‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means—
‘‘(A) 20 percent for the taxable year in
which a qualified revitalization building is
placed in service, or
‘‘(B) at the election of the taxpayer, 5 per-
cent for each taxable year in the credit period.
The election under subparagraph (B), once made,
shall be irrevocable.
‘‘(2) CREDIT PERIOD.—
‘‘(A) IN GENERAL.—The term ‘credit pe-
riod’ means, with respect to any building, the
period of 10 taxable years beginning with the
taxable year in which the building is placed in
service.
‘‘(B) APPLICABLE RULES.—Rules similar
to the rules under paragraphs (2) and (4) of
section 42(f) shall apply.
‘‘(c) QUALIFIED REVITALIZATION BUILDINGS AND
EXPENDITURES.—For purposes of this section—
‘‘(1) QUALIFIED REVITALIZATION BUILDING.—
The term ‘qualified revitalization building’ means
any building (and its structural components) if—
‘‘(A) such building is located in an eligible
commercial revitalization area,
‘‘(B) a commercial revitalization credit
amount is allocated to the building under sub-
section (e), and
‘‘(C) depreciation (or amortization in lieu
of depreciation) is allowable with respect to the
building.
‘‘(2) QUALIFIED
REHABILITATION
EXPENDI-
TURE.—
‘‘(A) IN
GENERAL.—The term ‘qualified
rehabilitation expenditure’ means any amount
properly chargeable to capital account—
‘‘(i) for property for which deprecia-
tion is allowable under section 168 and
which is—
‘‘(I) nonresidential real property,
or
‘‘(II) an addition or improvement
to property described in subclause (I),
‘‘(ii) in connection with the construc-
tion or substantial rehabilitation or recon-
struction of a qualified revitalization build-
ing, or
‘‘(iii) for the acquisition of land in
connection with the qualified revitalization
building.
‘‘(B) DOLLAR
LIMITATION.—The aggre-
gate amount which may be treated as qualified
revitalization expenditures with respect to any
qualified revitalization building for any taxable
year shall not exceed $10,000,000, reduced by
any such expenditures with respect to the build-
ing taken into account by the taxpayer or any
predecessor in determining the amount of the
credit under this section for all preceding tax-
able years.
‘‘(C) CERTAIN
EXPENDITURES
NOT
IN-
CLUDED.—The term ‘qualified revitalization ex-
penditure’ does not include—
‘‘(i) STRAIGHT
LINE
DEPRECIATION
MUST BE USED.—Any expenditure (other
than with respect to land acquisitions) with
respect to which the taxpayer does not use
the straight line method over a recovery
period determined under subsection (c) or
(g) of section 168. The preceding sentence
shall not apply to any expenditure to the
extent the alternative depreciation system
of section 168(g) applies to such expendi-
ture by reason of subparagraph (B) or (C)
of section 168(g)(1).
‘‘(ii) ACQUISITION COSTS.—The costs
of acquiring any building or interest there-
in and any land in connection with such
building to the extent that such costs ex-
ceed 30 percent of the qualified revitaliza-
tion expenditures determined without re-
gard to this clause.
‘‘(iii) OTHER CREDITS.—Any expendi-
ture which the taxpayer may take into ac-
count in computing any other credit allow-
able under this part unless the taxpayer
elects to take the expenditure into account
only for purposes of this section.
‘‘(3) ELIGIBLE
COMMERCIAL
REVITALIZATION
AREA.—The term ‘eligible commercial revitalization
area’ means an empowerment zone or enterprise
community designated under subchapter U.
‘‘(4) SUBSTANTIAL
REHABILITATION
OR
RE-
CONSTRUCTION.—For purposes of this subsection, a
rehabilitation or reconstruction shall be treated as a
substantial rehabilitation or reconstruction only if
the qualified revitalization expenditures in connec-
tion with the rehabilitation or reconstruction exceed
25 percent of the fair market value of the building
(and its structural components) immediately before
the rehabilitation or reconstruction.
‘‘(d) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.—
‘‘(1) IN GENERAL.—Qualified revitalization ex-
penditures with respect to any qualified revitaliza-
tion building shall be taken into account for the tax-
able year in which the qualified rehabilitated build-
ing is placed in service. For purposes of the preced-
ing sentence, a substantial rehabilitation or recon-
struction of a building shall be treated as a separate
building.
‘‘(2) PROGRESS
EXPENDITURE
PAYMENTS.—
Rules similar to the rules of subsections (b)(2) and
(d) of section 47 shall apply for purposes of this sec-
tion.
‘‘(e) LIMITATION ON AGGREGATE CREDITS ALLOW-
ABLE WITH RESPECT
TO BUILDINGS LOCATED
IN
A
STATE.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this section for any taxable year
with respect to any building shall not exceed the
commercial revitalization credit amount (in the case
of 
an 
amount 
determined 
under 
subsection
(b)(1)(B), the present value of such amount as de-
termined under the rules of section 42(b)(2)(C)) al-
located to such building under this subsection by the
commercial revitalization credit agency. Such alloca-
tion shall be made at the same time and in the same
manner as under paragraphs (1) and (7) of section
42(h).
‘‘(2) COMMERCIAL
REVITALIZATION
CREDIT
AMOUNT FOR AGENCIES.—
‘‘(A) IN GENERAL.—The aggregate com-
mercial revitalization credit amount which a
commercial revitalization credit agency may al-
locate for any calendar year is the amount of
the State commercial revitalization credit ceil-
ing determined under this paragraph for such
calendar year for such agency.
‘‘(B) STATE COMMERCIAL REVITALIZATION
CREDIT CEILING.—
‘‘(i) IN
GENERAL.—The State com-
mercial revitalization credit ceiling applica-
ble to any State for any calendar year is
$2,000,000 for each empowerment zone
and enterprise community in the State des-
ignated under subchapter U.
‘‘(ii) SPECIAL RULE WHERE ZONE OR
COMMUNITY
LOCATED
IN
MORE
THAN
STATE.—If an empowerment zone or enter-
prise community is located in more than 1
State, a State’s share of the amount speci-
fied in clause (i) with respect to such zone
or community shall be an amount that
bears the same ratio to $2,000,000 as the
population in the State bears to the popu-
lation in all States in which such zone or
community is located.
‘‘(iii) OTHER SPECIAL RULES.—Rules
similar to the rules of subparagraphs (D),
(E), (F), and (G) of section 42(h)(3) shall
apply for purposes of this subsection.
‘‘(C) COMMERCIAL REVITALIZATION CRED-
IT AGENCY.—For purposes of this section, the
term ‘commercial revitalization credit agency’
means any agency authorized by a State to
carry out this section.
‘‘(f) RESPONSIBILITIES OF COMMERCIAL REVITAL-
IZATION CREDIT AGENCIES.—
‘‘(1) PLANS FOR ALLOCATION.—Notwithstand-
ing any other provision of this section, the commer-
cial revitalization credit dollar amount with respect
to any building shall be zero unless—
‘‘(A) such amount was allocated pursuant
to a qualified allocation plan of the commercial
revitalization credit agency which is approved
by the governmental unit (in accordance with
rules similar to the rules of section 147(f)(2)
(other than subparagraph (B)(ii) thereof)) of
which such agency is a part, and
‘‘(B) such agency notifies the chief execu-
tive officer (or its equivalent) of the local juris-
diction within which the building is located of
such project and provides such individual a rea-
sonable opportunity to comment on the project.
‘‘(2) QUALIFIED ALLOCATION PLAN.—For pur-
poses of this subsection, the term ‘qualified alloca-
tion plan’ means any plan—
‘‘(A) which sets forth selection criteria to
be used to determine priorities of the commer-
cial revitalization credit agency which are ap-
propriate to local conditions,
‘‘(B) which considers—
‘‘(i) the degree to which a project con-
tributes to the implementation of a strate-
gic plan that is devised for an eligible com-
mercial revitalization area through a citi-
zen participation process,
‘‘(ii) the amount of any increase in
permanent, full-time employment by reason
of any project, and
‘‘(iii) the active involvement of resi-
dents and nonprofit groups within the eli-
gible commercial revitalization area, and
‘‘(C) which provides a procedure that the
agency (or its agent) will follow in monitoring
for compliance with this section.
‘‘(g) TERMINATION.—This section shall not apply to
any building placed in service after December 31, 2000.’’
(c) CONFORMING AMENDMENTS.—
(1) Section 39(d) of the Internal Revenue Code
of 1986 is amended by adding at the end the follow-
ing new paragraph:
‘‘(7) NO CARRYBACK OF SECTION 48A CREDIT
BEFORE
ENACTMENT.—No portion of the unused
business credit for any taxable year which is attrib-
utable to any commercial revitalization credit deter-
mined under section 48A may be carried back to a
taxable year ending before the date of the enactment
of section 48A.’’
(2) Subparagraph (B) of section 48(a)(2) of
such Code is amended by inserting ‘‘or commercial
revitalization’’ after ‘‘rehabilitation’’ each place it
appears in the text and heading thereof.
(3) Subparagraph (C) of section 49(a)(1) of
such Code is amended by striking ‘‘and’’ at the end
of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by adding at
the end the following new clause:
‘‘(iv) the basis of any qualified revital-
ization building attributable to qualified re-
vitalization expenditures.’’
(4) Paragraph (2) of section 50(a) of such Code
is amended by inserting ‘‘or 48A(d)(2)’’ after ‘‘sec-
tion 47(d)’’ each place it appears.
(5) Subparagraph (B) of section 50(a)(2) of
such Code is amended by adding at the end the fol-
lowing new sentence: ‘‘A similar rule shall apply for
purposes of section 48A.’’
(6) Subparagraph (A) of section 50(b)(2) of
such Code is amended by inserting ‘‘or qualified re-
vitalization building (respectively)’’ after ‘‘qualified
rehabilitated building’’.
(7) Paragraph (2) of section 50(b) of such Code
is amended by striking ‘‘and’’ at the end of subpara-
graph (C), by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’, and by adding
at the end the following new subparagraph:
‘‘(E) a qualified revitalization building to
the extent of the portion of the basis which is
attributable to qualified revitalization expendi-
tures.’’
(8) Subparagraph (C) of section 50(b)(4) of
such Code is amended by inserting ‘‘or commercial
revitalization’’ after ‘‘rehabilitated’’ each place it ap-
pears in the text or heading thereof.
(9) Subparagraph (C) of section 469(i)(3) is
amended—
(A) by inserting ‘‘or section 48A’’ after
‘‘section 42’’; and
(B) by striking ‘‘CREDIT’’ in the heading
and inserting ‘‘AND COMMERCIAL REVITALIZA-
TION CREDITS’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
the date of the enactment of this Act.
Subtitle C—Brownfields
Redevelopment Act
SEC. 121. ENVIRONMENTAL REMEDIATION TAX CREDIT
FOR 
CONTAMINATED 
SITES 
IN
EMPOWERMENT ZONES.
(a) GENERAL RULE.—Part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating
to credits allowable) is amended by adding at the end the
following new subpart:
‘‘Subpart H—Environmental Remediation Credit for
Sites in Empowerment Zones
‘‘Sec. 54. Amount of environmental remediation credit.
‘‘Sec. 54A. Definitions and special rules.
‘‘SEC. 54. AMOUNT OF ENVIRONMENTAL REMEDIATION
CREDIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the environmental remediation credit for empowerment
zones determined under this section is 50 percent of the
costs—
‘‘(1) which are paid or incurred by the taxpayer
for environmental remediation with respect to any
qualified contaminated site which is owned by the
taxpayer, and
‘‘(2) which are incurred by the taxpayer pursu-
ant to an environmental remediation plan for such
site which was approved by the Administrator of the
Environmental Protection Agency or by the head of
any State or local government agency designated by
the Administrator to carry out the Administrator’s
functions under this subpart with respect to such
site.
‘‘(b) REMEDIATION PLAN MUST BE COMPLETED.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in paragraph (2)—
‘‘(A) no environmental remediation credit
shall be determined under this section with re-
spect to any qualified contaminated site unless
the Administrator of the Environmental Protec-
tion Agency (or such Administrator’s designee
under subsection (a)(2)) certifies that the envi-
ronmental remediation plan for such site has
been completed, and
‘‘(B) if such Administrator (or designee)
certifies that such plan has been completed,
such credit shall be taken into account under
subsection (a) ratably over the 5-taxable-year
period beginning with the taxable year in which
such plan was completed.
‘‘(2) SPECIAL
RULE
WHERE
EXTRAORDINARY
COST INCREASES.—If—
‘‘(A) the taxpayer determines that due to
unforeseen circumstances the cost of completing
the remediation plan for any qualified contami-
nated site exceeds 200 percent of the estimated
costs of completing such plan, and
‘‘(B) the State or local official administer-
ing the remediation credit program agrees with
such determination,
the taxpayer may cease the implementation of such
plan and shall be entitled to an environmental reme-
diation credit with respect to costs incurred before
such cessation. Such credit shall be taken into ac-
count under subsection (a) ratably over the 5-tax-
able-year period beginning with the taxable year in
which such cessation occurs.
‘‘(c) CERTAIN PARTIES NOT ELIGIBLE.—A taxpayer
shall not be eligible for any credit determined under this
section with respect to any qualified contaminated site if—
‘‘(1) at any time on or before the date of the
enactment of this subpart, such taxpayer was the
owner or operator of any business on such site,
‘‘(2) at any time before, on, or after such date
of enactment such taxpayer—
‘‘(A) had (by contract, agreement, or oth-
erwise) arranged for the disposal or treatment
of any hazardous materials at such site or ar-
ranged with a transporter for transport for dis-
posal or treatment of any hazardous materials
at such site, or
‘‘(B) had accepted any hazardous mate-
rials for transport to such site, or
‘‘(3) the taxpayer is related to any taxpayer re-
ferred to in paragraph (1) or (2).
The preceding sentence shall not apply to a taxpayer who
became described therein by reason of the acquisition of
the business or site through foreclosure (or the equivalent)
of a security interest held by the taxpayer or a related
party if the taxpayer undertakes to sell or otherwise dis-
pose of such business or site in a reasonably expeditious
manner on commercially reasonable terms.
‘‘(d) QUALIFIED CONTAMINATED SITE.—For pur-
poses of this subpart, the term ‘qualified contaminated
site’ means any contaminated site if—
‘‘(1) the contaminated site is located entirely
within an empowerment zone,
‘‘(2) the condition of the contaminated site is
such that without participation in the environmental
remediation credit program redevelopment is un-
likely,
‘‘(3) the contaminated site has not been in pro-
ductive use for at least 1 year before participation
in the program,
‘‘(4) there is a strong likelihood of redevelop-
ment of the site for industrial or commercial use
that will result in creation of jobs and expansion of
the tax base, and
‘‘(5) environmental remediation and redevelop-
ment are likely to be completed within a reasonable
period of time.
‘‘SEC. 54A. DEFINITIONS AND SPECIAL RULES.
‘‘(a) CONTAMINATED SITE.—For purposes of this
subpart—
‘‘(1) IN
GENERAL.—The term ‘contaminated
site’ means any site if at least 1 of the following en-
vironmental conditions is present on such site:
‘‘(A) A release or threatened release of any
hazardous, toxic, or dangerous substance.
‘‘(B) Any storage tanks which contain any
hazardous, toxic, or dangerous substance.
‘‘(C) Any illegal disposal of solid waste.
‘‘(2) HAZARDOUS, TOXIC, OR DANGEROUS SUB-
STANCE.—Any substance, waste, or material shall be
treated as a hazardous, toxic, or dangerous sub-
stance if it is so treated under—
‘‘(A) the Comprehensive Environmental
Response, Compensation, and Liability Act (42
U.S.C. 9601 et seq.) as in effect on the date of
the enactment of this section, or
‘‘(B) the Resource Conservation and Re-
covery Act (42 U.S.C. 6901 et seq.) as so in ef-
fect.
The following materials shall in any event be treated
as such a substance: petroleum or crude oil or any
derivative thereof, friable asbestos or any asbestos
containing material, polychlorinated biphenyls, and
lead paint.
‘‘(b) ENVIRONMENTAL
REMEDIATION.—For pur-
poses of this subpart, the term ‘environmental remedi-
ation’ means—
‘‘(1) removal or remediation activity in accord-
ance with the plan approved under section 54(a)(2),
‘‘(2) restoration of natural, historic or cultural
resources at the site, or the mitigation of unavoid-
able losses of such resources incurred in connection
with the remediation or response activity,
‘‘(3) health assessments or health effects stud-
ies related to the site,
‘‘(4) remediation of off-site contamination
caused by activity on the site (other than remedi-
ation activities of a type not permitted for the site),
and
‘‘(5) any other costs specified in the plan ap-
proved under section 54(a)(2), including demolition
of existing contaminated structures, site security,
permit fees necessary for remediation, and environ-
mental audits.
‘‘(c) RELATED PERSON.—For purposes of this sub-
part, persons shall be treated as related to each other if
such persons are treated as a single employer under the
regulations prescribed under section 52(b) or such persons
bear a relationship to each other specified in section
267(b) or 707(b).’’
(b) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code is
amended by striking ‘‘plus’’ at the end of paragraph (10),
by striking the period at the end of paragraph (11) and
inserting ‘‘, plus’’, and by adding at the end the following
new paragraph:
‘‘(12) the environmental remediation credit for
empowerment zones under section 54(a).’’
(c) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of such Code (as amended by section 115(c))
is amended by adding at the end the following new para-
graph:
‘‘(8) NO CARRYBACK OF ENVIRONMENTAL RE-
MEDIATION CREDIT BEFORE ENACTMENT.—No por-
tion of the unused business credit for any taxable
year which is attributable to the credit under section
54 may be carried back to a taxable year ending be-
fore the date of the enactment of section 54.’’
(d) DEDUCTION FOR UNUSED CREDIT.—Subsection
(c) of section 196 of such Code is amended by striking
‘‘and’’ at the end of paragraph (6), by striking the period
at the end of paragraph (7) and inserting ‘‘, and’’, and
by adding at the end the following new paragraph:
‘‘(8) the environmental remediation credit de-
termined under section 54.’’
(e) CLERICAL AMENDMENT.—The table of subparts
for part IV of subchapter A of chapter 1 of such Code
is amended by adding at the end the following new item:
‘‘Subpart H. Environmental remediation credit.’’
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 122. USE OF REDEVELOPMENT BONDS FOR ENVIRON-
MENTAL REMEDIATION IN EMPOWERMENT
ZONES.
(a) ENVIRONMENTAL REMEDIATION INCLUDED AS
REDEVELOPMENT PURPOSE.—Subparagraph (A) of sec-
tion 144(c)(3) of the Internal Revenue Code of 1986 (re-
lating to redevelopment purposes) is amended by striking
‘‘and’’ at the end of clause (iii), by striking the period
at the end of clause (iv) and inserting ‘‘, and’’, and by
adding at the end the following new clause:
‘‘(v) the costs of environmental reme-
diation (as defined in section 54A(b)) with
respect to a qualified contaminated site (as
defined in section 54(d)) if such costs are
incurred pursuant to an environmental re-
mediation plan which was approved by the
Administrator of the Environmental Pro-
tection Agency or by the head of any State
or local government agency designated by
the Administrator to carry out the Admin-
istrator’s functions under this clause.’’
(b) CERTAIN REQUIREMENTS NOT TO APPLY TO
REDEVELOPMENT BONDS FOR ENVIRONMENTAL REME-
DIATION.—Subsection (c) of section 144 of such Code is
amended by adding at the end the following new para-
graph:
‘‘(9) CERTAIN REQUIREMENTS NOT TO APPLY
TO REDEVELOPMENT BONDS FOR ENVIRONMENTAL
REMEDIATION
IN
EMPOWERMENT
ZONES.—In the
case of any bond issued as part of an issue 95 per-
cent or more of the proceeds of which are to finance
costs referred to in paragraph (3)(A)(v)—
‘‘(A) paragraph (2)(A)(i) shall not apply,
‘‘(B) paragraph (2)(A)(ii) shall not apply
to any issue issued by the governing body de-
scribed in paragraph (4)(A) with respect to the
area which includes the site,
‘‘(C) 
the 
requirement 
of 
paragraph
(2)(B)(ii) shall be treated as met if—
‘‘(i) the payment of the principal and
interest on such issue is secured by taxes
imposed by a governmental unit, or
‘‘(ii) such issue is approved by the ap-
plicable elected representative (as defined
in section 147(f)(2)(E)) of the govern-
mental unit which issued such issue (or on
behalf of which such issue was issued),
‘‘(D) subparagraphs (C) and (D) of para-
graph (2) shall not apply,
‘‘(E) subparagraphs (C) and (D) of para-
graph (4) shall not apply, and
‘‘(F) if the real property referred to in
clause (iii) of paragraph (3)(A) is 1 or more
dwelling units, such clause shall apply only if
the requirements of section 142(d) or 143 (as
the case may be) are met with respect to such
units.’’
(c) PENALTY
FOR FAILURE
TO SATISFACTORILY
COMPLETE REMEDIATION PLAN.—Subsection (b) of sec-
tion 150 of such Code is amended by adding at the end
the following new paragraph:
‘‘(7) QUALIFIED CONTAMINATED SITE REMEDI-
ATION BONDS.—In the case of financing provided for
costs described in section 144(c)(3)(A)(v), no deduc-
tion shall be allowed under this chapter for interest
on such financing during any period during which
there is a determination by the Administrator of the
Environmental Protection Agency (or by the head of
any State or local government agency designated by
the Administrator to carry out the Administrator’s
functions under this paragraph) that the remedi-
ation plan under which such costs were incurred was
not satisfactorily completed.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to bonds issued after the date of
the enactment of this Act.
TITLE II—ASSISTANCE FOR IN-
FRASTRUCTURE 
IMPROVE-
MENTS AND DEVELOPMENT
SEC. 201. LOAN GUARANTEES.
(a) AUTHORITY.—The Secretary of Housing and
Urban Development may guarantee and make commit-
ments to guarantee eligible debt instruments. Any such
guarantee or commitment shall be subject to such terms
and conditions as the Secretary may prescribe.
(b) ELIGIBLE DEBT INSTRUMENTS.—For purposes
of this section, the term ‘‘eligible debt instrument’’ means
a note or other obligation that—
(1) is issued by an eligible unit of general local
government (or a public agency designated by such
a unit);
(2) is issued for the purpose of financing any
infrastructure activities that are—
(A) 
to 
be 
carried 
out 
within 
an
empowerment zone or enterprise community
which is located (in whole or in part) within the
unit of general local government; and
(B) consistent with the strategic plan for
the empowerment zone or enterprise commu-
nity; and
(3) is in such form and denomination, has such
maturity, and is subject to such other conditions as
the Secretary shall prescribe.
(c) SECURITY AND REPAYMENT.—
(1) REQUIREMENTS ON ISSUER.—To ensure the
repayment of eligible debt instruments guaranteed
under this section and as a condition for receiving
such guarantees, the Secretary shall require the unit
of local government issuing the debt instrument to—
(A) enter into a contract, in a form accept-
able to the Secretary, for repayment of the debt
instrument guaranteed; and
(B) furnish, at the discretion of the Sec-
retary, such other security as may be deemed
appropriate by the Secretary in making such
guarantees.
(2) FULL FAITH AND CREDIT.—The full faith
and credit of the United States is hereby pledged to
the payment of all guarantees made under this sec-
tion. Any such guarantee made by the Secretary
shall be conclusive evidence of the eligibility of the
debt instrument for such guarantee with respect to
principal and interest, and the validity of any such
guarantee so made shall be incontestable in the
hands of a holder of the guaranteed debt instru-
ments.
(d) LIMITATIONS ON AMOUNT OF GUARANTEES.—
(1) AGGREGATE
FISCAL
YEAR
LIMITATION.—
Notwithstanding any other provision of law, to the
extent approved or provided in appropriation Acts,
the Secretary may enter into commitments under
this section to guarantee eligible debt instruments
with an aggregate principal amount not exceeding
$50,000,000.
(2) LIMITATIONS
ON
EMPOWERMENT
ZONES
AND
ENTERPRISE
COMMUNITIES.—The aggregate
amount of the eligible debt instruments for financing
infrastructure activities in a single empowerment
zone or enterprise community that are guaranteed
under this section may not exceed, in any single fis-
cal year—
(A) $3,000,000, with respect to any
empowerment zone; and
(B) $1,000,000, with respect to any enter-
prise community.
(e) ELIGIBILITY OF ISSUERS.—The Secretary shall
establish criteria for use in determining whether to guar-
antee the eligible debt instruments of an eligible unit of
general local government, which shall include consider-
ation of the following factors:
(1) The extent to which the activities to be as-
sisted with the proceeds of the eligible debt instru-
ments guaranteed will benefit residents of the
empowerment zone or enterprise community in-
volved.
(2) The extent to which the empowerment zone
or enterprise community involved is located within
the area of jurisdiction of the eligible unit of general
local government that is the issuer of the eligible
debt instruments.
(3) The extent of cooperation between the eligi-
ble unit of general local government that is the is-
suer and any other governments with jurisdiction
over the empowerment zone or enterprise commu-
nity.
(4) The extent of private and community par-
ticipation in the activities to be assisted with the
proceeds of the eligible debt instruments guaranteed.
(5) The extent to which the activities to be as-
sisted with the eligible debt instruments guaranteed
will be financed with amounts other than such pro-
ceeds.
(6) Such other criteria as the Secretary may
prescribe.
(f) AUTHORIZATION OF APPROPRIATIONS FOR CRED-
IT SUBSIDY.—There are authorized to be appropriated to
cover the costs (as such term is defined in section 502
of the Congressional Budget Act of 1974) of guarantees
under this section, such sums as may be necessary for fis-
cal year 1997. Any amounts appropriated pursuant to this
subsection shall remain available until expended.
(g) TERMINATION.—The Secretary may not guaran-
tee any eligible debt instruments under this subsection
after September 30, 2001, except pursuant to a guarantee
issued on or before such date.
SEC. 202. REVOLVING FUND FOR LOANS.
(a) IN GENERAL.—The Secretary shall establish and
administer a revolving loan fund under this section and
may use amounts in the fund to make loans to eligible
units of general local government to carry out infrastruc-
ture activities.
(b) USE OF AMOUNTS.—Amounts in the revolving
loan fund established under this section shall be available,
to the extent provided in appropriation Acts, only for—
(1) loans to eligible units of general local gov-
ernment to carry out infrastructure activities that
are—
(A) 
to 
be 
carried 
out 
within 
the
empowerment zone or enterprise community
which is located (in whole or in part) within the
unit of general local government; and
(B) consistent with the strategic plan for
the empowerment zone or enterprise commu-
nity; and
(2) reasonable administrative costs of the fund.
(c) CREDITS.—The loan fund established under this
section shall be credited with—
(1) any amounts appropriated for deposit in the
fund;
(2) any repayment of principal and interest
under a loan made from the fund;
(3) any amounts resulting from claims and col-
lections under a loan made from the fund;
(4) any other amounts dedicated to the fund.
(d) LOAN AMOUNT LIMITATION.—The aggregate
amount of the loans made under this section for infra-
structure activities in any single empowerment zone or en-
terprise community may not exceed, in any single fiscal
year—
(1) 
$3,000,000, 
with 
respect 
to 
any
empowerment zone; and
(2) $1,000,000, with respect to any enterprise
community.
(e) ELIGIBILITY
OF BORROWERS.—The Secretary
shall establish criteria for use in determining whether to
make a loan from the fund established under this section
to an applicant eligible unit of general local government,
which shall include consideration of the following factors:
(1) The extent to which the activities to be as-
sisted with the loan amounts are consistent with the
strategic plan for empowerment zone or enterprise
community.
(2) The extent to which the activities to be as-
sisted with the loan amounts will benefit residents of
the empowerment zone or enterprise community in-
volved.
(3) The extent to which the empowerment zone
or enterprise community involved is located within
the area of jurisdiction of the applicant unit of gen-
eral local government.
(4) The extent of cooperation between the ap-
plicant unit of general local government and any
other 
governments 
with 
jurisdiction 
over 
the
empowerment zone or enterprise community.
(5) The extent of private and community par-
ticipation in the activities to be assisted with the
loan amounts.
(6) The extent to which the activities to be as-
sisted with the loan amounts will be financed with
amounts other than such loan proceeds.
(7) Such other criteria as the Secretary may
prescribe.
(f) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for deposit in the loan fund
established under this section $50,000,000 for fiscal year
1997.
SEC. 203. GRANTS TO UNITS OF GENERAL LOCAL GOVERN-
MENT.
(a) IN GENERAL.—The Secretary may make grants
under this section to eligible units of general local govern-
ment to carry out infrastructure activities.
(b) GRANT AMOUNT LIMITATION.—The aggregate
amount of the grants made under this section for infra-
structure activities in any single empowerment zone or en-
terprise community may not exceed, in any single fiscal
year—
(1) 
$3,000,000, 
with 
respect 
to 
any
empowerment zone; and
(2) $1,000,000, with respect to any enterprise
community.
(c) USE OF GRANT AMOUNTS.—Amounts from a
grant under this section may be used only for carrying
out infrastructure activities that are—
(1) to be carried out within the empowerment
zone or enterprise community which is located (in
whole or in part) within the unit of general local
government to which the grant is made; and
(2) consistent with the strategic plan for the
empowerment zone or enterprise community.
Such infrastructure activities may be carried out directly
by the grantee or by subgrantees.
(d) SELECTION OF GRANTEES.—The Secretary shall
select eligible units of general local government to receive
grants under this section from among the units that apply
for grants. The Secretary shall establish requirements and
procedures for applications under this section. Selection
shall be made under a competition based on the following
criteria:
(1) The extent to which the activities to be as-
sisted with grant amounts are consistent with the
strategic plan for empowerment zone or enterprise
community.
(2) The extent to which the activities to be as-
sisted with grant amounts will benefit residents of
the empowerment zone or enterprise community in-
volved.
(3) The extent to which the empowerment zone
or enterprise community involved is located within
the area of jurisdiction of the applicant unit of gen-
eral local government.
(4) The extent of cooperation between the ap-
plicant unit of general local government and any
other 
governments 
with 
jurisdiction 
over 
the
empowerment zone or enterprise community.
(5) The extent of private and community par-
ticipation in the activities to be assisted with the
loan amounts.
(6) The extent to which the activities to be as-
sisted with grant amounts will be assisted with
amounts other than such grant amounts.
(7) Such other criteria as the Secretary may
prescribe.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for grants under this section
$10,000,000 for each of fiscal years 1997, 1998, 1999,
2000, and 2001. Any amounts appropriated pursuant to
this subsection shall remain available until expended.
SEC. 204. ELIGIBLE UNITS OF GENERAL LOCAL GOVERN-
MENT.
For purposes of this title, the term ‘‘eligible unit of
general local government’’ means a unit of general local
government that has an area of jurisdiction within which
is located all or part of an empowerment zone or enter-
prise community for which the designation referred to in
paragraph (1) or (2) of section 206 is in effect.
SEC. 205. INFRASTRUCTURE ACTIVITIES.
For purposes of this title, the term ‘‘infrastructure
activities’’ means the provision, improvement, or develop-
ment of—
(1) roads, streets, tunnels, bridges, or side-
walks;
(2) convention or trade show facilities;
(3) airports, commercial ports, docks, or
wharves, mass commuting facilities, parking facili-
ties, or storage or training facilities directly related
to any other facility under this paragraph;
(4) intermodal transportation facilities;
(5) sewage or solid waste disposal facilities or
facilities for the local furnishing of electric energy or
gas;
(6) air or water pollution control facilities;
(7) facilities for the furnishing of water for any
purpose if—
(A) the water is or will be made available
to members of the general public; and
(B)(i) the facilities are operated by a gov-
ernmental unit, or (ii) the rates for the furnish-
ing or sale of water have been established or
approved by a State or unit of general local
government, by an agency or instrumentality of
the United States, or by a public service or
public utility commission or other similar body
of any State or unit of general local govern-
ment;
(8) hydroelectric generating facilities;
(9) mass commuting vehicles or systems;
(10) local district heating or cooling facilities;
(11) projects for residential rental property, if
at all times during the 10-year period beginning
upon the initial occupancy of the project (as the Sec-
retary shall determine) 20 percent or more of the
dwelling units in each of the projects are available
for occupancy only by low-income families (as such
term is defined in section 3 of the United States
Housing Act of 1937);
(12) land as the site for an industrial park
(which includes the acquisition of land, the provision
of water, sewage, drainage, and similar facilities,
and transportation, power, and communication facili-
ties incidental to use of the site as an industrial
park, but does not include the provision of struc-
tures or buildings); or
(13) computer or automation technology for—
(A) the establishment of local public- or
educational-sector wide area networks (includ-
ing providing public access sites and systems in-
tegration); or
(B) federally designated national informa-
tion highway facilities.
SEC. 206. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) 
EMPOWERMENT
ZONE.—The 
term
‘‘empowerment zone’’ means an area that has been
designated as an empowerment zone under part I of
subchapter U of chapter 1 of the Internal Revenue
Code of 1986.
(2) ENTERPRISE COMMUNITY.—The term ‘‘en-
terprise community’’ means an area that has been
designated as an enterprise community under part I
of subchapter U of chapter 1 of the Internal Reve-
nue Code of 1986.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(4) STRATEGIC
PLAN.—The term ‘‘strategic
plan’’ means, with respect to an empowerment zone
or enterprise community, the plan contained in the
application for designation of the area as such a
zone or community under part I of subchapter U of
chapter 1 of the Internal Revenue Code of 1986.
(5) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’
means—
(A) any county, city, town, township, par-
ish, village, or other general purpose political
subdivision of a State; and
(B) any combination of political subdivi-
sions described in subparagraph (A) recognized
by the Secretary.
SEC. 207. REGULATIONS.
The Secretary may issue any regulations necessary
to carry out this title.
TITLE 
III—ADDITIONAL 
BENE-
FITS 
FOR 
EMPOWERMENT
ZONES 
AND 
ENTERPRISE
COMMUNITIES
SEC. 301. EDUCATION GRANTS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Give Students the Power to Work Program Act’’.
(b) PROGRAM AUTHORIZED.—The Secretary of Edu-
cation is authorized to provide grants to local educational
agencies located in empowerment zones to provide stu-
dents in such areas with the employment skills and tech-
nologies necessary to sustain or improve businesses and
industries located in such zones.
(c) AUTHORIZATION.— There are authorized to be
appropriated $30,000,000 for fiscal year 1997 to carry
out this section.
SEC. 302. MINIMUM ALLOCATION OF FOREIGN ASSISTANCE
FOR PURCHASE OF CERTAIN UNITED STATES
GOODS.
(a) ALLOCATION OF ASSISTANCE.—Notwithstanding
any other provision of law, effective beginning with fiscal
year 1997, not less than 15 percent of United States as-
sistance provided in a fiscal year shall be provided in the
form of credits which may only be used for the purchase
of United States goods produced, manufactured, or assem-
bled in empowerment zones, enterprise communities, or
enterprise zones within the United States.
(b) UNITED STATES ASSISTANCE.—As used in this
section, the term ‘‘United States assistance’’ means—
(1) any assistance under the Foreign Assistance
Act of 1961;
(2) sales, or financing of sales under the Arms
Export Control Act; and
(3) assistance and other activities under the
Support for East European Democracy (SEED) Act
of 1989 (Public Law 101–179).
(c) DEFINITIONS.—As used in this section:
(1) The term ‘‘empowerment zone’’ means a
zone designated as an empowerment zone pursuant
to subchapter U of chapter 1 of the Internal Reve-
nue Code of 1986 (26 U.S.C. 1391 et seq.).
(2) The term ‘‘enterprise community’’ means a
community designated as an enterprise community
pursuant to subchapter U of chapter 1 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).
SEC. 303. REQUIREMENT FOR FEDERAL GOVERNMENT TO
PROCURE 15 PERCENT OF GOODS AND SERV-
ICES 
FROM 
BUSINESSES 
LOCATED 
IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES.
(a) CIVILIAN AGENCY ACQUISITIONS.—(1) Title III
of the Federal Property and Administrative Services Act
of 1949 (41 U.S.C. 251 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 317. REQUIREMENT TO PROCURE GOODS AND SERV-
ICES 
FROM 
ENTITIES 
LOCATED 
IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES.
‘‘(a) REQUIREMENT.—At least 15 percent of the
amount obligated in a fiscal year by an executive agency
for contracts for the procurement of goods and services
shall be obligated for contracts to be carried out by entities
located in empowerment zones or enterprise communities.
‘‘(b) LIMITATION.—The requirement of subsection
(a) shall not apply to the extent that the goods or services
to be procured—
‘‘(1) are not reasonably available within a rea-
sonable period of time from an entity located in an
empowerment zone or enterprise community;
‘‘(2) are so available, but fail to meet the per-
formance standards set forth in the applicable speci-
fications or fail to meet the reasonable performance
standards of the procuring agency; or
‘‘(3) are so available, but at an unreasonable
price.
‘‘(c) DEFINITION.—For purposes of this section, the
terms ‘empowerment zone’ and ‘enterprise community’
mean such a zone or community designated under section
1391 of the Internal Revenue Code of 1986.’’.
(2) The table of contents for such title is amended
by adding after the item relating to section 316 the follow-
ing new item:
‘‘Sec. 317. Requirement to procure goods and services from entities located in
empowerment zones and enterprise communities.’’.
(b) ARMED SERVICES ACQUISITIONS.—(1) Chapter
137 of title 10, United States Code, is amended by adding
at the end the following new section:
‘‘§ 2332. Requirement to procure goods and services
from entities located in empowerment
zones and enterprise communities.
‘‘(a) REQUIREMENT.—At least 15 percent of the
amount obligated in a fiscal year by an agency listed in
section 2303 for contracts for the procurement of goods
and services shall be obligated for contracts to be carried
out by entities located in empowerment zones or enterprise
communities.
‘‘(b) LIMITATION.—The requirement of subsection
(a) shall not apply to the extent that the goods or services
to be procured—
‘‘(1) are not reasonably available within a rea-
sonable period of time from an entity located in an
empowerment zone or enterprise community;
‘‘(2) are so available, but fail to meet the per-
formance standards set forth in the applicable speci-
fications or fail to meet the reasonable performance
standards of the procuring agency; or
‘‘(3) are so available, but at an unreasonable
price.
‘‘(c) DEFINITION.—For purposes of this section, the
terms ‘empowerment zone’ and ‘enterprise community’
mean such a zone or community designated under section
1391 of the Internal Revenue Code of 1986.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2332. Requirement to procure goods and services from entities located in
empowerment zones and enterprise communities.’’.
(c) EFFECTIVE DATE.—Section 317 of the Federal
Property and Administrative Services Act of 1949 and
section 2332 of title 10, United States Code, as added by
subsections (a) and (b), respectively, shall take effect on
October 1, 1996.
SEC. 304. REQUIREMENT FOR FEDERAL GOVERNMENT TO
PROCURE RECYCLED MATERIALS FROM EN-
TITIES LOCATED IN EMPOWERMENT ZONES.
(a) REQUIREMENT.—Section 6002(c)(1) of the Solid
Waste Disposal Act (42 U.S.C. 6962(c)(1)) is amended
by inserting after the first sentence the following: ‘‘Such
items shall be procured from entities located in
empowerment zones, as designated under section 1391 of
the Internal Revenue Code of 1986.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 1996.
SEC. 305. GET EMPOWERMENT ZONES MOVING PROGRAM.
(a) IN GENERAL.—The Secretary of Transportation
may make grants to a State or local government in which
an empowerment zone is located to finance innovative pro-
grams for meeting the transportation needs of the
empowerment zone.
(b) APPLICATIONS.—In order to be eligible to receive
a grant under this section, a State or local government
shall submit to the Secretary an application that is in such
form and contains such information as the Secretary may
require.
(c) USE OF GRANTS.—Amounts from grants made
under this section may be used to carry out innovative
transportation programs in an empowerment zone for any
of the following purposes:
(1) Leasing and operating special transpor-
tation vehicles.
(2) Enhancing mobility in and around the
empowerment zone.
(3) 
Improving 
public 
safety 
in 
the
empowerment zone.
(4) Other purposes designed to meet the trans-
portation needs of the empowerment zone, as ap-
proved by the Secretary.
(d) EMPOWERMENT ZONE DEFINED.—In this sec-
tion, the term ‘‘empowerment zone’’ means a zone des-
ignated under section 1391 of the Internal Revenue Code
of 1986.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$27,000,000 in the aggregate for fiscal years 1997
through 2001. Such sums shall remain available until ex-
pended.
TITLE IV—REGULATORY
FLEXIBILITY
SEC. 
401. 
DEFINITION 
OF 
SMALL 
ENTITIES 
IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES 
FOR 
ANALYSIS 
OF 
REGU-
LATORY FUNCTIONS.
Section 601 of title 5, United States Code, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(5); and
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) the term ‘small entity’ means—
‘‘(A) a small business, small organization,
or small governmental jurisdiction defined in
paragraphs (3), (4), and (5) of this section; and
‘‘(B)(i) any enterprise zone business (as
defined by section 1394(b)(3) of the Internal
Revenue Code of 1986);
‘‘(ii) any unit of government that nomi-
nated an area which the appropriate Secretary
designates as an empowerment zone or enter-
prise community (within the meaning of section
1391 of the Internal Revenue Code of 1986)
that has a rule pertaining to the carrying out
of any project, activity, or undertaking within
such zone or community; and
‘‘(iii) any not-for-profit enterprise carrying
out a significant portion of its activities within
such a zone or community.
For purposes of subparagraph (B)(ii), the term ‘ap-
propriate Secretary’ has the meaning given such
term by section 1393(a)(1) of the Internal Revenue
Code of 1986.’’
SEC. 402. WAIVER OR MODIFICATION OF AGENCY RULES IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES.
(a) IN GENERAL.—Chapter 6 of title 5, United
States Code, is amended by adding after section 612 the
following new section:
‘‘§ 613. Waiver or modification of agency rules in
empowerment zones and enterprise com-
munities
‘‘(a) Upon the written request of any government
which nominated an area that the appropriate Secretary
has designated as an empowerment zone or enterprise
community under section 1391 of the Internal Revenue
Code of 1986, an agency is authorized, in order to further
the job creation, community development, or economic re-
vitalization objectives with respect to such zone or commu-
nity, to waive or modify all or part of any rule which such
agency has authority to promulgate, as such rule pertains
to the carrying out of projects, activities, or undertakings
within such zone or community.
‘‘(b) Nothing in this section shall authorize an agency
to waive or modify any rule adopted to carry out a statute
or Executive order which prohibits, or the purpose of
which is to protect persons against, discrimination on the
basis of race, color, religion, sex, familial status, national
origin, age, or handicap.
‘‘(c) A request under subsection (a) shall specify the
rule or rules to be waived or modified and the change pro-
posed, and shall briefly describe why the change would
promote the achievement of the job creation, community
development, or economic revitalization objectives of the
empowerment zone or enterprise community. If such a re-
quest is made to any agency other than the Department
of Housing and Urban Development or the Department
of Agriculture, the requesting government shall send a
copy of the request to the Secretary of Housing and Urban
Development or to the Secretary of Agriculture, whichever
is appropriate, at the time the request is made.
‘‘(d) Any petition for a modification or waiver shall—
(i) identify the requirements for which the
modification or waiver is sought;
‘‘(ii) identify the existing or proposed business
or type of business to which the modification or
waiver would pertain;
‘‘(iii) demonstrate that the public interest which
the proposed change would serve in furthering such
job creation, community development, or economic
revitalization outweighs the public interest which
continuation of the rule unchanged would serve;
‘‘(iv) demonstrate the extent to which the pro-
posed change is likely to further job creation, com-
munity development, or economic revitalization with-
in the empowerment zone or enterprise community
against the effect the change is likely to have on the
underlying purposes of applicable statutes in the ge-
ographic area which would be affected by the
change; and
‘‘(v) demonstrate that the waiver or modifica-
tion is necessary because the existing rule impedes
the implementation of an existing or proposed busi-
ness or type of business that furthers job creation,
community development, or economic revitalization.
‘‘(e) The agency may approve, in its discretion, a pe-
tition upon determining that the petition meets the above-
stated criteria. The agency shall not approve any request
to waive or modify a rule if that waiver or modification
would—
‘‘(1) violate a statutory requirement (including
any requirements of the Fair Labor Standards Act
of 1938 (52 Stat. 1060; 29 U.S.C. 201 et seq.)); or
‘‘(2) be likely to present a significant risk to the
public health, including environmental or occupa-
tional health or safety or environmental pollution.
‘‘(f) A modified rule shall be enforceable as if it were
the issuance of an amendment to the rule being modified
or waived.
‘‘(g) If a request is disapproved, the agency shall in-
form all the requesting governments, and the appropriate
Secretary (as defined in section 1393(a)(1) of the Internal
Revenue Code of 1986), in writing of the reasons therefor
and shall, to the maximum extent possible, work with such
governments to develop an alternative, consistent with the
standards contained in subsection (d).
‘‘(h) No later than the date on which the petitioner
submits the petition to the agency, the petitioner shall in-
form the public of the submission of such petition (includ-
ing a brief description of the petition) through publication
of a notice in newspapers of general circulation in the area
in which the facility is located. The agency may authorize
or require petitioners to use additional or alternative
means of informing the public of the submission of such
petitions. If the agency proposes to grant the petitions,
the agency shall provide public notice and opportunity to
comment. The agency shall publish a notice in the Federal
Register stating any waiver or modification of a rule under
this section, the time such waiver or modification takes
effect and its duration, and the scope of the applicability
of such waiver or modification, consistent with Adminis-
trative Procedure Act requirements.
‘‘(i) In the event that an agency proposes to amend
a rule for which a waiver or modification under this sec-
tion is in effect, the agency shall not change the waiver
or modification to impose additional requirements unless
it determines, consistent with standards contained in sub-
section (d), that such action is necessary. Such determina-
tions shall be published with the proposal to amend such
rule.
‘‘(j) No waiver or modification of a rule under this
section shall remain in effect with respect to an
empowerment zone or enterprise community after the zone
or community designation has expired or has been re-
voked.
‘‘(k) For purposes of this section, the term ‘rule’
means—
‘‘(1) any rule as defined in section 551(4) of
this title, or
‘‘(2) any rulemaking conducted on the record
after opportunity for an agency hearing pursuant to
sections 556 and 557 of this title.’’
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 6 of title 5, United States Code, is amended by insert-
ing after the item relating to section 612, the following
new item:
‘‘613. Waiver or modification of agency rules in empowerment zones and enter-
prise communities.’’
(c) CONFORMING AMENDMENTS.—
(1) Section 601(2) of such title 5 is amended
by inserting ‘‘(except for purposes of section 613)’’
before ‘‘means’’.
(2) Section 612 of such title 5 is amended—
(A) in subsection (a), by inserting ‘‘(except
section 613)’’ after ‘‘chapter’’; and
(B) in subsection (b), by inserting ‘‘as de-
fined in section 601(2)’’ before the period at
the end of the first sentence.
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