II 

Calendar No. 38 

112TH CONGRESS 

1ST SESSION S. 782 

[Report No. 112–15] 

To amend the Public Works and Economic Development Act of 1965 to 

reauthorize that Act, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 8, 2011 

Mrs. BOXER (for herself, Mr. INHOFE, Mr. BAUCUS, Mr. MERKLEY, and Mrs. 

GILLIBRAND) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works 

MAY 2, 2011 

Reported by Mrs. BOXER, with an amendment 

[Insert the part printed in italic] 

A BILL 

To amend the Public Works and Economic Development 

Act of 1965 to reauthorize that Act, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Economic Development 

5 Revitalization Act of 2011’’. 


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1 SEC. 2. FINDINGS AND DECLARATIONS. 

2 Section 2 of the Public Works and Economic Devel3 opment Act of 1965 (42 U.S.C. 3121) is amended— 

4 (1) in subsection (a)(3)(C), by inserting ‘‘, in5 cluding the location of information technology and 

6 manufacturing jobs in the United States’’ after ‘‘in7 vestment’’; and 

8 (2) in subsection (b), by striking paragraph (3) 

9 and inserting the following: 

10 ‘‘(3) whether suffering from long-term distress 

11 or a sudden economic dislocation, distressed commu12 nities should be encouraged to promote innovation 

13 and entrepreneurship, including, as appropriate, the 

14 support of the formation of business incubators in 

15 economically distressed areas, so as to help regions 

16 to create higher-skill, higher-wage jobs and foster 

17 the participation of those regions in the global mar18 ketplace; and’’. 

19 SEC. 3. DEFINITIONS. 

20 Section 3(8) of the Public Works and Economic De21 velopment Act of 1965 (42 U.S.C. 3122(8)) is amended— 

22 (1) in subparagraph (C), by striking ‘‘and’’ at 

23 the end; 

24 (2) in subparagraph (D), by striking the period 

25 at the end and inserting ‘‘; and’’; and 

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


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1 ‘‘(E) the Southeast Crescent Regional 

2 Commission established by section 15301(a)(1) 

3 of title 40, United States Code; 

4 ‘‘(F) the Northern Border Regional Com5 mission established by section 15301(a)(3) of 

6 title 40, United States Code; and 

7 ‘‘(G) the Southwest Border Regional Com8 mission established by section 15301(a)(2) of 

9 title 40, United States Code.’’. 

10 SEC. 4. ECONOMIC DEVELOPMENT PARTNERSHIPS. 

11 Section 101 of the Public Works and Economic De12 velopment Act of 1965 (42 U.S.C. 3131) is amended— 

13 (1) in subsection (b)— 

14 (A) in the matter preceding paragraph (1), 

15 by inserting ‘‘economic development districts, 

16 university centers,’’ after ‘‘multi-State regional 

17 organizations,’’; 

18 (B) by striking paragraph (2) and insert19 ing the following: 

20 ‘‘(2) encourage and support public-private part21 nerships for the formation and improvement of re22 gional economic development strategies that sustain 

23 and promote innovation and entrepreneurship that is 

24 critical to economic competitiveness across the 

25 United States; and’’; and 


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1 (C) in paragraph (3), by inserting ‘‘, inno2 vation, entrepreneurship, beneficial develop3 ment,’’ after ‘‘infrastructure’’; and 

4 (2) in subsection (c), by inserting ‘‘(including 

5 economic development districts)’’ after ‘‘local govern6 ment agencies’’. 

7 SEC. 5. ENCOURAGEMENT OF CERTAIN COORDINATION. 

8 Section 102 of the Public Works and Economic De9 velopment Act of 1965 (42 U.S.C. 3132) is amended— 

10 (1) by striking ‘‘In accordance with’’ and in11 serting the following: 

12 ‘‘(a) IN GENERAL.—In accordance with’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(b) GOVERNMENTAL COOPERATION.— 

15 ‘‘(1) IN GENERAL.—The Secretary is authorized 

16 and encouraged to consult and cooperate with other 

17 agencies, including representatives of the Federal 

18 Government, State and local governments, and con19 sortia of governmental organizations, that can assist 

20 in addressing challenges and capitalize on opportuni21 ties that require intergovernmental coordination. 

22 ‘‘(2) LABOR.—In carrying out paragraph (1), 

23 the Secretary shall cooperate with the Secretary of 

24 Labor to support economic and workforce developVerDate Mar 15 2010 22:51 May 02, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S782.RS S782

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1 ment strategies and the promotion of regional inno2 vation clusters.’’. 

3 SEC. 6. ADDITIONAL SUPPORT FOR ENTERPRISE DEVELOP4 MENT ORGANIZATIONS WITHIN THE PUBLIC 

5 WORKS PROGRAM. 

6 Section 201(a) of the Public Works and Economic 

7 Development Act of 1965 (42 U.S.C. 3141) is amended— 

8 (1) in paragraph (1), by striking ‘‘and’’ at the 

9 end; 

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

11 the end and inserting ‘‘; and’’; and 

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

13 ‘‘(3) other activities the conduct of which the 

14 Secretary determines would be necessary or useful to 

15 support the establishment and operation of those fa16 cilities on an ongoing basis, including— 

17 ‘‘(A) related planning, technical assistance, 

18 and business development assistance to enable 

19 the recipient to bring together regional assets 

20 and encourage entrepreneurial development; 

21 and 

22 ‘‘(B) to the extent needed to support entre23 preneurial development, revolving loan funds 

24 pursuant to section 209.’’. 


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1 SEC. 7. GRANTS FOR PLANNING AND GRANTS FOR ADMIN2 ISTRATIVE EXPENSES. 

3 Section 203 of the Public Works and Economic De4 velopment Act of 1965 (42 U.S.C. 3143) is amended— 

5 (1) in subsection (b)— 

6 (A) in paragraph (3), by striking ‘‘and’’ at 

7 the end; and 

8 (B) by striking paragraph (4) and insert9 ing the following: 

10 ‘‘(4) formulating and implementing an economic 

11 development program that includes systematic ef12 forts to reduce unemployment and increase incomes 

13 by fostering innovation and entrepreneurship; 

14 ‘‘(5) fostering regional collaboration among 

15 local jurisdictions and organizations; and 

16 ‘‘(6) facilitating a stakeholder process that as17 sists the community or region in creating an eco18 nomic development vision that takes into account 

19 local and regional assets (including natural, social, 

20 community, and geographical resources) and global 

21 economic change.’’; 

22 (2) in subsection (d)— 

23 (A) in paragraph (4)— 

24 (i) in subparagraph (E), by striking 

25 ‘‘and’’ at the end; 


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1 (ii) in subparagraph (F), by striking 

2 the period at the end and inserting ‘‘; 

3 and’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(G) support development practices that— 

7 ‘‘(i) enhance energy and water effi8 ciency; 

9 ‘‘(ii) reduce the dependence of the 

10 United States on foreign oil; and 

11 ‘‘(iii) encourage efficient coordination 

12 and leveraging of public and private invest13 ments.’’; and 

14 (B) in paragraph (5), by striking ‘‘sub15 section shall’’ and all that follows through the 

16 end of the paragraph and inserting the fol17 lowing: ‘‘subsection shall— 

18 ‘‘(A) submit to the Secretary an annual re19 port on the planning process assisted under this 

20 subsection; and 

21 ‘‘(B) provide a copy of each annual report 

22 to each economic development district within 

23 the State.’’; and 

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


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1 ‘‘(e) ADDITIONAL AMOUNTS TO ADDRESS SEVERE

2 NEED.—In determining the amount of funds to provide 

3 a recipient for planning assistance under this section, the 

4 Secretary shall take into account those recipients located 

5 in regions that are— 

6 ‘‘(1) eligible for an investment rate of 80 per7 cent or higher; or 

8 ‘‘(2) experiencing severe need due to long-term 

9 economic deterioration or sudden and severe eco10 nomic distress. 

11 ‘‘(f) ENCOURAGING PLANNING ASSISTANCE ON A

12 BROADER REGIONAL SCALE.—In order to encourage dis13 trict organizations to develop regional economic competi14 tiveness strategies on a broader basis in collaboration with 

15 other district organizations and entities outside the con16 fines of a single economic development district, the Sec17 retary may increase— 

18 ‘‘(1) the Federal share otherwise applicable to 

19 the recipients; or 

20 ‘‘(2) the amount of Federal assistance to the 

21 recipients.’’. 

22 SEC. 8. COST SHARING. 

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

24 Works and Economic Development Act of 1965 (42 

25 U.S.C. 3144(a)) is amended by striking ‘‘shall not exVerDate Mar 15 2010 22:51 May 02, 2011 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S782.RS S782

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1 ceed—’’ and all that follows through the end of the sub2 section and inserting ‘‘shall not exceed 50 percent, except 

3 as otherwise expressly provided in this Act.’’. 

4 (b) INCREASE IN FEDERAL SHARE.—Section 204(c) 

5 of the Public Works and Economic Development Act of 

6 1965 (42 U.S.C. 3144(c)) is amended— 

7 (1) by redesignating paragraphs (1) through 

8 (3) as paragraphs (2) through (4), respectively; 

9 (2) by inserting before paragraph (2) (as redes10 ignated by paragraph (1)) the following: 

11 ‘‘(1) RELATIVE NEEDS OF AN AREA.— 

12 ‘‘(A) 150-PERCENT HIGHER UNEMPLOY13 MENT RATE.—In the case of a grant made in 

14 an area for which the 24-month unemployment 

15 rate is at least 150 percent of the national aver16 age or the per capita income is not more than 

17 70 percent of the national average, the Sec18 retary may increase the Federal share above the 

19 percentage specified in subsection (a) up to 60 

20 percent of the cost of the project. 

21 ‘‘(B) 175-PERCENT HIGHER UNEMPLOY22 MENT RATE.—In the case of a grant made in 

23 an area for which the 24-month unemployment 

24 rate is at least 175 percent of the national aver25 age or the per capita income is not more than 


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1 60 percent of the national average, the Sec2 retary may increase the Federal share above the 

3 percentage specified in subsection (a) up to 70 

4 percent of the cost of the project. 

5 ‘‘(C) 200-PERCENT HIGHER UNEMPLOY6 MENT RATE.—In the case of a grant made in 

7 an area for which the 24-month unemployment 

8 rate is at least 200 percent of the national aver9 age or the per capita income is not more than 

10 50 percent of the national average, the Sec11 retary may increase the Federal share above the 

12 percentage specified in subsection (a) up to 80 

13 percent of the cost of the project. 

14 ‘‘(D) ADDITIONAL CRITERIA.—The Sec15 retary may establish eligibility criteria in addi16 tion to the criteria described in this paragraph 

17 to address areas impacted by severe outmigra18 tion, sudden and severe economic dislocations, 

19 and other economic circumstances, on the con20 dition that a Federal share established for such 

21 eligibility criteria shall not exceed 80 percent.’’; 

22 (3) in paragraph (2) (as redesignated by para23 graph (1))— 

24 (A) by striking ‘‘may’’ and inserting 

25 ‘‘shall’’; and 


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1 (B) by inserting ‘‘to 75 percent of the cost 

2 of the project, and may increase’’ after ‘‘sub3 section (a)’’; and 

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

5 ‘‘(5) FEDERALLY DECLARED DISASTER

6 AREAS.—In the case of a grant for an area with re7 spect to which a major disaster or emergency has 

8 been declared under the Robert T. Stafford Disaster 

9 Relief and Emergency Assistance Act (42 U.S.C. 

10 5121 et seq.) during the 18-month period ending on 

11 the date on which the Federal share is determined, 

12 the Secretary may increase the Federal share above 

13 the percentage specified in subsection (a) up to 100 

14 percent of the cost of the project.’’. 

15 SEC. 9. GRANTS FOR TRAINING, RESEARCH, AND TECH16 NICAL ASSISTANCE. 

17 Section 207(a) of the Public Works and Economic 

18 Development Act of 1965 (42 U.S.C. 3147(a)) is amend19 ed— 

20 (1) in paragraph (1), by striking ‘‘or under21 employment’’ and inserting ‘‘, outmigration, or 

22 underemployment, or in assisting in the location of 

23 information technology and manufacturing jobs in 

24 the United States’’; and 

25 (2) in paragraph (2)— 


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1 (A) in subparagraph (H), by striking 

2 ‘‘and’’ at the end; 

3 (B) by redesignating subparagraph (I) as 

4 subparagraph (J); and 

5 (C) by inserting after subparagraph (H) 

6 the following: 

7 ‘‘(I) a peer exchange program to promote 

8 industry-leading practices and innovations relat9 ing to the organizational development, program 

10 delivery, and regional initiatives of economic de11 velopment districts; and’’. 

12 SEC. 10. ENHANCEMENT OF RECIPIENT FLEXIBILITY TO 

13 DEAL WITH PROJECT ASSETS. 

14 (a) PARTICULAR COMMUNITY ASSISTANCE.—Section 

15 209(c) of the Public Works and Economic Development 

16 Act of 1965 (42 U.S.C. 3149(c)) is amended— 

17 (1) in the matter preceding paragraph (1), by 

18 striking ‘‘injured’’ and inserting ‘‘impacted’’; 

19 (2) by striking paragraph (1) and inserting the 

20 following: 

21 ‘‘(1) military base closures, realignments, or 

22 mission growth, defense contractor reductions in 

23 force, or Department of Energy defense-related 

24 funding reductions, for help in— 


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1 ‘‘(A) diversifying the economies of the 

2 communities; or 

3 ‘‘(B) otherwise supporting the economic 

4 adjustment activities of the Secretary of De5 fense through projects to be carried out on Fed6 eral Government installations or elsewhere in 

7 the communities;’’; and 

8 (3) by striking paragraph (5) and inserting the 

9 following: 

10 ‘‘(5) the loss of information technology, manu11 facturing, natural resource-based, agricultural, or 

12 service sector jobs, for reinvesting in and diversi13 fying the economies of the communities.’’. 

14 (b) REVOLVING LOAN FUND PROGRAM FLEXI15 BILITY.—Section 209(d) of the Public Works and Eco16 nomic Development Act of 1965 (42 U.S.C. 3149(d)) is 

17 amended— 

18 (1) by redesignating paragraphs (2) through 

19 (4) as paragraphs (3) through (5), respectively; 

20 (2) by inserting after paragraph (1) the fol21 lowing: 

22 ‘‘(2) COMMENTS.— 

23 ‘‘(A) IN GENERAL.—The Secretary shall 

24 periodically solicit from the individuals and en25 tities described in subparagraph (B)— 


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1 ‘‘(i) comments regarding the guide2 lines and performance requirements for the 

3 revolving loan fund program; and 

4 ‘‘(ii) recommendations for improving 

5 the performance of the program and grant6 ees under the program. 

7 ‘‘(B) DESCRIPTION OF INDIVIDUALS AND

8 ENTITIES.—The individuals and entities re9 ferred to in subparagraph (A) are— 

10 ‘‘(i) the public; and 

11 ‘‘(ii) in particular, revolving loan fund 

12 grantees, national experts, and employees 

13 of Federal agencies with knowledge of 

14 international, national, regional, and state15 wide trends, innovations, and noteworthy 

16 practices relating to business development 

17 finance, including public and private lend18 ing and technical assistance inter19 mediaries.’’; 

20 (3) in subparagraph (A) of paragraph (5) (as 

21 redesignated by paragraph (1)), by striking ‘‘para22 graph (2)(C)’’ and inserting ‘‘paragraph (3)(C)’’; 

23 and 

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

25 ‘‘(6) CONVERSION OF PROJECT ASSETS.— 


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1 ‘‘(A) REQUEST.—If a recipient determines 

2 that a revolving loan fund established using as3 sistance provided under this section is no longer 

4 needed, or that the recipient could make better 

5 use of the assistance in light of the current eco6 nomic development needs of the recipient if the 

7 assistance was made available to carry out any 

8 other project that meets the requirements of 

9 this Act, the recipient may submit to the Sec10 retary a request to approve the conversion of 

11 the assistance. 

12 ‘‘(B) METHODS OF CONVERSION.—A re13 cipient request to convert assistance that is ap14 proved under subparagraph (A) may accomplish 

15 the conversion by— 

16 ‘‘(i) selling to a third party any assets 

17 of the applicable revolving loan fund; or 

18 ‘‘(ii) retaining repayments of principal 

19 and interest amounts on loans provided 

20 through the applicable revolving loan fund. 

21 ‘‘(C) REQUIREMENTS.— 

22 ‘‘(i) SALE.— 

23 ‘‘(I) IN GENERAL.—Subject to 

24 subclause (II), a recipient shall use 

25 the net proceeds from a sale of assets 


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1 under subparagraph (B)(i) to pay any 

2 portion of the costs of 1 or more 

3 projects that meet the requirements of 

4 this Act. 

5 ‘‘(II) TREATMENT.—For pur6 poses of subclause (I), a project de7 scribed in that subclause shall be con8 sidered to be eligible under section 

9 301. 

10 ‘‘(ii) RETENTION OF REPAYMENTS.— 

11 Retention by a recipient of any repayment 

12 under subparagraph (B)(ii) shall be carried 

13 out in accordance with a strategic reuse 

14 plan approved by the Secretary that pro15 vides for the increase of capital over time 

16 until sufficient amounts (including interest 

17 earned on the amounts) are accumulated 

18 to fund other projects that meet the re19 quirements of this Act. 

20 ‘‘(D) TERMS AND CONDITIONS.—The Sec21 retary may require such terms and conditions 

22 regarding a proposed conversion of the use of 

23 assistance under this paragraph as the Sec24 retary determines to be appropriate. 


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1 ‘‘(E) EXPEDIENCY REQUIREMENT.—The 

2 Secretary shall ensure that any assistance in3 tended to be converted for use pursuant to this 

4 paragraph is used in an expeditious manner. 

5 ‘‘(7) PROGRAM ADMINISTRATION.—The Sec6 retary may allocate not more than 2 percent of the 

7 amounts made available for grants under this sec8 tion for the development and maintenance of an 

9 automated tracking and monitoring system to ensure 

10 the proper operation and financial integrity of the 

11 revolving loan program established under this sec12 tion.’’. 

13 SEC. 11. RENEWABLE ENERGY PROGRAM. 

14 Section 218 of the Public Works and Economic De15 velopment Act of 1965 (42 U.S.C. 3154d) is amended— 

16 (1) by striking subsection (a) and inserting the 

17 following: 

18 ‘‘(a) DEFINITION OF RENEWABLE ENERGY SITE.— 

19 In this section, the term ‘renewable energy site’ means a 

20 brownfield site that is redeveloped through the incorpora21 tion of 1 or more renewable energy technologies, including, 

22 but not limited to, solar, wind, and geothermal tech23 nologies.’’; 

24 (2) in subsection (b)— 


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1 (A) in the matter preceding paragraph (1), 

2 by striking ‘‘brightfield’’ and inserting ‘‘renew3 able energy’’; and 

4 (B) in paragraph (1), by striking ‘‘solar 

5 energy technologies’’ and inserting ‘‘renewable 

6 energy technologies, including, but not limited 

7 to, solar, wind, and geothermal technologies’’; 

8 and 

9 (3) in subsection (d), by striking ‘‘2004 through 

10 2008’’ and inserting ‘‘2011 through 2015’’. 

11 SEC. 12. ENERGY EFFICIENCY AND ECONOMIC DEVELOP12 MENT. 

13 (a) AMENDMENT.—Title II of the Public Works and 

14 Economic Development Act of 1965 (42 U.S.C. 3141 et 

15 seq.) is amended by adding at the end the following: 

16 ‘‘SEC. 219. ENERGY EFFICIENCY AND ECONOMIC DEVELOP17 MENT. 

18 ‘‘In administering programs under this Act, the Sec19 retary shall support activities that employ economic devel20 opment practices that— 

21 ‘‘(1) enhance energy and water efficiency; and 

22 ‘‘(2) reduce the dependence of the United 

23 States on foreign oil.’’. 

24 (b) TECHNICAL AMENDMENT.—The table of contents 

25 of the Public Works and Economic Development Act of 


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1 1965 (42 U.S.C. 3121 et seq.) is amended by adding after 

2 section 218 the following: 

‘‘Sec. 219. Energy efficiency and economic development.’’. 

3 SEC. 13. COMPREHENSIVE ECONOMIC DEVELOPMENT 

4 STRATEGIES IMPROVEMENTS. 

5 Section 302 of the Public Works and Economic De6 velopment Act of 1965 (42 U.S.C. 3162) is amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (1), by inserting ‘‘and 

9 opportunities’’ after ‘‘problems’’; 

10 (B) in paragraph (2), by striking ‘‘and pri11 vate’’ and inserting ‘‘, private, and nonprofit’’; 

12 and 

13 (C) in paragraph (3)— 

14 (i) in subparagraph (A)— 

15 (I) by inserting ‘‘and opportuni16 ties’’ after ‘‘economic problems’’; 

17 (II) by striking ‘‘promotes the 

18 use’’ and inserting ‘‘promotes the ef19 fective use’’; and 

20 (III) by striking ‘‘balances’’ and 

21 inserting ‘‘optimizes’’; and 

22 (ii) in subparagraph (B), by inserting 

23 ‘‘and take advantage of the opportunities’’ 

24 before the period at the end; and 


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1 (2) in subsection (c)(1), by inserting ‘‘, State, 

2 or locally’’ after ‘‘federally’’. 

3 SEC. 14. DESIGNATION OF ECONOMIC DEVELOPMENT DIS4 TRICTS. 

5 Section 401 of the Public Works and Economic De6 velopment Act of 1965 (42 U.S.C. 3171) is amended by 

7 adding at the end the following: 

8 ‘‘(c) OPERATIONS.— 

9 ‘‘(1) IN GENERAL.—Each economic develop10 ment district shall engage in the full range of eco11 nomic development activities included in the list con12 tained in the comprehensive economic development 

13 strategy of the economic development district that 

14 has been approved by the Economic Development 

15 Administration, including— 

16 ‘‘(A) coordinating and implementing eco17 nomic development activities in the economic 

18 development district; 

19 ‘‘(B) carrying out economic development 

20 research, planning, implementation, and advi21 sory functions identified in the comprehensive 

22 economic development strategy; and 

23 ‘‘(C) coordinating the development and im24 plementation of the comprehensive economic deVerDate Mar 15 2010 22:51 May 02, 2011 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S782.RS S782

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1 velopment strategy with other Federal, State, 

2 local, and private organizations. 

3 ‘‘(2) CONTRACTS.—An economic development 

4 district may elect to enter into contracts for services 

5 to accomplish the activities described in paragraph 

6 (1).’’. 

7 SEC. 15. CONSULTATION WITH OTHER PERSONS AND AGEN8 CIES. 

9 Section 503(a) of the Public Works and Economic 

10 Development Act of 1965 (42 U.S.C. 3193(a)) is amended 

11 by inserting ‘‘, outmigration,’’ after ‘‘regional unemploy12 ment’’. 

13 SEC. 16. NOTIFICATION OF REORGANIZATION. 

14 Section 507 of the Public Works and Economic De15 velopment Act of 1965 (42 U.S.C. 3197) is amended— 

16 (1) by striking ‘‘Not later than’’ and inserting 

17 the following: 

18 ‘‘(a) NOTIFICATION.—Not later than’’; and 

19 (2) by adding at the end the following: 

20 ‘‘(b) STATE OF MONTANA.—The State of Montana 

21 shall be served by the Seattle office of the Economic De22 velopment Administration.’’. 


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1 SEC. 17. ADMINISTRATIVE EXPENSES. 

2 Section 604(c)(2) of the Public Works and Economic 

3 Development Act of 1965 (42 U.S.C. 3214(c)(2)) is 

4 amended— 

5 (1) in subparagraph (A), by striking ‘‘and’’ at 

6 the end; 

7 (2) by redesignating subparagraph (B) as sub8 paragraph (C); and 

9 (3) by inserting after subparagraph (A) the fol10 lowing: 

11 ‘‘(B) may be used for administrative ex12 penses incident to the projects associated with 

13 the transfers to the extent that the expenses do 

14 not exceed— 

15 ‘‘(i) 3 percent, in the case of projects 

16 not involving construction; and 

17 ‘‘(ii) 5 percent, in the case of projects 

18 involving construction; and’’. 

19 SEC. 18. MAINTENANCE OF EFFORT. 

20 Title VI of the Public Works and Economic Develop21 ment Act of 1965 (42 U.S.C. 3211 et seq.) is amended 

22 by adding at the end the following: 

23 ‘‘SEC. 613. MAINTENANCE OF EFFORT. 

24 ‘‘(a) EXPECTED PERIOD OF BEST EFFORTS.— 

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1 ance for a construction project under this Act, the 

2 Secretary shall establish the expected period during 

3 which the recipient of the assistance shall make best 

4 efforts to achieve the economic development objec5 tives of the assistance. 

6 ‘‘(2) TREATMENT OF PROPERTY.—To obtain 

7 the best efforts of a recipient during the period es8 tablished under paragraph (1), during that period— 

9 ‘‘(A) any property that is acquired or im10 proved, in whole or in part, using investment 

11 assistance under this Act shall be held in trust 

12 by the recipient for the benefit of the project; 

13 and 

14 ‘‘(B) the Secretary shall retain an undi15 vided equitable reversionary interest in the 

16 property. 

17 ‘‘(3) TERMINATION OF FEDERAL INTEREST.— 

18 ‘‘(A) IN GENERAL.—Beginning on the date 

19 on which the Secretary determines that a recipi20 ent has fulfilled the obligations of the recipient 

21 for the applicable period under paragraph (1), 

22 taking into consideration the economic condi23 tions existing during that period, the Secretary 

24 may terminate the reversionary interest of the 


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1 Secretary in any applicable property under 

2 paragraph (2)(B). 

3 ‘‘(B) ALTERNATIVE METHOD OF TERMI4 NATION.— 

5 ‘‘(i) IN GENERAL.—On a determina6 tion by a recipient that the economic devel7 opment needs of the recipient have 

8 changed during the period beginning on 

9 the date on which investment assistance 

10 for a construction project is provided 

11 under this Act and ending on the expira12 tion of the expected period established for 

13 the project under paragraph (1), the re14 cipient may submit to the Secretary a re15 quest to terminate the reversionary inter16 est of the Secretary in property of the 

17 project under paragraph (2)(B) before the 

18 date described in subparagraph (A). 

19 ‘‘(ii) APPROVAL.—The Secretary may 

20 approve a request of a recipient under 

21 clause (i) if— 

22 ‘‘(I) in any case in which the re23 quest is submitted during the 10-year 

24 period beginning on the date on which 

25 assistance is initially provided under 


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1 this Act for the applicable project, the 

2 recipient repays to the Secretary an 

3 amount equal to 100 percent of the 

4 fair market value of the pro rata Fed5 eral share of the project; or 

6 ‘‘(II) in any case in which the re7 quest is submitted after the expiration 

8 of the 10-year period described in sub9 clause (I), the recipient repays to the 

10 Secretary an amount equal to the fair 

11 market value of the pro rata Federal 

12 share of the project as if that value 

13 had been amortized over the period 

14 established under paragraph (1), 

15 based on a straight-line depreciation 

16 of the project throughout the esti17 mated useful life of the project. 

18 ‘‘(b) TERMS AND CONDITIONS.—The Secretary may 

19 establish such terms and conditions under this section as 

20 the Secretary determines to be appropriate, including by 

21 extending the period of a reversionary interest of the Sec22 retary under subsection (a)(2)(B) in any case in which the 

23 Secretary determines that the performance of a recipient 

24 is unsatisfactory. 


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1 ‘‘(c) PREVIOUSLY EXTENDED ASSISTANCE.—With 

2 respect to any recipient to which the term of provision of 

3 assistance was extended under this Act before the date 

4 of enactment of this section, the Secretary may approve 

5 a request of the recipient under subsection (a) in accord6 ance with the requirements of this section to ensure uni7 form administration of this Act, notwithstanding any esti8 mated useful life period that otherwise relates to the as9 sistance. 

10 ‘‘(d) CONVERSION OF USE.—If a recipient of assist11 ance under this Act demonstrates to the Secretary that 

12 the intended use of the project for which assistance was 

13 provided under this Act no longer represents the best use 

14 of the property used for the project, the Secretary may 

15 approve a request by the recipient to convert the property 

16 to a different use for the remainder of the term of the 

17 Federal interest in the property, subject to the condition 

18 that the new use shall be consistent with the purposes of 

19 this Act. 

20 ‘‘(e) STATUS OF AUTHORITY.—The authority of the 

21 Secretary under this section is in addition to any authority 

22 of the Secretary pursuant to any law or grant agreement 

23 in effect on the date of enactment of this section.’’. 


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1 SEC. 19. EXTENSION OF AUTHORIZATION OF APPROPRIA2 TIONS. 

3 Section 701(a) of the Public Works and Economic 

4 Development Act of 1965 (42 U.S.C. 3231(a)) is amended 

5 by striking ‘‘expended—’’ and all that follows through 

6 paragraph (5) and inserting ‘‘expended, $500,000,000 for 

7 each of fiscal years 2011 through 2015.’’. 

8 SEC. 20. FUNDING FOR GRANTS FOR PLANNING AND 

9 GRANTS FOR ADMINISTRATIVE EXPENSES. 

10 Section 704 of the Public Works and Economic De11 velopment Act of 1965 (42 U.S.C. 3234) is amended to 

12 read as follows: 

13 ‘‘SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND 

14 GRANTS FOR ADMINISTRATIVE EXPENSES. 

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

16 amounts made available under section 701 for each fiscal 

17 year, there shall be made available to provide grants under 

18 section 203 an amount equal to not less than the lesser 

19 of— 

20 ‘‘(1) 12 percent; and 

21 ‘‘(2) $31,000,000. 

22 ‘‘(b) SUBJECT TO TOTAL APPROPRIATIONS.—For 

23 any fiscal year, the amount made available pursuant to 

24 subsection (a) shall be increased to— 

25 ‘‘(1) if the total amount made available under 

26 section 701(a) for the fiscal year is equal to or 


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1 greater than $291,000,000, an amount equal to the 

2 greater of— 

3 ‘‘(A) $32,000,000; and 

4 ‘‘(B) 11 percent of the total amount made 

5 available under section 701(a) for the fiscal 

6 year; 

7 ‘‘(2) if the total amount made available under 

8 section 701(a) for the fiscal year is equal to or 

9 greater than $330,000,000, an amount equal to the 

10 greater of— 

11 ‘‘(A) $33,000,000; and 

12 ‘‘(B) 10 percent of the total amount made 

13 available under section 701(a) for the fiscal 

14 year; 

15 ‘‘(3) if the total amount made available under 

16 section 701(a) for the fiscal year is equal to or 

17 greater than $340,000,000, an amount equal to the 

18 greater of— 

19 ‘‘(A) $34,000,000; and 

20 ‘‘(B) 10 percent of the total amount made 

21 available under section 701(a) for the fiscal 

22 year; or 

23 ‘‘(4) if the total amount made available under 

24 section 701(a) for the fiscal year is equal to or 


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1 greater than $350,000,000, an amount equal to the 

2 greater of— 

3 ‘‘(A) $35,000,000; and 

4 ‘‘(B) 10 percent of the total amount made 

5 available under section 701(a) for the fiscal 

6 year.’’. 

7 SEC. 21. REPORT ON DUPLICATIVE PROGRAMS. 

8 Not later than 90 days after the date of enactment of 

9 this Act, the Government Accountability Office shall submit 

10 to the Committee on Environment and Public Works of the 

11 Senate a report that describes a list of the specific programs 

12 and portions of specific programs of other Federal agencies 

13 that are duplicative of programs or portions of programs 

14 administered by the Economic Development Administra15 tion, including the programs or portions of programs car16 ried out by— 

17 (1) the Department of Housing and Urban De18 velopment; 

19 (2) the Department of Agriculture; and 

20 (3) the Small Business Administration. 


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Calendar No. 38 

112TH CONGRESS 

1ST SESSION S. 782 

[Report No. 112–15] 

A BILL 

To amend the Public Works and Economic Develfor other purposes. opment Act of 1965 to reauthorize that Act, and 

MAY 2, 2011 

Reported with an amendment 


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