99–010

Calendar No. 554

107TH CONGRESS REPORT

2d Session " ! SENATE 107–244

BROWNFIELD SITE REDEVELOPMENT ASSISTANCE ACT

OF 2002

AUGUST 28, 2002.—Ordered to be printed

Filed, under authority of the order of the Senate of July 29, 2002.

Mr. JEFFORDS, from the Committee on Environment and Public

Works, submitted the following

REPORT

[to accompany S. 1079]

[Including cost estimate of the Congressional Budget Office]

The Committee on Environment and Public Works, to which was

referred a bill (S. 1079) to amend the Public Works and Economic

Development Act of 1965, to provide assistance to communities for

the redevelopment of brownfield sites, having considered the same

reports favorably thereon with an amendment and recommends

that the bill, as amended, do pass.

GENERAL STATEMENT AND BACKGROUND

The Brownfield Site Redevelopment Assistance Act, S. 1079, will

provide the Department of Commerce’s Economic Development Administration (EDA) with the legislative authority to engage in

brownfields redevelopment activities. Currently, EDA funding can

be used for brownfields redevelopment only when a public works or

economic adjustment project receiving funding is located on a

brownfield site. For example, if a city receives a grant to upgrade

water and sewer facilities and the facilities are located on a

brownfield, only then can the agency use funding for redevelopment. This legislation changes current law by allowing EDA to undertake individual brownfields redevelopment projects. S. 1079 also

provides EDA with a dedicated source of funding ($60 million a

year for 5 years) to help States, local communities, Indian tribes

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and nonprofit organizations restore brownfield sites to productive

use. This legislation complements the resources and liability clarifications provided in the Brownfields Revitalization and Environmental Restoration Act, S. 350, by focusing on the step after assessment and cleanup: actual redevelopment.

The economic and social need for redeveloping brownfields sites

has been well-documented. While predominantly affecting urban

areas, brownfields also impact rural areas and Native American

communities. The committee notes the following:

1. The U.S. Conference of Mayors (USCM) estimates that

brownfields redevelopment could generate more than 550,000 additional jobs and up to $2.4 billion in new tax revenues for cities. The

cities surveyed by the USCM reported that lack of funding for redevelopment is a major obstacle to reuse (Recycling America’s Land:

A National Report on Brownfields Redevelopment, February 24,

2000, US Conference of Mayors survey results from 231 cities).

2. The General Accounting Office has estimated that there are up

to 450,000 brownfields sites. Independent researchers have estimated that there may be as many as 600,000 brownfields sites (Simons, Turning Brownfields into Greenbacks, 1998); and the Bush

Administration has publicly stated that there may be as many as

1 million brownfields.

3. In rural areas, abundant open space often is preferred over

brownfield sites. The National Association of Development Organizations (NADO) in a report on reclaiming rural America’s

brownfields found that Federal agencies are not reaching rural

areas through existing brownfields programs, and rural communities need financial and technical assistance to include

brownfields in economic development strategies.

4. Tribal lands face a legacy of former agricultural, industrial

and commercial facilities that have real or perceived contamination. EPA estimates that nationwide there are 1,645 facilities located on tribal lands and 6,982 facilities located within three miles

of tribal lands. Currently, 18 tribes have received grants from EPA

for brownfields redevelopment.

Public investment combined with private financing can provide

incentives for redeveloping these former industrial and commercial

properties and level the economic playing field between greenfields

and brownfields.

The EDA has provided grants for Eco-Industrial Development

(EID) projects including a EID center at Cornell University which

promoted these approaches nationwide. EID involves businesses

voluntarily coming together to conserve resources, increase efficiencies and reduce wastes.

OBJECTIVES OF THE LEGISLATION

The Brownfield Site Redevelopment Assistance Act, S. 1079, will

expand the Department of Commerce’s Economic Development Administration (EDA) efforts to assist communities with economic development by authorizing a program to provide targeted assistance

for projects that redevelop brownfield sites and authorizing EDA to

offer assistance to projects that promote Eco-Industry Development. The bill will provide EDA with increased funding flexibility

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to help States, local communities, Indian tribes and nonprofit organizations restore these sites to productive use. The bill authorizes

$60 million each year for 5 years for brownfields redevelopment,

and gives EDA the authority to provide grants for brownfields redevelopment projects, including:

• Development of public facilities • Business development (including revolving loan funds) • Technical assistance and Training • Activities to help communities diversify their economies and

encourage infill development • Collaborative economic development planning

While EDA assistance has helped communities redevelop

brownfields, the agency lacks a specific authority and a dedicated

source of funding for brownfields. This bill would provide EDA with

the authority to facilitate effective economic development planning

for reuse; develop infrastructure necessary to prepare sites for reentry into the market; and, provide the capital necessary to support new business development. This bill would make reuse of

brownfield sites a priority for EDA.

SECTION-BY-SECTION ANALYSIS

Section 1. Short Title

Brownfield Site Redevelopment Assistance Act of 2001.

Sec. 2. Purposes

To provide targeted assistance through the Department of Commerce’s Economic Development Administration for projects that

promote the redevelopment and economic recovery of brownfield

sites and the use of eco-industrial development approaches in order

to bring new income and private investment to distressed communities.

Sec. 3. Definitions

This legislation defines ‘‘brownfields’’ as real property upon

which the Secretary of Commerce, in consultation with the Administrator of the Environmental Protection Agency, determines there

is a presence or potential presence of a hazardous substance (as defined in section 101 of the Comprehensive Environmental Response, Compensation and Liability Act) or any other pollutant or

contaminant. The committee intends that the Secretary, through

EDA, continue to fund economic redevelopment of brownfields sites

contaminated by pollutants such as asbestos, lead, and petroleum

products. However, the committee recognizes the EPA’s primary

role within the Federal Government in protection of the environment, as well as remediation, and does not intend that the EDA

will make remediation decisions. When an eligible applicant seeks

funding for assessment or cleanup of a brownfields site under section 3(1)(C), the committee expects that the Secretary will obtain

approval for funding for the site from the EPA. This is also true

for sites covered under section 3(1)(D)(II).

This legislation defines ‘‘Eco-Industrial Development (EID)’’ as

development conducted in a manner in which businesses cooperate

with each other and local community to efficiently share resources

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(such as information, materials, water, energy infrastructure and

natural habitat) with the goals of economic gains, improved environmental quality and equitable enhancement of human resources

in businesses and local communities.

Sec. 4. Coordination

Recommends that the Secretary of Commerce coordinate

brownfields redevelopment activities with other Federal agencies,

States, local governments, consortia of local governments, Indian

tribes, nonprofit organizations and public-private partnerships.

Sec. 5. Grants for Brownfield Site Redevelopment

Makes grants available through EDA for brownfields projects

that alleviate excessive unemployment, underemployment, blight

and infrastructure deterioration. Projects include: development of

public facilities, development of public services, business development, planning, technical assistance and training. Grants may also

be made available for activities identified by a community negatively impacted by brownfields. These activities include: diversifying the economy; carrying out industrial or commercial redevelopment projects and eco-industrial projects; promoting smart growth

through infill development that conserves environmental and agricultural resources; and carrying out collaborative economic development planning.

Sec. 6. Authorization of Appropriations

Authorizes $60 million for each fiscal years 2002 through 2006.

LEGISLATIVE HISTORY

S. 1079 was introduced by Senator Carl Levin on June 21, 2001.

A legislative hearing was held on March 6, 2002. On April 25,

2002, the Committee on Environment and Public Works met to

consider S. 1079. An amendment in the nature of a substitute, offered by Senators Jeffords and Smith, was agreed by voice vote;

and the bill, as amended, was ordered reported by voice vote.

HEARINGS

On March 6, 2002, the full committee held a legislative hearing

on S. 1079. Testimony was provided by Senator Carl Levin of

Michigan; Hon. David A. Sampson, Assistant Secretary of Commerce for Economic Development; Ms. Elizabeth Humstone,

Vermont Forum on Sprawl, Burlington, on behalf of the American

Planning Association; Ms. Deborah Anderson, Wood Partners, Durham, NC, on behalf of the National Multi-Housing Council/National

Apartment Association; Mr. Don Chen, Smart Growth America,

Washington, DC; Mr. F. Gary Garczynski, Woodbridge, VA, on behalf of the National Association of Home Builders; and Ms. Mary

Lou Bentley, Western Nevada Development District, Carson City,

on behalf National Association of Development Organizations.

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REGULATORY IMPACT STATEMENT

In compliance with section 11(b) of rule XXVI of the Standing

Rules of the Senate, the committee makes evaluation of the regulatory impact of the reported bill.

S. 1079 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 that S. 1079 would not impose any Federal intergovernmental unfunded mandates on State,

local, or tribal governments.

COST OF LEGISLATION

Section 403 of the Congressional Budget and Impoundment Control Act requires that a statement of the cost of the reported bill,

prepared by the Congressional Budget Office, be included in the report. That statement follows:

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 13, 2002.

Hon. JAMES M. JEFFORDS, Chairman,

Committee on Environment and Public Works,

U.S. Senate, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 1079, the Brownfields Site

Redevelopment Assistance Act of 2002.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contacts are Deborah Reis (for Federal costs), who can be reached at 226–2860, and Leo Lex (for State

and local impact), who can be reached at 225–3220.

Sincerely,

DAN L. CRIPPEN.

S. 1079, Brownfields Site Redevelopment Assistance Act of 2002, As

ordered reported by the Senate Committee on Environment and

Public Works on April 25, 2002

Summary

S. 1079 would authorize the Economic Development Administration (EDA) to make grants to communities or tribes for projects

that promote the development of brownfield sites. (Brownfields are

properties where the presence, or potential presence, of a hazardous substance complicates the development of the property.)

The new grants would be used to develop public facilities and business or for planning, technical assistance and training. For these

purposes, the bill would authorize the appropriation of $60 million

annually for fiscal years 2003 through 2007.

CBO estimates that implementing S. 1079 would cost $130 million through fiscal year 2007, assuming the appropriation of the

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authorized amounts. We estimate that the remaining $170 million

authorized by the bill would be spent after 2007. S. 1079 would not

affect direct spending or receipts; therefore, pay-as-you-go procedures would not apply.

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA).

The bill would benefit local governments by authorizing $60 million

annually in grants to alleviate blight and deterioration associated

with brownfield sites. Communities receiving assistance would

have to provide at least 25 percent in matching funds for any

grants they receive.

Estimated Cost to the Federal Government

The estimated budgetary impact of S. 1079 is shown in the following table. The costs of this legislation fall within budget function 450 (community and regional development). For this estimate,

CBO assumes that the bill will be enacted before the start of fiscal

year 2003, and that authorized amounts will be appropriated for

each fiscal year. Outlays have been estimated based on historical

spending patterns of similar programs.

By Fiscal Year, in Millions of Dollars

2003 2004 2005 2006 2007

SPENDING SUBJECT TO APPROPRIATION

EDA Brownfields Grants1:

Authorization Level ................................................................................ 60 60 60 60 60

Estimated Outlays ................................................................................. 2 10 25 40 53

1For 2002, $335 million was appropriated for the various developmental assistance programs administered by EDA. Brownfields grants

would be a new EDA program.

Pay-As-You-Go Considerations: None.

Intergovernmental and Private-Sector Impact

S. 1079 contains no intergovernmental mandates as defined in

UMRA and would benefit local governments by authorizing $60

million annually in grants to alleviate blight and deterioration associated with brownfield sites. Communities receiving assistance

would have to provide at least 25 percent in matching funds for

any grants they receive.

Estimate Prepared By: Federal Costs: Deborah Reis; Impact on

State, Local, and Tribal Governments: Leo Lex; Impact on the Private Sector: Lauren Marks.

Estimate Approved By: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

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 øblack brackets¿, new matter is printed in italic, existing

law in which no change is proposed is shown in roman:

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PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF

1965

[As Amended Through P.L. 106–580, Dec. 29, 2000]

AN ACT To provide grants for public works and development facilities, other financial assistance and the planning and coordiation needed to alleviate conditions of

substantial and persistent unemployment and underemployment in economically

distressed areas and regions.

* * * * * * *

øSec. 210. Changed project circumstances.

øSec. 211. Use of funds in projects constructed under projected cost.

øSec. 212. Reports by recipients.

øSec. 213. Prohibition on use of funds for attorney’s and consultant’s fees.¿

Sec. 210. Grants for brownfield site redevelopment.

Sec. 211. Changed project circumstances.

Sec. 212. Use of funds in projects constructed under projected cost.

Sec. 213. Reports by recipients.

Sec. 214. Prohibition on use of funds for attorney’s and consultant’s fees.

* * * * * * *

Sec. 704. Authorization of appropriations for brownfield site redevelopment.

* * * * * *

*

SEC. 3. DEFINITIONS.

In this Act:

(1) BROWNFIELD SITE.— (A) IN GENERAL.—The term ‘‘brownfield site’’ means

real property, the expansion, redevelopment, or reuse of

which may be complicated by the presence or potential presence of—

(i) a hazardous substance (as defined in section

101 of the Comprehensive Environmental Response,

Compensation, and Liability Act of 1980 (42 U.S.C.

9601)); or

(ii) any other pollutant or contaminant, as determined by the Secretary, in consultation with the Administrator of the Environmental Protection Agency.

(B) EXCLUSIONS.—Except as provided in subparagraph

(C), the term ‘‘brownfield site’’ does not include—

(i) a facility that is the subject of a planned or ongoing removal action under the Comprehensive Environmental Response, Compensation, and Liability Act

of 1980 (42 U.S.C. 9601 et seq.);

(ii) a facility that is listed on the National Priorities List, or is proposed for listing on that list, under

that Act;

(iii) a facility that is the subject of a unilateral administrative order, a court order, an administrative

order on consent, or a judicial consent decree that has

been issued to or entered into by the parties under that

Act;

(iv) a facility that is the subject of a unilateral administrative order, a court order, an administrative

order on consent, or a judicial consent decree that has

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been issued to or entered into by the parties, or a facility to which a permit has been issued by the United

States or an authorized State, under—

(I) the Solid Waste Disposal Act (42 U.S.C.

6901 et seq.);

(II) the Federal Water Pollution Control Act

(33 U.S.C. 1251 et seq.);

(III) the Toxic Substances Control Act (15

U.S.C. 2601 et seq.); or

(IV) the Safe Drinking Water Act (42 U.S.C.

300f et seq.);

(v) a facility—

(I) that is subject to corrective action under

section 3004(u) or 3008(h) of the Solid Waste Disposal Act (42 U.S.C. 6924(u), 6928(h)); and

(II) to which a corrective action permit or

order has been issued or modified to require the

implementation of corrective measures;

(vi) a land disposal unit with respect to which—

(I) a closure notification under subtitle C of

the Solid Waste Disposal Act (42 U.S.C. 6921 et

seq.) has been submitted; and

(II) closure requirements have been specified

in a closure plan or permit;

(vii) a facility that is subject to the jurisdiction,

custody, or control of a department, agency, or instrumentality of the United States, except for land held in

trust by the United States for an Indian tribe;

(viii) a portion of a facility—

(I) at which there has been a release of polychlorinated biphenyls; and

(II) that is subject to remediation under the

Toxic Substances Control Act (15 U.S.C. 2601 et

seq.); or

(ix) a portion of a facility, for which portion assistance for response activity has been obtained under subtitle I of the Solid Waste Disposal Act (42 U.S.C. 6991

et seq.) from the Leaking Underground Storage Tank

Trust Fund established by section 9508 of the Internal

Revenue Code of 1986.

(C) SITE-BY-SITE INCLUSIONS.—The term ‘‘brownfield

site’’ includes a site referred to in clause (i), (iv), (v), (vi),

(viii), or (ix) of subparagraph (B), if, on a site-by-site basis,

the Secretary, in consultation with the Administrator of the

Environmental Protection Agency, determines that use of financial assistance at the site will—

(i) protect human health and the environment; and

(ii)(I) promote economic development;

(II) enable the creation of, preservation of, or addition to parks, greenways, undeveloped property, other

recreational property, or other property used for nonprofit purposes; or

(III) promote eco-industrial development.

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(D) ADDITIONAL INCLUSIONS.—The term ‘‘brownfield

site’’ includes a site that meets the definition of ‘‘brownfield

site’’ under subparagraphs (A) through (C) and that— (i) is contaminated by a controlled substance (as

defined in section 102 of the Controlled Substances Act

(21 U.S.C. 802));

(ii)(I) is contaminated by petroleum or a petroleum

product excluded from the definition of ‘‘hazardous

substance’’ under section 101 of the Comprehensive Environmental Response, Compensation, and Liability

Act of 1980 (42 U.S.C. 9601);

(II) is a site determined by the Secretary, in consultation with the Administrator of the Environmental

Protection Agency, to be— (aa) of relatively low risk, as compared with

other petroleum-only sites in the State in which the

site is located; and

(bb) a site for which there is no viable responsible party and that will be assessed, investigated,

or cleaned up by a person that is not potentially

liable for cleaning up the site; and

(III) is not subject to any order issued under section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.

6991b(h)); or

(iii) is mine-scarred land.

ø(1)¿ (2) COMPREHENSIVE ECONOMIC DEVELOPMENT STRAT- EGY.—The term ‘‘comprehensive economic development strategy’’ means a comprehensive economic development strategy

approved by the Secretary under section 302.

ø(2)¿ (3) DEPARTMENT.—The term ‘‘Department’’ means

the Department of Commerce.

(4) ECO-INDUSTRIAL DEVELOPMENT.—The term ‘‘eco-industrial development’’ means development conducted in a manner

in which businesses cooperate with each other and the local

community to efficiently share resources (such as information,

materials, water, energy infrastructure, and natural habitat)

with the goals of— (A) economic gains;

(B) improved environmental quality; and

(C) equitable enhancement of human resources in businesses and local communities.

ø(3)¿ (5) ECONOMIC DEVELOPMENT DISTRICT.—

(A) IN GENERAL.—The term ‘‘economic development

district’’ means any area in the United States that—

(i) is composed of areas described in section 301(a)

and, to the extent appropriate, neighboring counties or

communities; and

(ii) has been designated by the Secretary as an

economic development district under section 401.

(B) INCLUSION.—The term ‘‘economic development district’’ includes any economic development district designated by the Secretary under section 403 (as in effect on

the day before the effective date of the Economic Development Administration Reform Act of 1998).

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ø(4)¿ (6) ELIGIBLE RECIPIENT.—

(A) IN GENERAL.—The term ‘‘eligible recipient’’

means—

(i) an area described in section 301(a);

(ii) an economic development district;

(iii) an Indian tribe;

(iv) a State;

(v) a city or other political subdivision of a State

or a consortium of political subdivisions;

(vi) an institution of higher education or a consortium of institutions of higher education; or

(vii) a public or private nonprofit organization or

association acting in cooperation with officials of a political subdivision of a State.

(B) TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE

GRANTS.—In the case of grants under section 207, the term

‘‘eligible recipient’’ also includes private individuals and

for-profit organizations.

ø(5)¿ (7) FEDERAL AGENCY.—The term ‘‘Federal agency’’

means a department, agency, or instrumentality of the United

States.

ø(6)¿ (8) GRANT.—The term ‘‘grant’’ includes a cooperative

agreement (within the meaning of chapter 63 of title 31,

United States Code).

ø(7)¿ (9) INDIAN TRIBE.—The term ‘‘Indian tribe’’ means

any Indian tribe, band, nation, pueblo, or other organized

group or community, including any Alaska Native village or

Regional Corporation (as defined in or established under the

Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)),

that is recognized as eligible for the special programs and services provided by the United States to Indians because of their

status as Indians.

ø(8)¿ (10) SECRETARY.—The term ‘‘Secretary’’ means the

Secretary of Commerce.

ø(9)¿ (11) STATE.—The term ‘‘State’’ means a State, the

District of Columbia, the Commonwealth of Puerto Rico, the

Virgin Islands, Guam, American Samoa, the Commonwealth of

the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of

Palau.

ø(10)¿ (12) UNITED STATES.—The term ‘‘United States’’

means all of the States.

(13) UNUSED LAND.—The term ‘‘unused land’’ means any

publicly-owned or privately-owned unused, underused, or abandoned land that is not contributing to the quality of life or economic well-being of the community in which the land is located.

* * * * * * *

SEC. 103. COORDINATION.

(a) COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.—

The Secretary shall coordinate activities relating to the preparation

and implementation of comprehensive economic development strategies under this Act with Federal agencies carrying out other FedVerDate 11-MAY-2000 12:25 Aug 28, 2002 Jkt 080655 PO 00000 Frm 00010 Fmt 6659 Sfmt 6601 H:\REPORTS\S1079RPT.TXT SENENV1 PsN: SENENV1
11

eral programs, States, economic development districts, and other

appropriate planning and development organizations.

(b) BROWNFIELD SITE REDEVELOPMENT.—The Secretary shall

coordinate activities relating to the redevelopment of brownfield

sites and the promotion of eco-industrial development under this Act

with other Federal agencies, States, local governments, consortia of

local governments, Indian tribes, nonprofit organizations, and public-private partnerships.

* * * * * * *

SEC. 210. GRANTS FOR BROWNFIELD SITE REDEVELOPMENT.

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

the Secretary may make grants for projects to alleviate or prevent

conditions of excessive unemployment, underemployment, blight,

and infrastructure deterioration associated with brownfield sites, including projects consisting of—

(1) development of public facilities;

(2) development of public services;

(3) business development (including funding of a revolving

loan fund);

(4) planning;

(5) technical assistance; and

(6) training.

(b) CRITERIA FOR GRANTS.—The Secretary may provide a grant

for a project under this section only if—

(1) the Secretary determines that the project will assist the

area where the project is or will be located to meet, directly or

indirectly, a special need arising from—

(A) a high level of unemployment or underemployment,

or a high proportion of low-income households;

(B) the existence of blight and infrastructure deterioration;

(C) dislocations resulting from commercial or industrial restructuring;

(D) outmigration and population loss, as indicated

by—

(i)(I) depletion of human capital (including young,

skilled, or educated populations);

(II) depletion of financial capital (including firms

and investment); or

(III) a shrinking tax base; and

(ii) resulting—

(I) fiscal pressure;

(II) restricted access to markets; and

(III) constrained local development potential;

or

(E) the closure or realignment of—

(i) a military or Department of Energy installation;

or

(ii) any other Federal facility; and

(2) except in the case of a project consisting of planning or

technical assistance—

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(A) the Secretary has approved a comprehensive economic development strategy for the area where the project

is or will be located; and

(B) the project is consistent with the comprehensive economic development strategy.

(c) PARTICULAR COMMUNITY ASSISTANCE.—Assistance under

this section may include assistance provided for activities identified

by a community, the economy of which is injured by the existence

of 1 or more brownfield sites, to assist the community in—

(1) revitalizing affected areas by—

(A) diversifying the economy of the community; or

(B) carrying out industrial or commercial (including

mixed use) redevelopment, or eco-industrial development,

projects on brownfield sites or sites adjacent to brownfield

sites;

(2) carrying out development that conserves environmental

and agricultural resources by—

(A) reusing existing facilities and infrastructure;

(B) reclaiming unused land and abandoned buildings;

or

(C) promoting eco-industrial development, and environmentally responsible development, of brownfield sites; or

(3) carrying out a collaborative economic development planning process, developed with broad-based and diverse community participation, that addresses the economic repercussions

and opportunities posed by the existence of brownfield sites in

an area.

(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY ELIGIBLE RECIPIENT.—

(1) IN GENERAL.—Subject to paragraph (2), an eligible recipient of a grant under this section 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.

(2) LIMITATION.—Under paragraph (1), an eligible recipient

may not provide any grant to a private for-profit entity.

øSEC. 210.¿ SEC. 211. CHANGED PROJECT CIRCUMSTANCES.

In any case in which a grant (including a supplementary grant

described in section 205) has been made by the Secretary under

this title (or made under this Act, as in effect on the day before

the effective date of the Economic Development Administration Reform Act of 1998) for a project, and, after the grant has been made

but before completion of the project, the purpose or scope of the

project that was the basis of the grant is modified, the Secretary

may approve, subject (except for a grant for which funds were obligated in fiscal year 1995) to the availability of appropriations, the

use of grant funds for the modified project if the Secretary determines that—

(1) the modified project meets the requirements of this

title and is consistent with the comprehensive economic development strategy submitted as part of the application for the

grant; and

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(2) the modifications are necessary to enhance economic

development in the area for which the project is being carried

out.

øSEC. 211.¿ SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED

UNDER PROJECTED COST.

In any case in which a grant (including a supplementary grant

described in section 205) has been made by the Secretary under

this title (or made under this Act, as in effect on the day before

the effective date of the Economic Development Administration Reform Act of 1998) for a construction project, and, after the grant

has been made but before completion of the project, the cost of the

project based on the designs and specifications that was the basis

of the grant has decreased because of decreases in costs—

(1) the Secretary may approve, subject to the availability

of appropriations, the use of the excess funds or a portion of

the funds to improve the project; and

(2) any amount of excess funds remaining after application

of paragraph (1) shall be deposited in the general fund of the

Treasury.

øSEC. 212.¿ SEC. 213. REPORTS BY RECIPIENTS.

(a) IN GENERAL.—Each recipient of assistance under this title

shall submit reports to the Secretary at such intervals and in such

manner as the Secretary shall require by regulation, except that no

report shall be required to be submitted more than 10 years after

the date of closeout of the assistance award.

(b) CONTENTS.—Each report shall contain an evaluation of the

effectiveness of the economic assistance provided under this title in

meeting the need that the assistance was designed to address and

in meeting the objectives of this Act.

øSEC. 213.¿ SEC. 214. PROHIBITION ON USE OF FUNDS FOR ATTORNEY’S AND CONSULTANT’S FEES.

Assistance made available under this title shall not be used directly or indirectly for an attorney’s or consultant’s fee incurred in

connection with obtaining grants and contracts under this title.

* * * * * * *

SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR BROWNFIELD

SITE REDEVELOPMENT.

(a) IN GENERAL.—In addition to amounts made available under

section 701, there is authorized to be appropriated to carry out section 210 $60,000,000 for each of fiscal years 2003 through 2007, to

remain available until expended.

(b) FEDERAL SHARE.—Notwithstanding section 204, subject to

section 205, the Federal share of the cost of activities funded with

amounts made available under subsection (a) shall be not more

than 75 percent.

* * * * * * *

Æ