A bill to amend the Consolidated Farm and Rural Development Act to provide grants for special environmental assistance for the regulation of communities and habitat ("SEARCH grants") to small communities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Project SEARCH Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) small communities often struggle to meet environmental 
        goals because of difficulty in securing funding;
            (2) often, sources of funding for environmental projects 
        require expensive, complex studies or other application 
        materials;
            (3) a small community that secures funding for an 
        environmental project from a traditional source often is unable 
        to provide matching funds required by the traditional source; 
        and
            (4) small communities would benefit from a grant program 
        designed to provide funding for environmental projects--
                    (A) through a simplified application process; and
                    (B) without the requirement of matching funds.

SEC. 3. SEARCH GRANTS FOR SMALL COMMUNITIES.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) is amended by adding at the end the following:

           ``Subtitle G--SEARCH Grants for Small Communities

``SEC. 391. DEFINITIONS.

    ``In this subtitle:
            ``(1) Council.--The term `council' means an independent 
        citizens' council established by section 392(b).
            ``(2) Environmental project.--
                    ``(A) In general.--The term `environmental project' 
                means a project that--
                            ``(i) benefits human health or the 
                        environment; and
                            ``(ii) is necessary to comply with an 
                        environmental law (including a regulation).
                    ``(B) Inclusion.--The term `environmental project' 
                includes an initial feasibility study of a project.
            ``(3) Region.--The term `region' means a geographic area of 
        a State, as determined by the Governor of the State.
            ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
        for special environmental assistance for the regulation of 
        communities and habitat awarded under section 392(c)(3).
            ``(5) Small community.--The term `small community' means an 
        incorporated or unincorporated rural community having a 
        population of not more than 2,500 individuals.
            ``(6) State.--The term `State' has the meaning given the 
        term in section 381A.

``SEC. 392. SEARCH GRANT PROGRAM.

    ``(a) In General.--
            ``(1) Establishment.--There is established the SEARCH Grant 
        Program.
            ``(2) State requirements.--
                    ``(A) In general.--Not later than October 1 of each 
                fiscal year, a State may submit to the Secretary an 
                application to receive a grant under paragraph (3) for 
                the fiscal year.
                    ``(B) Application requirements.--An application 
                under subparagraph (A) shall contain--
                            ``(i) a certification by the State that the 
                        State has appointed members to the council of 
                        the State under subsection (b)(2)(C); and
                            ``(ii) such information as the Secretary 
                        may reasonably require.
            ``(3) Grant to state.--Not later than 60 days after the 
        date on which the Office of Management and Budget apportions 
        any amounts made available under this subtitle, for each fiscal 
        year after the date of enactment of this subtitle, the 
        Secretary shall, on request by a State--
                    ``(A) determine whether any application submitted 
                by the State under paragraph (2) meets the requirements 
                of that paragraph; and
                    ``(B) subject to section 394(b) and subsection 
                (c)(4)(B), if the Secretary determines that the 
                application meets the requirements of paragraph (2)(B), 
                award a grant of not to exceed $1,000,000 to the State, 
                to be used by the council of the State to award SEARCH 
                grants under subsection (b)(3).
    ``(b) Independent Citizens' Council.--
            ``(1) Establishment.--There is established in each State an 
        independent citizens' council to carry out the duties described 
        in this section.
            ``(2) Composition.--
                    ``(A) In general.--Each council shall be composed 
                of 9 members, appointed by the Governor of the State.
                    ``(B) Representation; residence.--Each member of a 
                council shall--
                            ``(i) represent an individual region of the 
                        State, as determined by the Governor of the 
State in which the council is established; and
                            ``(ii) reside in a small community of the 
                        State.
                    ``(C) Appointment.--Before a State receives funds 
                under this subtitle, the State shall appoint members to 
                the council for the fiscal year, except that not more 
                than 1 member shall be an agent, employee, or official 
                of the State government.
                    ``(D) Chairperson.--Each council shall select a 
                chairperson from among the members of the council, 
                except that a member who is an agent, employee, or 
                official of the State government shall not serve as 
                chairperson.
                    ``(E) Federal representation.--An agent, employee, 
                or official of the Federal Government may participate 
                in the activities of the council--
                            ``(i) in an advisory capacity; and
                            ``(ii) at the invitation of the council.
            ``(3) SEARCH grants.--
                    ``(A) In general.--Each council shall review 
                applications for, and recommend awards of, SEARCH 
                grants to small communities that meet the eligibility 
                criteria under subsection (c).
                    ``(B) Recommendations.--In awarding a SEARCH grant, 
                a State--
                            ``(i) shall follow the recommendations of 
                        the council of the State;
                            ``(ii) shall award the funds for any 
                        recommended environmental project in a timely 
                        and expeditious manner; and
                            ``(iii) shall not award a SEARCH grant to a 
                        grantee or project in violation of any law of 
                        the State (including a regulation).
                    ``(C) No matching requirement.--A small community 
                that receives a SEARCH grant under this section shall 
                not be required to provide matching funds.
    ``(c) SEARCH Grants for Small Communities.--
            ``(1) Eligibility.--A SEARCH grant shall be awarded under 
        this section only to a small community for 1 or more 
        environmental projects for which the small community--
                    ``(A) needs funds to carry out initial feasibility 
                or environmental studies before applying to traditional 
                funding sources; or
                    ``(B) demonstrates, to the satisfaction of the 
                council, that the small community has been unable to 
                obtain sufficient funding from traditional funding 
                sources.
            ``(2) Application.--
                    ``(A) Date.--The council shall establish such 
                deadline by which small communities shall submit 
                applications for grants under this section as will 
                permit the council adequate time to review and make 
                recommendations relating to the applications.
                    ``(B) Location of application.--A small community 
                shall submit an application described in subparagraph 
                (A) to the council in the State in which the small 
                community is located.
                    ``(C) Content of application.--An application 
                described in subparagraph (A) shall include--
                            ``(i) a description of the proposed 
                        environmental project (including an explanation 
                        of how the project would assist the small 
                        community in complying with an environmental 
                        law (including a regulation));
                            ``(ii) an explanation of why the project is 
                        important to the small community;
                            ``(iii) a description of all actions taken 
                        with respect to the project, including a 
                        description of any attempt to secure funding 
                        and a description of demonstrated need for 
                        funding for the project, as of the date of the 
                        application; and
                            ``(iv) a SEARCH grant application form 
                        provided by the council, completed and with all 
                        required supporting documentation.
            ``(3) Review and recommendation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), not later than March 5 of each fiscal 
                year, each council shall--
                            ``(i) review all applications received 
                        under paragraph (2); and
                            ``(ii) recommend for award SEARCH grants to 
                        small communities based on--
                                    ``(I) an evaluation of the 
                                eligibility criteria under paragraph 
                                (1); and
                                    ``(II) the content of the 
                                application.
                    ``(B) Extension of deadline.--The State may extend 
                the deadline described in subparagraph (A) by not more 
                than 10 days in a case in which the receipt of 
                recommendations from a council under subparagraph 
                (A)(ii) is delayed because of circumstances beyond the 
                control of the council, as determined by the State.
            ``(4) Unexpended funds.--
                    ``(A) In general.--If, for any fiscal year, any 
                unexpended funds remain after SEARCH grants are awarded 
                under subsection (b)(3)(B), the council may repeat the 
                application and review process so that any remaining 
                funds may be recommended for award, and awarded, not 
                later than July 30 of the fiscal year.
                    ``(B) Retention of funds.--
                            ``(i) In general.--Any unexpended funds 
                        that are not awarded under subsection (b)(3)(B) 
                        or subparagraph (A) shall be retained by the 
                        State for award during the following fiscal 
                        year.
                            ``(ii) Limitation.--A State that 
                        accumulates a balance of unexpended funds 
                        described in clause (i) of more than $3,000,000 
                        shall be ineligible to apply for additional 
                        funds for SEARCH grants until such time as the 
                        State expends the portion of the balance that 
                        exceeds $3,000,000.

``SEC. 393. REPORT.

    ``Not later than September 1 of the first fiscal year for which a 
SEARCH grant is awarded by a council, and annually thereafter, the 
council shall submit to the Secretary a report that--
            ``(1) describes the number of SEARCH grants awarded during 
        the fiscal year;
            ``(2) identifies each small community that received a 
        SEARCH grant during the fiscal year;
            ``(3) describes the project or purpose for which each 
        SEARCH grant was awarded, including a statement of the benefit 
        to public health or the environment of the environmental 
        project receiving the grant funds; and
            ``(4) describes the status of each project or portion of a 
        project for which a SEARCH grant was awarded, including a 
        project or portion of a project for which a SEARCH grant was 
        awarded for any fiscal year before the fiscal year in which the 
        report is submitted.

``SEC. 394. FUNDING.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out section 392(a)(3) $50,000,000.
    ``(b) Actual Appropriation.--If funds to carry out section 
392(a)(3) are made available for a fiscal year in an amount that is 
less than the amount authorized under subsection (a) for the fiscal 
year, the appropriated funds shall be divided equally among the 50 
States.
    ``(c) Unused Funds.--If, for any fiscal year, a State does not 
apply, or does not qualify, to receive funds under section 392(a)(2), 
the funds that would have been made available to the State under 
section 392(a)(3) on submission by the State of a successful 
application under section 392(a)(2) shall be redistributed for award 
under this subtitle among States, the councils of which awarded 1 or 
more SEARCH grants during the preceding fiscal year.
    ``(d) Other Expenses.--There are authorized to be appropriated such 
sums as are necessary to carry out the provisions of this subtitle 
(other than section 392(a)(3)).''.

Summary: Project SEARCH Act of 2001 - Amends the Consolidated Farm and Rural Development Act to establish the SEARCH grant program to carry out environmental projects in rural communities of not more than 2,500 people.