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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 17 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 17

         To promote a new urban agenda, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

    Mr. Specter (for himself and Ms. Moseley-Braun) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
         To promote a new urban agenda, and for other purposes.

    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 ``New Urban Agenda 
Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
       TITLE I--FEDERAL COMMITMENT TO URBAN ECONOMIC DEVELOPMENT

Sec. 101. Federal purchases from businesses in empowerment zones, 
                            enterprise communities, and enterprise 
                            zones.
Sec. 102. Minimum allocation of foreign assistance for purchase of 
                            certain United States goods.
Sec. 103. Preference for location of manufacturing outreach centers in 
                            urban areas.
Sec. 104. Preference for construction and improvement of Federal 
                            facilities in distressed urban areas.
Sec. 105. Definitions.
   TITLE II--TAX INCENTIVES TO STIMULATE URBAN ECONOMIC DEVELOPMENT.

Sec. 201. Treatment of rehabilitation credit under passive activity 
                            limitations.
Sec. 202. Rehabilitation credit allowed to offset portion of 
                            alternative minimum tax.
Sec. 203. Commercial industrial development bonds.
Sec. 204. Increase in amount of qualified small issue bonds permitted 
                            for facilities to be used by related 
                            principal users.
Sec. 205. Simplification of arbitrage interest rebate waiver.
             TITLE III--COMMUNITY-BASED HOUSING DEVELOPMENT

Sec. 301. Block grant study.
Sec. 302. Demolition and disposition of public housing.
          TITLE IV--RESPONSE TO URBAN ENVIRONMENTAL CHALLENGES

                   Subtitle A--Environmental Cleanup

Sec. 401. Exemption from liability for local governments that are 
                            owners or operators of facilities in 
                            distressed urban areas.
Sec. 402. Standards for remediation in distressed urban areas.
              Subtitle B--Environmental-Economic Recovery

Sec. 411. Findings.
Sec. 412. Definitions.
Sec. 413. Loan authority.
Sec. 414. Facility.
Sec. 415. Reinvestment of savings.
Sec. 416. Report to Congress.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) cities in the United States have been facing an 
        economic downhill trend in the past several years; and
            (2) a new approach to help such cities prosper is 
        necessary.
    (b) Purposes.--It is the purpose of this Act to--
            (1) provide various incentives for the economic growth of 
        cities in the United States;
            (2) provide an economic agenda designed to reverse current 
        urban economic trends; and
            (3) revitalize the jobs and tax base of such cities without 
        significant new Federal outlays.

       TITLE I--FEDERAL COMMITMENT TO URBAN ECONOMIC DEVELOPMENT

SEC. 101. FEDERAL PURCHASES FROM BUSINESSES IN EMPOWERMENT ZONES, 
              ENTERPRISE COMMUNITIES, AND ENTERPRISE ZONES.

    (a) Requirements.--The Office of Federal Procurement Policy Act (41 
U.S.C. 401 et seq.) is amended by adding at the end the following new 
section:

     ``purchases from businesses in empowerment zones, enterprise 
                   communities, and enterprise zones

    ``Sec. 29. (a) Minimum Purchase Requirement.--Not less than 15 
percent of the total amount expended by executive agencies for the 
purchase of goods in a fiscal year shall be expended for the purchase 
of goods from businesses located in empowerment zones, enterprise 
communities, or enterprise zones.
    ``(b) Recycled Products.--To the maximum extent practicable 
consistent with applicable law, the head of an executive agency shall 
purchase recycled products that meet the needs of the executive agency 
from businesses located in empowerment zones, enterprise communities, 
or enterprise zones.
    ``(c) Regulations.--The Federal Acquisition Regulations shall 
include provisions that ensure the attainment of the minimum purchase 
requirement set out in subsection (a).
    ``(d) Definitions.--In this section:
            ``(1) The term `empowerment zone' means a zone designated 
        as an empowerment zone pursuant to subchapter U of chapter 1 of 
        the Internal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).
            ``(2) The term `enterprise community' means a community 
        designated as an enterprise community pursuant to subchapter U 
        of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 
        1391 et seq.).
            ``(3) The term `enterprise zone' has the meaning given such 
        term in section 701(a)(1) of the Housing and Community 
        Development Act of 1987 (42 U.S.C. 11501(a)(1)).''.
    (b) Effective Date.--Section 29 of the Office of Federal 
Procurement Policy Act, as added by subsection (a), shall take effect 
on the date of the enactment of this Act and shall apply with respect 
to fiscal years beginning after September 30, 1995.

SEC. 102. MINIMUM ALLOCATION OF FOREIGN ASSISTANCE FOR PURCHASE OF 
              CERTAIN UNITED STATES GOODS.

    (a) Allocation of Assistance.--Notwithstanding any other provision 
of law, effective beginning with fiscal year 1996, not less than 15 
percent of United States assistance provided in a fiscal year shall be 
provided in the form of credits which may only be used for the purchase 
of United States goods produced, manufactured, or assembled in 
empowerment zones, enterprise communities, or enterprise zones within 
the United States.
    (b) United States Assistance.--As used in this section, the term 
``United States assistance'' means--
            (1) any assistance under the Foreign Assistance Act of 
        1961;
            (2) sales, or financing of sales under the Arms Export 
        Control Act; and
            (3) assistance and other activities under the Support for 
        East European Democracy (SEED) Act of 1989 (Public Law 101-179, 
        as amended).

SEC. 103. PREFERENCE FOR LOCATION OF MANUFACTURING OUTREACH CENTERS IN 
              URBAN AREAS.

    (a) Designation.--In designating an organization as a manufacturing 
outreach center under paragraph (1) of section 304(c) of the Stevenson-
Wydler Technology Innovation Act of 1980, the Secretary of Commerce 
shall, to the maximum extent practicable, designate organizations that 
are located in empowerment zones, enterprise communities, or enterprise 
zones.
    (b) Financial Assistance.--In utilizing a competitive, merit-based 
review process to determine the manufacturing outreach centers to which 
to provide financial assistance under paragraph (3) of such section, 
the Secretary shall give such additional preference to centers located 
in empowerment zones, enterprise communities, and enterprise zones as 
the Secretary determines appropriate in order to ensure the continuing 
existence of such centers in such zones.

SEC. 104. PREFERENCE FOR CONSTRUCTION AND IMPROVEMENT OF FEDERAL 
              FACILITIES IN DISTRESSED URBAN AREAS.

    (a) Preference.--Notwithstanding any other provision of law, in 
determining the location for the construction of a new facility of a 
department or agency of the Federal Government, in determining to 
improve an existing facility (including an improvement in lieu of such 
construction), or in determining the location to which to relocate 
functions of a department or agency, the head of the department or 
agency making the determination shall take affirmative action to 
construct or improve the facility, or to relocate the functions, in a 
distressed urban area.
    (b) Urban Impact Statement.--A determination to construct a new 
facility of a department or agency of the Federal Government, to 
improve an existing facility, or to relocate the functions of a 
department or agency may not be made until the head of the department 
or agency making the determination prepares and submits to the 
President a report that--
            (1) in the case of a facility to be constructed--
                    (A) identifies at least one distressed urban area 
                that is an appropriate location for the facility;
                    (B) describes the costs and benefits arising from 
                the construction and utilization of the facility in the 
                area, including the effects of such construction and 
                utilization on the rate of unemployment in the area; 
                and
                    (C) describes the effect on the economy of the area 
                of the closure or consolidation, if any, of Federal 
                facilities located in the area during the 10-year 
                period ending on the date of the report, including the 
                total number of Federal and non-Federal employment 
                positions terminated in the area as a result of such 
                closure or consolidation;
            (2) in the case of a facility to be improved that is not 
        located in a distressed urban area--
                    (A) identifies at least one facility located in a 
                distressed urban area that would serve as an 
                appropriate alternative location for the facility;
                    (B) describes the costs and benefits arising from 
                the improvement and utilization of the facility located 
                in such area as an alternative location for the 
                facility to be improved, including the effect of the 
                improvement and utilization of the facility so located 
                on the rate of unemployment in such area; and
                    (C) describes the effect on the economy of such 
                area of the closure or consolidation, if any, of 
                Federal facilities located in such area during the 10-
                year period ending on the date of the report, including 
                the total number of Federal and non-Federal employment 
                positions terminated in such area as a result of such 
                closure or consolidation;
            (3) in the case of a facility to be improved that is 
        located in a distressed urban area--
                    (A) describes the costs and benefits arising from 
                the improvement and continuing utilization of the 
                facility in the area, including the effect of such 
                improvement and continuing utilization on the rate of 
                unemployment in the area; and
                    (B) describes the effect on the economy of the area 
                of the closure or consolidation, if any, of Federal 
                facilities located in the area during the 10-year 
                period ending on the date of the report, including the 
                total number of Federal and non-Federal employment 
                positions terminated in the area as a result of such 
                closure or consolidation; or
            (4) in the case of a relocation of functions--
                    (A) identifies at least one distressed urban area 
                that would serve as an appropriate location for the 
                carrying out of the functions;
                    (B) describes the costs and benefits arising from 
                carrying out the functions in the area, including the 
                effect of carrying out the functions on the rate of 
                unemployment in the area; and
                    (C) describes the effect on the economy of the area 
                of the closure or consolidation, if any, of Federal 
                facilities located in the area during the 10-year 
                period ending on the date of the report, including the 
                total number of Federal and non-Federal employment 
                positions terminated in the area as a result of such 
                closure or consolidation.
    (c) Applicability to Department of Defense Facilities.--The 
requirements set forth in subsections (a) and (b) shall apply to a 
determination to construct or improve any facility of the Department of 
Defense, or to relocate any functions of the Department, unless the 
President determines that the waiver of the application of such 
requirements to the facility, or to such relocation, is in the national 
interest.
    (d) Definition.--In this section, the term ``distressed urban 
area'' means any city having a population of more than 100,000 that 
meets (as determined by the Secretary of Housing and Urban Development) 
the qualifications for a distressed community that are otherwise 
established for large cities and urban counties under section 
570.452(c) of title 24, Code of Federal Regulations.

SEC. 105. DEFINITIONS.

    As used in this title:
            (1) The term ``empowerment zone'' means a zone designated 
        as an empowerment zone pursuant to subchapter U of chapter 1 of 
        the Internal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).
            (2) The term ``enterprise community'' means a community 
        designated as an enterprise community pursuant to subchapter U 
        of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 
        1391 et seq.).
            (3) The term ``enterprise zone'' has the meaning given such 
        term in section 701(a)(1) of the Housing and Community 
        Development Act of 1987 (42 U.S.C. 11501(a)(1)).

    TITLE II--TAX INCENTIVES TO STIMULATE URBAN ECONOMIC DEVELOPMENT

SEC. 201. TREATMENT OF REHABILITATION CREDIT UNDER PASSIVE ACTIVITY 
              LIMITATIONS.

    (a) General Rule.--Paragraphs (2) and (3) of section 469(i) of the 
Internal Revenue Code of 1986 (relating to $25,000 offset for rental 
real estate activities) are amended to read as follows:
            ``(2) Dollar limitations.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the aggregate amount to which paragraph 
                (1) applies for any taxable year shall not exceed 
                $25,000 reduced (but not below zero) by 50 percent of 
                the amount (if any) by which the adjusted gross income 
                of the taxpayer for the taxable year exceeds $100,000.
                    ``(B) Phaseout not applicable to low-income housing 
                credit.--In the case of the portion of the passive 
                activity credit for any taxable year which is 
                attributable to any credit determined under section 
                42--
                            ``(i) subparagraph (A) shall not apply, and
                            ``(ii) paragraph (1) shall not apply to the 
                        extent that the deduction equivalent of such 
                        portion exceeds--
                                    ``(I) $25,000, reduced by
                                    ``(II) the aggregate amount of the 
                                passive activity loss (and the 
                                deduction equivalent of any passive 
                                activity credit which is not so 
                                attributable and is not attributable to 
                                the rehabilitation credit determined 
                                under section 47) to which paragraph 
                                (1) applies after the application of 
                                subparagraph (A).
                    ``(C) $55,500 limit for rehabilitation credits.--In 
                the case of the portion of the passive activity credit 
                for any taxable year which is attributable to the 
                rehabilitation credit determined under section 47--
                            ``(i) subparagraph (A) shall not apply, and
                            ``(ii) paragraph (1) shall not apply to the 
                        extent that the deduction equivalent of such 
                        portion exceeds--
                                    ``(I) $55,500, reduced by
                                    ``(II) the aggregate amount of the 
                                passive activity loss (and the 
                                deduction equivalent of any passive 
                                activity credit which is not so 
                                attributable) to which paragraph (1) 
                                applies for the taxable year after the 
                                application of subparagraphs (A) and 
                                (B).
            ``(3) Adjusted gross income.--For purposes of paragraph 
        (2)(A), adjusted gross income shall be determined without 
        regard to--
                    ``(A) any amount includable in gross income under 
                section 86,
                    ``(B) any amount excludable from gross income under 
                section 135,
                    ``(C) any amount allowable as a deduction under 
                section 219, and
                    ``(D) any passive activity loss.''.
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 469(i)(4) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
                    ``(B) Reduction for surviving spouse's exemption.--
                For purposes of subparagraph (A), the $25,000 amounts 
                under paragraph (2)(A) and (2)(B)(ii) and the $55,500 
                amount under paragraph (2)(C)(ii) shall each be reduced 
                by the amount of the exemption under paragraph (1) 
                (determined without regard to the reduction contained 
                in paragraph (2)(A)) which is allowable to the 
                surviving spouse of the decedent for the taxable year 
                ending with or within the taxable year of the 
                estate.''.
            (2) Subparagraph (A) of section 469(i)(5) of such Code is 
        amended by striking clauses (i), (ii), and (iii) and inserting 
        the following:
                            ``(i) `$12,500' for `$25,000' in 
                        subparagraphs (A) and (B)(ii) of paragraph (2),
                            ``(ii) `$50,000' for `$100,000' in 
                        paragraph (2)(A)'', and
                            ``(iii) `$27,750' for `$55,500' in 
                        paragraph (2)(C)(ii).''.
            (3) The subsection heading for subsection (i) of section 
        469 of such Code is amended by striking ``$25,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service on or after the date of the 
enactment of this Act, in taxable years ending on or after such date.

SEC. 202. REHABILITATION CREDIT ALLOWED TO OFFSET PORTION OF 
              ALTERNATIVE MINIMUM TAX.

    (a) In General.--Section 38(c) of the Internal Revenue Code of 1986 
(relating to limitation based on amount of tax) is amended by 
redesignating paragraph (2) as paragraph (3) and by inserting after 
paragraph (1) the following new paragraph:
            ``(2) Rehabilitation investment credit may offset portion 
        of minimum tax.--
                    ``(A) In general.--In the case of the 
                rehabilitation investment tax credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit, 
                        and
                            ``(ii) for purposes of applying paragraph 
                        (1) to such credit--
                                    ``(I) the tentative minimum tax 
                                under subparagraph (A) thereof shall be 
                                reduced by the minimum tax offset 
                                amount determined under subparagraph 
                                (B) of this paragraph, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the 
                                rehabilitation investment tax credit).
                    ``(B) Minimum tax offset amount.--For purposes of 
                subparagraph (A)(ii)(I), the minimum tax offset amount 
                is an amount equal to--
                            ``(i) in the case of a taxpayer not 
                        described in clause (ii), the lesser of--
                                    ``(I) 25 percent of the tentative 
                                minimum tax for the taxable year, or
                                    ``(II) $20,000, or
                            ``(ii) in the case of a C corporation other 
                        than a closely held C corporation (as defined 
                        in section 469(j)(1)), 5 percent of the 
                        tentative minimum tax for the taxable year.
                    ``(C) Rehabilitation investment tax credit.--For 
                purposes of this paragraph, the term `regular 
                investment tax credit' means the portion of the credit 
                under subsection (a) which is attributable to the 
                credit determined under section 47.''.
    (b) Conforming Amendment.--Section 38(d) of the Internal Revenue 
Code of 1986 (relating to components of investment credit) is amended 
by adding at the end the following new paragraph:
            ``(4) Special rule for rehabilitation credit.--
        Notwithstanding paragraphs (1) and (2), the rehabilitation 
        investment tax credit (as defined in subsection (c)(2)(C)) 
        shall be treated as used last.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 203. COMMERCIAL INDUSTRIAL DEVELOPMENT BONDS.

    (a) Facility Bonds.--
            (1) In general.--Subsection (a) of section 142 of the 
        Internal Revenue Code of 1986 (relating to exempt facility 
        bond) is amended by striking ``or'' at the end of paragraph 
        (11), by striking the period at the end of paragraph (12) and 
        inserting a comma, and by adding at the end the following new 
        paragraphs:
            ``(13) sports facilities,
            ``(14) convention or trade show facilities,
            ``(15) freestanding parking facilities,
            ``(16) air or water pollution control facilities, or
            ``(17) industrial parks.''.
            (2) Industrial parks defined.--Section 142 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new subsection:
    ``(k) Industrial Parks.--A facility shall be treated as described 
in subsection (a)(17) only if all of the property to be financed by the 
net proceeds of the issue--
            ``(1) is--
                    ``(A) land, and
                    ``(B) water, sewage, drainage, or similar 
                facilities, or transportation, power, or communication 
                facilities incidental to the use of such land as an 
                industrial park, and
            ``(2) is not structures or buildings (other than with 
        respect to facilities described in paragraph (1)(B)).''.
            (3) Conforming amendments.--
                    (A) Section 147(c) of the Internal Revenue Code of 
                1986 (relating to limitation on use for land 
                acquisition) is amended by adding at the end the 
                following new paragraph:
            ``(4) Special rule for industrial parks.--In the case of a 
        bond described in section 142(a)(17), paragraph (1)(A) shall be 
        applied by substituting `50 percent' for `25 percent'.''.
                    (B) Section 147(e) of such Code (relating to no 
                portion of bonds may be issued for skyboxes, airplanes, 
                gambling establishments, etc.) is amended by striking 
                ``A private activity bond'' and inserting ``Except in 
                the case of a bond described in section 142(a)(13), a 
                private activity bond''.
    (b) Small Issue Bonds.--Section 144(a)(12) of the Internal Revenue 
Code of 1986 (relating to termination of qualified small issue bonds) 
is amended--
            (1) by striking ``any bond'' in subparagraph (A)(i) and 
        inserting ``any bond described in subparagraph (B)'',
            (2) by striking ``a bond'' in subparagraph (A)(ii) and 
        inserting ``a bond described in subparagraph (B)'', and
            (3) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Bonds for farming purposes.--A bond is 
                described in this subparagraph if it is issued as part 
                of an issue 95 percent or more of the net proceeds of 
                which are to be used to provide any land or property 
                not in accordance with section 147(c)(2).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 1995.

SEC. 204. INCREASE IN AMOUNT OF QUALIFIED SMALL ISSUE BONDS PERMITTED 
              FOR FACILITIES TO BE USED BY RELATED PRINCIPAL USERS.

    (a) In General.--Clause (i) of section 144(a)(4)(A) of the Internal 
Revenue Code of 1986 (relating to $10,000,000 limit in certain cases) 
is amended by striking ``$10,000,000'' and inserting ``$50,000,000''.
    (b) Clerical Amendment.--The heading of paragraph (4) of section 
144(a) of the Internal Revenue Code of 1986 is amended by striking 
``$10,000,000'' and inserting ``$50,000,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to--
            (1) obligations issued after the date of the enactment of 
        this Act, and
            (2) capital expenditures made after such date with respect 
        to obligations issued on or before such date.

SEC. 205. SIMPLIFICATION OF ARBITRAGE INTEREST REBATE WAIVER.

    (a) In General.--Clause (ii) of section 148(f)(4)(C) of the 
Internal Revenue Code of 1986 (relating to exception from rebate for 
certain proceeds to be used to finance construction expenditures) is 
amended to read as follows:
                            ``(ii) Spending requirement.--The spending 
                        requirement of this clause is met if 100 
                        percent of the available construction proceeds 
                        of the construction issue are spent for the 
                        governmental purposes of the issue within the 
                        3-year period beginning on the date the bonds 
                        are issued.''.
    (b) Conforming Amendments.--
            (1) Clause (iii) of section 148(f)(4)(C) of the Internal 
        Revenue Code of 1986 (relating to exception for reasonable 
        retainage) is repealed.
            (2) Subclause (II) of section 148(f)(4)(C)(vi) of such Code 
        (relating to available construction proceeds) is amended by 
        striking ``2-year period'' and inserting ``3-year period''.
            (3) Subclause (I) of section 148(f)(4)(C)(vii) of such Code 
        (relating to election to pay penalty in lieu of rebate) is 
        amended by striking ``, with respect to each 6-month period 
        after the date the bonds were issued,'' and ``, as of the close 
        of such 6-month period,''.
            (4) Clause (viii) of section 148(f)(4)(C) of such Code 
        (relating to election to terminate 1\1/2\ percent penalty) is 
        amended by striking ``to any 6-month period'' in the matter 
        preceding subclause (I).
            (5) Clause (ii) of section 148(c)(2)(D) of such Code 
        (relating to bonds used to provide construction financing) is 
        amended by striking ``2 years'' and inserting ``3 years''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

             TITLE III--COMMUNITY-BASED HOUSING DEVELOPMENT

SEC. 301. BLOCK GRANT STUDY.

    (a) In General.--The Secretary of Housing and Urban Development 
shall conduct a study regarding--
            (1) the feasibility of consolidating existing public and 
        low-income housing programs under the United States Housing Act 
        of 1937 into a comprehensive block grant system of Federal aid 
        that--
                    (A) provides assistance on an annual basis;
                    (B) maximizes funding certainty and flexibility; 
                and
                    (C) minimizes paperwork and delay; and
            (2) the possibility of administering future public and low-
        income housing programs under the United States Housing Act of 
        1937 in accordance with such a block grant system.
    (b) Report to Comptroller General.--Not later than 18 months after 
the date of enactment of this Act, the Secretary of Housing and Urban 
Development shall submit to the Comptroller General of the United 
States a report that includes--
            (1) the results of the study conducted under subsection 
        (a); and
            (2) any recommendations for legislation.
    (c) Report to Congress.--Not later than 24 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Congress a report that includes--
            (1) an analysis of the report submitted under subsection 
        (b); and
            (2) any recommendations for legislation.

SEC. 302. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    Section 18(b)(3) of the United States Housing Act of 1937 (42 
U.S.C. 1437p(b)(3)) is amended--
            (1) in subparagraph (G), by striking ``and'' at the end;
            (2) in subparagraph (H), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(I) provides, subject to the approval of both the 
                unit of general local government in which the property 
                on which the units to be demolished or disposed of are 
                located and the local public housing agency, for--
                            ``(i) the eventual reconstruction of units 
                        on the same property on which the units to be 
                        demolished or disposed of are located; and
                            ``(ii) the ultimate relocation of displaced 
                        tenants to that property;''.

          TITLE IV--RESPONSE TO URBAN ENVIRONMENTAL CHALLENGES

                   Subtitle A--Environmental Cleanup

SEC. 401. EXEMPTION FROM LIABILITY FOR LOCAL GOVERNMENTS THAT ARE 
              OWNERS OR OPERATORS OF FACILITIES IN DISTRESSED URBAN 
              AREAS.

    Section 101 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601) is amended--
            (1) in paragraph (20), by adding at the end the following:
                    ``(E) Exclusion of distressed urban areas.--The 
                term `owner or operator' does not include a unit of 
                local government for a distressed urban area that--
                            ``(i) purchased real property, in the 
                        distressed urban area, on or in which a 
                        facility is located;
                            ``(ii) purchased the property to further 
                        the redevelopment of the property for 
                        industrial activities;
                            ``(iii) did not conduct or permit the 
                        generation, transportation, storage, treatment, 
                        or disposal of any hazardous substance at the 
                        facility; and
                            ``(iv) did not contribute to the release or 
                        threat of release of a hazardous substance at 
                        the facility through any action or omission.''; 
                        and
            (2) by adding at the end the following new paragraphs:
            ``(39) Distressed urban area.--The term `distressed urban 
        area' has the meaning given the term in section 104(d) of the 
        New Urban Agenda Act of 1995.
            ``(40) Industrial activity.--The term `industrial activity' 
        means commercial, manufacturing, or any other activity carried 
        out to further the development, manufacturing, or distribution 
        of goods and services, including administration, research and 
        development, warehousing, shipping, transport, remanufacturing, 
        and repair and maintenance of commercial machinery and 
        equipment.''.

SEC. 402. STANDARDS FOR REMEDIATION IN DISTRESSED URBAN AREAS.

    Section 121 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9621) is amended by 
adding at the end the following:
    ``(g) Facilities in Distressed Urban Areas.--
            ``(1) Identification.--The President shall identify the 
        facilities on the National Priorities List that are located in 
        distressed urban areas.
            ``(2) Study and report.--The President shall conduct, 
        directly or by grant or contract, a study of appropriate 
        response actions for facilities located in distressed urban 
        areas. In conducting the study, the President shall examine the 
        appropriate degree of cleanup of hazardous substances, 
        pollutants, and contaminants released into the environment at 
        such a facility, and the appropriate considerations for the 
        selection of a response action at such a facility.
            ``(3) Standards.--Notwithstanding any other provision of 
        this Act, the President shall by regulation establish standards 
        for the degree of cleanup described in paragraph (2), and the 
        considerations described in paragraph (2), for such a facility. 
        In establishing the standards, the President shall take into 
        consideration the results of the study described in paragraph 
        (2).''.

              Subtitle B--Environmental-Economic Recovery

SEC. 411. FINDINGS.

    Congress finds that--
            (1) plants such as the SEMASS plant in Rochester, 
        Massachusetts, and the Wheelabrator plant in Baltimore, 
        Maryland, provide an effective and efficient means of disposing 
        of solid waste and obtaining inexpensive electrical power and 
        steam; and
            (2) the availability of such plants in a community will 
        attract energy intensive industry to the community, increasing 
        the tax base and strengthening the economy of the community.

SEC. 412. DEFINITIONS.

    As used in this subtitle:
            (1) Distressed urban area.--The term ``distressed urban 
        area'' has the meaning given the term in section 104(d).
            (2) Energy intensive industry.--The term ``energy intensive 
        industry'' means an industry that consumes more than 25,000 
        BTUs per dollar of value added, as determined by the Secretary.
            (3) Fully operational.--The term ``fully operational'' 
        means at least 90 percent operational, determined by averaging 
        the percentage of solid waste intake capacity achieved and the 
        percentage of electric output capacity achieved.
            (4) Market rate.--The term ``market rate'' means the 
        applicable rate for retail bulk power sales made by the 
        electric utility within the service territory concerned.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Solid waste.--The term ``solid waste'' has the meaning 
        given the term in section 1004(27) of the Solid Waste Disposal 
        Act (42 U.S.C. 6903(27)).

SEC. 413. LOAN AUTHORITY.

    (a) Loans.--
            (1) In general.--The Secretary shall make not more than 3 
        loans to units of local government for distressed urban areas 
        for the establishment of facilities described in section 414.
            (2) Priority.--In making one of the loans, the Secretary 
        shall give priority to a unit of local government that 
        demonstrates that the unit of local government will establish 
        the facility through a contract or agreement with an 
        organization that has demonstrated an ability to oversee and 
        manage the creation of a comprehensive, national, strategic, 
        energy intensive, environmental industry initiative.
    (b) Authority To Borrow.--
            (1) In general.--Subject to paragraphs (2), (3), and (4), 
        and notwithstanding any other provision of law, the Secretary 
        may borrow from the Treasury such funds as the Secretary 
        determines to be necessary to make loans under this section.
            (2) Amounts.--The Secretary may borrow funds under 
        paragraph (1) if amounts sufficient to pay for the cost, as 
        defined in section 502(5) of the Congressional Budget Act of 
        1974 (2 U.S.C. 661a(5)), of the loan involved are provided in 
        advance in appropriation Acts.
            (3) Terms.--Subject to paragraph (4), the Secretary may 
        borrow the funds on such terms as may be established by the 
        Secretary and the Secretary of the Treasury.
            (4) Interest.--The rate of interest to be charged in 
        connection with a loan made under paragraph (1) shall be not 
        less than a rate determined by the Secretary of the Treasury, 
        taking into consideration current market yields on outstanding 
        marketable obligations of the United States of comparable 
        maturities.

SEC. 414. FACILITY.

    Each facility referred to in section 413--
            (1) shall produce electric power, or steam, from solid 
        waste;
            (2) shall have 2 boilers and be capable of expansion;
            (3) shall be located in a distressed urban area in the 
        United States;
            (4) shall provide electricity or steam to energy intensive 
        industry customers at no more than 40 percent of the market 
        rate for electricity;
            (5) may provide electricity to public entities or light 
        industry, but not to residential consumers; and
            (6) shall obtain a continuing supply of feedstock 
        sufficient to sustain maximum operational capability through 
        long-term contracts with municipal and other governmental 
        sources.

SEC. 415. REINVESTMENT OF SAVINGS.

    (a) In General.--Any energy intensive industry customer obtaining 
electricity or steam from the facility described in section 414 shall--
            (1) invest in equipment, physical plant, or increased 
        employment at least 7 percent of the saving gained by such 
        customer; and
            (2) from the saving gained by such customer, make payments 
        to the Secretary, in an amount determined by the Secretary to 
        be appropriate, to assist in repaying the funds borrowed by the 
        Secretary under section 413 and the costs associated with 
        borrowing the funds.
    (b) Definition.--As used in this section, the term ``saving'', used 
with respect to a customer obtaining electricity or steam from a 
facility described in section 414, means an amount equal to--
            (1) the cost of obtaining an amount of such electricity or 
        steam from other sources during a period of time; minus
            (2) the cost of obtaining the same amount of such 
        electricity or steam from the facility during such period.

SEC. 416. REPORT TO CONGRESS.

    (a) Report.--Not later than 1 year after the facilities described 
in section 414 become fully operational, the Secretary shall prepare 
and submit to Congress a report containing a recommendation concerning 
whether the Federal Government should make additional loans similar to 
the loans authorized by this subtitle.
    (b) Analysis.--Such recommendation shall be based on analysis of 
the Secretary concerning whether the loans made under this subtitle 
have resulted in--
            (1) the creation of jobs in the communities in which the 
        facilities are located due to the relocation of energy 
        intensive industry;
            (2) the effective disposal of solid waste; and
            (3) easier and less expensive production of electricity and 
        steam.
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