An Act to amend the Public Works and Economic Development Act of 1965, as amended, to extend the authorizations for a three-year period.
PL 94-487 (S.2228), enacted 10/12/1976

PUBLIC LAW 94-487—OCT. 12, 1976 
90 STAT. 2331 
Public Law 94-487 
94th Congress 
An Act 
To amend the Public Works and Economic Development Act of 1965, as amended, 
to extend the authorizations for a three-year period. 
Be it enacted hy the Senate and House of Representatives of the 
United States of Ainerica in Congress assembled^ 
TITLE I 
SEC. 101. This Act may be cited as the "Public Works and Economic 
Development Act Amendents of 1976". 
SEC. 102. Section 2 of the Public Works and Economic Development 
Act of 1965 (42 U.S.C. 3121) is amended by inserting at the end the 
following new sentence: "Congress further declares that, in further-
ance of maintaining the national economy at a high level, the assist-
ance authorized by this Act should be made available to both rural and 
urban areas; that such assistance be available for planning for eco-
nomic development prior to the actual occurrences of economic distress 
in order to avoid such condition; and that such assistance be used for 
long-term economic rehabilitation in areas where long-term economic 
deterioration has occurred or is taking place.". 
SEC. 103. (a) Section 101 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3131) is amended by striking out 
subsection (e). 
(b) The second sentence of subsection (c) of section 101 of the Pub-
lic Works and Economic Development Act of 1965 (42 U.S.C. 3131) 
is amended by striking out "may" each of the two places it appears and 
inserting in lieu thereof at each such place "shall". 
(c) Section 101(c) of such Act is further amended by adding after 
the second sentence the following new sentence: "In case of any com-
munity development corporation which the Secretary determines has 
exhausted its effective borrowing capacity, the Secretary may reduce 
the non-Federal share below such per centum or waive the non-Fed-
eral share in the case of such a grant for a project in a redevelopment 
area designated as such under section 401(a) (6) of this Act.". 
SEC. 104. The first sentence of section 102 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3132) is amended— 
(1) by striking out "and June 30, 1976," and inserting in lieu 
thereof "June 30, 1976, September 30, 1977, September 30, 1978, 
and September 30,1979,"; and 
(2) by inserting immediately before "shall be available" the 
following: ", and for the period beginning July 1, 1976, and end-
ing September 30, 1976, not to exceed $7,500,000 of the funds 
authorized to be appropriated under such section 105 for such 
period,". 
SEC. 105. Section 105 of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3135) is amended— 
(1) by striking out the period at the end of the first sentence and 
inserting in lieu thereof the following: ", not to exceed $62,500,000 
for the period beginning July 1, 1976, and ending September 30, 
Oct. 12, 1976 
[S. 2228] 
Public Works and 
Economic 
Development Act 
Amendments of 
1976. 
42 u s e 3121 
note. 
Rural and urban 
area assistance. 
Community 
development 
corporation 
grants, non-
Federal share, 
waiver. 
42 u s e 3161. 
90 STAT. 2332 
PUBLIC LAW 94-487—OCT. 12, 1976 
1976, and not to exceed $425,000,000 per fiscal year for the fiscal 
years ending September 30, 1977, September 30, 1978, and Sep-
tember 30,1979."; 
(2) by striking out "and June 30, 1976," in the third sentence 
and inserting in lieu thereof "June 30,1976, the period beginning 
July 1,1976, and ending September 30, 1976, and the fiscal years 
endmg September 30,1977, September 30,1978, and September 30, 
1979,"; and 
(3) by striking out "10 per centum" in the third sentence and 
inserting in lieu thereof "15 per centum". 
SEC. 106. Title I of the Public Works and Economic Development 
Act of 1965 (42 U.S.C. 3131-3136) is further amended by adding at 
the end thereof the following: 
a 
42 use 3137. 
Appropriation 
authorization. 
Infra. 
Interest 
reduction, 
payments. 
42 use 3142. 
CONSTRUCTION COST INCREASES 
"SEC. 107. In any case where a grant (including a supplemental 
grant) has been made under this title for a project and after such 
grant has been made but before completion of the project, the cost of 
such project based upon the designs and specifications which were the 
basis of the grant has been increased because of increases in costs, the 
amount of such grant may be increased by an amount equal to the 
percentage increase, as determined by the Secretary, in such costs, but 
in no event shall be percentage of the Federal share of such project 
exceed that originally provided for in such grant.". 
SEC. 107. (a) Section 201(c) (42 U.S.C. 3141) is amended to read as 
follows: 
"(c) There are hereby authorized to be appropriated such sums as 
may be necessary to carry out the provisions of this section and sec-
tion 202, except that annual appropriations for the purpose of pur-
chasing evidences of indebtedness, paying interest supplement to or on 
behalf of private entities making and participating in loans, and 
guaranteeing loans, shall not exceed $170,000,000 for the fiscal year 
ending June 30, 1966, and for each fiscal year thereafter through the 
fiscal year ending June 30, 1973, and shall not exceed $55,000,000 for 
the fiscal year ending June 30, 1974, and shall not exceed $75,000,000 
for the fiscal years ending June 30, 1975, and June 30, 1976, and shall 
not exceed $18,750,000 for the period beginning July 1, 1976, and 
ending September 30, 1976, and shall not exceed $200,000,000 per 
fiscal year for the fiscal years ending September 30, 1977, Septem-
ber 30,1978, and September 30,1979.]'. 
(b) Section 201 of such Act is further amended by striking 
subsection (d) of such section. 
(c) Section 202(a) (1) of such Act is amended by adding after para-
graph (1) the following new paragraph: 
"(2) In addition to any other financial assist"ance under this title, 
the Secretary is authorized, in the case of any loan guarantee under 
authority of paragraph (1) of this section, to pay to or on behalf of the 
private borrower an amount sufficient to reduce up to 4 percentage 
points the interest paid by such borrower on such guaranteed loans. 
No payment under this paragraph shall result in the interest rate 
being paid by a borrower on such a guaranteed loan being less than 
the rate of interest for such a loan if it were made under section 201 
of this Act. Payments made to or on behalf of such borrower shall 
be made no less often than annually.". 
(d) Section 202(a) of such Act is amended by renumbering exist-
ing paragraph (2) as (3), including any references thereto. 
SEC. 108. Section 202(a)(3) of the Public Works and Economic 
PUBLIC LAW 94-487—OCT. 12, 1976 
90 STAT. 2333 
Development Act of 1965 (as redesignated by section 107 of this Act) 
^"^e- P- 2332. 
is amended by striking out the period at the end thereof and adding 
the following: "(D) paying those debts with respect to which a lien 
against property has been legally obtained (including the refinancing 
of any such debt) in any case w^here the Secretary determines that it is 
essential to do so in order to save employment in a designated area, to 
avoid a significant rise in unemployment, or to create new or increased 
employment." 
SEC. 109. Title II of the Public Works and Economic Development 
Act of 1965 is amended by adding at the end thereof the following new 42 U
S
C 3141. 
section: 
u 
REDEVELOPMENT AREA LOAN PROGRAM 
"SEC. 204. (a) If a redevelopment area prepares a plan for the rede-
velopment of the area or a part thereof and submits such plan to 
the Secretary for his approval and the Secretary approves such plan, 
the Secretary is authorized to make an interest free loan to such area 
for the purpose of carrying out such plan. Such plan may include 
industrial land assembly, land banking, acquisition of surplus govern-
ment property, acquisition of industrial sites including acquisition of 
abandoned properties with redevelopment potential, real estate devel-
opment including redevelopment and rehabilitation of historical 
buildings for industrial and commercial use, rehabilitation and renova-
tion of usable empty factory buildings for industrial and commer-
cial use, and other investments which will accelerate recycling of land 
and facilities for job creating economic activity. Any such interest 
free loan shall be made on condition (1) that the area will use such 
interest free loan to make loans to carry out such plan, (2) the repay-
ment of any loans made by the area from such interest free loan 
shall be placed by such area in a revolving fund available solely for 
the making of other loans by the area, upon approval by the Secretary, 
for the economic redevelopment of the area. Any such interest free 
loan shall be repaid to the United States by a redevelopment area when-
ever such area has its designation as a redevelopment area ter-
minated or modified under section 402 of this Act. This section shall 
not apply to any redevelopment area whose designation as a redevel-
opment area would be terminated or modified under section 402 of 
this Act except for the provisions of section 2 of the Act entitled "An 
Act to amend the Public Works and Economic Development Act of 
1965 to extend the authorizations for titles I through IV through fiscal 
year 1971", approved July 6, 1970 (P.L. 91-304). 
"<'b) (1) Each eligible recipient which receives assistance under this 
section shall annually during the period such assistance continues 
make a full and complete report to the Secretary, in such manner as 
the Secretary shall prescribe, and such report shall contain an evalu-
ation of the effectiveness of the economic assistance provided under 
this section in meeting the need it was designed to alleviate and the 
purposes of this section. 
"(2) The Secretary shall provide an annual consolidated report to 
the Congress, with his recommendations, if any, on the assistance 
authorized under this section, in a form which he deems appropriate. 
The first such report to Congress under this subsection shall be made 
not later than July 1,1977. 
"(c) There is authorized to be appropriated to carry out this sec-
tion not to exceed $125,000,000 per fiscal vear for the fiscal years end-
ing September 30,1977, September 30,1978, and September 30,1979.". 
SEC. 110. The fourth sentence of subsection (a) of section 302 of the 
Public Works and Economic Development Act of 1965 is amended to 
Interest free 
loans. 
42 USC 3144. 
Repayment. 
42 USC 3162. 
42 USC 3131, 
3161. 
42 USC 3162 
note. 
Report to 
Congress. 
Appropriation 
authorization. 
State economic 
development plan. 
42 USC 3151a. 
89-194 O—78—pt. 2 
55 
90 STAT. 2334 
PUBLIC LAW 94-487—OCT. 12, 1976 
Appropriation 
authorization. 
Appropriation 
authorization. 
42 
use 
3131, 
3141, 
3161. 
42 
use 
3151, 
3152. 
42 
use 
3241. 
Area eligibility. 
42 use 3161. 
read as follows: "Any overall State economic development plan 
prepared with assistance under this section shall be prepared coopera-
tively by the State, its political subdivisions, and the economic develop-
ment districts located in whole or in part within such State. Upon 
completion of any such plan, the State shall certify to the Secretary (1) 
that in the preparation of such State plan, the local and economic 
development district plans wei'e considered and, to the fullest extent 
possible, such State plan is consistent with such local and economic 
development district plans, and (2) that such State plan is consistent 
with such local and economic development district plans, or, if such 
State plan is not consistent with such local and economic development 
district plans, all of the inconsistencies of the State plan with the local 
and economic development district plans, and the justification for each 
of these inconsistencies.". 
SEC. 111. (a) Section 303(a) of the Public Works and Economic 
Development Act of 1965 (42 IJ.S.C. 3152) is amended by striking out 
the period at the end thereof and inserting in lieu thereof the follow-
ing: ", $18,750,000 for the period beginning July 1, 1976, and ending 
September 30, 1976, and $75,000,000 per fiscal year for the fiscal years 
ending September 30, 1977, September 30, 1978, and September 30, 
1979.". 
(b) Section 303(b) of such Act is amended by striking out "and 
June 30, 1976" and inserting in lieu thereof "June 30, 1976, Septem-
ber 30,1977, September 30, 1978, and September 30, 1979". 
SEC. 112. (a) Section 304(a) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3153) is amended by inserting 
immediately after "June 30, 1976," the following: "$18,750,000 for 
the period beginning July 1, 1976, and ending September 30, 1976, 
and $75,000,000 per fiscal year for the fiscal years ending Septem-
ber 30,1977, September 30,1978, and September 30,1979,". 
(b) Section 304(a) of such Act is further amended by striking out 
"titles I, II, and IV" and inserting in lieu thereof "titles I, II, III 
(other than planning grants authorized under sections 301(b) and 
302), IV, and IX". 
(c) Section 304(c) of such Act is amended by striking out "title I, 
II, or IV" and inserting in lieu thereof "title I, II, III (other than 
planning grants authorized under sections 301(b) and 302), IV, or 
IX". 
SEC. 113. (a) Section 401(a) (1) (A) of the Public Works and Eco-
nomic Development Act of 1965 is amended by striking out "available 
calendar year" and inserting in lieu thereof "twelve consecutive 
months". 
(b) Section 401 (a) (8) of the Public Works and Economic Develop-
ment Act of 1965 is amended to read as follows: 
"(8) those areas which the Secretary of Labor determines, on 
the basis of average annual available unemployment statistics, to 
have experienced unemployment which is both substantial and 
above the national average for the preceding twenty-four 
months;". 
(c) Section 401(a) of such Act is further amended by adding at 
the end thereof the following: 
"(9) those areas which the Secretary determines have demon-
strated long-term economic deterioration.". 
SEC. 114. (a) Section 401 (b) (4) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3161) is amended by striking 
out "two hundred and fifty", and inserting in lieu thereof "twenty-
five". 
(b) Section 401(b) of the Public Works and Economic Develop-
PUBLIC LAW 94-487—OCT. 12, 1976 
90 STAT. 2335 
ment Act of 1965 (42 U.S.C. 3171) is amended by adding at the end 42 USC 3161 
thereof the following: 
"Nothing in this subsection shall prevent any municipality, designated 
as a redevelopment area or eligible to be designated as a redevelopment 
area, from combining with any other community having mutual eco-
nomic interests and transportation and marketing patterns for the 
purposes of such designation.". 
SEC. 115. Section 403 (g) of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3171) is amended by inserting imme-
diately after "June 30,1976,'' the following: "not to exceed $11,250,000 
for the period beginning July 1,1976, and ending September 30, 1976, 
and not to exceed $45,000,000 per fiscal year for the fiscal years ending 
September 30, 1977, September 30, 1978, and September 30, 1979,". 
SEC. 116. Section 404 of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3172) is amended by striking out ", and 
June 30, 1976," and inserting in lieu thereof the following: "and 
June 30, 1976, not to exceed $6,250,000 for the period beginning 
July 1, 1976. and ending September 30, 1976, and not to exceed 
$25,000,000 per fiscal year for the fiscal years ending September 30, 
1977, September 30, 1978, and September 30, 1979,". 
SEC. 117. Title IV of the Public Works and Economic Development 
Act of 1965 (42 U.S.C. 3161 et seq.) is further amended by adding at 
the end thereof the followinsf: 
Appropriation 
authorization. 
Appropriation 
authorization. 
"PART D—UNEMPLOYMENT RATE DETERMINATIONS 
"SEC. 405. Whenever any provision of this Act requires the Secre-
tary of Labor, or the Secretary, to make any determination or other 
finding relating to the unemployment rate of any area, information 
regarding such unemployment rate may be furnished either by the 
Federal Government or by a State. Unemployment rates furnished by 
a State shall be accepted by the Secretary unless he determines that 
such rates are inaccurate. The Secretary sliall provide technical assist-
ance to State and local governments in the calculation of unemploy-
ment rates to insure their validity and standardization.". 
SEC. 118. (a) Section 509(c) of the Public Works and Economic 
Development Act of 1965 is amended by striking out the first sentence 
and inserting in lieu thereof the following: "The term 'Federal grant-
in-aid programs' as used in this section means those Federal grant-in-
aid programs authorized on or before September 30,1979, by this Act 
and Acts other than this Act for the acquisition or development of 
land, the construction or equipment of facilities, or other community 
or economic development or economic adjustment activities, including 
but not limited to grant-in-aid programs authorized by the following 
Acts: Federal Water Pollution Control Act; Watershed Protection 
and Flood Prevention Act; titles V I and X V I of the Public Health 
Services Act; Vocational Education Act of 1963; Library Services 
and Construction Act; Federal Airport Act; Airport and Airway 
Development Act of 1970; part I V of title I I I of the Communications 
Act of 1934; titles V I (part A) and V I I of the Higher Education Act 
of 1965; Land and Water Conservation Fund Act of 1965; National 
Defense Education Act of 1958; Consolidated Farm and Rural Devel-
opment Act; and titles I and I X of this Act.". 
(b) The first sentence of section 509(d)(1) of the Public Works 
and Economic Development Act of 1965 (42 U.S.C. 3188a) is amended 
by striking out at the end thereof "and for the fiscal year ending Sep-
tember 30, 1977, to be available until expended, $250,000,000." and 
inserting in lieu thereof "and for the fiscal years ending September 30, 
42 USC 3173. 
"Federal grant-
in-aid programs.' 
42 USC 3188a., 
33 USC 1151 note. 
16 use 1001 note. 
42 USC 291, 300o. 
20 USC 1241 note. 
20 USC 351 note. 
49 USC 
1101-1120 
notes. 
49 USC 1701 note. 
47 USC 390. 
20 USC 1121, 
1132a. 
16 USC 460/-4 
note. 
20 USC 401 note. 
7 USC 1921 note. 
42 USC 3162, 
3241. 
90 STAT. 2336 
PUBLIC LAW 94-487—OCT. 12, 1976 
Appropriation 
authorization. 
Financial 
assistance for 
energy, 
limitations. 
42 use 3131, 
3141. 
Appropriation 
authorization. 
1977, September 30,1978, and September 30,1979, to be available until 
expended, $250,000,000 per fiscal year.". 
SEC. 119. Section 509(d)(2) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3188a) is amended by striking 
out at the end thereof "and for the fiscal year ending September 30, 
1977, to be available until expended, not to exceed $5,000,000." and 
inserting in lieu thereof "and for the fiscal years ending September 30, 
1977, September 30,1978, and September 30,1979, to be available until 
expended, $5,000,000 per fiscal year.". 
SEC. 120. Section 704(e) of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3214) is amended to read as follows: 
"(e) No financial assistance authorized under this Act shall be 
used to finance the cost of facilities for the generation, transmission, 
or distribution of electrical energy, or to finance the cost of facilities 
for the production or transmission of gas (natural, manufactured, or 
mixed), except (1) for projects specifically authorized by Congress, 
and (2) for local projects for industrial parks and industrial or com-
mercial areas in communities where the electrical energy or gas supply 
is, or is threatened to be interrupted or curtailed resulting in a loss of 
jobs, or where the purpose is to save jobs, or create new jobs, on con-
dition that (A) the Secretary finds that project financing is not avail-
able from private lenders or other Federal agencies on terms which, 
in the opinion of the Secretary, will permit accomplishment of the 
project, and (B) the State or Federal regulatory body regulating 
such service determines that the facility to be financed will not com-
pete with an existing public utility rendering such a service to the 
public at rates or charges subject to regulation by such State or Fed-
eral regulatory body, or if there is a determination of competition, the 
State or Federal regulatory body must make a determination that in 
the area to be served by the facility for which the financial assistance 
is to be extended there is a need for an increase in such service (tak-
ing into consideration reasonably foreseeable future needs) which the 
existing public utility is not able to meet through its existing facili-
ties or through an expansion which it agrees to undertake. Not more 
fhan $7,000,000 appropriated to carry out titles I and II of this Act 
may be expended annually for such projects.". 
SEC. 121. (a) Section 901 of the Public Works and Economic Devel-
opment Act of 1965 (42 U.S.C. 3241) is amended by inserting " (includ-
ing long-term economic deterioration)" immediately after "economic 
conditions". 
(b) Section 903(a) (1) of such Act (42 U.S.C. 3243) is amended— 
(1) by inserting "(A)" immediately before "which the 
Secretary"; 
(2) by inserting ", or (B) which the Secretary determines has 
demonstrated long-term economic deterioration," immediately 
after "Federal Government)"; 
(3) by inserting "and businesses" immediately after "relocation 
of individuals"; and 
(4) by striking out "and other appropriate assistance," and 
inserting in lieu thereof the following: "and other assistance which 
demonstrably furthers the economic adjustment objectives of this 
title.". 
(c) Section 903(a)(2)(A) of such Act is amended by inserting 
immediately after "loan guarantees," the following: "payments to 
reduce interest on loan guarantees,". 
(d) Section 905 of such Act (42 U.S.C. 3245) is amended by strik-
ing out the period at the end thereof and inserting in lieu thereof the 
following: ", not to exceed $25,000,000 for the transition quarter end-
PUBLIC LAW 94-487—OCT. 12, 1976 
90 STAT. 2337 
29 use 844. 
Grant 
applications. 
42 use 3246b. 
Funds allocation 
priorities. 
ing September 30, 1976, and not to exceed $100,000,000 per fiscal year 
for the fiscal years ending September 30,1977, September 30,1978, and 
September 30,1979.". 
SEC. 122. Section 1002 of the Public Works and Economic Develop- "Eligible area." 
ment Act of 1965, as amended, is amended by striking the entire sec- 42 USC 3246a. 
tion and inserting the following: 
"SEC. 1002. For the purpose of this title the term 'eligible area' means 
any area, which the Secretary of Labor designates as an area which 
has a rate of unemployment equal to or in excess of 7 per centum for 
the most recent calendar quarter or any area designated pursuant to 
section 204 (c) of the Comprehensive Employment and Training Act of 
1973 which has unemployment equal to or in excess of 7 per centum 
with special consideration given to areas with unemployment rates 
above the national average.". 
SEC. 123. (a) Section 1003(c) of the Public Works and Economic 
Development Act of 1965, as amended, is amended to read as follows: 
"(c) Where necessary to effectively carry out the purposes of this 
title, the Secretary of Commerce is authorized to assist eligible areas 
in making applications for grants under this title.". 
(b) Section 1003(d) of such Act, as amended, is amended to read as 
follows: 
"(d) Notwithstanding any other provisions of this title, funds 
allocated by the Secretary of Commerce shall be available only for a 
program or project which the Secretary identifies and selects pursuant 
to this subsection, and which can be initiated or implemented promptly 
and substantially completed within twelve months after allocation is 
made. In identifying and selecting programs and projects pursuant to 
this subsection, the Secretary shall (1) give priority to programs and 
projects which are most effective in creating and maintaining produc-
tive employment, including permanent and skilled employment meas-
ured as the amount of such direct and indirect employment generated 
or suDported by the additional expenditures of Federal funds under 
this title, and (2) consider the appropriateness of the proposed activ-
ity to the number and needs of unemployed persons in the eligible 
area.". 
(c) Section 1003(e) of such Act, as amended, is amended to read as 
follows: 
"(e) (1) The Secretary, if the national unemployment rate is equal 
to or exceeds 7 per centum for the most recent calendar quarter, shall 
expedite and give priority to grant applications submitted for such 
areas having unemployment in excess of the national average rate of 
unemployment for the most recent calendar quarter. Seventy per cen-
tum of the funds appropriated pursuant to this title shall be available 
only for .q-rants in areas as defined in the first sentence of this subsection. 
"(2) Not more than 15 per centum of all amounts appropriated to 
carry out this title shall be available under this title for projects or 
programs within any one State, except that in the case of Guam, 
Virgin Islands, and American Samoa, not less than one-half of 1 per 
centum in the aggregate shall be available for such projects or 
programs.". 
SEC. 124. Section 1004 of the Public Works and Economic Develop- Program review, 
ment Act of 1965, as amended, is amended to read as follows: 
42 USC 3246c. 
"SEC. 1004. (a) Within forty-five days after any funds are appro-
priated to the Secretary to carry out the purposes of this title, after 
the date of enactment of the Public Works and Economic Development 
Act Amendments of 1976, each department, agency, or instrumentality Ante, p. 2331. 
of the Federal Government, each regional commission established by 
section 101 of the Appalachian Regional Development Act of 1965 or 40USCapp. 101. 
90 STAT. 2338 
PUBLIC LAW 94-487—OCT. 12, 1976 
42 use 3182. 
pursuant to section 502 of this Act, shall (1) complete a review of its 
budget, plans, and programs and including State, substate, and local 
development plans filed with such department, agency or commission; 
(2) evaluate the job creation effectiveness of programs and projects 
for which funds are proposed to be obligated in the calendar year and 
additional programs and projects (including new or revised programs 
and projects submitted under subsection (b)) for which funds could 
be obligated in such year with Federal financial assistance under this 
title; and (3) submit to the Secretary of Commerce recommendations 
for programs and projects which have the greatest potential to stimu-
late the creation of jobs for unemployed persons in eligible areas. 
Within forty-five days of the receipt of such recommendations the 
Secretary of Commerce shall review such recommendations, and after 
consultation with such department, agency, instrumentality, regional 
commission. State, or local government make allocations of funds in 
Ante, p. 2337. 
accordance with section 1003 (d) of this title. 
"(b) States and political subdivisions in any eligible area may, pur-
suant to subsection (a), submit to the appropriate department, agency, 
or instrumentality of the Federal Government (or regional commis-
sion) program and project applications for Federal financial assist-
ance provided under this title. 
"(c) The Secretary, in reviewing programs and projects recom-
mended for any eligible area shall give priority to programs and 
projects originally sponsored by States and political subdivisions, 
including, but not limited to, new or revised programs and projects 
submitted in accordance with this section.". 
SEC. 125. Section 1005 of the Public Works and Economic Develop-
ment Act of 1965, as amended, is amended by striking such section and 
renumbering subsequent sections accordingly. 
SEC. 126. Section 1005 of the Public Works and Economic Develop-
ment Act of 1965, as amended, as redesignated by this Act, is amended 
by striking the period and inserting the following at the end thereof: 
"unless this would require project grants to be made in areas which 
do not meet the criteria of this title.". 
SEC. 127. Section 1006 of the Public Works and Economic Develop-
ment Act of 1965, as amended, as redesignated by this Act, is amended 
to read as follows: 
"SEC. 1006. (a) There are hereby authorized to be appropriated to 
carry out the provisions of this title $81,250,000 for each calendar 
quarter of a fiscal year during which the national average unemploy-
ment is equal to or exceeds 7 per centum on the average. No further 
appropriation of funds is authorized under this section if a deter-
mination is made that the national average rate of unemployment has 
receded below an average of 7 per centum for the most recent calendar 
quarter as determined by the Secretary of Labor. 
"(b) Funds authorized by subsection (a) are available for grants 
by the Secretary w^hen the national average unemployment is equal 
to or in excess of an average of 7 per centum for the most recent cal-
endar quarter. If the national average unemployment rate recedes 
below an average of 7 per centum for the most recent calendar 
quarter, the authority of the Secretary to make grants or obli-
gate funds under this title is terminated. Grants may not be made 
until the national average unemployment has equaled or exceeded 
an average of 7 per centum for the most recent calendar quarter. 
"(c) Funds authorized to carry out this title shall be in addition 
to, and not in lieu of, any amounts authorized by other provisions of 
law.". 
42 use 3246g. 
SEC. 128. Section 1007 as redesignated by this Act is amended by 
42 use 
3246cl-3246g. 
42 u s e 3246e. 
Appropriation 
authorization. 
42 u s e 3246f. 
PUBLIC LAW 94-4«7—OCT. 12, 1976 
90 STAT. 2339 
striking "December 31, 1975" and inserting in lieu thereof "Septem-
ber 30, 1979". 
SEC. 129. Title X of the Public Works and Economic Development 
Act of 1965 is further amended by adding at the end thereof the 
following new section: 
42 use 3246. 
"CONSTRUCTION COSTS 
"SEC. 1008. No program or project originally approved for funds 
under an existing program shall be determined to be ineligible for 
Federal financial assistance under this title solely because of increased 
construction costs.". 
SEC. 130. Section 2 of the Act entitled "An Act to amend the Public 
Works and Economic Development Act of 1965 to extend the authori-
zations for titles I through I V through fiscal year 1971", approved 
July 6, 1970 (Public Law 91-304), is amended by striking out "June 
1, 1976," and inserting in lieu thereof "September 30, 1979,". 
T I T L E I I 
SEC. 201. (a) The President of the United States is authorized and 
requested to call a White House Conference on Balanced National 
Growth and Economic Development within one year of the date of 
enactment of this Act in order to develop recommendations for fur-
ther action toward balanced national growth and economic develop-
ment, and to take account of present conditions and trends as set forth 
in the report accompanying this Act. Such conference shall be planned 
and conducted under the direction of the domestic council with the 
cooperation and assistance of such other Federal departments and 
agencies, including the regional commissions established under the 
Appalachian Regional Development Act and title V of the Public 
Works and Economic Development Act. 
(b) For the purpose of arriving at facts and recommendations con-
cerning the utilization of skills, experience, and energies and the 
improvement of our country's social and economic needs, the conference 
shall assemble representatives of government, business, labor, and 
other citizens and representatives of institutions who could work 
together for balanced national growth and economic development. 
(c) A final report of the White House Conference on Balanced 
National Growth and Economic Development shall be submitted to the 
President not later than one hundred and eighty days following the 
date on which the conference is called and findings and recommenda-
tions included therein shall be immediately made available to the pub-
lic. The President shall, within ninety days after the submission of 
such final report, transmit to the Congress his recommendations for 
the administrative action and legislation necessary to implement the 
recommendations contained in such report. 
SEC. 202. In administering this title, the President shall— 
(1) request the cooperation and assistance of such other Federal 
departments and agencies as may be appropriate; 
(2) give all reasonable assistance, including financial assist-
ance, to the States to enable them to organize and conduct con-
ferences on balanced growth and economic development; 
(3) prepare and make available background materials for the 
use of delegates to the White House Conference on Balanced 
National Growth and Economic Development as they may deem 
necessary; 
(4) prepare and distribute interim reports of the White House 
42 use 3246h. 
42 use 3162 
note. 
42 use 3121 
note. 
40 u s e app. 1, 
42 use 3181. 
Report to 
President for 
transmittal to 
Congress. 
42 use 3121 
note. 
90 STAT. 2340 
PUBLIC LAW 94-487—OCT. 12, 1976 
5 u s e 101 et seq. 
5 u s e 5701, 
5301. 
"State." 
42 u s e 3121 
note. 
Advisory 
eommittee to the 
White House 
eonference on 
Balanced 
National Growth 
and Economic 
Development. 
Establishment. 
42 u s e 3121 
note. 
Conference on Balanced National Growth and 
Economic 
Development as may be appropriate; and 
(5) engage such personnel as may be necessary without regard 
to the provisions of title 5, United States Code, governing appoint-
ments in the competitive civil service, and without regard to 
chapter 57 and subchapter 53 of such title relating to classifica-
tion and General Schedule pay rates. 
SEC. 203. For the purpose of this title the term "State" includes 
the District of Columbia, the Commonwealth of Puerto Rico, Guam, 
American Samoa, the Virgin Islands, and the Trust Territory of the 
Pacific Islands. 
SEC. 204. The President is authorized and directed to establish an 
Advisory Committee to the White House Conference on Balanced 
National Growth and Economic Development composed of fifteen 
members, of whom not less than five shall represent businesses in the 
private sector, and the Secretaries of the Departments of Commerce, 
Agriculture, Housing and Urban Development, and relevant Federal 
program managers. 
Approved October 12, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1075 accompanying H.R. 9398 (eomm. on Public Works 
and Transportation) and No. 94-1671 (eomm. of eonference). 
SENATE REPORTS: No. 94-839 (eomm. on Public Works) and No. 94-1299 (eomm. 
of eonference). 
eONGRESSIONAL REGORD, Vol. 122 (1976): 
July 2, considered and passed Senate. 
Aug. 30, considered and passed House, amended, in lieu of H.R. 9398. 
Sept. 24, Senate agreed to conference report. 
Sept. 29, House agreed to conference report.