IB 

Union Calendar No. 390 

111TH CONGRESS 

2D SESSION H. R. 5897 

[Report No. 111–652, Part I] 

To reauthorize and improve programs and activities carried out under the 

Public Works and Economic Development Act of 1965, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2010 

Mr. OBERSTAR (for himself, Ms. NORTON, Mr. RAHALL, Mr. FILNER, Ms. 

EDDIE BERNICE JOHNSON of Texas, Mr. CUMMINGS, Mr. BISHOP of 

New York, Mr. CARNAHAN, Ms. HIRONO, Mr. ARCURI, Mr. KAGEN, Ms. 

RICHARDSON, Mr. HARE, and Mr. JOHNSON of Georgia) introduced the 

following bill; which was referred to the Committee on Transportation 

and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

SEPTEMBER 29, 2010 

Additional sponsor: Mr. MICHAUD

SEPTEMBER 29, 2010 

Reported from the Committee on Transportation and Infrastructure with an 

amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

SEPTEMBER 29, 2010 

Committee on Financial Services discharged; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on July 28, 2010] 


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A BILL 

To reauthorize and improve programs and activities carried 

out under the Public Works and Economic Development 

Act of 1965, and for other purposes. 


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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; TABLE OF CONTENTS. 

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

5 ‘‘Economic Revitalization and Innovation Act of 2010’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. Amendments to Public Works and Economic Development Act of 1965. 

Sec. 3. Findings and declarations. 

Sec. 4. Definitions. 

TITLE I—ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION 

AND COORDINATION 

Sec. 101. Establishment of economic development partnerships. 

Sec. 102. Encouragement of certain coordination. 

Sec. 103. Coordination with respect to high-speed rail. 

TITLE II—GRANTS FOR PUBLIC WORKS AND ECONOMIC 

DEVELOPMENT 

Sec. 201. Grants for public works and economic development. 

Sec. 202. Grants for planning and grants for administrative expenses. 

Sec. 203. Cost sharing. 

Sec. 204. Grants for training, research, and technical assistance. 

Sec. 205. Financial assistance for business incubators and science and research 

parks. 

Sec. 206. Grants for economic adjustment. 

Sec. 207. Sustainable economic development demonstration program. 

Sec. 208. Job creation goals. 

Sec. 209. Prohibition with respect to use of assistance. 

TITLE III—ELIGIBILITY; COMPREHENSIVE ECONOMIC 

DEVELOPMENT STRATEGIES 

Sec. 301. Eligibility of areas. 

Sec. 302. Comprehensive economic development strategies. 

TITLE IV—ECONOMIC DEVELOPMENT DISTRICTS 

Sec. 401. Designation of economic development districts. 

Sec. 402. Termination or modification of economic development districts. 

TITLE V—ADMINISTRATION 

Sec. 501. Consultation with other persons and agencies. 

Sec. 502. Performance evaluations of grant recipients. 

Sec. 503. Economic development representatives. 

Sec. 504. Limitation on certain positions. 


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TITLE VI—MISCELLANEOUS 

Sec. 601. Annual report to Congress. 

Sec. 602. Maintenance of effort. 

TITLE VII—FUNDING 

Sec. 701. General authorization of appropriations. 

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

Sec. 703. Funding for financial assistance for business incubators and science 

and research parks. 

Sec. 704. Funding for sustainable economic development demonstration program. 

Sec. 705. Funding for grants for training, research, and technical assistance. 

1 SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC 

2 DEVELOPMENT ACT OF 1965. 

3 Except as otherwise expressly provided, whenever in 

4 this Act an amendment or repeal is expressed in terms of 

5 an amendment to, or a repeal of, a section or other provi6 sion, the reference shall be considered to be made to a section 

7 or other provision of the Public Works and Economic Devel8 opment Act of 1965 (42 U.S.C. 3121 et seq.). 

9 SEC. 3. FINDINGS AND DECLARATIONS. 

10 (a) FINDINGS.—Section 2(a) (42 U.S.C. 3121(a)) is 

11 amended to read as follows: 

12 ‘‘(a) FINDINGS.—Congress finds that— 

13 ‘‘(1) sustainable economic growth in the 21st 

14 century depends upon economic development strate15 gies that include investment in essential infrastruc16 ture that fosters innovation, entrepreneurship, and 

17 competition in the global marketplace; 

18 ‘‘(2) there continue to be areas of the United 

19 States experiencing chronic high unemployment, 


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1 underemployment, outmigration, and low per capita 

2 income, as well as areas facing sudden and severe eco3 nomic dislocations due to structural economic 

4 changes, increasing international competition, certain 

5 Federal actions (including defense-related facility clo6 sures and realignment and actions required to coun7 teract the depletion of natural resources), and natural 

8 disasters; 

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

10 programs is to raise the standard of living for all 

11 citizens and increase the wealth and overall rate of 

12 growth of the economy by encouraging regions and 

13 communities to develop a more competitive and diver14 sified economic base, including by— 

15 ‘‘(A) expanding economic opportunities, in16 creasing international competitiveness, and cre17 ating a climate supportive of job creation and 

18 business development; 

19 ‘‘(B) creating an environment that promotes 

20 public infrastructure investments that maximize 

21 sustainable development practices; 

22 ‘‘(C) promoting private sector job creation 

23 through increased innovation, productivity, and 

24 entrepreneurship; and 


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1 ‘‘(D) empowering local and regional com2 munities experiencing chronic high unemploy3 ment, underemployment, outmigration, and low 

4 per capita income to develop private sector busi5 ness and attract increased domestic and foreign 

6 private sector capital investment, including 

7 through the location of information technology, 

8 agribusiness, alternative energy, manufacturing, 

9 and bioscience jobs in the United States and the 

10 relocation of such jobs to the United States; 

11 ‘‘(4) economic growth in the States, including in 

12 both cities and rural areas, can best be promoted by 

13 helping communities invest in regional strategies that 

14 build upon unique competitive advantages and are 

15 designed to foster innovation and entrepreneurship in 

16 all segments of the community’s economy; 

17 ‘‘(5) while economic development is an inher18 ently local process, the Federal Government should 

19 work in partnership with public and private organi20 zations at the State, regional, tribal, and local levels 

21 to maximize the impact of existing resources and en22 able regions, communities, and citizens to participate 

23 more fully in the American dream and national pros24 perity; 


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1 ‘‘(6) in order to avoid duplication of effort and 

2 achieve meaningful, long-lasting results, Federal, 

3 State, tribal, and local economic development activi4 ties should have a clear focus, improved coordination, 

5 a comprehensive approach, and simplified and con6 sistent requirements; and 

7 ‘‘(7) Federal economic development efforts will be 

8 more effective if the efforts are coordinated with, and 

9 build upon, the trade, workforce investment, higher 

10 education, transportation, energy, environmental pro11 tection, and technology programs of the United 

12 States.’’. 

13 (b) DECLARATIONS.—Section 2(b) (42 U.S.C. 3121(b)) 

14 is amended to read as follows: 

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

16 and growing economy throughout the United States, Con17 gress declares that— 

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

19 available to distressed communities in both rural and 

20 urban areas; 

21 ‘‘(2) local communities should work in partner22 ship with neighboring communities, economic develop23 ment districts, States, Indian tribes, institutions of 

24 higher education, national security laboratories, the 

25 private sector, and the Federal Government to inVerDate Mar 15 2010 20:36 Sep 29, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H5897.RH H5897

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1 crease the capacity of those local communities to de2 velop and implement comprehensive economic devel3 opment strategies to alleviate economic distress and 

4 enhance competitiveness in the global economy, in5 cluding national security laboratories; 

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

7 a sudden dislocation, distressed communities should 

8 be encouraged to take affirmative steps to promote in9 novation and entrepreneurship, including through the 

10 formation of business incubators, to help create higher 

11 skill, higher wage jobs and foster the participation of 

12 those distressed communities in the global market13 place; 

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

15 available to promote sustainable economic develop16 ment practices, to assist communities with the pro17 ductive reuse of abandoned industrial facilities and 

18 the redevelopment of brownfields, and to leverage sig19 nificant Federal investments in high-speed rail cor20 ridors and other transportation infrastructure; and 

21 ‘‘(5) research assistance under this Act should 

22 help regions across the United States leverage the eco23 nomic assets of those regions in a comprehensive man24 ner and should enhance the Economic Development 

25 Administration’s ability to provide an economic deVerDate Mar 15 2010 20:36 Sep 29, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H5897.RH H5897

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1 velopment framework to assist distressed communities 

2 and regions, with particular emphasis on revitalizing 

3 the manufacturing, agribusiness, and bioscience in4 dustries and the linkages between urban and rural 

5 communities.’’. 

6 SEC. 4. DEFINITIONS. 

7 Section 3(8) (42 U.S.C. 3122(8)) is amended— 

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

9 the end; 

10 (2) in subparagraph (D) by striking the period 

11 at the end and inserting a semicolon; and 

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

13 ‘‘(E) the Southeast Crescent Regional Com14 mission established under section 15301(a) of 

15 title 40, United States Code; 

16 ‘‘(F) the Northern Border Regional Com17 mission established under section 15301(a) of 

18 title 40, United States Code; and 

19 ‘‘(G) the Southwest Border Regional Com20 mission established under section 15301(a) of 

21 title 40, United States Code.’’. 


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1 TITLE I—ECONOMIC DEVELOP2 MENT PARTNERSHIPS CO3 OPERATION AND COORDINA4 TION 

5 SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT 

6 PARTNERSHIPS. 

7 (a) TECHNICAL ASSISTANCE.—Section 101(b) (42 

8 U.S.C. 3131(b)) is amended— 

9 (1) in the matter preceding paragraph (1) by in10 serting after ‘‘nonprofit organizations’’ the following: 

11 ‘‘, including economic development districts and uni12 versity centers,’’; and 

13 (2) by striking paragraphs (2) and (3) and in14 serting the following: 

15 ‘‘(2) encourage and support public-private part16 nerships for the formation and improvement of eco17 nomic development strategies, including regional 

18 strategies, that sustain and promote innovation and 

19 entrepreneurship that is critical to economic competi20 tiveness throughout the United States; and 

21 ‘‘(3) promote investment in infrastructure, inno22 vation, entrepreneurship, sustainable development, 

23 and technological capacity (including with respect to 

24 advanced technologies in all industry sectors) to keep 

25 pace with the changing global economy.’’. 


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1 (b) INTERGOVERNMENTAL REVIEW.—Section 101(c) 

2 (42 U.S.C. 3131(c)) is amended by inserting after ‘‘govern3 ment agencies’’ the following: ‘‘and appropriate economic 

4 development districts’’. 

5 SEC. 102. ENCOURAGEMENT OF CERTAIN COORDINATION. 

6 (a) IN GENERAL.—Title I (42 U.S.C. 3131 et seq.) is 

7 amended by adding at the end the following: 

8 ‘‘SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION. 

9 ‘‘In carrying out this Act, the Secretary is authorized 

10 and encouraged to consult and cooperate with any Federal, 

11 State, or local government agency or consortium of govern12 mental organizations that can assist in addressing chal13 lenges and capitalizing on opportunities that require co14 ordination, including the Department of Labor with respect 

15 to supporting economic and workforce development strate16 gies and promoting regional innovation clusters.’’. 

17 (b) CLERICAL AMENDMENT.—The table of contents in 

18 section 1(b) is amended by inserting after the item relating 

19 to section 103 the following: 

‘‘Sec. 104. Encouragement of certain coordination.’’. 

20 SEC. 103. COORDINATION WITH RESPECT TO HIGH-SPEED 

21 RAIL. 

22 (a) IN GENERAL.—Title I (42 U.S.C. 3131 et seq.), 

23 as amended by this Act, is further amended by adding at 

24 the end the following: 


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1 ‘‘SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED 

2 RAIL. 

3 ‘‘The Secretary shall coordinate activities carried out 

4 under this Act, as appropriate, with the Department of 

5 Transportation and other relevant Federal agencies, State 

6 and local governments, economic development districts, In7 dian tribes, and planning and development organizations 

8 to leverage and maximize the economic development poten9 tial of Federal investments in high-speed rail projects. In 

10 carrying out this section, the Secretary shall conduct studies 

11 and disseminate reports, as appropriate, with respect to 

12 high-speed rail projects.’’. 

13 (b) CLERICAL AMENDMENT.—The table of contents in 

14 section 1(b), as amended by this Act, is further amended 

15 by inserting after the item relating to section 104 the fol16 lowing: 

‘‘Sec. 105. Coordination with respect to high-speed rail.’’. 

17 TITLE II—GRANTS FOR PUBLIC 

18 WORKS AND ECONOMIC DE19 VELOPMENT 

20 SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DE21 VELOPMENT. 

22 Section 201(a)(1) (42 U.S.C. 3141(a)(1)) is amended 

23 by inserting after ‘‘development facility’’ the following: 

24 ‘‘(including a facility of a business incubator or a science 


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1 and research park (as such terms are defined in section 

2 208(a)))’’. 

3 SEC. 202. GRANTS FOR PLANNING AND GRANTS FOR ADMIN4 ISTRATIVE EXPENSES. 

5 (a) IN GENERAL.—Section 203(a) (42 U.S.C. 3143(a)) 

6 is amended by inserting after ‘‘administrative expenses’’ the 

7 following: ‘‘(including indirect costs determined eligible in 

8 an applicable Office of Management and Budget circular)’’. 

9 (b) PLANNING PROCESS.—Section 203(b) (42 U.S.C. 

10 3143(b)) is amended— 

11 (1) in paragraph (3) by striking ‘‘and’’ at the 

12 end; 

13 (2) in paragraph (4) by striking ‘‘and increase 

14 incomes.’’ and inserting ‘‘and systemic economic dis15 tress and increase incomes by fostering entrepreneur16 ship and innovation across all regional industry sec17 tors; and’’; and 

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

19 ‘‘(5) fostering regional collaboration.’’. 

20 (c) STATE PLANS.—Section 203(d)(4) (42 U.S.C. 

21 3143(d)(4)) is amended— 

22 (1) in the matter preceding subparagraph (A) by 

23 inserting after ‘‘public works’’ the following: ‘‘and 

24 other types of assistance’’; 


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1 (2) in subparagraph (C) by inserting after ‘‘en2 vironment’’ the following: ‘‘, including through effi3 cient energy production, utilization, and facility de4 velopment’’; 

5 (3) in subparagraph (E)— 

6 (A) by inserting after ‘‘use’’ the following: 

7 ‘‘and deployment’’; and 

8 (B) by striking ‘‘and’’ at the end; 

9 (4) in subparagraph (F) by striking the period 

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

11 (5) by adding at the end the following: 

12 ‘‘(G) support sustainable development prac13 tices and the efficient coordination and 

14 leveraging of public and private investments.’’. 

15 SEC. 203. COST SHARING. 

16 Section 204(c) (42 U.S.C. 3144(c)) is amended— 

17 (1) in paragraph (2) by inserting after ‘‘State or 

18 political subdivision’’ the following: ‘‘or that the Sec19 retary determines has been affected by substantial de20 clines in tax revenue’’; and 

21 (2) in paragraph (3)— 

22 (A) in the heading by striking ‘‘TRAINING’’ 

23 and inserting ‘‘PLANNING, TRAINING’’; 

24 (B) by striking ‘‘section 207’’ and inserting 

25 ‘‘section 203 or 207’’; and 


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1 (C) by inserting after ‘‘such an increase’’ 

2 the following: ‘‘or if grant supported activities 

3 will include regional planning to build on com4 petitive advantages available regionally’’. 

5 SEC. 204. GRANTS FOR TRAINING, RESEARCH, AND TECH6 NICAL ASSISTANCE. 

7 (a) GRANTS.—Section 207(a)(1) (42 U.S.C. 

8 3147(a)(1)) is amended by striking ‘‘or underemployment’’ 

9 and inserting ‘‘, underemployment, or outmigration’’. 

10 (b) TYPES OF ASSISTANCE.—Section 207(a)(2) (42 

11 U.S.C. 3147(a)(2)) is amended— 

12 (1) in subparagraph (D) by inserting after ‘‘cen13 ters’’ the following: ‘‘, with the goal that at least one 

14 university center is established in each State’’; and 

15 (2) by striking subparagraphs (H) and (I) and 

16 inserting the following: 

17 ‘‘(H) studies that evaluate the effectiveness 

18 of regional innovation clusters and determine 

19 best practices with respect to the support pro20 vided by entrepreneurial infrastructure, includ21 ing business incubators; 

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

23 best practices and innovation with respect to the 

24 organizational development, program delivery, 


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1 and regional initiatives of economic development 

2 districts; 

3 ‘‘(J) development and promotion of per4 formance measures and best practices with re5 spect to commercialization and entrepreneurship; 

6 ‘‘(K) developing or implementing county or 

7 municipal government efficiency assessments re8 lated to economic development or community vi9 ability; and 

10 ‘‘(L) other activities determined by the Sec11 retary to be appropriate.’’. 

12 (c) HIGH-SPEED RAIL.—Section 207(a) (42 U.S.C. 

13 3147(a)) is amended by adding at the end the following: 

14 ‘‘(4) HIGH-SPEED RAIL.—In making a grant 

15 under this subsection for the establishment of a uni16 versity center, the Secretary shall ensure, if appro17 priate, that the activities of the center will include 

18 conducting research and providing technical assist19 ance to leverage and maximize the economic develop20 ment potential of Federal investments in high-speed 

21 rail projects.’’. 

22 SEC. 205. FINANCIAL ASSISTANCE FOR BUSINESS INCUBA23 TORS AND SCIENCE AND RESEARCH PARKS. 

24 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.) 

25 is amended by inserting after section 207 the following: 


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1 ‘‘SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBA2 TORS AND SCIENCE AND RESEARCH PARKS. 

3 ‘‘(a) DEFINITIONS.—In this section, the following defi4 nitions apply: 

5 ‘‘(1) BUSINESS INCUBATOR.—The term ‘business 

6 incubator’ means a program established to foster the 

7 creation of new businesses and accelerate the growth 

8 of early-stage businesses by providing entrepreneurs 

9 and early-stage businesses with the resources and 

10 services to produce viable businesses that can help cre11 ate jobs in and restore vitality to communities. 

12 ‘‘(2) BUSINESS INCUBATOR DEVELOPMENT

13 PROJECT.—The term ‘business incubator development 

14 project’ means a project to construct or alter facilities 

15 for a business incubator, including the acquisition of 

16 real property necessary to carry out the construction 

17 or alteration. 

18 ‘‘(3) SCIENCE AND RESEARCH PARK.—The term 

19 ‘science and research park’ means a program that— 

20 ‘‘(A) includes property and buildings de21 signed primarily for— 

22 ‘‘(i) research and development activi23 ties conducted by public-private partners; 

24 ‘‘(ii) technology- and science-based 

25 businesses; or 


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1 ‘‘(iii) research and development sup2 port services; 

3 ‘‘(B) includes a contractual relationship 

4 with one or more institutions of higher education 

5 or government or nonprofit research laboratories, 

6 including national security laboratories; 

7 ‘‘(C) has a primary mission of— 

8 ‘‘(i) promoting research and develop9 ment through industry partnerships, assist10 ing the growth of new ventures, and pro11 moting innovation-driven economic develop12 ment; 

13 ‘‘(ii) facilitating the transfer of tech14 nology and business skills between research15 ers and industry teams; and 

16 ‘‘(iii) promoting technology-led eco17 nomic development for the community or 

18 region in which the program is located; and 

19 ‘‘(D) is owned by a government or nonprofit 

20 entity (although the government or nonprofit en21 tity may enter into partnerships or joint ven22 tures with for-profit entities to develop or man23 age specific components of the program). 

24 ‘‘(4) SCIENCE AND RESEARCH PARK DEVELOP25 MENT PROJECT.—The term ‘science and research park 


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1 development project’ means a project to construct or 

2 alter facilities for a science and research park, includ3 ing the acquisition of real property necessary to carry 

4 out the construction or alteration. 

5 ‘‘(b) FINANCIAL ASSISTANCE.—On the application of 

6 an eligible recipient, the Secretary may provide financial 

7 assistance in accordance with this section to assist the devel8 opment of business incubators and science and research 

9 parks. 

10 ‘‘(c) GRANTS FOR PLANS FOR SCIENCE AND RE11 SEARCH PARKS.— 

12 ‘‘(1) GRANT AUTHORITY.—In accordance with 

13 this subsection, the Secretary may award a grant to 

14 an eligible recipient for the development of a feasi15 bility study or development plan, or both, with re16 spect to a science and research park development 

17 project. 

18 ‘‘(2) AMOUNT OF A GRANT.—A grant awarded 

19 under paragraph (1) may not be in an amount that 

20 exceeds $750,000. 

21 ‘‘(3) SELECTION PROCESS.— 

22 ‘‘(A) SELECTION CRITERIA.—Not later than 

23 180 days after the date of enactment of the Eco24 nomic Revitalization and Innovation Act of 

25 2010, the Secretary shall publish the criteria to 


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1 be utilized for the selection of grant recipients 

2 under paragraph (1). 

3 ‘‘(B) COMPETITION REQUIRED.—The Sec4 retary shall award grants under paragraph (1) 

5 pursuant to a full and open competition. 

6 ‘‘(C) GEOGRAPHIC DIVERSITY.—In award7 ing grants under paragraph (1), the Secretary 

8 shall ensure, to the extent practicable, that grant 

9 recipients represent diverse geographic areas of 

10 the United States, including rural and urban 

11 areas. 

12 ‘‘(4) PROGRAM LIMIT.—The Secretary may not 

13 award, in the aggregate, more than $7,500,000 in 

14 grants under paragraph (1). 

15 ‘‘(d) LOAN GUARANTEES FOR BUSINESS INCUBATORS

16 AND SCIENCE AND RESEARCH PARKS.— 

17 ‘‘(1) GUARANTEE AUTHORITY.—In accordance 

18 with this subsection, the Secretary may guarantee a 

19 loan of an eligible recipient to assist the carrying out 

20 of a business incubator development project or a 

21 science and research park development project. 

22 ‘‘(2) GUARANTEE PERCENTAGE.—In guaran23 teeing a loan under paragraph (1), the Secretary may 

24 guarantee up to 80 percent of the principal amount 

25 of the loan. 


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1 ‘‘(3) SELECTION OF GUARANTEE RECIPIENTS.— 

2 ‘‘(A) CREDITWORTHINESS.—The Secretary 

3 may not guarantee a loan under paragraph (1) 

4 unless the Secretary has determined that there is 

5 a reasonable assurance of repayment with respect 

6 to the loan. 

7 ‘‘(B) GRANT RECIPIENTS.—A recipient of a 

8 grant under subsection (c) for the development of 

9 a feasability study or development plan, or both, 

10 is not eligible for a loan guarantee under para11 graph (1) until the recipient has completed the 

12 study or plan, or both, for which the grant was 

13 provided (as determined by the Secretary). 

14 ‘‘(4) TERM OF LOAN.—The term of a loan guar15 anteed under paragraph (1) may not exceed the lesser 

16 of— 

17 ‘‘(A) 30 years; or 

18 ‘‘(B) 90 percent of the useful life of any 

19 physical asset to be financed by such loan. 

20 ‘‘(5) SUBORDINATION.—An obligation relating to 

21 a loan guarantee under paragraph (1) may not be 

22 subordinated to another debt contracted by the bor23 rower or to any other claims against the borrower in 

24 the case of default. 


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1 ‘‘(6) OTHER TERMS AND CONDITIONS.—Except 

2 as otherwise specified in this subsection, a loan guar3 antee under paragraph (1) shall be subject to such 

4 terms and conditions as the Secretary may prescribe. 

5 ‘‘(7) REVIEW.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall pe7 riodically assess the risks associated with loans 

8 guaranteed under paragraph (1). 

9 ‘‘(B) COMPTROLLER GENERAL REPORT.— 

10 Not later than 2 years after the date of enact11 ment of the Economic Revitalization and Inno12 vation Act of 2010, the Comptroller General 

13 shall— 

14 ‘‘(i) conduct a comprehensive review of 

15 the program under this subsection; and 

16 ‘‘(ii) submit to Congress a report on 

17 the results of the review. 

18 ‘‘(8) PROGRAM LEVELS.—In carrying out para19 graph (1) during fiscal years 2011 through 2015, the 

20 Secretary may not guarantee loans in an amount 

21 that exceeds— 

22 ‘‘(A) $50,000,000 for a single project; 

23 ‘‘(B) $235,000,000 in a single fiscal year; 

24 and 

25 ‘‘(C) $500,000,000 in the aggregate.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents in 

2 section 1(b), as amended by this Act, is further amended 

3 by inserting after the item relating to section 207 the fol4 lowing: 

‘‘Sec. 208. Financial assistance for business incubators and science and research 

parks.’’. 

5 SEC. 206. GRANTS FOR ECONOMIC ADJUSTMENT. 

6 (a) IN GENERAL.—Section 209(a) (42 U.S.C. 3149(a)) 

7 is amended— 

8 (1) by inserting after ‘‘public facilities,’’ the fol9 lowing: ‘‘science and research park development 

10 projects (as defined in section 208(a)),’’; and 

11 (2) by inserting after ‘‘revolving loan fund’’ the 

12 following: ‘‘, a challenge grant, and operating support 

13 for business incubators (as defined in section 

14 208(a))’’. 

15 (b) PARTICULAR COMMUNITY ASSISTANCE.—Section 

16 209(c) (42 U.S.C. 3149(c)) is amended— 

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

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

19 (2) in paragraph (1)— 

20 (A) by striking ‘‘or realignments,’’ and in21 serting ‘‘, realignments, or mission growth,’’; and 

22 (B) by inserting after ‘‘their economies’’ the 

23 following: ‘‘or supporting the economic adjust24 ment activities of the Secretary of Defense’’; 


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1 (3) in paragraph (4) by striking ‘‘or’’ at the end; 

2 (4) in paragraph (5)— 

3 (A) by striking ‘‘manufacturing jobs’’ and 

4 inserting ‘‘manufacturing, information tech5 nology, natural resource, agricultural, or service 

6 sector jobs’’; and 

7 (B) by striking the period at the end and 

8 inserting ‘‘;’’; and 

9 (5) by adding at the end the following: 

10 ‘‘(6) a lack of technology infrastructure, includ11 ing inadequate access to broadband capacity suffi12 cient to support economic development objectives; 

13 ‘‘(7) an inability to utilize alternative means of 

14 energy production and distribution; or 

15 ‘‘(8) insufficient access to capital and credit nec16 essary for business retention and expansion, entrepre17 neurship, and innovation.’’. 

18 (c) SPECIAL PROVISIONS RELATING TO REVOLVING

19 LOAN FUND GRANTS.—Section 209(d) (42 U.S.C. 3149(d)) 

20 is amended— 

21 (1) in paragraph (2)— 

22 (A) by redesignating subparagraphs (B) 

23 and (C) as subparagraphs (C) and (D), respec24 tively; and 


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1 (B) by inserting after subparagraph (A) the 

2 following: 

3 ‘‘(B) at the request of a grantee, approve the 

4 transfer of all or a portion of the assets of a re5 volving loan fund of the grantee to another eligi6 ble recipient to assist in establishing or main7 taining a multiregion or national revolving loan 

8 fund;’’; and 

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

10 ‘‘(5) CONVERSION OF REVOLVING LOAN FUND AS11 SETS.— 

12 ‘‘(A) AUTHORITY.—At the request of a grant 

13 recipient, the Secretary may approve the use of 

14 the assets of a revolving loan fund established by 

15 the grant recipient with assistance under this 

16 section for another project, if— 

17 ‘‘(i) the project is eligible for assistance 

18 under this Act; and 

19 ‘‘(ii) the Secretary determines that the 

20 revolving loan fund is no longer necessary 

21 and the grant recipient, as a result of 

22 changed economic development needs, will 

23 make better use of the assets by carrying out 

24 the project. 


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1 ‘‘(B) METHODS OF CONVERSION.—If conver2 sion of a revolving loan fund is approved under 

3 subparagraph (A), the applicable grant recipient 

4 may convert the assets of the revolving loan fund 

5 by— 

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

7 of the revolving loan fund; or 

8 ‘‘(ii) retaining repayments of principal 

9 and interest amounts made on loans pro10 vided through the revolving loan fund. 

11 ‘‘(C) TERMS AND CONDITIONS.—Except as 

12 otherwise provided under this paragraph, the 

13 Secretary may establish such terms and condi14 tions with respect to the conversion of a revolv15 ing loan fund under this paragraph as the Sec16 retary determines appropriate. 

17 ‘‘(D) EXPEDIENCY REQUIREMENT.—The 

18 Secretary shall ensure that any assets of a re19 volving loan fund converted under this para20 graph are used in an expeditious manner. 

21 ‘‘(6) RELEASE.—The Secretary may release, sub22 ject to terms and conditions the Secretary determines 

23 appropriate, the Federal Government’s interest in a 

24 revolving loan fund established by a grant recipient 

25 with assistance under this section on or after the date 


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1 that is 7 years after the date on which the applicable 

2 grant was fully disbursed, if the Secretary determines 

3 that— 

4 ‘‘(A) the grant recipient has carried out the 

5 terms of the grant in a satisfactory manner; 

6 ‘‘(B) any proceeds realized after the release 

7 of the Federal Government’s interest will be used 

8 for one or more activities that carry out the eco9 nomic development purposes of this Act; and 

10 ‘‘(C) the grant recipient will continue to 

11 satisfy the requirements of section 602. 

12 ‘‘(7) EQUITY INVESTMENT DEMONSTRATION PRO13 GRAM.— 

14 ‘‘(A) AUTHORITY.— 

15 ‘‘(i) IN GENERAL.—To determine the 

16 feasibility and utility of providing equity 

17 investments through revolving loan funds es18 tablished by grant recipients with assistance 

19 under this section, the Secretary may au20 thorize, at the request of a grant recipient, 

21 the use of the capital base of a revolving 

22 loan fund for equity investments in busi23 nesses in need of capital to start up oper24 ations or expand operations beyond the 

25 startup phase. 


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1 ‘‘(ii) DEMONSTRATED CAPACITY.—Be2 fore authorizing a grant recipient to make 

3 equity investments under clause (i), the Sec4 retary shall determine that the grant recipi5 ent has the demonstrated capacity for en6 gaging in equity investments or will con7 tract with another company or organization 

8 with a proven track record with respect to 

9 equity investments. 

10 ‘‘(iii) PREFERENTIAL CONSIDER11 ATION.—In authorizing grant recipients to 

12 make equity investments under clause (i), 

13 the Secretary shall give preferential consid14 eration to requests from grant recipients 

15 that intend to focus their investment activi16 ties in support of business incubators (as 

17 defined in section 208(a)), companies com18 mercializing technologies in conjunction 

19 with institutions of higher education, 

20 science and research parks (as defined in 

21 section 208(a)), or technology or manufac22 turing companies relocating to the United 

23 States from outside the United States. 

24 ‘‘(iv) GEOGRAPHIC DIVERSITY.—In au25 thorizing grant recipients to make equity 


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1 investments under clause (i), the Secretary 

2 shall ensure, to the extent practicable, that 

3 grant recipients authorized represent diverse 

4 geographic areas of the United States, in5 cluding rural and urban areas. 

6 ‘‘(B) REQUIREMENTS.—In authorizing a 

7 grant recipient to make equity investments 

8 under subparagraph (A)(i), the Secretary shall 

9 ensure that— 

10 ‘‘(i) not more than 25 percent of the 

11 capital base of the revolving loan fund of 

12 the grant recipient will be used for equity 

13 investments; 

14 ‘‘(ii) the Federal share of the amount 

15 used for an equity investment made by the 

16 grant recipient will not exceed 50 percent; 

17 and 

18 ‘‘(iii) the total amount of the equity 

19 investments made by the grant recipient in 

20 any one business will not exceed $250,000. 

21 ‘‘(C) OTHER TERMS AND CONDITIONS.—Ex22 cept as otherwise provided in this paragraph, the 

23 Secretary may authorize grant recipients to 

24 make equity investments under subparagraph 


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1 (A)(i) subject to terms and conditions the Sec2 retary determines are appropriate. 

3 ‘‘(D) DISPOSITION OF EQUITY SECURI4 TIES.—In the event that the Secretary acquires 

5 equity securities as a result of a default by any 

6 party under any agreement relating to the terms 

7 of the Secretary’s extension of assistance under 

8 this paragraph, the Secretary shall liquidate the 

9 Federal interest in such securities as soon as pos10 sible and for such consideration as the Secretary 

11 determines appropriate. The Secretary may as12 sign or transfer the securities to a third party 

13 for purposes of liquidation and the third party 

14 may retain proceeds from the disposition of the 

15 securities to defray costs related to the liquida16 tion. 

17 ‘‘(E) DEFINITIONS.—In this paragraph the 

18 following definitions apply: 

19 ‘‘(i) CAPITAL BASE.—The term ‘capital 

20 base’ means the amount of the funding, 

21 from a grant under this section and from 

22 non-Federal sources, initially provided to 

23 establish a revolving loan fund under this 

24 section. 


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1 ‘‘(ii) EQUITY INVESTMENT.—The term 

2 ‘equity investment’ means an investment of 

3 funds in a business that results in the ac4 quisition of an equity security. 

5 ‘‘(iii) EQUITY SECURITY.—The term 

6 ‘equity security’ means an instrument that 

7 signifies an ownership interest in a busi8 ness.’’. 

9 SEC. 207. SUSTAINABLE ECONOMIC DEVELOPMENT DEM10 ONSTRATION PROGRAM. 

11 (a) IN GENERAL.—Section 218 (42 U.S.C. 3154d) is 

12 amended to read as follows: 

13 ‘‘SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEM14 ONSTRATION PROGRAM. 

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

16 recipient, the Secretary may provide technical assistance, 

17 make grants, enter into contracts, or otherwise provide 

18 funding for a project— 

19 ‘‘(1) to promote energy efficiency to enhance the 

20 economic competitiveness of an area; 

21 ‘‘(2) to increase the use of renewable energy tech22 nologies, including solar, wind, or geothermal tech23 nologies, to support sustainable economic development 

24 and job growth, with a priority given to projects that 


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1 incorporate photovoltaics or relate to agribusiness, in2 cluding in both urban and rural areas; 

3 ‘‘(3) to support energy efficiency or alternative 

4 energy development plans, studies, or analysis (in5 cluding with respect to job training, attraction, or re6 tention) to enhance a comprehensive economic devel7 opment strategy with respect to which funding has 

8 been provided under this Act; 

9 ‘‘(4) to support the efforts of a community to 

10 have a technology or manufacturing business located 

11 outside the United States relocate to the United 

12 States; and 

13 ‘‘(5) to supplement another project funded by a 

14 Federal grant, loan, or loan guarantee provided for a 

15 purpose described in paragraphs (1) through (4). 

16 ‘‘(b) FEDERAL SHARE.—Notwithstanding section 204, 

17 the Federal share of the cost of a project funded under this 

18 section— 

19 ‘‘(1) if described in paragraph (1), (2), (3), or 

20 (4) of subsection (a), shall not exceed 80 percent; and 

21 ‘‘(2) if described in subsection (a)(5), shall not 

22 exceed 100 percent. 

23 ‘‘(c) SOLICITATION OF APPLICATIONS.—Not later than 

24 60 days after a date on which funds are made available 


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1 to carry out this section, the Secretary shall solicit applica2 tions for assistance under this section.’’. 

3 (b) CLERICAL AMENDMENT.—The table of contents in 

4 section 1(b), as amended by this Act, is further amended 

5 by striking the item relating to section 218 and inserting 

6 the following: 

‘‘Sec. 218. Sustainable economic development demonstration program.’’. 

7 SEC. 208. JOB CREATION GOALS. 

8 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 

9 as amended by this Act, is further amended by adding at 

10 the end the following: 

11 ‘‘SEC. 219. JOB CREATION GOALS. 

12 ‘‘(a) IN GENERAL.—As a condition of the receipt of 

13 a grant under section 201, 205, or 209 or a loan guarantee 

14 under section 208, the recipient of the grant or loan guar15 antee shall enter into an agreement with the Secretary that 

16 establishes goals for the number of jobs to be created as a 

17 result of the projects and activities funded by the grant or 

18 loan guarantee. 

19 ‘‘(b) COMPLIANCE WITH GOALS.—The Secretary may 

20 take appropriate action to penalize a grant recipient who 

21 fails to satisfy job creation goals specified in an agreement 

22 under subsection (a).’’. 

23 (b) CLERICAL AMENDMENT.—The table of contents in 

24 section 1(b), as amended by this Act, is further amended 


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1 by inserting after the item relating to section 218 the fol2 lowing: 

‘‘Sec. 219. Job creation goals.’’. 

3 SEC. 209. PROHIBITION WITH RESPECT TO USE OF ASSIST4 ANCE. 

5 (a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 

6 as amended by this Act, is further amended by adding at 

7 the end the following: 

8 ‘‘SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSIST9 ANCE. 

10 ‘‘The Secretary shall ensure that a recipient of assist11 ance under this Act does not utilize the assistance for activi12 ties to intentionally attract, to the location of the recipient, 

13 a business or other source of employment already estab14 lished elsewhere in the United States, if the relocation would 

15 adversely affect the location where the business or other 

16 source of employment was previously located.’’. 

17 (b) CLERICAL AMENDMENT.—The table of contents in 

18 section 1(b), as amended by this Act, is further amended 

19 by inserting after the item relating to section 219 the fol20 lowing: 

‘‘Sec. 220. Prohibition with respect to use of assistance.’’. 


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1 TITLE III—ELIGIBILITY; COM2 PREHENSIVE ECONOMIC DE3 VELOPMENT STRATEGIES 

4 SEC. 301. ELIGIBILITY OF AREAS. 

5 Section 301 (42 U.S.C. 3161) is amended by adding 

6 at the end the following: 

7 ‘‘(e) SPECIAL NEED.—In determining whether an area 

8 has experienced or is about to experience a special need for 

9 purposes of subsection (a)(3), the Secretary may consider 

10 whether the area has been affected by— 

11 ‘‘(1) the loss of a substantial employer; 

12 ‘‘(2) substantial outmigration or population loss; 

13 ‘‘(3) substantial foreclosure rates; 

14 ‘‘(4) substantial underemployment; 

15 ‘‘(5) military base or defense installation closure, 

16 realignment, or mission growth; 

17 ‘‘(6) a natural or other disaster or emergency; 

18 ‘‘(7) substantial natural resource depletion; 

19 ‘‘(8) substantial negative effects resulting from 

20 changing trade patterns; or 

21 ‘‘(9) other circumstances that the Secretary de22 termines are indicative of special or extraordinary 

23 unemployment or economic adjustment problems.’’. 


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1 SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT 

2 STRATEGIES. 

3 (a) IN GENERAL.—Section 302(a) (42 U.S.C. 3162(a)) 

4 is amended— 

5 (1) in paragraph (1) by inserting after ‘‘prob6 lems’’ the following: ‘‘and opportunities’’; 

7 (2) in paragraph (2) by inserting after ‘‘private’’ 

8 the following: ‘‘(including nonprofit organization)’’; 

9 and 

10 (3) in paragraph (3)— 

11 (A) in subparagraph (A)— 

12 (i) by striking ‘‘economic problems’’ 

13 and inserting ‘‘economic development prob14 lems and opportunities’’; 

15 (ii) by inserting after ‘‘strategy, pro16 motes the’’ the following: ‘‘effective’’; and 

17 (iii) by striking ‘‘balances’’ and insert18 ing ‘‘optimizes’’; and 

19 (B) in subparagraph (B) by inserting after 

20 ‘‘the problems’’ the following: ‘‘and take advan21 tage of the opportunities’’. 

22 (b) APPROVAL OF OTHER PLAN.—Section 302(c) (42 

23 U.S.C. 3162(c)) is amended— 

24 (1) in paragraph (1) by inserting after ‘‘feder25 ally supported program’’ the following: ‘‘or under a 

26 State, regionally, or locally supported program’’; and 


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1 (2) in paragraph (2) by striking ‘‘paragraph’’ 

2 and inserting ‘‘subsection’’. 

3 (c) NOTIFICATION OF APPROVAL OR DISAPPROVAL OF

4 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY OR

5 OTHER PLAN.—Section 302 (42 U.S.C. 3162) is amended 

6 by adding at the end the following: 

7 ‘‘(d) NOTIFICATION OF APPROVAL OR DISAPPROVAL OF

8 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY OR

9 OTHER PLAN.— 

10 ‘‘(1) DEADLINE.—The Secretary shall notify an 

11 eligible recipient of the approval or disapproval of a 

12 comprehensive economic development strategy or other 

13 plan submitted under this section not later than 60 

14 days after the date of receiving the strategy or plan. 

15 ‘‘(2) BASIS FOR DISAPPROVAL.—A notification of 

16 disapproval under this subsection shall include a de17 scription of the basis for the disapproval.’’. 

18 TITLE IV—ECONOMIC 

19 DEVELOPMENT DISTRICTS 

20 SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DIS21 TRICTS. 

22 (a) IN GENERAL.—Section 401(a) (42 U.S.C. 3171(a)) 

23 is amended in the matter preceding paragraph (1) by strik24 ing ‘‘broad geographic’’ and inserting ‘‘national and re25 gional’’. 


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1 (b) OPERATIONS.—Section 401 (42 U.S.C. 3171) is 

2 amended by adding at the end the following: 

3 ‘‘(c) OPERATIONS.— 

4 ‘‘(1) IN GENERAL.—As a condition of maintain5 ing designation as an economic development district, 

6 each district shall engage in the full range of eco7 nomic development activities in the comprehensive 

8 economic development strategy of the district that has 

9 been approved by the Secretary, which may include— 

10 ‘‘(A) coordinating and implementing eco11 nomic development activities in the district; 

12 ‘‘(B) carrying out economic development re13 search, planning, implementation, and advisory 

14 functions identified in the comprehensive eco15 nomic development strategy; and 

16 ‘‘(C) coordinating the development and im17 plementation of the comprehensive economic de18 velopment strategy with Federal, State, local, 

19 and private organizations. 

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

21 district may enter into contracts for services to carry 

22 out the activities described in paragraph (1).’’. 


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1 SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC 

2 DEVELOPMENT DISTRICTS. 

3 Section 402 (42 U.S.C. 3172) is amended by adding 

4 at the end the following: ‘‘The standards shall include au5 thority for the Secretary to review, at the request of a dis6 trict, district designations to evaluate whether the designa7 tions meet economic development and labor force needs and, 

8 when warranted, to approve the combination of districts 

9 and adjust applicable assistance levels for the resulting com10 bination.’’. 

11 TITLE V—ADMINISTRATION 

12 SEC. 501. CONSULTATION WITH OTHER PERSONS AND 

13 AGENCIES. 

14 Section 503(a) (42 U.S.C. 3193(a)) is amended by 

15 striking ‘‘or underemployment’’ and inserting ‘‘, under16 employment, or outmigration’’. 

17 SEC. 502. PERFORMANCE EVALUATIONS OF GRANT RECIPI18 ENTS. 

19 (a) PURPOSE OF EVALUATIONS OF UNIVERSITY CEN20 TERS.—Section 506(b) (42 U.S.C. 3196(b)) is amended by 

21 striking ‘‘are worthy of’’ and all that follows through the 

22 period at the end and inserting ‘‘maintain the capacity to 

23 implement the priorities of the Secretary.’’. 

24 (b) TIMING OF EVALUATIONS.—Section 506(c) (42 

25 U.S.C. 3196(c)) is amended to read as follows: 


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1 ‘‘(c) TIMING OF EVALUATIONS.—Evaluations under 

2 subsection (a) shall be conducted on a continuing basis so 

3 that— 

4 ‘‘(1) with respect to economic development dis5 tricts, each grantee is evaluated within 3 years after 

6 the first award of assistance to the grantee and at 

7 least once every 3 years thereafter, so long as the 

8 grantee receives the assistance; and 

9 ‘‘(2) with respect to university centers, each 

10 grantee is evaluated within 5 years after the first 

11 award of assistance to the grantee and at least once 

12 every 5 years thereafter, so long as the grantee re13 ceives the assistance.’’. 

14 (c) EVALUATION CRITERIA FOR UNIVERSITY CEN15 TERS.—Section 506(d)(2) (42 U.S.C. 3196(d)(2)) is amend16 ed to read as follows: 

17 ‘‘(2) EVALUATION CRITERIA FOR UNIVERSITY

18 CENTERS.—The criteria for evaluation of a university 

19 center shall provide, at a minimum, for an assess20 ment of— 

21 ‘‘(A) the center’s contribution to providing 

22 technical assistance, conducting applied research, 

23 and disseminating the results of the activities of 

24 the center; 


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1 ‘‘(B) the center’s conformance with the ap2 proved program plan of the center and the goals 

3 of the Secretary; and 

4 ‘‘(C) if appropriate, the center’s activities to 

5 leverage and maximize the economic development 

6 potential of Federal investments in high-speed 

7 rail projects, including activities— 

8 ‘‘(i) to encourage collaboration across 

9 regions; and 

10 ‘‘(ii) to evaluate manufacturing and 

11 economic development opportunities relating 

12 to the projects.’’. 

13 SEC. 503. ECONOMIC DEVELOPMENT REPRESENTATIVES. 

14 (a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.) is 

15 amended by adding at the end the following: 

16 ‘‘SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES. 

17 ‘‘The Secretary shall ensure that the Economic Devel18 opment Administration maintains— 

19 ‘‘(1) not less than 35 individuals in the position 

20 of economic development representative during fiscal 

21 year 2012; and 

22 ‘‘(2) not less than 40 individuals in the position 

23 of economic development representative during fiscal 

24 year 2013 and each fiscal year thereafter.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents in 

2 section 1(b), as amended by this Act, is further amended 

3 by inserting after the item relating to section 507 the fol4 lowing: 

‘‘Sec. 508. Economic development representatives.’’. 

5 SEC. 504. LIMITATION ON CERTAIN POSITIONS. 

6 (a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.), 

7 as amended by this Act, is further amended by adding at 

8 the end the following: 

9 ‘‘SEC. 509. LIMITATION ON CERTAIN POSITIONS. 

10 ‘‘Beginning in fiscal year 2012, the number of posi11 tions in the Economic Development Administration that, 

12 for purposes of title 5, United States Code, are general posi13 tions (as defined by section 3132(a)(9) of such title) which 

14 may be filled only by a noncareer appointee (as defined 

15 by section 3132(a)(7) of such title) shall be limited to 5.’’. 

16 (b) CLERICAL AMENDMENT.—The table of contents in 

17 section 1(b), as amended by this Act, is further amended 

18 by inserting after the item relating to section 508 the fol19 lowing: 

‘‘Sec. 509. Limitation on certain positions.’’. 

20 TITLE VI—MISCELLANEOUS 

21 SEC. 601. ANNUAL REPORT TO CONGRESS. 

22 Section 603(b) (42 U.S.C. 3213(b)) is amended— 

23 (1) in paragraph (2)(B) by striking ‘‘and’’ at 

24 the end; 


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1 (2) in paragraph (3) by striking the period at 

2 the end and inserting a semicolon; and 

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

4 ‘‘(4) with respect to each university center as5 sisted with funding under this Act, include— 

6 ‘‘(A) a specification of the activities of the 

7 university center; 

8 ‘‘(B) a specification of the recipients of tech9 nical assistance from the university center; and 

10 ‘‘(C) a specification of the outcomes result11 ing from the job creation, research, and technical 

12 assistance activities of the university center; and 

13 ‘‘(5) specify the projects, and the funding pro14 vided for the projects, that were funded in conjunction 

15 with one or more of the regional commissions.’’. 

16 SEC. 602. MAINTENANCE OF EFFORT. 

17 (a) IN GENERAL.—Title VI (42 U.S.C. 3211 et seq.) 

18 is amended by adding at the end the following: 

19 ‘‘SEC. 613. MAINTENANCE OF EFFORT. 

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

21 ‘‘(1) ESTABLISHMENT.—To carry out the pur22 poses of this Act, before providing investment assist23 ance for a construction project under this Act, the 

24 Secretary shall establish the expected period during 

25 which the recipient of the assistance shall make best 


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1 efforts to achieve the economic development objectives 

2 of the assistance. 

3 ‘‘(2) TREATMENT OF PROPERTY.—To obtain the 

4 best efforts of a recipient during the period established 

5 under paragraph (1), during that period— 

6 ‘‘(A) any property that is acquired or im7 proved, in whole or in part, using investment as8 sistance under this Act shall be held in trust by 

9 the recipient for the benefit of the project; and 

10 ‘‘(B) the Secretary shall retain an undi11 vided equitable reversionary interest in the prop12 erty. 

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

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

15 on which the Secretary determines that a recipi16 ent has fulfilled the obligations of the recipient 

17 for the applicable period under paragraph (1), 

18 taking into consideration the economic condi19 tions existing during that period, the Secretary 

20 may terminate the reversionary interest of the 

21 Secretary in any applicable property under 

22 paragraph (2)(B). 

23 ‘‘(B) ALTERNATIVE METHOD OF TERMI24 NATION.— 


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1 ‘‘(i) IN GENERAL.—On a determina2 tion by a recipient that the economic devel3 opment needs of the recipient have changed 

4 during the period beginning on the date on 

5 which investment assistance for a construc6 tion project is provided under this Act and 

7 ending on the expiration of the expected pe8 riod established for the project under para9 graph (1), the recipient may submit to the 

10 Secretary a request to terminate the rever11 sionary interest of the Secretary in property 

12 of the project under paragraph (2)(B) before 

13 the date described in subparagraph (A). 

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

15 approve a request of a recipient under 

16 clause (i) if— 

17 ‘‘(I) in any case in which the re18 quest is submitted during the 10-year 

19 period beginning on the date on which 

20 assistance is initially provided under 

21 this Act for the applicable project, the 

22 recipient repays to the Secretary an 

23 amount equal to 100 percent of the fair 

24 market value of the pro rata Federal 

25 share of the project; or 


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1 ‘‘(II) in any case in which the re2 quest is submitted after the expiration 

3 of the 10-year period described in sub4 clause (I), the recipient repays to the 

5 Secretary an amount equal to the fair 

6 market value of the pro rata Federal 

7 share of the project as if that value had 

8 been amortized over the period estab9 lished under paragraph (1), based on a 

10 straight-line depreciation of the project 

11 throughout the estimated useful life of 

12 the project. 

13 ‘‘(b) TERMS AND CONDITIONS.— 

14 ‘‘(1) IN GENERAL.—The Secretary may establish 

15 such terms and conditions under this section as the 

16 Secretary determines to be appropriate, including by 

17 extending the period of a reversionary interest of the 

18 Secretary under subsection (a)(2)(B) in any case in 

19 which the Secretary determines that the performance 

20 of a recipient is unsatisfactory. 

21 ‘‘(2) MAINTENANCE OF STANDARDS.—The Sec22 retary may not terminate a reversionary interest of 

23 the Secretary under subsection (a)(2)(B) if the Sec24 retary has not received adequate assurances that the 


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1 applicable recipient will continue to satisfy the re2 quirements of section 602 after the termination. 

3 ‘‘(c) PREVIOUSLY EXTENDED ASSISTANCE.—With re4 spect to any recipient to which the term of provision of as5 sistance was extended under this Act before the date of en6 actment of this section, the Secretary may approve a request 

7 of the recipient under subsection (a) in accordance with the 

8 requirements of this section to ensure uniform administra9 tion of this Act, notwithstanding any estimated useful life 

10 period that otherwise relates to the assistance. 

11 ‘‘(d) CONVERSION OF USE.—If a recipient of assist12 ance under this Act demonstrates to the Secretary that the 

13 intended use of the project for which assistance was pro14 vided under this Act no longer represents the best use of 

15 the property used for the project, the Secretary may approve 

16 a request by the recipient to convert the property to a dif17 ferent use for the remainder of the term of the Federal inter18 est in the property, subject to the condition that the new 

19 use shall be consistent with the purposes of 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.’’. 

24 (b) CLERICAL AMENDMENT.—The table of contents in 

25 section 1(b), as amended by this Act, is further amended 


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1 by inserting after the item relating to section 612 the fol2 lowing: 

‘‘Sec. 613. Maintenance of effort.’’. 

3 TITLE VII—FUNDING 

4 SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS. 

5 (a) ECONOMIC DEVELOPMENT ASSISTANCE PRO6 GRAMS.—Section 701(a) (42 U.S.C. 3231(a)) is amended 

7 by striking ‘‘until expended’’ and all that follows through 

8 the period at the end and inserting the following: ‘‘until 

9 expended, $500,000,000 for each of fiscal years 2011 

10 through 2015.’’. 

11 (b) SALARIES AND EXPENSES.—Section 701(b) (42 

12 U.S.C. 3231(b)) is amended by striking paragraphs (1) and 

13 (2) and inserting the following: 

14 ‘‘(1) $42,000,000 for fiscal year 2011; and 

15 ‘‘(2) such sums as are necessary for each fiscal 

16 year thereafter.’’. 

17 SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND 

18 GRANTS FOR ADMINISTRATIVE EXPENSES. 

19 Section 704 (42 U.S.C. 3234) is amended— 

20 (1) by striking ‘‘$27,000,000’’ and inserting 

21 ‘‘$36,000,000’’; and 

22 (2) by inserting after ‘‘under section 203’’ the 

23 following: ‘‘and, of that amount, not less than 

24 $500,000 shall be made available for grants under 

25 section 203 for planning relating to high-speed rail’’. 


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1 SEC. 703. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSI2 NESS INCUBATORS AND SCIENCE AND RE3 SEARCH PARKS. 

4 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et seq.) 

5 is amended by adding at the end the following: 

6 ‘‘SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR 

7 BUSINESS INCUBATORS AND SCIENCE AND 

8 RESEARCH PARKS. 

9 ‘‘(a) GRANTS.—In addition to amounts made avail10 able under section 701, there is authorized to be appro11 priated $7,500,000 to carry out section 208(c). 

12 ‘‘(b) LOAN GUARANTEES.—In addition to amounts 

13 made available under section 701, there are authorized to 

14 be appropriated such sums as may be necessary to carry 

15 out section 208(d), including the cost (as defined in section 

16 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 

17 661a)) of guaranteeing loans under that section.’’. 

18 (b) CLERICAL AMENDMENT.—The table of contents in 

19 section 1(b), as amended by this Act, is further amended 

20 by inserting after the item relating to section 704 the fol21 lowing: 

‘‘Sec. 705. Funding for financial assistance for business incubators and science 

and research parks.’’. 


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1 SEC. 704. FUNDING FOR SUSTAINABLE ECONOMIC DEVEL2 OPMENT DEMONSTRATION PROGRAM. 

3 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et seq.), 

4 as amended by this Act, is further amended by adding at 

5 the end the following: 

6 ‘‘SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVEL7 OPMENT DEMONSTRATION PROGRAM. 

8 ‘‘Of the amounts made available under section 701 for 

9 each fiscal year, not less than $25,000,000 shall be made 

10 available to carry out section 218.’’. 

11 (b) CLERICAL AMENDMENT.—The table of contents in 

12 section 1(b), as amended by this Act, is further amended 

13 by inserting after the item relating to section 705 the fol14 lowing: 

‘‘Sec. 706. Funding for sustainable economic development demonstration program.’’. 

15 SEC. 705. FUNDING FOR GRANTS FOR TRAINING, RE16 SEARCH, AND TECHNICAL ASSISTANCE. 

17 (a) IN GENERAL.—Title VII (42 U.S.C. 3231 et seq.), 

18 as amended by this Act, is further amended by adding at 

19 the end the following: 

20 ‘‘SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RE21 SEARCH, AND TECHNICAL ASSISTANCE. 

22 ‘‘Of the amounts made available under section 701 for 

23 each fiscal year, not less than $10,000,000 shall be made 

24 available for grants provided under section 207 and, of that 


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1 amount, not less than $1,125,000 shall be made available 

2 for grants under section 207 to establish university centers 

3 in States that do not have a university center.’’. 

4 (b) CLERICAL AMENDMENT.—The table of contents in 

5 section 1(b), as amended by this Act, is further amended 

6 by inserting after the item relating to section 706 the fol7 lowing: 

‘‘Sec. 707. Funding for grants for training, research, and technical assistance.’’. 


emcdonald on DSK2BSOYB1PROD with BILLS
Union Calendar No. 390 

111TH CONGRESS 

2D SESSION H. R. 5897 

[Report No. 111–652, Part I] 

A BILL 

To reauthorize and improve programs and activities 

purposes. nomic Development Act of 1965, and for other carried out under the Public Works and EcoSEPTEMBER 29, 2010 

Reported from the Committee on Transportation and 

Infrastructure with an amendment 

SEPTEMBER 29, 2010 

Committee on Financial Services discharged; committed 

the Union and ordered to be printed to the Committee of the Whole House on the State of 


emcdonald on DSK2BSOYB1PROD with BILLS