalization Act of 2008 amends 
the Public Works and Economic Development Act (PWEDA) of 1965 
to authorize the programs of the Economic Development 
Administration (EDA) for an additional five years. The current 
EDA authorization, the Economic Development Administration 
Reauthorization Act of 2004, expires on September 30, 2008.

                    General Statement and Background

    With the Public Works and Economic Development Act of 1965, 
Congress and President Lyndon Johnson created the Economic 
Development Administration (EDA) for job promotion and to 
accelerate industrial and commercial growth in communities 
suffering from limited job opportunities, low per capita income 
levels, or similar economic distress. An agency within the 
Department of Commerce, EDA's stated mission is to ``lead the 
federal economic development agenda by promoting innovation and 
competitiveness, preparing American regions for growth and 
success in the worldwide economy.''
    As the only federal agency focused solely on promoting 
private sector job growth in economically underserved 
communities, EDA pursues regional comprehensive strategic 
development. Working in partnership with state and local 
governments, regional economic development organizations, 
public and private nonprofit organizations, universities, and 
Indian tribes, EDA provides grants (``investments'') to help 
communities establish foundations for sustained economic 
development.
    As demonstrated by an independent auditor, EDA has 
established a proven record of using increasingly limited 
resources to complete projects in a timely manner that 
leverages private sector investment. At a hearing before the 
Subcommittee on Transportation and Infrastructure on September 
9, 2008, Ben Erulkar, Deputy Assistant Secretary of Commerce 
for Economic Development and EDA Chief Operating Officer, 
testified that, ``From FY 2004 to date, EDA awarded over $1.29 
billion in investments, of which $983 million was for 
construction investments that are expected to create 392,413 
jobs at an average cost of $2,507 per job. On average, for this 
timeframe, every dollar in taxpayer money is expected to 
attract $33 in private capital investment.''
    The Economic Development Revitalization Act of 2008 makes 
several changes to EDA programs including changing the current 
cost sharing requirements to allow an increased federal share 
for areas in which unemployment is especially high or per 
capita income is especially low; allowing for increases in the 
amount of planning program assistance; modifying the existing 
Revolving Loan Fund program to allow recipients to convert an 
existing, but no longer needed revolving loan fund, to carry 
out another EDA eligible project; and modifying existing 
maintenance of effort rules to allow recipients of grants that 
are more than 10 years old to buy out the Government's interest 
using a depreciated figure based on the project's estimated 
useful life.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 designates the short title of the Act as the 
``Economic Development Revitalization Act of 2008''.

Section 2. Definitions

    Section 2 amends section 3(8) of PWEDA to add the Southeast 
Crescent Regional Commission, Northern Border Regional 
Commission, and Southwest Border Regional Commission 
established by section 15401(a) of title 40, U.S.C. to the 
definition of Regional Commissions.

Section 3. Economic development partnerships

    Section 3 amends section 101 of PWEDA in three primary 
ways. First, it lists economic development districts and 
university centers as eligible to receive technical assistance 
from the Secretary of Commerce and highlights promoting 
innovation, entrepreneurship, and sustainable development as 
eligible purposes for which the Secretary may provide technical 
assistance.
    Second, it adds economic development districts to the list 
of entities to which the Secretary must provide reasonable 
opportunity to review and comment on proposed projects that may 
have a significant impact on the economy in the area.
    Third, it codifies the EDA's Excellence in Economic 
Development Awards program and authorizes the use of no more 
than $2,000 per year to purchase plaques, bowls or similar 
articles that may be given to award winners to commemorate 
their accomplishments.

Section 4. Grants for planning and grants for administrative expenses

    Section 4 amends section 203 of PWEDA to include 
``fostering regional collaboration among local jurisdictions 
and organizations'' in the list of items the EDA planning 
process, which involves public officials and private citizens, 
should include and to require states that receive planning 
assistance from EDA to provide a copy of their annual report on 
the planning process to each economic development district 
within the state.

Section 5. Cost sharing

    Subsection (a) of Section 5 amends section 204(a) of PWEDA 
to establish a Federal share of not to exceed 50 percent of the 
cost of a project.
    Subsection (b) amends section 204(c) of PWEDA to insert a 
new (c)(1) to allow for an increase in Federal share for 
communities that meet the following requirements: the federal 
share may be increased up to 60 percent for communities with a 
24 month unemployment rate of at least 150 percent of the 
national average or per capita income of not more than 70 
percent of the national average; the Federal share may be 
increased up to 70 percent for communities with a 24 month 
unemployment rate of at least 175 percent of the national 
average or a per capita income that is not more than 60 percent 
of the national average; the Federal share may be increased up 
to 80 percent for communities with a 24 month unemployment rate 
of at least 200 percent of the national average or a per capita 
income that is not more than 50 percent of the national 
average.
    Subsection (b) amends subsection 204(c)(2) as redesignated 
to require the Secretary to provide to Indian Tribes a Federal 
share of 75 percent, which may be increased to 100 percent.
    Subsection (b) also adds a new 204(c)(5) to allow the 
Secretary to increase the Federal share up to 100 percent for 
an area that has had a major disaster or emergency declared 
under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.) for up to 18 months 
following the disaster or emergency designation.

Section 6. Grants for training, research, and technical assistance

    Section 6 amends section 207(a) of PWEDA to clarify that 
the Secretary may make grants that would be useful in 
alleviating or preventing outmigration, and that grants may be 
used for a peer exchange program to promote industry-leading 
practices and innovations relating to the organizational 
development, program delivery, and regional initiatives of 
economic development districts.

Section 7. Enhancement of recipient flexibility to deal with project 
        assets

    Section 7(a) amends section 209(c)(5) of PWEDA to specify 
that communities whose economies have been injured by the loss 
of natural resources-based, agricultural, or service sector 
jobs shall be eligible for assistance to reinvest in and 
diversify their economies.
    Section 7(b) amends section 209(d) of PWEDA to require that 
the Secretary shall periodically solicit input on the revolving 
loan fund program from fund grantees, national experts, and 
employees of Federal agencies with knowledge of international, 
national, regional, and statewide trends, innovations, and 
noteworthy practices relating to business development finance, 
including public and private lending and technical assistance 
intermediaries.
    Section 7(b) also provides flexibility to the revolving 
loan fund program by allowing the Secretary to approve a 
recipient's request to convert project assets to a different 
EDA eligible use when the recipient determines project assets 
could be better used elsewhere. This subsection also authorizes 
the Secretary to use up to 2 percent of the amounts made 
available for grants under section 209 to be used to improve 
the management of the revolving loan fund program.

Section 8. Brightfields Demonstration Program

    Section 8 amends section 218(d) of PWEDA to extend the 
authorization for the Brightfields Demonstration Program 
through fiscal year 2013.

Section 9. Designation of Economic Development Districts

    Section 9 amends section 401 of PWEDA to specify that each 
Economic Development District shall engage in a full range of 
economic activities including: coordinating and implementing 
economic development activities; carrying out economic 
development research, planning, implementation and advisory 
funding; and coordinating the development and implementation of 
the comprehensive economic development strategy with other 
local, State, Federal, and private organization. This section 
also allows Economic Development Districts to enter into 
contracts for services to accomplish these activities.

Section 10. Consultation with other persons and agencies

    Section 10 amends section 503(a) of PWEDA to include area 
and regional outmigration as an issue regarding which the 
Secretary may consult with other persons and agencies who may 
be of assistance.

Section 11. Notification of reorganization

    Section 11 amends section 507 of PWEDA to move the State of 
Montana from the purview of the Denver Regional Office to the 
Seattle Regional Office.

Section 12. Maintenance of effort

    Section 12 adds a new section to the end of Title VI of 
PWEDA to modify existing maintenance of effort rules to allow 
recipients of grants that are more than 10 years old to buy out 
the Government's interest using a depreciated figure based on 
the project's estimated useful life.

Section 13. Extension of authorization of appropriations

    Section 13 amends section 701(a) of PWEDA to authorize the 
programs of the EDA for an additional five years at the 
following funding levels: $400 million for fiscal year 2009; 
$425 million for fiscal year 2010; $450 million for fiscal year 
2011; $475 million for fiscal year 2012; and $500 million for 
fiscal year 2013.

Section 14. Funding for grants for planning and grants for 
        administrative expenses

    Section 14 amends section 704 of PWEDA to maintain the 
current requirement that a minimum of $27 million shall be 
available each year for grants for planning and administrative 
expenses and to require an increase as follows: to a minimum of 
$28 million if appropriations for the economic development 
assistance programs equal or exceed $280 million; to a minimum 
of $29.5 million if appropriations equal or exceed $320 
million; to a minimum of $31 million if appropriations equal or 
exceed $350 million; to a minimum of $32.5 million if 
appropriations equal or exceed $380 million; and to a minimum 
of $34.5 million if appropriations equal or exceed $420 
million.

                          Legislative History

    The Committee met on September 17, 2008, to consider an 
original bill, the Economic Development Revitalization Act of 
2008. The bill was ordered to be reported favorably without 
amendment.

                                Hearings

    The Committee held a hearing on September 9, 2008, 
entitled, ``Economic Development Administration Oversight''. 
The purpose of the hearing was to explore issues relevant to 
reauthorization of the Economic Development Administration. 
Witnesses included Mr. Benjamin Erulkar, Deputy Assistant 
Secretary of Commerce for Economic Development and U.S. EDA 
Chief Operating Officer; the Honorable Todd J. Zinser, 
Inspector General of the Department of Commerce; the Honorable 
David Edgerley, Secretary of the Maryland Department of 
Business and Economic Development; Ms. Leanne Mazer, Executive 
Director of the Tri-County Council for Western Maryland on 
behalf of the National Association of Development 
Organizations; and the Honorable Larry Thoma, Mayor of the City 
of Elgin, Oklahoma.

                             Rollcall Votes

    There were no rollcall votes on this bill. The Committee on 
Environment and Public Works met to consider an original bill, 
the Economic Development Revitalization Act on September 17, 
2008. A quorum of the Committee being present, the original 
bill was reported favorably without amendment by voice vote.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee finds that this 
bill does not create any additional regulatory burdens, nor 
will it cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds, in accordance with the 
findings of the Congressional Budget Office noted below, that 
this bill would impose no Federal intergovernmental unfunded 
mandates on State, local or tribal governments, and that the 
bill contains no new private-sector mandates as defined in 
UMRA. Any costs these governments incur, including providing 
matching funds, would be incurred voluntarily.
                                                September 19, 2008.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Economic 
Development Revitalization Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople, who can be reached at 226-2860.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

               Congressional Budget Office Cost Estimate

S. 3551--Economic Development Revitalization Act of 2008

    Summary: This legislation would reauthorize the Economic 
Development Administration (EDA) through 2013. Assuming 
appropriation of the specified amounts, CBO estimates that 
implementing this bill would cost about $1.1 billion over the 
2009-2013 period and about $1.2 billion thereafter. Enacting 
this legislation would not affect direct spending or revenues.
    This bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the legislation is shown in the following 
table. The costs of this legislation fall within budget 
function 450 (community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2009     2010     2011     2012     2013   2008-2013
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATIONAuthorization Level.....................................      400      425      450      475      500     2,250
Estimated Outlays.......................................       20      109      204      328      428     1,089
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: This legislation would authorize the 
appropriation of $400 million in 2009 and $2.25 billion over 
the next five years for EDA to provide various types of grants 
to encourage economic development in distressed communities. 
The bill also would increase the federal share of the cost for 
economic development projects undertaken by Indian tribes and 
those located in disaster-declared areas. For fiscal year 2008, 
the Congress provided about $350 million to EDA assistance 
programs in regular and supplemental appropriations (see Public 
Laws 110-161 and 110-252).
    For this estimate CBO assumes this legislation will be 
enacted at the beginning of fiscal year 2009 and amounts 
specified in the bill will be appropriated. Based on historical 
spending patterns of EDA programs, CBO estimates that 
assistance provided by the EDA under this legislation would 
cost about $1.1 billion over the next five years.
    Intergovernmental and private-sector impact: This bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments would 
benefit from funds for economic development activities 
authorized by this bill. Any costs these governments incur, 
including providing matching funds, would be incurred 
voluntarily.
    Estimate prepared by: Federal Costs: Daniel Hoople. Impact 
on State, Local, and Tribal Governments: Melissa Merrell. 
Impact on the Private Sector: Jacob Kuipers.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

              ADDITIONAL VIEWS OF SENATOR JAMES M. INHOFE

    I am pleased that the Economic Development Revitalization 
Act of 2008 as reported by the Committee on Environment and 
Public Works includes several provisions that were included in 
the bill I introduced on July 15, 2008, to reauthorize the 
Economic Development Administration (EDA) (S. 3264). I believe 
the program improvements and funding levels in both bills will 
allow EDA to continue its very successful work in assisting 
local communities in creating wealth and minimizing poverty by 
promoting favorable business environments to attract private 
investment and encourage long-term economic growth.
    I am disappointed, however, by the insensitivity shown to 
faith-based organizations in this bill. As my bill did, this 
bill codifies the Excellence in Economic Development Awards 
program that was established by EDA in 1999. This award program 
is intended to recognize projects and entities that demonstrate 
innovative economic development strategies, best practices and 
outstanding results.
    The first three awards were bestowed in 2000, and the 
program has been expanded to now include eight award 
categories. One category established in 2003 is the ``Community 
and Faith-Based Social Entrepreneurship'' award. Nominees and 
winners of this award typically have been community and faith-
based organizations that provide job training for underserved 
populations, such as the physically or mentally disabled.
    In the bill as reported, this award category is amended to 
be just the ``community entrepreneurship'' award. My bill 
codified the current award category (Community and Faith-Based 
Social Entrepreneurship). I see absolutely no reason why faith-
based organizations should be left out of this award program. 
There can be no concerns with the issue of separation of church 
and state as this program does not provide any federal 
assistance as a reward, nor does it impact eligibility 
requirements or criteria for evaluating EDA grant applications. 
In fact, these award winners are not necessarily even previous 
EDA grant recipients.
    Faith-based organizations should not be given preference 
under this award program, but neither should they purposely be 
left out of consideration. It currently is a level playing 
field, and Congress should not change that as this bill does.
                                                   James M. Inhofe.
                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman:

           *       *       *       *       *       *       *

PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965

           *       *       *       *       *       *       *

SEC. 2. FINDINGS AND DECLARATIONS.

  (a) Findings.--Congress finds that--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Comprehensive economic development strategy.--* * 
        *

           *       *       *       *       *       *       *

          (8) Regional commissions.--The term ``Regional 
        Commissions'' means--
                  (A) the Appalachian Regional Commission 
                established under chapter 143 of title 40, 
                United States Code;
                  (B) the Delta Regional Authority established 
                under subtitle F of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2009aa et 
                seq.);
                  (C) the Denali Commission established under 
                the Denali Commission Act of 1998 (42 U.S.C. 
                3121 note; 112 Stat. 2681-637 et seq.); [and]
                  (D) the Northern Great Plains Regional 
                Authority established under subtitle G of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2009bb et seq.)[.]; and
                  (E) the Southeast Crescent Regional 
                Commission, Northern Border Regional 
                Commission, and Southwest Border Regional 
                Commission established by section 15301(a) of 
                title 40, United States Code.

           *       *       *       *       *       *       *

SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

  (a) In General.--In providing assistance under this title, 
the Secretary shall cooperate with States and other entities to 
ensure that, consistent with national objectives, Federal 
programs are compatible with and further the objectives of 
State, regional, and local economic development plans and 
comprehensive economic development strategies.
  (b) Technical Assistance.--The Secretary may provide such 
technical assistance to States, political subdivisions of 
States, sub-State regional organizations (including 
organizations that cross State boundaries), multi-State 
regional organizations, economic development districts, 
university centers, and nonprofit organizations as the 
Secretary determines is appropriate to--
          (1) alleviate economic distress;
          (2) encourage and support public-private partnerships 
        for the formation and improvement of economic 
        development strategies that sustain and promote 
        economic development across the United States; and
          (3) promote investment in infrastructure, innovation, 
        entrepreneurship, sustainable development, and 
        technological capacity to keep pace with the changing 
        global economy.
  (c) Intergovernmental Review.--The Secretary shall promulgate 
regulations to ensure that appropriate State and local 
government agencies (including economic development districts) 
have been given a reasonable opportunity to review and comment 
on proposed projects under this title that the Secretary 
determines may have a significant direct impact on the economy 
of the area.
  (d) Cooperation Agreements.--
          (1) In general.--The Secretary may enter into a 
        cooperation agreement with any 2 or more States, or an 
        organization of any 2 or more States, in support of 
        effective economic development.
          (2) Participation.--Each cooperation agreement shall 
        provide for suitable participation by other 
        governmental and nongovernmental entities that are 
        representative of significant interests in and 
        perspectives on economic development in an area.
  (e) Excellence in Economic Development Awards.--
          (1) Establishment of program.--To recognize 
        innovative economic development strategies of national 
        significance, the Secretary may establish and carry out 
        a program, to be known as the ``Excellence in Economic 
        Development Award Program'' (referred to in this 
        subsection as the ``program'').
          (2) Eligible entities.--To be eligible for 
        recognition under the program, an entity shall be an 
        eligible recipient that is not a for-profit 
        organization or institution.
          (3) Nominations.--Before making an award under the 
        program, the Secretary shall solicit nominations 
        publicly, in accordance with such selection and 
        evaluation procedures as the Secretary may establish in 
        the solicitation.
          (4) Categories.--The categories of awards under the 
        program shall include awards for--
                  (A) urban or suburban economic development;
                  (B) rural economic development;
                  (C) environmental or energy economic 
                development;
                  (D) economic diversification strategies that 
                respond to economic dislocations, including 
                economic dislocations caused by natural 
                disasters and military base realignment and 
                closure actions;
                  (E) university-led strategies to enhance 
                economic development;
                  (F) community entrepreneurship;
                  (G) historic preservation-led strategies to 
                enhance economic development; and
                  (H) such other categories as the Secretary 
                determines to be appropriate.
          (5) Provision of awards.--The Secretary may provide 
        to each entity selected to receive an award under this 
        subsection a plaque, bowl, or similar article to 
        commemorate the accomplishments of the entity.
          (6) Funding.--Of amounts made available to carry out 
        this Act, the Secretary may use not more than $2,000 
        for each fiscal year to carry out this subsection.

           *       *       *       *       *       *       *

SEC. 203.  GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.

  (a) In General.--On the application of an eligible recipient, 
the Secretary may make grants to pay the costs of economic 
development planning and the administrative expenses of 
organizations that carry out the planning.
  (b) Planning Process.--Planning assisted under this title 
shall be a continuous process involving public officials and 
private citizens in--
          (1) analyzing local economies;
          (2) defining economic development goals;
          (3) determining project opportunities; [and]
          (4) formulating and implementing an economic 
        development program that includes systematic efforts to 
        reduce unemployment and increase incomes[.]; and
          (5) fostering regional collaboration among local 
        jurisdictions and organizations.

           *       *       *       *       *       *       *

  (d) State Plans.--
          (1) Development.--* * *

           *       *       *       *       *       *       *

          (5) Report to secretary.--Each State that receives 
        assistance for the development of a plan under this 
        [subsection shall submit to the Secretary an annual 
        report on the planning process assisted under this 
        subsection.]subsection shall--
                  (A) submit to the Secretary an annual report 
                on the planning process assisted under this 
                subsection; and
                  (B) provide a copy of each annual report to 
                each economic development district within the 
                State.

           *       *       *       *       *       *       *

SEC. 204. COST SHARING.

  (a) Federal Share.--Except as provided in subsection (c), the 
Federal share of the cost of any project carried out under this 
title [shall not exceed--
          [(1) 50 percent; plus
          [(2) an additional percent that--
                  [(A) shall not exceed 30 percent; and
                  [(B) is based on the relative needs of the 
                area in which the project will be located, as 
                determined in accordance with regulations 
                promulgated by the Secretary.]shall not exceed 
                50 percent.

           *       *       *       *       *       *       *

  (c) Increase in Federal Share.--
          (1) Relative needs of an area.--
                  (A) 150-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 150 
                percent of the national average or the per 
                capita income is not more than 70 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 60 percent of 
                the cost of the project.
                  (B) 175-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 175 
                percent of the national average or the per 
                capita income is not more than 60 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 70 percent of 
                the cost of the project.
                  (C) 200-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 200 
                percent of the national average or the per 
                capita income is not more than 50 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 80 percent of 
                the cost of the project.
                  (D) Additional criteria.--The Secretary may 
                establish eligibility criteria in addition to 
                the criteria described in this paragraph to 
                address areas impacted by severe outmigration, 
                sudden and severe economic dislocations, and 
                other related economic circumstances.
          [(1)](2) Indian tribes.--In the case of a grant to an 
        Indian tribe for a project under this title, the 
        Secretary [may]shall increase the Federal share above 
        the percentage specified in subsection (a) to 75 
        percent of the cost of the project, and may increase up 
        to 100 percent of the cost of the project.
          [(2)](3) Certain states, political subdivisions, and 
        nonprofit organizations.--In the case of a grant to a 
        State, or a political subdivision of a State, that the 
        Secretary determines has exhausted the effective taxing 
        and borrowing capacity of the State or political 
        subdivision, or in the case of a grant to a nonprofit 
        organization that the Secretary determines has 
        exhausted the effective borrowing capacity of the 
        nonprofit organization, the Secretary may increase the 
        Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the 
        project.
          [(3)](4) Training, research, and technical 
        assistance.--In the case of a grant provided under 
        section 207, the Secretary may increase the Federal 
        share above the percentage specified in subsection (a) 
        up to 100 percent of the cost of the project if the 
        Secretary determines that the project funded by the 
        grant merits, and is not feasible without, such an 
        increase.
          (5) Federally declared disaster areas.--In the case 
        of a grant for an area with respect to which a major 
        disaster or emergency has been declared under the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5121 et seq.) during the 18-
        month period ending on the date on which the Federal 
        share is determined, the Secretary may increase the 
        Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the 
        project.

           *       *       *       *       *       *       *

SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

  (a) In General.--
          (1) Grants.--On the application of an eligible 
        recipient, the Secretary may make grants for training, 
        research, and technical assistance, including grants 
        for program evaluation and economic impact analyses, 
        that would be useful in alleviating or preventing 
        conditions of excessive unemployment, outmigration, or 
        underemployment.
          (2) Types of assistance.--Grants under paragraph (1) 
        may be used for--
                  (A) project planning and feasibility studies;
                  (B) demonstrations of innovative activities 
                or strategic economic development investments;
                  (C) management and operational assistance;
                  (D) establishment of university centers;
                  (E) establishment of business outreach 
                centers;
                  (F) studies evaluating the needs of, and 
                development potential for, economic growth of 
                areas that the Secretary determines have 
                substantial need for the assistance;
                  (G) studies that evaluate the effectiveness 
                of coordinating projects funded under this Act 
                with projects funded under other Acts;
                  (H) assessment, marketing, and establishment 
                of business clusters; [and]
                  (I) a peer exchange program to promote 
                industry-leading practices and innovations 
                relating to the organizational development, 
                program delivery, and regional initiatives of 
                economic development districts; and
                  [(I)](J) other activities determined by the 
                Secretary to be appropriate.
          (3) Cooperation requirement.--In the case of a 
        project assisted under this section that is national or 
        regional in scope, the Secretary may waive the 
        provision in section 3(4)(A)(vi) requiring a nonprofit 
        organization or association to act in cooperation with 
        officials of a political subdivision of a State.

           *       *       *       *       *       *       *

SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.

  (a) In General.--* * *

           *       *       *       *       *       *       *

  (c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities 
identified by communities, the economies of which are injured 
by--
          (1) * * *

           *       *       *       *       *       *       *

          (5) the loss of manufacturing, natural resource-
        based, agricultural, or service sector jobs, for 
        reinvesting in and diversifying the economies of the 
        communities.

           *       *       *       *       *       *       *

  (d) Special Provisions Relating to Revolving Loan Fund 
Grants.--
          (1) In general.--The Secretary shall promulgate 
        regulations to maintain the proper operation and 
        financial integrity of revolving loan funds established 
        by recipients with assistance under this section.
          (2) Comments.--
                  (A) In general.--The Secretary shall 
                periodically solicit from the individuals and 
                entities described in subparagraph (B)--
                          (i) comments regarding the guidelines 
                        and performance requirements for the 
                        revolving loan fund program; and
                          (ii) recommendations for improving 
                        the performance of the program and 
                        grantees under the program.
                  (B) Description of individuals and 
                entities.--The individuals and entities 
                referred to in subparagraph (A) are--
                          (i) the public; and
                          (ii) in particular, revolving loan 
                        fund grantees, national experts, and 
                        employees of Federal agencies with 
                        knowledge of international, national, 
                        regional, and statewide trends, 
                        innovations, and noteworthy practices 
                        relating to business development 
                        finance, including public and private 
                        lending and technical assistance 
                        intermediaries.
          [(2)](3) Efficient administration.--The Secretary 
        may--
                  (A) at the request of a grantee, amend and 
                consolidate grant agreements governing 
                revolving loan funds to provide flexibility 
                with respect to lending areas and borrower 
                criteria;
                  (B) assign or transfer assets of a revolving 
                loan fund to third party for the purpose of 
                liquidation, and the third party may retain 
                assets of the fund to defray costs related to 
                liquidation; and
                  (C) take such actions as are appropriate to 
                enable revolving loan fund operators to sell or 
                securitize loans (except that the actions may 
                not include issuance of a Federal guaranty by 
                the Secretary).
          [(3)](4) Treatment of actions.--An action taken by 
        the Secretary under this subsection with respect to a 
        revolving loan fund shall not constitute a new 
        obligation if all grant funds associated with the 
        original grant award have been disbursed to the 
        recipient.
          [(4)](5) Preservation of securities laws.--
                  (A) Not treated as exempted securities.--No 
                securities issued pursuant to [paragraph 
                (2)(C)]paragraph (3)(C) shall be treated as 
                exempted securities for purposes of the 
                Securities Act of 1933 (15 U.S.C. 77a et seq.) 
                or the Securities Exchange Act of 1934 (15 
                U.S.C. 78a et seq.), unless exempted by rule or 
                regulation of the Securities and Exchange 
                Commission.
                  (B) Preservation.--Except as provided in 
                subparagraph (A), no provision of this 
                subsection or any regulation promulgated by the 
                Secretary under this subsection supersedes or 
                otherwise affects the application of the 
                securities laws (as the term is defined in 
                section 3(a) of the Securities Exchange Act of 
                1934 (15 U.S.C. 78c(a))) or the rules, 
                regulations, or orders of the Securities and 
                Exchange Commission or a self-regulatory 
                organization under that Commission.
          (6) Conversion of project assets.--
                  (A) Request.--If a recipient determines that 
                a revolving loan fund established using 
                assistance provided under this section is no 
                longer needed, or that the recipient could make 
                better use of the assistance in light of the 
                current economic development needs of the 
                recipient if the assistance was made available 
                to carry out any other project that meets the 
                requirements of this Act, the recipient may 
                submit to the Secretary a request to approve 
                the conversion of the assistance.
                  (B) Methods of conversion.--A recipient the 
                request to convert assistance of which is 
                approved under subparagraph (A) may accomplish 
                the conversion by--
                          (i) selling to a third party any 
                        assets of the applicable revolving loan 
                        fund; or
                          (ii) retaining repayments of 
                        principal and interest amounts on loans 
                        provided through the applicable 
                        revolving loan fund.
                  (C) Requirements.--
                          (i) Sale.--
                                  (I) In general.--Subject to 
                                subclause (II), a recipient 
                                shall use the net proceeds from 
                                a sale of assets under 
                                subparagraph (B)(i) to pay any 
                                portion of the costs of 1 or 
                                more projects that meet the 
                                requirements of this Act.
                                  (II) Treatment.--For purposes 
                                of subclause (I), a project 
                                described in that subclause 
                                shall be considered to be 
                                eligible under section 301.
                          (ii) Retention of repayments.--
                        Retention by a recipient of any 
                        repayment under subparagraph (B)(ii) 
                        shall be carried out in accordance with 
                        a strategic reuse plan approved by the 
                        Secretary that provides for the 
                        increase of capital over time until 
                        sufficient amounts (including interest 
                        earned on the amounts) are accumulated 
                        to fund other projects that meet the 
                        requirements of this Act.
                  (D) Terms and conditions.--The Secretary may 
                require such terms and conditions regarding a 
                proposed conversion of the use of assistance 
                under this paragraph as the Secretary 
                determines to be appropriate.
                  (E) Expediency requirement.--The Secretary 
                shall ensure that any assistance intended to be 
                converted for use pursuant to this paragraph is 
                used in an expeditious manner.
          (7) Program administration.--The Secretary may 
        allocate not more than 2 percent of the amounts made 
        available for grants under this section for the 
        development and maintenance of an automated tracking 
        and monitoring system to ensure the proper operation 
        and financial integrity of the revolving loan program 
        established under this section.

           *       *       *       *       *       *       *

SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.

  (a) Definition of Brightfield Site.--* * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $5,000,000 for each 
of fiscal years [2004 through 2008]2009 through 2013, to remain 
available until expended.

           *       *       *       *       *       *       *

SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

  (a) In General.--* * *

           *       *       *       *       *       *       *

  (c) Operations.--
          (1) In general.--Each economic development district 
        shall engage in the full range of economic development 
        activities included in the list contained in the 
        comprehensive economic development strategy of the 
        economic development district that has been approved by 
        the Economic Development Administration, including--
                  (A) coordinating and implementing economic 
                development activities in the economic 
                development district;
                  (B) carrying out economic development 
                research, planning, implementation, and 
                advisory functions identified in the 
                comprehensive economic development strategy; 
                and
                  (C) coordinating the development and 
                implementation of the comprehensive economic 
                development strategy with other local, State, 
                Federal, and private organizations.
          (2) Contracts.--An economic development district may 
        elect to enter into contracts for services to 
        accomplish the activities described in paragraph (1).

           *       *       *       *       *       *       *

SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

  (a) Consultation on Problems Relating to Employment.--The 
Secretary may consult with any persons, including 
representatives of labor, management, agriculture, and 
government, who can assist in addressing the problems of area 
and regional unemployment, outmigration, or underemployment.

           *       *       *       *       *       *       *

SEC. 507. NOTIFICATION OF REORGANIZATION.

  [Not later than](a) Notification.--Not later than 30 days 
before the date of any reorganization of the offices, programs, 
or activities of the Economic Development Administration, the 
Secretary shall provide notification of the reorganization to 
the Committee on Environment and Public Works and the Committee 
on Appropriations of the Senate, and the Committee on 
Transportation and Infrastructure and the Committee on 
Appropriations of the House of Representatives.
  (b) State of Montana.--The State of Montana shall be served 
by the Seattle office of the Economic Development 
Administration.

           *       *       *       *       *       *       *

                        TITLE VI--MISCELLANEOUS

SEC. 601. POWERS OF SECRETARY.

  (a) In General.--* * *

           *       *       *       *       *       *       *

SEC. 612. SAVINGS CLAUSE.

  To the extent that any portion of grants made under this Act 
are used for an economic development project that involves 
remediation, the remediation shall be conducted in compliance 
with all applicable Federal, State, and local laws and 
standards.

SEC. 613. MAINTENANCE OF EFFORT.

  (a) Expected Period of Best Efforts.--
          (1) Establishment.--To carry out the purposes of this 
        Act, before providing investment assistance for a 
        construction project under this Act, the Secretary 
        shall establish the expected period during which the 
        recipient of the assistance shall make best efforts to 
        achieve the economic development objectives of the 
        assistance.
          (2) Treatment of property.--To obtain the best 
        efforts of a recipient during the period established 
        under paragraph (1), during that period--
                  (A) any property that is acquired or 
                improved, in whole or in part, using investment 
                assistance under this Act shall be held in 
                trust by the recipient for the benefit of the 
                project; and
                  (B) the Secretary shall retain an undivided 
                equitable reversionary interest in the 
                property.
          (3) Termination of federal interest.--
                  (A) In general.--Beginning on the date on 
                which the Secretary determines that a recipient 
                has fulfilled the obligations of the recipient 
                for the applicable period under paragraph (1), 
                taking into consideration the economic 
                conditions existing during that period, the 
                Secretary may terminate the reversionary 
                interest of the Secretary in any applicable 
                property under paragraph (2)(B).
                  (B) Alternative method of termination.--
                          (i) In general.--On a determination 
                        by a recipient that the economic 
                        development needs of the recipient have 
                        changed during the period beginning on 
                        the date on which investment assistance 
                        for a construction project is provided 
                        under this Act and ending on the 
                        expiration of the expected period 
                        established for the project under 
                        paragraph (1), the recipient may submit 
                        to the Secretary a request to terminate 
                        the reversionary interest of the 
                        Secretary in property of the project 
                        under paragraph (2)(B) before the date 
                        described in subparagraph (A).
                          (ii) Approval.--The Secretary may 
                        approve a request of a recipient under 
                        clause (i) if--
                                  (I) in any case in which the 
                                request is submitted during the 
                                10-year period beginning on the 
                                date on which assistance is 
                                initially provided under this 
                                Act for the applicable project, 
                                the recipient repays to the 
                                Secretary an amount equal to 
                                100 percent of the fair market 
                                value of the pro rata Federal 
                                share of the project; or
                                  (II) in any case in which the 
                                request is submitted after the 
                                expiration of the 10-year 
                                period described in subclause 
                                (I), the recipient repays to 
                                the Secretary an amount equal 
                                to the fair market value of the 
                                pro rata Federal share of the 
                                project as if that value had 
                                been amortized over the period 
                                established under paragraph 
                                (1), based on a straight-line 
                                depreciation of the project 
                                throughout the estimated useful 
                                life of the project.
  (b) Terms and Conditions.--The Secretary may establish such 
terms and conditions under this section as the Secretary 
determines to be appropriate, including by extending the period 
of a reversionary interest of the Secretary under subsection 
(a)(2)(B) in any case in which the Secretary determines that 
the performance of a recipient is unsatisfactory.
  (c) Previously Extended Assistance.--With respect to any 
recipient to which the term of provision of assistance was 
extended under this Act before the date of enactment of this 
section, the Secretary may approve a request of the recipient 
under subsection (a) in accordance with the requirements of 
this section to ensure uniform administration of this Act, 
notwithstanding any estimated useful life period that otherwise 
relates to the assistance.
  (d) Conversion of Use.--If a recipient of assistance under 
this Act demonstrates to the Secretary that the intended use of 
the project for which assistance was provided under this Act no 
longer represents the best use of the property used for the 
project, the Secretary may approve a request by the recipient 
to convert the property to a different use for the remainder of 
the term of the Federal interest in the property, subject to 
the condition that the new use shall be consistent with the 
purposes of this Act.
  (e) Status of Authority.--The authority of the Secretary 
under this section is in addition to any authority of the 
Secretary pursuant to any law or grant agreement in effect on 
the date of enactment of this section.

           *       *       *       *       *       *       *

SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

  (a) Economic Development Assistance Programs.--There are 
authorized to be appropriated for economic development 
assistance programs to carry out this Act, to remain available 
until expended--
          (1) $400,000,000 for fiscal year [2004]2009;
          (2) $425,000,000 for fiscal year [2005]2010;
          (3) $450,000,000 for fiscal year [2006]2011;
          (4) $475,000,000 for fiscal year [2007]2012; and
          (5) $500,000,000 for fiscal year [2008]2013

           *       *       *       *       *       *       *

[SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
                    ADMINISTRATIVE EXPENSES.

  [Of the amounts made available under section 701 for each 
fiscal year, not less than $27,000,000 shall be made available 
for grants provided under section 203.]

SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
                    EXPENSES.

  (a) In General.--Subject to subsection (b), of the amounts 
made available under section 701 for each fiscal year, not less 
than $27,000,000 shall be made available to provide grants 
under section 203.
  (b) Subject to Total Appropriations.--For any fiscal year, 
the amount made available pursuant to subsection (a) shall be 
increased to--
          (1) $28,000,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $280,000,000;
          (2) $29,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $320,000,000;
          (3) $31,000,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $350,000,000;
          (4) $32,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $380,000,000; and
          (5) $34,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $420,000,000.

           *       *       *       *       *       *       *

                                  
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