nomic development strategies that promote the growth
of the national economy;
‘‘(3) stimulate modernization and technological
advances in the generation and commercialization of
goods and services; and
‘‘(4) enhance the effectiveness of United States
firms in the global economy.
‘‘(c) INTERGOVERNMENTAL REVIEW.—The Secretary
shall issue regulations to ensure that appropriate State and
local governmental authorities will be given a reasonable
opportunity to review and comment on proposed economic
development projects that the Secretary determines may
have a significant and direct impact on the economy of the
area.
‘‘(d) AGREEMENTS.—The Secretary may enter into an
agreement with 2 or more adjoining States, or an organiza-
tion consisting of such States, in support of effective eco-
nomic development. The agreement shall provide for suit-
able participation by other governmental and non-govern-
mental parties that represent significant interests in and
perspectives on economic development in the area.
‘‘SEC. 102. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available
funds, shall exercise its powers, duties, and functions, and
shall cooperate with the Secretary, in a manner that will
assist the Secretary in carrying out the objectives of this
Act.
‘‘TITLE II—GRANTS FOR PUBLIC
WORKS AND ECONOMIC DE-
VELOPMENT
‘‘SEC. 201. PUBLIC WORKS GRANTS.
‘‘(a) DIRECT GRANTS.—Upon the application of an el-
igible recipient, the Secretary may make direct grants for—
‘‘(1) acquisition or development of land and im-
provements for public works, public service, or devel-
opment facility usage; and
‘‘(2) acquisition, design and engineering, con-
struction, rehabilitation, alteration, expansion, or im-
provement of such facilities, including related ma-
chinery and equipment.
‘‘(b) SELECTION OF PROJECTS.—The Secretary may
provide assistance for a project under this section only if
the Secretary finds that—
‘‘(1) the project will directly or indirectly—
‘‘(A) tend to improve opportunities in the
area in which the project will be located for the
successful establishment or expansion of indus-
trial or commercial plants or facilities;
‘‘(B) otherwise assist in the creation of ad-
ditional long-term employment opportunities for
the area; or
‘‘(C) primarily benefit long-term unem-
ployed individuals and members of low-income
families;
‘‘(2) the project will fulfill all or part of a press-
ing need of the area in which the project will be lo-
cated; and
‘‘(3) the project is consistent with a comprehen-
sive economic development strategy that has been de-
veloped in accordance with section 303 for the area
in which the project will be located.
‘‘(c) LIMITATION.—Not more than 15 percent of the
amounts made available to carry out this section in a fiscal
year may be expended in any one State.
‘‘SEC. 202. CONSTRUCTION COST INCREASES.
‘‘(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary may increase the amount of a grant (including a
supplemental grant) made for a construction project under
this title (or title I of this Act, as in effect before the date
of enactment of the Economic Development Partnership Act
of 1998) if, after the grant has been made but before comple-
tion of the project, the cost of the project has increased and
if an increase in the amount of the grant is necessary for
the satisfactory completion and operation of the project.
‘‘(b) LIMITATIONS.—The Secretary may not increase
the amount of a grant for a project under subsection (a)
if—
‘‘(1) the increase would cause the Federal share
of the cost of the project to exceed the maximum per-
centage permitted for the project under this Act, as in
effect at the time of the increase;
‘‘(2) the amount of the increase exceeds 15 per-
cent of the original estimated cost of the project; or
‘‘(3) the amount of the increase exceeds the dif-
ference between the estimated cost of the project on
the date of the increase and the original estimated
cost of the project.
‘‘SEC. 203. PLANNING AND ADMINISTRATIVE EXPENSES.
‘‘(a) DIRECT GRANTS.—Upon the application of an el-
igible recipient, the Secretary may make direct grants for
economic development planning and for the administrative
expenses of organizations undertaking such planning.
‘‘(b) PLANNING TO REDUCE UNEMPLOYMENT AND IN-
CREASE INCOMES.—The planning for cities, other political
subdivisions, Indian tribes, and sub-State planning and de-
velopment organizations (including areas described in sec-
tion 302(a) and economic development districts) assisted
under this section shall include systematic efforts to reduce
unemployment and increase incomes.
‘‘(c) PLANNING PROCESS.—Planning assisted under
this section shall be a continuous process, involving public
officials and private citizens, in analyzing local economies,
defining development goals, determining project opportuni-
ties, and formulating and implementing a development pro-
gram.
‘‘(d) USE OF OTHER FEDERAL FUNDS.—Planning as-
sistance received under this section shall be used in conjunc-
tion with any other available Federal planning assistance
to ensure adequate and effective planning and economical
use of funds.
‘‘(e) STATE PLANS.—
‘‘(1) PREPARATION
OF
PLANS.—A State plan
prepared with assistance under this section shall be
prepared cooperatively by the State, political subdivi-
sions of the State, and the economic development dis-
trict located in whole or in part within the State, as
a comprehensive economic development strategy.
‘‘(2) CONSISTENCY WITH LOCAL AND ECONOMIC
DEVELOPMENT DISTRICT PLANS.—Upon completion of
a State plan prepared with assistance under this sec-
tion, the State shall—
‘‘(A) certify to the Secretary that in the
preparation of the State plan, the local and eco-
nomic development district plans were considered
and, to the fullest extent possible, the State plan
is consistent with such plans; and
‘‘(B) identify any inconsistencies between
the State plan and the local and economic devel-
opment district plans, with the justification for
each inconsistency.
‘‘(3) CONSIDERATIONS.—Any overall State eco-
nomic development planning shall be a part of a com-
prehensive planning process that shall consider pro-
viding public works to—
‘‘(A) stimulate and channel development,
economic opportunities, and choices for individ-
uals;
‘‘(B) support sound land use;
‘‘(C) foster effective transportation access;
‘‘(D) promote sustainable development;
‘‘(E) enhance and protect the environment,
including the conservation and preservation of
open spaces and environmental quality;
‘‘(F) provide public services;
‘‘(G) promote technology development; and