[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 709 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 709

To amend the Housing and Community Development Act of 1974 to establish 
    and sustain viable rural and remote communities, and to provide 
affordable housing and community development assistance to rural areas 
 with excessively high rates of outmigration and low per capita income 
                                levels.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 1999

 Mr. Murkowski (for himself and Mr. Daschle) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Housing and Community Development Act of 1974 to establish 
    and sustain viable rural and remote communities, and to provide 
affordable housing and community development assistance to rural areas 
 with excessively high rates of outmigration and low per capita income 
                                levels.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Rural and Remote Community 
Fairness Act''.

      TITLE I--RURAL AND REMOTE COMMUNITY DEVELOPMENT BLOCK GRANTS

    The Housing and Community Development Act of 1974 (Public Law 93-
383) is amended by inserting at the end the following new title:

    ``TITLE IX--RURAL AND REMOTE COMMUNITY DEVELOPMENT BLOCK GRANTS

                         ``findings and purpose

    ``Sec. 901. (a) Findings.--The Congress finds and declares that--
            ``(1) a modern infrastructure, including efficient housing, 
        electricity, bulk fuel, waste water and water service, is a 
        necessary ingredient of a modern society and development of a 
        prosperous economy with minimal environmental impacts.
            ``(2) the Nation's rural and remote communities face 
        critical social, economic and environmental problems, arising 
        in significant measure from the high cost of infrastructure 
        development in sparsely populated and remote areas, that are 
        not adequately addressed by existing Federal assistance 
        programs;
            ``(3) in the past, Federal assistance has been instrumental 
        in establishing electric and other utility service in many 
        developing regions of the Nation, and that Federal assistance 
        continues to be appropriate to ensure that electric and other 
        utility systems in rural areas conform with modern standards of 
        safety, reliability, efficiency and environmental protection; 
        and
            ``(4) the future welfare of the Nation and the well-being 
        of its citizens depend on the establishment and maintenance of 
        viable rural and remote communities as social, economic and 
        political entities.
    ``(b) Purpose.--The purpose of this title is the development and 
maintenance of viable rural and remote communities through the 
provision of efficient housing, and reasonably priced and 
environmentally sound energy, water, waste water, and bulk fuel and 
utility services to those communities that do not have those services 
or who currently bear costs of those services that are significantly 
above the national average.

                             ``definitions

    ``Sec. 902. As used in this title:
            ``(1) The term `unit of general local government' means any 
        city, county, town, township, parish, village, borough 
        (organized or unorganized) or other general purpose political 
        subdivision of a State, Guam, the Commonwealth of the Northern 
        Mariana Islands, Puerto Rico, the Republic of the Marshall 
Islands, the Federated States of Micronesia, the Republic of Palau, the 
Virgin Islands, and American Samoa, a combination of such political 
subdivisions that is recognized by the Secretary; and the District of 
Columbia; or any other appropriate organization of citizens of a rural 
and remote community that the Secretary may identify.
            ``(2) The term `population' means total resident population 
        based on data compiled by the United States Bureau of the 
        Census and referable to the same point or period in time.
            ``(3) The term `Native American group' means any Indian 
        tribe, band group, and nation, including Alaska Indians, 
        Aleuts, and Eskimos, and any Alaskan Native Village, of the 
        United States, which is considered an eligible recipient under 
        the Indian Self Determination and Education Assistance Act 
        (Public Law 93-638) or was considered an eligible recipient 
        under chapter 67 of title 31, United States Code, prior to the 
        repeal of such chapter.
            ``(4) The term `Secretary' means the Secretary of housing 
        and Urban Development.
            ``(5) The term `rural and remote community' means a unit of 
        local general government or Native American group which 
        represents or contains a population not in excess of 10,000 
        permanent inhabitants, and that has an average retail cost per 
        kilowatt hour of electricity that is equal to or greater than 
        150 percent of the average retail cost per kilowatt hour of 
        electricity for all consumers in the United States, as 
        determined by data provided by the Department of Energy's 
        Information Administration.
            ``(6) The term alternative energy sources include non-
        traditional means of providing electrical energy, including, 
        but not limited to, wind, solar, biomass, geo-thermal and tidal 
        power.
            ``(7) The term `average retail cost per kilowatt hour of 
        electricity' has the same meaning as `average revenue per 
        kilowatt hour of electricity' as defined by the Energy 
        Information Administration.

                            ``authorizations

    ``Sec. 903. The Secretary is authorized to make grants to rural and 
remote communities to carry out activities in accordance with the 
provisions of the title. For purposes of assistance under section 906, 
there are authorized to be appropriated $100,000,000 for each of fiscal 
years 2000 through 2006

                  ``statement of activities and review

    ``Sec. 904. (a) Prior to the receipt in any fiscal year of a grant 
under section 906 by any rural and remote community, the grantee shall 
have prepared and submitted to the Secretary a final statement of rural 
and remote community development objectives and projected use of funds.
    ``(b) In order to permit public examination and appraisal of such 
statements, to enhance the public accountability of grantees, and to 
facilitate coordination of activities with different levels of 
government, the grantee shall in a timely manner--
            ``(1) furnish citizens information concerning the amount of 
        funds available for rural and remote community development 
        acitivies and the range of activities that may be undertaken;
            ``(2) publish a proposed statement in such manner to afford 
        affected citizens an opportunity to examine its content and to 
        submit comments on the proposed statement and on the community 
        development performance of the grantee;
            ``(3) provide citizens with reasonable access to records 
        regarding the past use of funds received under section 906 by 
        the grantee; and
            ``(4) provide citizens with reasonable notice of, and 
        opportunity to comment on, any substantial change proposed to 
        be made in the use of funds received under section 906 from one 
        eligible activity to another.
The final statement shall be made available to the public, and a copy 
shall be furnished to the Secretary. Any final statement of activities 
may be modified or amended from time to time by the grantee in 
accordance with the same Procedures required in this paragraph for the 
preparation and submission of such statement.
    ``(c) Each grantee shall submit to the Secretary, at a time 
determined by the Secretary, a performance and evaluation report, 
concerning the use of funds made available under section 906, together 
with an assessment by the grantee of the relationship of such use to 
the objectives identified in the grantee's statement under subsection 
(a) and to the requirements of subsection (b). The grantee's report 
shall indicate its programmatic accomplishments, the nature of and 
reasons for any changes in the grantee's program objectives, and 
indications of how the grantee would change its programs as a result of 
its experiences.
    ``(d) Any rural and remote community may retain any program income 
that is realized from any grant made by the secretary under section 906 
if (1) such income was realized after the initial disbursement of the 
funds received by such unit of general local government under such 
section; and (2) such unit of general local government has agreed that 
it will utilize the program income for eligible rural and remote 
community development activitiess in accordance with the provisions of 
this title; except that the Secretary may, by regulation, exclude from 
consideration as program income any amounts determined to be so small 
that compliance with the subsection creates an unreasonable 
administrative burden on the rural and remote community.

                         ``eligible activities

    ``Sec. 905 (a) Eligible activities assisted under this title may 
include only--
            ``(1) the provision of assistance, including loans, grants, 
        and services, for low-cost weatherization and other cost-
        effective energy-related repair of homes and other buildings;
            ``(2) the acquisition, construction, repair, 
        reconstruction, or installation of reliable and cost-efficient 
        facilities for the generation, transmission or distribution of 
        electricity for consumption in a rural and remote community or 
        communities;
            ``(3) the acquisition, construction, repair, 
        reconstruction, remediation or installation of facilities for 
        the safe storage and efficient management of bulk fuel by rural 
        and remote communities, and facilities for the distribution of 
        such fuel to consumers in a rural and remote community or 
        communities;
            ``(4) facilities and training to reduce costs of 
        maintaining and operating generation, distribution or 
        transmission systems to a rural and remote community or 
        communities;
            ``(5) the institution of professional management and 
        maintenance services for electricity generation, transmission 
        or distribution to a rural and remote community or communities;
            ``(6) the investigation of the feasibility of alternate 
        energy sources for a rural and remote community or communities;
            ``(7) acquisition, construction, repair, reconstruction, 
        operation, maintenance, or installation of facilities for water 
        or waste water service;
            ``(8) the acquisition of disposition of real property 
        (including air rights, water rights, and other interests 
        therein) for eligible rural and remote community development 
        activities; and
            ``(9) activities necessary to develop and implement a 
        comprehensive rural and remote development plan, including 
        payment of reasonable administrative costs related to planning 
        and execution of rural and remote community development 
        activities.
    ``(b) Eligible activities may be undertaken either directly by the 
rural and remote community, or by the rural and remote community 
through local electric utilities.

                 ``allocation and distribution of funds

    ``Sec. 906. For each fiscal year, of the amount approved in an 
appropriation act under section 903 for grants in any year, the 
Secretary shall distribute to each rural and remote community which has 
filed a final statement of rural and remote community 
development objectives and projected use of funds under section 904, an 
amount which shall be allocated among the rural and remote communities 
that filed a final statement of rural and remote community development 
objectives and projected use of funds under section 904 proportionate 
to the percentage that the average retail price per kilowatt hour of 
electricity for all classes of consumers in the rural and remote 
community exceeds the national average retail price per kilowatt hour 
for electricity for all consumers in the United States, as determined 
by data provided by the Department of Energy's Energy Information 
Administration. In allocating funds under this section, the Secretary 
shall give special consideration to those rural and remote communities 
that increase economies of scale through consolidation of services, 
affiliation and regionalization of eligible activities under this 
title.

                      ``remedies for noncompliance

    ``Sec. 907. The provisions of section 111 of the Housing and 
Community Development Act of 1974 shall apply to assistance distributed 
under this title.''.

      TITLE II--RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS

    After section 313(b) of the Rural Electrification Act of 1936, add 
the following new subsection:
    ``(c) Rural and Remote Community Electrification Grants.--The 
Secretary is authorized to provide grants to eligible borrowers under 
this Act for the purpose of increasing energy efficiency, lowering or 
stabilizing electric rates to end users, or providing or modernizing 
electric facilities in rural and remote communities that have an 
average retail cost per kilowatt hour of electricity that is equal to 
or greater than 150 percent of the average retail cost per kilowatt 
hour of electricity for all consumers in the United States, as 
determined by data provided by the Department of Energy's Energy 
Information Administration.
    ``(d) For purposes of subsection (c), there is authorized to be 
appropriated $20,000,000 for each of fiscal years 2000-2006.''.

     TITLE III--RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

    The Housing and Community Development Act of 1974 (42 U.S.C. 5301 
et seq.) is amended by adding at the end the following:

``SEC. 123. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

    ``(a) Findings; Purpose.--
            ``(1) Findings.--Congress finds that--
                    ``(A) a modern infrastructure, including affordable 
                housing, wastewater and water service, and advanced 
                technology capabilities is a necessary ingredient of a 
                modern society and development of a prosperous economy 
                with minimal environmental impacts;
                    ``(B) the Nation's rural areas face critical 
                social, economic, and environmental problems, arising 
                in significant measure from the growing cost of 
                infrastructure development in rural areas that suffer 
                from low per capita income and high rates of 
                outmigration and are not adequately addressed by 
                existing Federal assistance programs; and
                    ``(C) the future welfare of the Nation and the 
                well-being of its citizens depend on the establishment 
and maintenance of viable rural areas as social, economic, and 
political entities.
            ``(2) Purpose.--The purpose of this section is to provide 
        for the development and maintenance of viable rural areas 
        through the provision of affordable housing and community 
        development assistance to eligible units of general local 
        government and eligible Native American groups in rural areas 
        with excessively high rates of outmigration and low per capita 
        income levels.
    ``(b) Definitions.--In this section:
            ``(1) Eligible unit of general local government.--The term 
        `eligible unit of general local government' means a unit of 
        general local government that is the governing body of a rural 
        recovery area.
            ``(2) Eligible indian tribe.--The term `eligible Indian 
        tribe' means the governing body of an Indian tribe that is 
        located in a rural recovery area.
            ``(3) Grantee.--The term `grantee' means an eligible unit 
        of general local government or eligible Indian tribe that 
        receives a grant under this section.
            ``(4) Native american group.--The term `Native American 
        group' means any Indian tribe, band, group, and nation, 
        including Alaska Indians, Aleuts, and Eskimos, and any Alaskan 
        Native Village, of the United States, which is considered an 
        eligible recipient under the Indian Self-Determination and 
        Education Assistance Act (Public Law 93-638) or was considered 
        an eligible recipient under chapter 67 of title 31, United 
        States Code, prior to the repeal of such chapter.
            ``(5) Rural recovery area.--The term `rural recovery area' 
        means any geographic area represented by a unit of general 
        local government or a Native American group--
                    ``(A) the borders of which are not adjacent to a 
                metropolitan area;
                    ``(B) in which--
                            ``(i) the population outmigration level 
                        equals or exceeds 1 percent over the most 
                        recent five year period, as determined by the 
                        Secretary of Agriculture, and,
                            ``(ii) the per capita income is less than 
                        that of the national nonmetropolitan average; 
                        and
                    ``(C) that does not include a city with a 
                population of more than 15,000.
            ``(6) Unit of general local government.--
                    ``(A) In general.--The term `unit of general local 
                government' means any city, county, town, township, 
                parish, village, borough (organized or unorganized), or 
                other general purpose political subdivision of a State; 
                Guam, the Northern Mariana Islands, the Virgin Islands, 
                Puerto Rico, and American Samoa, or a general purpose 
                political subdivision thereof; a combination of such 
                political subdivisions that, except as provided in 
                section 106(d)(4), is recognized by the Secretary; the 
                District of Columbia; and the Trust Territory of the 
                Pacific Islands.
                    ``(B) Other entities included.--The term also 
                includes a State or a local public body or agency (as 
                defined in section 711 of the Housing and Urban 
                Development Act of 1970), community association, or 
                other entity, that is approved by the Secretary for the 
                purpose of providing public facilities or services to a 
                new community as part of a program meeting the 
                eligibility standards of section 712 of the Housing and 
                Urban Development Act of 1970 or title IV of the 
                Housing and Urban Development Act of 1968.
    ``(c) Grant Authority.--The Secretary may make grants in accordance 
with this section to eligible units of general local government, Native 
American groups and eligible Indian tribes that meet the requirements 
of subsection (d) to carry out eligible activities described in 
subsection (f).
    ``(d) Eligibility Requirements.--
            ``(1) Statement of rural development objectives.--In order 
        to receive a grant under this section for a fiscal year, an 
        eligible unit of general local government, Native American 
        group or eligible Indian tribe--
                    ``(A) shall--
                            ``(i) publish a proposed statement of rural 
                        development objectives and a description of the 
                        proposed eligible activities described in 
                        subsection (f) for which the grant will be 
                        used; and
                            ``(ii) afford residents of the rural 
                        recovery area served by the eligible unit of 
                        general local government, Native American 
                        groups or eligible Indian tribe with an 
                        opportunity to examine the contents of the 
                        proposed statement and the proposed eligible 
                        activities published under clause (i), and to 
                        submit comments to the eligible unit of general 
                        local government, Native American group or 
                        eligible Indian tribe, as applicable, on--
                                    ``(I) the proposed statement and 
                                the proposed eligible activities; and
                                    ``(II) the overall community 
                                development performance of the eligible 
                                unit of general local government, 
                                Native American groups or eligible 
                                Indian tribe, as applicable; and
                    ``(B) based on any comments received under 
                subparagraph (A)(ii), prepare and submit to the 
                Secretary--
                            ``(i) a final statement of rural 
                        development objectives;
                            ``(ii) a description of the eligible 
                        activities described in subsection (f) for 
                        which a grant received under this section will 
                        be used; and
                            ``(iii) a certification that the eligible 
                        unit of general local government, Native 
                        American groups or eligible Indian tribe, as 
                        applicable, will comply with the requirements 
                        of paragraph (2).
            ``(2) Public notice and comment.--In order to enhance 
        public accountability and facilitate the coordination of 
        activities among different levels of government, an eligible 
        unit of general local government, Native American groups or 
        eligible Indian tribe that receives a grant under this section 
        shall, as soon as practicable after such receipt, provide the 
        residents of the rural recovery area served by the eligible 
        unit of general local government, Native American groups or 
        eligible Indian tribe, as applicable, with--
                    ``(A) a copy of the final statement submitted under 
                paragraph (1)(B);
                    ``(B) information concerning the amount made 
                available under this section and the eligible 
                activities to be undertaken with that amount;
                    ``(C) reasonable access to records regarding the 
                use of any amounts received by the eligible unit of 
                general local government, Native American groups or 
                eligible Indian tribe under this section in any 
                preceding fiscal year; and
                    ``(D) reasonable notice of, and opportunity to 
                comment on, any substantial change proposed to be made 
                in the use of amounts received under this section from 
                1 eligible activity to another.
    ``(e) Distribution of Grants.--
            ``(1) In general.--In each fiscal year, the Secretary shall 
        distribute to each eligible unit of general local government, 
        Native American groups and eligible Indian tribe that meets the 
requirements of subsection (d)(1) a grant in an amount described in 
paragraph (2).
            ``(2) Amount.--Of the total amount made available to carry 
        out this section in each fiscal year, the Secretary shall 
        distribute to each grantee the amount equal to the greater of--
                    ``(A) the pro rata share of the grantee, as 
                determined by the Secretary, based on the combined 
                annual population outmigration level (as determined by 
                Secretary of Agriculture) and the per capita income for 
                the rural recovery area served by the grantee; or
                    ``(B) $200,000.
    ``(f) Eligible Activities.--Each grantee shall use amounts received 
under this section for 1 or more of the following eligible activities, 
which may be undertaken either directly by the grantee, or by any local 
economic development corporation, regional planning district, nonprofit 
community development corporation, or statewide development 
organization authorized by the grantee:
            ``(1) The acquisition, construction, repair, 
        reconstruction, operation, maintenance, or installation of 
        facilities for water and wastewater service or any other 
        infrastructure needs determined to be critical to the further 
        development or improvement of a designated industrial park.
            ``(2) The acquisition or disposition of real property 
        (including air rights, water rights, and other interests 
        therein) for rural community development activities.
            ``(3) The development of telecommunications infrastructure 
        within a designated industrial park that encourages high 
        technology business development in rural areas.
            ``(4) Activities necessary to develop and implement a 
        comprehensive rural development plan, including payment of 
        reasonable administrative costs related to planning and 
        execution of rural development activities.
            ``(5) Affordable housing initiatives.
    ``(g) Performance and Evaluation Report.--
            ``(1) In general.--Each grantee shall annually submit to 
        the Secretary a performance and evaluation report, concerning 
        the use of amounts received under this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include a description of--
                    ``(A) the eligible activities carried out by the 
                grantee with amounts received under this section, and 
                the degree to which the grantee has achieved the rural 
                development objectives included in the final statement 
                submitted under subsection (d)(1);
                    ``(B) the nature of and reasons for any change in 
                the rural development objectives or the eligible 
                activities of the grantee after submission of the final 
                statement under subsection (d)(1); and
                    ``(C) any manner in which the grantee would change 
                the rural development objectives of the grantee as a 
                result of the experience of the grantee in 
                administering amounts received under this section.
    ``(h) Retention of Income.--A grantee may retain any income that is 
realized from the grant, if--
            ``(1) the income was realized after the initial 
        disbursement of amounts to the grantee under this section; and
            ``(2) the--
                    ``(A) grantee agrees to utilize the income for 1 or 
                more eligible activities; or
                    ``(B) amount of the income is determined by the 
                Secretary to be so small that compliance with 
                subparagraph (A) would create an unreasonable 
                administrative burden on the grantee.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2000 through 2006.''.
                                 <all>