[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1134 Reported in Senate (RS)]






                                                       Calendar No. 754
108th CONGRESS
  2d Session
                                S. 1134

                          [Report No. 108-382]

 To reauthorize and improve the program authorized by the Public Works 
                 and Economic Development Act of 1965.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2003

   Mr. Bond (for himself and Mr. Inhofe) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

                            October 1, 2004

               Reported by Mr. Inhofe, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To reauthorize and improve the program authorized by the Public Works 
                 and Economic Development Act of 1965.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    Short Title.--This Act may be cited as the ``Economic 
Development Administration Reauthorization Act of 2003''.</DELETED>

<DELETED>SEC. 2. FINDINGS AND DECLARATIONS.</DELETED>

<DELETED>    Section 2 of the Public Works and Economic Development Act 
of 1965, as amended (``PWEDA'') (42 U.S.C. 3121), is revised to read as 
follows:</DELETED>

<DELETED>``SEC. 2. FINDINGS AND DECLARATIONS.</DELETED>

<DELETED>    ``(a) Findings.--Congress finds that--</DELETED>
        <DELETED>    ``(1) while the fundamentals for growth in the 
        American economy remain strong, there continue to be areas 
        experiencing chronic high unemployment, underemployment, low 
        per capita incomes, and outmigration as well as areas facing 
        sudden and severe economic dislocations due to structural 
        economic changes, changing trade patterns, certain Federal 
        actions (including environmental requirements that result in 
        the removal of economic activities from a locality), and 
        natural disasters;</DELETED>
        <DELETED>    ``(2) sustained economic growth in our Nation, 
        States, cities and rural areas is produced by expanding free 
        enterprise through trade and enhanced competitiveness of 
        regions;</DELETED>
        <DELETED>    ``(3) the goal of Federal economic development 
        programs is to raise the standard of living for all citizens 
        and increase the wealth and overall rate of growth of the 
        economy by encouraging local and regional communities to 
        develop a more competitive and diversified economic base 
        by:</DELETED>
                <DELETED>    ``(A) promoting job creation through 
                increased innovation, productivity, and 
                entrepreneurship; and</DELETED>
                <DELETED>    ``(B) empowering local and regional 
                communities experiencing chronic high unemployment and 
                low per capita income to attract substantially 
                increased private-sector capital investment;</DELETED>
        <DELETED>    ``(4) while economic development is an inherently 
        local process, the Federal Government should work in 
        partnership with public and private local, regional, tribal and 
        State organizations to maximize the impact of existing 
        resources and enable regions, communities, and citizens to 
        participate more fully in the American dream and national 
        prosperity;</DELETED>
        <DELETED>    ``(5) in order to avoid wasteful duplication of 
        effort and achieve meaningful, long-lasting results, Federal, 
        State, tribal and local economic development activities should 
        have a clear focus, improved coordination, a comprehensive 
        approach, common measures of success, and simplified and 
        consistent requirements; and</DELETED>
        <DELETED>    ``(6) Federal economic development efforts will be 
        more effective if they are coordinated with, and build upon, 
        the trade, workforce investment, and technology programs of the 
        United States.</DELETED>
<DELETED>    ``(b) Declarations.--Congress declares that, in order to 
promote a strong and growing economy throughout the United 
States:</DELETED>
        <DELETED>    ``(1) assistance under this Act should be made 
        available to both rural and urban distressed 
        communities;</DELETED>
        <DELETED>    ``(2) local communities should work in partnership 
        with neighboring communities, Indian tribes, the States, and 
        the Federal Government to increase their capacity to develop 
        and implement comprehensive economic development strategies to 
        enhance regional competitiveness in the global economy and 
        support long-term development of regional economies; 
        and</DELETED>
        <DELETED>    ``(3) whether suffering from long-term distress or 
        a sudden dislocation, distressed communities should be 
        encouraged to focus on strengthening entrepreneurship and 
        competitiveness, and to take advantage of the development 
        opportunities afforded by technological innovation and 
        expanding and newly opened global markets.''.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    Section 3 of PWEDA (42 U.S.C. 3122) is amended as 
follows:</DELETED>
        <DELETED>    (1) Subparagraph (4)(A) of this section is amended 
        by striking subparagraph (i) and redesignating successive 
        subparagraphs (ii) through (vii) as (i) through (vi) and 
        revising subparagraph (iv) as re-designated to read as 
        follows:</DELETED>
                        <DELETED>    ``(iv) a city or other political 
                        subdivision of a State, including a special 
                        purpose unit of State or local government, or a 
                        consortium of political 
                        subdivisions;''.</DELETED>
        <DELETED>    (2) Subparagraph 4(B) is amended by adding at the 
        end thereof a new sentence:</DELETED>
                <DELETED>    ``The requirement under subparagraph 
                (A)(vi) that the nonprofit organization or association 
                is `acting in cooperation with officials of a political 
                subdivision of a State' does not apply in the case of 
                research, training and technical assistance grants 
                under section 207 that are national or regional in 
                scope.''.</DELETED>
        <DELETED>    (3) Paragraphs (8), (9) and (10) are amended by 
        re-designating them as paragraphs (9), (10), and (11) and a new 
        paragraph (8) is added as follows:</DELETED>
        <DELETED>    ``(8) Regional commissions.--The term `Regional 
        Commissions' as used in section 403 of this Act refers to the 
        regional economic development authorities: the Delta Regional 
        Authority (Public Law No. 106-554, sec. 1(a)(4) [div. B, title 
        VI], 114 Stat. 2763A-268) (7 U.S.C. 2009aa et seq.), the Denali 
        Commission (Public Law No. 105-277, div. C, title III, 112 
        Stat. 2681-637) (42 U.S.C. 3121 note), and the Northern Great 
        Plains Regional Authority (Public Law No. 107-171, 116 Stat. 
        375) (7 U.S.C. 2009bb et seq.).''.</DELETED>
        <DELETED>    (4) A new paragraph (12) is added at the end to 
        read as follows:</DELETED>
        <DELETED>    ``(12) University center.--The term `university 
        center' refers to a University Center for Economic Development 
        established pursuant to the authority of section 207(a)(2)(D) 
        of this Act.''.</DELETED>

<DELETED>SEC. 4. WORKING WITH NONPROFIT ORGANIZATIONS IN ESTABLISHMENT 
              OF ECONOMIC DEVELOPMENT PARTNERSHIPS.</DELETED>

<DELETED>    Section 101 of PWEDA (42 U.S.C. 3131) is amended as 
follows:</DELETED>
        <DELETED>    (1) In subsection (b) strike ``and multi-State 
        regional organizations'' and insert in lieu thereof ``multi-
        State regional organizations, and nonprofit 
        organizations''.</DELETED>
        <DELETED>    (2) In subsection (d), strike ``adjoining'' each 
        time it occurs.</DELETED>

<DELETED>SEC. 5. SUB-GRANTS IN CONNECTION WITH PUBLIC WORKS 
              PROJECTS.</DELETED>

<DELETED>    Section 201 of PWEDA (42 U.S.C. 3141) is amended by adding 
a new subsection (d) as follows:</DELETED>
<DELETED>    ``(d) Sub-Grants.--</DELETED>
        <DELETED>    ``(1) Subject to paragraph (2), a recipient of a 
        grant under this section may directly expend the grant funds or 
        may redistribute the funds in the form of a sub-grant to other 
        recipients eligible to receive assistance under this section to 
        fund required components of the scope of work approved for the 
        project.</DELETED>
        <DELETED>    ``(2) Under paragraph (1), a recipient may not 
        redistribute grant funds to a for-profit entity.''.</DELETED>

<DELETED>SEC. 6. CLARIFICATION OF GRANTS FOR STATE PLANNING.</DELETED>

<DELETED>    Section 203 of PWEDA (42 U.S.C. 3143) is amended as 
follows:</DELETED>
        <DELETED>    (1) Revise paragraph (1) of subsection (d) to read 
        as follows:</DELETED>
        <DELETED>    ``(1) Development.--Any State plan developed with 
        assistance under this section shall, to the maximum extent 
        practicable, take into consideration regional economic 
        development strategies.'';</DELETED>
        <DELETED>    (2) Strike paragraph (3) of subsection (d) in its 
        entirety and re-designate paragraphs (4) and (5) as (3) and 
        (4);</DELETED>
        <DELETED>    (3) Revise re-designated paragraph (3) of 
        subsection (d) by striking ``and'' at the end of subparagraph 
        (C) and re-designating current subparagraph (D) as (E) and 
        adding a new subparagraph (D) to read as follows:</DELETED>
                <DELETED>    ``(D) assist in carrying out state's 
                workforce investment strategy (as outlined in the State 
                plan required under section 112 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2822)); 
                and'';</DELETED>
        <DELETED>    (4) Add a new subsection (e) at the end thereof as 
        follows:</DELETED>
<DELETED>    ``(e) Sub-Grants.--</DELETED>
        <DELETED>    ``(1) Subject to paragraph (2), a recipient of a 
        grant under this section may directly expend the grant funds or 
        may redistribute the funds in the form of a sub-grant to other 
        recipients eligible to receive assistance under this section to 
        fund required components of the scope of work approved for the 
        project.</DELETED>
        <DELETED>    ``(2) Under paragraph (1), a recipient may not 
        redistribute grant funds to a for-profit entity.''.</DELETED>

<DELETED>SEC. 7. SIMPLIFICATION OF DETERMINATION OF GRANT 
              RATES.</DELETED>

<DELETED>    Sections 204 and 205 of PWEDA (42 U.S.C. 3144, 3145) are 
amended to read as follows:</DELETED>

<DELETED>``SEC. 204. COST SHARING.</DELETED>

<DELETED>    ``(a) Federal Share.--The Secretary shall issue 
regulations to establish the applicable grant rates for projects based 
on the relative needs of the areas in which the projects are located. 
Except as provided in subsection (c) below, the amount of a grant for a 
project under this title may not exceed 80 percent of the cost of the 
project.</DELETED>
<DELETED>    ``(b) Non-Federal Share.--In determining the amount of the 
non-Federal share of the cost of a project, the Secretary may provide 
credit toward the non-Federal share for all contributions both in cash 
and in-kind, fairly evaluated, including contributions of space, 
equipment, and services, and assumptions of debt.</DELETED>
<DELETED>    ``(c) Increase in Federal Share.--</DELETED>
        <DELETED>    ``(1) Indian tribes.--In the case of a grant to an 
        Indian tribe, the Secretary may increase the Federal share 
        above the percentage specified in subsection (a) up to 100 
        percent of the cost of the project.</DELETED>
        <DELETED>    ``(2) Certain states, political subdivisions, and 
        nonprofit organizations.--In the case of a grant to a State (or 
        a political subdivision of a State), that the Secretary 
        determines has exhausted its effective taxing and borrowing 
        capacity, or in the case of a grant to a nonprofit organization 
        that the Secretary determines has exhausted its effective 
        borrowing capacity, the Secretary may increase the Federal 
        share above the percentage specified in subsection (a) up to 
        100 percent of the cost of the project.</DELETED>

<DELETED>``SEC. 205. GRANTS SUPPLEMENTING OTHER AGENCY GRANTS (42 
              U.S.C. 3145).</DELETED>

<DELETED>    ``(a) Definition of Designated Federal Grant Program.--In 
this section, the term `designated Federal grant program' means any 
Federal grant program that--</DELETED>
        <DELETED>    ``(1) provides assistance in the construction or 
        equipping of public works, public service, or development 
        facilities;</DELETED>
        <DELETED>    ``(2) is designated as eligible for an allocation 
        of funds under this section by the Secretary; and</DELETED>
        <DELETED>    ``(3) assists projects that are--</DELETED>
                <DELETED>    ``(A) eligible for assistance under this 
                title; and</DELETED>
                <DELETED>    ``(B) consistent with a comprehensive 
                economic development strategy.</DELETED>
<DELETED>    ``(b) Supplementary Grants.--Subject to subsection (c) 
below, in order to assist eligible recipients to take advantage of 
designated Federal grant programs, on the application of an eligible 
recipient, the Secretary may make a supplementary grant for a project 
for which the eligible recipient is eligible but, because of the 
recipient's economic situation, for which the eligible recipient cannot 
provide the required non-Federal share.</DELETED>
<DELETED>    ``(c) Requirements Applicable to Supplementary Grants.--
</DELETED>
        <DELETED>    ``(1) Amount of supplementary grants.--The share 
        of the project cost supported by a supplementary grant under 
        this section may not exceed the applicable grant rate under 
        section 204.</DELETED>
        <DELETED>    ``(2) Form of supplementary grants.--The Secretary 
        shall make supplementary grants by--</DELETED>
                <DELETED>    ``(A) the payment of funds made available 
                under this Act to the heads of the Federal agencies 
                responsible for carrying out the applicable Federal 
                programs; or</DELETED>
                <DELETED>    ``(B) the award of funds under this Act 
                which will be combined with funds transferred from 
                other Federal agencies in projects administered by the 
                Secretary.</DELETED>
        <DELETED>    ``(3) Federal share limitations specified in other 
        laws.--Notwithstanding any requirement as to the amount or 
        source of non-Federal funds that may be applicable to a Federal 
        program, funds provided under this section may be used to 
        increase the Federal share for specific projects under the 
        program that are carried out in areas described in section 
        301(a) above the Federal share of the cost of the project 
        authorized by the law governing the program.''.</DELETED>

<DELETED>SEC. 8. REGULATIONS ON ALLOCATIONS TO ENSURE JOB CREATION 
              POTENTIAL.</DELETED>

<DELETED>    Subsection 206 of PWEDA (42 U.S.C. 3146) is amended by 
striking ``and'' at the end of subparagraph (1)(C), inserting ``and'' 
at the end of paragraph (2), and adding a new paragraph (3) at the end 
thereof to read as follows:</DELETED>
        <DELETED>    ``(3) allocations of assistance under this title 
        promote job creation through increased innovation, 
        productivity, and entrepreneurship, and financial assistance 
        extended pursuant to such allocations will have a high 
        probability of meeting or exceeding applicable performance 
        requirements established in connection with extension of the 
        assistance.''.</DELETED>

<DELETED>SEC. 9. INCREASED FLEXIBILITY IN GRANTS FOR TRAINING, 
              RESEARCH, AND TECHNICAL ASSISTANCE.</DELETED>

<DELETED>    (a) Section 207 of PWEDA (42 U.S.C. 3147) is amended by 
striking ``and'' at the end of subparagraph (2)(F) of subsection (a), 
re-designating current subparagraph (G) as (H), and adding a new 
subparagraph (G) to read as follows:</DELETED>
                <DELETED>    ``(G) studies that evaluate the 
                effectiveness of collaborations between projects funded 
                under this Act with projects funded under the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et seq.); 
                and''.</DELETED>
<DELETED>    (b) Section 207 is further amended by adding a new 
subsection (c) to read as follows:</DELETED>
<DELETED>    ``(c) Sub-Grants.--A recipient of a grant under this 
section may directly expend the grant funds or may redistribute the 
funds in the form of a sub-grant to other recipients eligible to 
receive assistance under this section to fund required components of 
the scope of work approved for the project.''.</DELETED>

<DELETED>SEC. 10. REMOVAL OF SECTION.</DELETED>

<DELETED>    Section 208 of PWEDA (42 U.S.C. 3148) is stricken in its 
entirety and insert in lieu thereof:</DELETED>

<DELETED>``SEC. 208. [REPEALED].''.</DELETED>

<DELETED>SEC. 11. IMPROVEMENTS IN ADMINISTRATION GRANTS FOR ECONOMIC 
              ADJUSTMENT INVOLVING REVOLVING LOAN FUND 
              PROJECTS.</DELETED>

<DELETED>    (a) Subsection (d) of section 209 of PWEDA (42 U.S.C. 
3149) is amended by striking ``an eligible'' in each case it occurs in 
paragraphs (1) and (2) and inserting in lieu thereof ``a 
recipient''.</DELETED>
<DELETED>    (b) Section 209 of PWEDA (42 U.S.C. 3149) is amended by 
adding a new subsection (e) at the end thereof as follows:</DELETED>
<DELETED>    ``(e) Special Provisions Relating to Revolving Loan Fund 
Grants.--The Secretary shall promulgate regulations to ensure the 
proper operation and financial integrity of revolving loan funds 
established by recipients with assistance under this section.</DELETED>
        <DELETED>    ``(1) Efficient administration.--In order to 
        improve the ability to manage and administer the Federal 
        interest in revolving loan funds and in accordance with 
        regulations issued for such purposes, the Secretary may amend 
        and consolidate grant agreements governing revolving loan funds 
        to provide flexibility with respect to lending areas and 
        borrower criteria. In addition, the Secretary may assign or 
        transfer assets of a revolving loan fund to a third party for 
        the purpose of liquidation and a third party may retain assets 
        of the fund to defray costs related to liquidation. The 
        Secretary may also take such other actions with respect to 
        management and administration as the Secretary determines to be 
        appropriate to carry out the purposes of this Act, including 
        actions to enable revolving loan funds operators to sell or 
        securitize loans to the secondary market (except that such 
        actions may not include issuance of a Federal guaranty by the 
        Secretary).</DELETED>
        <DELETED>    ``(2) Release of federal interests.--The Secretary 
        may release, in whole or in part, any property interest in 
        connection with a revolving loan fund grant after the date that 
        is 20 years after the date on which the grant was awarded, 
        provided that the recipient--</DELETED>
                <DELETED>    ``(A) is in compliance with the terms of 
                its grant and operating the fund at an acceptable level 
                of performance as determined by the Secretary; 
                and</DELETED>
                <DELETED>    ``(B) reimburses the government prior to 
                the release for the amount of the Secretary's 
                investment in the fund or the pro-rata share of the 
                fund at the time of the release, whichever is 
                less.</DELETED>
<DELETED>Any action taken by the Secretary pursuant to this subsection 
with respect to a revolving loan fund shall not constitute a new 
obligation provided that all grant funds associated with the original 
grant award have been disbursed to the recipient.''.</DELETED>

<DELETED>SEC. 12. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED 
              COST.</DELETED>

<DELETED>    Section 211 of PWEDA (42 U.S.C. 3151) is amended to read 
as follows:</DELETED>

<DELETED>``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
              PROJECTED COST.</DELETED>

<DELETED>    ``In any case in which the Secretary has made a grant for 
a construction project under sections 201 or 209 of this title, and 
before closeout of the project, the Secretary determines that the cost 
of the project based on the designs and specifications that were the 
basis of the grant has decreased because of decreases in costs--
</DELETED>
        <DELETED>    ``(1) without further appropriations action, the 
        Secretary may approve the use of the excess funds or a portion 
        of the funds to improve the project; and</DELETED>
        <DELETED>    ``(2) any amount of excess funds remaining after 
        application of paragraph (1) may be used for other investments 
        authorized for support under this Act.</DELETED>
<DELETED>In addition to paragraphs (1) and (2) of this section, in the 
event of construction underruns in projects utilizing funds transferred 
from other Federal agencies pursuant to section 604 of this Act, the 
Secretary may utilize these funds in conjunction with paragraphs (1) or 
(2) with the approval of the originating agency or will return the 
funds to the originating agency.''.</DELETED>

<DELETED>SEC. 13. SPECIAL IMPACT AREAS.</DELETED>

<DELETED>    Title II of PWEDA is further amended by adding a new 
section 214 as follows:</DELETED>

<DELETED>``SEC. 214. SPECIAL IMPACT AREAS.</DELETED>

<DELETED>    ``Special Impact Areas.--The Secretary is authorized to 
make grants, enter into contracts and provide technical assistance for 
projects and programs that the Secretary finds will fulfill a pressing 
need of the area and be useful in alleviating or preventing conditions 
of excessive unemployment or underemployment or assist in providing 
useful employment opportunities for the unemployed or underemployed 
residents in the area. In extending assistance under this section, the 
Secretary may waive, in whole or in part, as appropriate, the 
provisions of section 302 of this Act provided that the Secretary 
determines that such assistance will carry out the purposes of the 
Act.''.</DELETED>

<DELETED>SEC. 14. PERFORMANCE INCENTIVES.</DELETED>

<DELETED>    Title II of PWEDA is further amended by adding a new 
section 215 as follows:</DELETED>

<DELETED>``SEC. 215. PERFORMANCE INCENTIVES.</DELETED>

<DELETED>    ``(a) In accordance with regulations issued for such 
purposes, the Secretary may award transferable performance credits in 
an amount that does not exceed 10 percent of the grant amount awarded 
under sections 201 or 209 of this Act on or after the effective date of 
this amendment. The Secretary shall base such performance incentives on 
the extent to which a recipient meets or exceeds performance 
requirements established in connection with extension of the 
assistance.</DELETED>
<DELETED>    ``(b) A recipient awarded a transferable performance 
credit under this section may redeem the credit to increase the Federal 
share of a subsequent grant funded under sections 201 and 209 of this 
Act above the maximum Federal share allowable under section 204 up to 
80 percent of the project cost. A performance credit must be redeemed 
within 5 years of its issue date.</DELETED>
<DELETED>    ``(c) An original recipient may also sell or transfer the 
credit in its entirety to another eligible recipient for use in 
connection with a grant approved by the Secretary under this Act 
without reimbursement to the Secretary for redemption in accordance 
with subsection (b) above.</DELETED>
<DELETED>    ``(d) The Secretary shall attach such terms and conditions 
or limitations as the Secretary deems appropriate in issuing a 
performance credit. Performance credits shall be paid out of 
appropriations for economic development assistance programs made 
available in the year of redemption to the extent of 
availability.</DELETED>
<DELETED>    ``(e) The Secretary shall include information regarding 
issuance of performance credits in the annual report under section 603 
of this Act.''.</DELETED>

<DELETED>SEC. 15. COMPREHENSIVE ECONOMIC DEVELOPMENT 
              STRATEGIES.</DELETED>

<DELETED>    Subparagraph (a)(3)(A) of section 302 of PWEDA (42 U.S.C. 
3162) is amended by adding ``maximizes effective development and use of 
the workforce (consistent with any applicable state and local workforce 
investment strategy under the Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.),'' between ``access,'' and ``enhances''.</DELETED>

<DELETED>SEC. 16. DESIGNATION OF ECONOMIC DEVELOPMENT 
              DISTRICTS.</DELETED>

<DELETED>    Subparagraph (a)(3)(B) of section 401 of PWEDA (42 U.S.C. 
3171) is amended by striking ``by each affected State and''.</DELETED>

<DELETED>SEC. 17. DISTRICT INCENTIVES.</DELETED>

<DELETED>    Section 403 of PWEDA (42 U.S.C. 3173) is amended by 
striking it in its entirety and redesignating sections 404 and 405 as 
sections 403 and 404. Section 403 as re-designated is amended by adding 
at the end the following new sentence: ``If any part of an economic 
development district is in a region covered by one or more other 
Regional Commissions as defined in section 3(8) of this Act, the 
economic development district shall ensure that a copy of the 
comprehensive economic development strategy of the district is provided 
to the affected regional commission.''.</DELETED>

<DELETED>SEC. 18. ECONOMIC DEVELOPMENT INFORMATION 
              CLEARINGHOUSE.</DELETED>

<DELETED>    Section 502 of PWEDA (42 U.S.C. 3192) is amended to read 
as follows:</DELETED>

<DELETED>``SEC 502. ECONOMIC DEVELOPMENT INFORMATION 
              CLEARINGHOUSE</DELETED>

<DELETED>    ``In carrying out this Act, the Secretary shall--
</DELETED>
        <DELETED>    ``(1) maintain a central information clearinghouse 
        on the Internet with information on economic development, 
        economic adjustment, disaster recovery, defense conversion, and 
        trade adjustment programs and activities of the Federal 
        Government, links to State economic development organizations, 
        and links to other appropriate economic development 
        resources;</DELETED>
        <DELETED>    ``(2) assist potential and actual applicants for 
        economic development, economic adjustment, disaster recovery, 
        defense conversion, and trade adjustment assistance under 
        Federal and State laws in locating and applying for the 
        assistance;</DELETED>
        <DELETED>    ``(3) assist areas described in section 301(a) and 
        other areas by providing to interested persons, communities, 
        industries, and businesses in the areas any technical 
        information, market research, or other forms of assistance, 
        information, or advice that would be useful in alleviating or 
        preventing conditions of excessive unemployment or 
        underemployment in the areas; and</DELETED>
        <DELETED>    ``(4) obtain appropriate information from other 
        Federal agencies needed to carry out the duties under this 
        Act.''.</DELETED>

<DELETED>SEC. 19. REMOVAL OF UNUSED AUTHORITY.</DELETED>

<DELETED>    Section 505 of PWEDA (42 U.S.C. 3195) is amended by 
striking it in its entirety and sections 506 and 507 are re-designated 
as sections 505 and 506.</DELETED>

<DELETED>SEC. 20. PERFORMANCE EVALUATIONS OF GRANT 
              RECIPIENTS.</DELETED>

<DELETED>    Section 505 of PWEDA (42 U.S.C. 3196) as re-designated is 
amended as follows:</DELETED>
        <DELETED>    (1) In subsection (c), strike ``after the 
        effective date of the Economic Development Administration 
        Reform Act of 1998''.</DELETED>
        <DELETED>    (2) In paragraph (d)(2), strike ``and'' before 
        ``disseminating results'' and insert ``, and measuring the 
        outcome-based results of the university centers' activities'' 
        before the period at the end thereof.</DELETED>
        <DELETED>    (3) In paragraph (d)(3) of section 506, insert 
        before the period at the end thereof ``as evidenced by outcome-
        based results, including the number of jobs created or 
        retained, and amount of private-sector funds 
        leveraged''.</DELETED>
        <DELETED>    (4) In subsection (e) of section 506, strike 
        ``university center or'' each occasion it occurs.</DELETED>

<DELETED>SEC. 21. CITATION CORRECTIONS.</DELETED>

<DELETED>    Section 602 PWEDA (42 U.S.C. 3212) is amended by striking 
the citations to ``40 U.S.C. 276A--276A-5'' and ``section 276c'' and 
inserting in lieu thereof, ``40 U.S.C. 3141 et seq.'' and ``section 
3154'', respectively.</DELETED>

<DELETED>SEC. 22. DELETION OF UNNECESSARY PROVISION.</DELETED>

<DELETED>    Section 609 of PWEDA (42 U.S.C. 3219) is amended by 
striking subsection (a) in its entirety and striking the subsection 
designation ``(b)''.</DELETED>

<DELETED>SEC. 23. GENERAL AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Section 701 of PWEDA (42 U.S.C. 3231) is amended to read 
as follows:</DELETED>

<DELETED>``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    ``(a) Economic Development Assistance Programs.--There are 
authorized to be appropriated for economic development assistance 
programs to carry out this Act $331,027,000 for fiscal year 2004, and 
such sums as may be necessary for fiscal years 2005, 2006, 2007, and 
2008, to remain available until expended.</DELETED>
<DELETED>    ``(b)  Salaries and Expenses.--There are authorized to be 
appropriated for salaries and expenses of administering this Act 
$33,377,000 for fiscal year 2004, and such sums as may be necessary for 
each of the fiscal years from 2005 through 2008, to remain available 
until expended.''.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Economic 
Development Administration Reauthorization Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings and declarations.
Sec. 102. Definitions.
Sec. 103. Establishment of Economic Development partnerships.
Sec. 104. Coordination.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

Sec. 201. Grants for planning.
Sec. 202. Cost sharing.
Sec. 203. Supplementary grants.
Sec. 204. Regulations on relative needs and allocations.
Sec. 205. Grants for training, research, and technical assistance.
Sec. 206. Prevention of unfair competition.
Sec. 207. Grants for economic adjustment.
Sec. 208. Use of funds in projects constructed under projected cost.
Sec. 209. Special impact areas.
Sec. 210. Performance awards.
Sec. 211. Planning performance awards.
Sec. 212. Direct expenditure or redistribution by recipient.
Sec. 213. Brownfields redevelopment.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

Sec. 301. Eligibility of areas.
Sec. 302. Comprehensive Economic Development strategies.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

Sec. 401. Incentives.
Sec. 402. Provision of comprehensive Economic Development strategies to 
                            Regional Commissions.

                        TITLE V--ADMINISTRATION

Sec. 501. Economic Development information clearinghouse.
Sec. 502. Businesses desiring Federal contracts.
Sec. 503. Performance evaluations of grant recipients.
Sec. 504. Conforming amendments.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Annual report to Congress.
Sec. 602. Relationship to assistance under other law.
Sec. 603. Sense of Congress regarding Economic Development 
                            Representatives.

                           TITLE VII--FUNDING

Sec. 701. Authorization of appropriations.
Sec. 702. Funding for grants for planning and grants for administrative 
                            expenses.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS AND DECLARATIONS.

    Section 2 of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121) is amended to read as follows:

``SEC. 2. FINDINGS AND DECLARATIONS.

    ``(a) Findings.--Congress finds that--
            ``(1) there continue to be areas of the United States 
        experiencing chronic high unemployment, underemployment, 
        outmigration, and low per capita incomes, as well as areas 
        facing sudden and severe economic dislocations because of 
        structural economic changes, changing trade patterns, certain 
        Federal actions (including environmental requirements that 
        result in the removal of economic activities from a locality), 
        and natural disasters;
            ``(2) economic growth in the States, cities, and rural 
        areas of the United States is produced by expanding economic 
        opportunities, expanding free enterprise through trade, 
        developing and strengthening public infrastructure, and 
        creating a climate for job creation and business development;
            ``(3) the goal of Federal economic development programs is 
        to raise the standard of living for all citizens and increase 
        the wealth and overall rate of growth of the economy by 
        encouraging communities to develop a more competitive and 
        diversified economic base by--
                    ``(A) creating an environment that promotes 
                economic activity by improving and expanding public 
                infrastructure;
                    ``(B) promoting job creation through increased 
                innovation, productivity, and entrepreneurship; and
                    ``(C) empowering local and regional communities 
                experiencing chronic high unemployment and low per 
                capita income to develop private sector business and 
                attract increased private sector capital investment;
            ``(4) while economic development is an inherently local 
        process, the Federal Government should work in partnership with 
        public and private State, regional, tribal, and local 
        organizations to maximize the impact of existing resources and 
        enable regions, communities, and citizens to participate more 
        fully in the American dream and national prosperity;
            ``(5) in order to avoid duplication of effort and achieve 
        meaningful, long-lasting results, Federal, State, tribal, and 
        local economic development activities should have a clear 
        focus, improved coordination, a comprehensive approach, and 
        simplified and consistent requirements; and
            ``(6) Federal economic development efforts will be more 
        effective if the efforts are coordinated with, and build upon, 
        the trade, workforce investment, transportation, and technology 
        programs of the United States.
    ``(b) Declarations.--In order to promote a strong and growing 
economy throughout the United States, Congress declares that--
            ``(1) assistance under this Act should be made available to 
        both rural- and urban-distressed communities;
            ``(2) local communities should work in partnership with 
        neighboring communities, the States, Indian tribes, and the 
        Federal Government to increase the capacity of the local 
        communities to develop and implement comprehensive economic 
        development strategies to alleviate economic distress and 
        enhance competitiveness in the global economy; and
            ``(3) whether suffering from long-term distress or a sudden 
        dislocation, distressed communities should be encouraged to 
        support entrepreneurship to take advantage of the development 
        opportunities afforded by technological innovation and 
        expanding newly opened global markets.''.

SEC. 102. DEFINITIONS.

    (a) Eligible Recipient.--Section 3(4)(A) of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3122(4)(A)) is amended--
            (1) by striking clause (i) and redesignating clauses (ii) 
        through (vii) as clauses (i) through (vi), respectively; and
            (2) in clause (iv) (as redesignated by paragraph (1)) by 
        inserting ``, including a special purpose unit of a State or 
        local government engaged in economic or infrastructure 
        development activities,'' after ``State''.
    (b) Regional Commissions; University Center.--Section 3 of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3122) is 
amended--
            (1) by redesignating paragraphs (8), (9), and (10) as 
        paragraphs (9), (10), and (11), respectively;
            (2) by inserting after paragraph (7) the following:
            ``(8) Regional commissions.--The term `Regional 
        Commissions' means--
                    ``(A) the Appalachian Regional Commission 
                established under chapter 143 of title 40, United 
                States Code;
                    ``(B) the Delta Regional Authority established 
                under subtitle F of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2009aa et seq.);
                    ``(C) the Denali Commission established under the 
                Denali Commission Act of 1998 (42 U.S.C. 3121 note; 112 
                Stat. 2681-637 et seq.); and
                    ``(D) the Northern Great Plains Regional Authority 
                established under subtitle G of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2009bb et seq.).''; 
                and
            (3) by adding at the end the following:
            ``(12) University center.--The term `university center' 
        means an institution of higher education or a consortium of 
        institutions of higher education established as a University 
        Center for Economic Development under section 207(a)(2)(D).''.

SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

    Section 101 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3131) is amended--
            (1) in subsection (b), by striking ``and multi-State 
        regional organizations'' and inserting ``multi-State regional 
        organizations, and nonprofit organizations''; and
            (2) in subsection (d)(1), by striking ``adjoining'' each 
        place it appears.

SEC. 104. COORDINATION.

    Section 103 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3132) is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary'';
            (2) in subsection (a) (as designated by paragraph (1)), by 
        inserting ``Indian tribes,'' after ``districts,''; and
            (3) by adding at the end the following:
    ``(b) Meetings.--To carry out subsection (a), or for any other 
purpose relating to economic development activities, the Secretary may 
convene meetings with Federal agencies, State and local governments, 
economic development districts, Indian tribes, and other appropriate 
planning and development organizations.''.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SEC. 201. GRANTS FOR PLANNING.

    Section 203(d) of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3143(d)) is amended--
            (1) in paragraph (1), by inserting ``, to the maximum 
        extent practicable,'' after ``developed'' the second place it 
        appears;
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Coordination.--Before providing assistance for a 
        State plan under this section, the Secretary shall consider the 
        extent to which the State will consider local and economic 
        development district plans.''; and
            (3) in paragraph (4)--
                    (A) by striking ``and'' at the end of subparagraph 
                (C);
                    (B) by redesignating subparagraph (D) as 
                subparagraph (F); and
                    (C) by adding after subparagraph (C) the following:
                    ``(D) assist in carrying out the workforce 
                investment strategy of a State;
                    ``(E) promote the use of technology in economic 
                development, including access to high-speed 
                telecommunications; and''.

SEC. 202. COST SHARING.

    (a) Federal Share.--Section 204 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3144) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Federal Share.--Except as provided in subsection (c), the 
Federal share of the cost of any project carried out under this title 
shall not exceed--
            ``(1) 50 percent; plus
            ``(2) an additional percent that--
                    ``(A) shall not exceed 30 percent; and
                    ``(B) is based on the relative needs of the area in 
                which the project will be located, as determined in 
                accordance with regulations promulgated by the 
                Secretary.''.
    (b) Non-Federal Share.--Section 204(b) of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3144(b)) is amended by 
inserting ``assumptions of debt,'' after ``equipment,''.
    (c) Increase in Federal Share.--Section 204 of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3144) is amended by adding 
at the end the following:
    ``(c) Increase in Federal Share.--
            ``(1) Indian tribes.--In the case of a grant to an Indian 
        tribe for a project under this title, the Secretary may 
        increase the Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the project.
            ``(2) Certain states, political subdivisions, and nonprofit 
        organizations.--In the case of a grant to a State, or a 
        political subdivision of a State, that the Secretary determines 
        has exhausted the effective taxing and borrowing capacity of 
        the State or political subdivision, or in the case of a grant 
        to a nonprofit organization that the Secretary determines has 
        exhausted the effective borrowing capacity of the nonprofit 
        organization, the Secretary may increase the Federal share 
        above the percentage specified in subsection (a) up to 100 
        percent of the cost of the project.
            ``(3) Training, research, and technical assistance.--In the 
        case of a grant provided under section 207, the Secretary may 
        increase the Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the project if 
        the Secretary determines that the project funded by the grant 
        merits, and is not feasible without, such an increase.''.

SEC. 203. SUPPLEMENTARY GRANTS.

    (a) In General.--Section 205 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3145) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Supplementary Grants.--Subject to subsection (c), in order to 
assist eligible recipients in taking advantage of designated Federal 
grant programs, on the application of an eligible recipient, the 
Secretary may make a supplementary grant for a project for which the 
recipient is eligible but for which the recipient cannot provide the 
required non-Federal share because of the economic situation of the 
recipient.''.
    (b) Requirements Applicable to Supplementary Grants.--Section 
205(c) of the Public Works and Economic Development Act of 1965 (42 
U.S.C. 3145(c)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Amount of supplementary grants.--The share of the 
        project cost supported by a supplementary grant under this 
        section may not exceed the applicable Federal share under 
        section 204.
            ``(2) Form of supplementary grants.--The Secretary shall 
        make supplementary grants by--
                    ``(A) the payment of funds made available under 
                this Act to the heads of the Federal agencies 
                responsible for carrying out the applicable Federal 
                programs; or
                    ``(B) the provision of funds under this Act, which 
                will be combined with funds transferred from other 
                Federal agencies in projects administered by the 
                Secretary.''; and
            (2) by striking paragraph (4).

SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

    Section 206 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3146) is amended--
            (1) in paragraph (1)(C), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3)(A) rural and urban economically distressed areas are 
        not harmed by the establishment or implementation by the 
        Secretary of a private sector leveraging goal for a project 
        under this title;
            ``(B) any private sector leveraging goal established by the 
        Secretary does not prohibit or discourage grant applicants 
        under this title from public works in, or economic development 
        of, rural or urban economically distressed areas; and
            ``(C) the relevant Committees of Congress are notified 
        prior to making any changes to any private sector leveraging 
        goal; and
            ``(4) grants made under this title promote job creation and 
        will have a high probability of assisting the recipient in 
        meeting or exceeding applicable performance requirements 
        established in connection with the grants.''.

SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

    (a) In General.--Section 207(a)(2) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3147(a)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (F);
            (2) by redesignating subparagraph (G) as subparagraph (I); 
        and
            (3) by inserting after subparagraph (F) the following:
                    ``(G) studies that evaluate the effectiveness of 
                coordinating projects funded under this Act with 
                projects funded under other Acts;
                    ``(H) assessment, marketing, and establishment of 
                business clusters; and''.
    (b) Cooperation Requirement.--Section 207(a) of the Public Works 
and Economic Development Act of 1965 (42 U.S.C. 3147(a)) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Cooperation requirement.--In the case of a project 
        assisted under this section that is national or regional in 
        scope, the Secretary may waive the provision in section 
        3(4)(A)(vi) requiring a nonprofit organization or association 
        to act in cooperation with officials of a political subdivision 
        of a State.''.

SEC. 206. PREVENTION OF UNFAIR COMPETITION.

    (a) In General.--Section 208 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3148) is repealed.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 
note) is amended by striking the item relating to section 208.

SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

    (a) Assistance to Manufacturing Communities.--Section 209(c) of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(c)) 
is amended--
            (1) in paragraph (3), by striking ``or'';
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) the loss of manufacturing jobs, for reinvesting in 
        and diversifying the economies of the communities.''.
    (b) Direct Expenditure or Redistribution by Recipient; Special 
Provisions Relating to Revolving Loan Fund Grants.--Section 209 of the 
Public Works and Economic Development Act of 1965 (42 U.S.C. 3149) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Special Provisions Relating to Revolving Loan Fund Grants.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations to maintain the proper operation and financial 
        integrity of revolving loan funds established by recipients 
        with assistance under this section.
            ``(2) Efficient administration.--The Secretary may--
                    ``(A) at the request of a grantee, amend and 
                consolidate grant agreements governing revolving loan 
                funds to provide flexibility with respect to lending 
                areas and borrower criteria;
                    ``(B) assign or transfer assets of a revolving loan 
                fund to third party for the purpose of liquidation, and 
                the third party may retain assets of the fund to defray 
                costs related to liquidation; and
                    ``(C) take such actions as are appropriate to 
                enable revolving loan fund operators to sell or 
                securitize loans (except that the actions may not 
                include issuance of a Federal guaranty by the 
                Secretary).
            ``(3) Treatment of actions.--An action taken by the 
        Secretary under this subsection with respect to a revolving 
        loan fund shall not constitute a new obligation if all grant 
        funds associated with the original grant award have been 
        disbursed to the recipient.
            ``(4) Preservation of securities laws.--
                    ``(A) Not treated as exempted securities.--No 
                securities issued pursuant to paragraph (2)(C) shall be 
                treated as exempted securities for purposes of the 
                Securities Act of 1933 (15 U.S.C. 77a et seq.) or the 
                Securities Exchange Act of 1934 (15 U.S.C. 78a et 
                seq.), unless exempted by rule or regulation of the 
                Securities and Exchange Commission.
                    ``(B) Preservation.--Except as provided in 
                subparagraph (A), no provision of this subsection or 
                any regulation promulgated by the Secretary under this 
                subsection supersedes or otherwise affects the 
                application of the securities laws (as the term is 
                defined in section 3(a) of the Securities Exchange Act 
                of 1934 (15 U.S.C. 78c(a))) or the rules, regulations, 
                or orders of the Securities and Exchange Commission or 
                a self-regulatory organization under that 
                Commission.''.

SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    Section 211 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3151) is amended to read as follows:

``SEC. 211. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``(a) In General.--In the case of a grant to a recipient for a 
construction project under section 201 or 209, if the Secretary 
determines, before closeout of the project, that the cost of the 
project, based on the designs and specifications that were the basis of 
the grant, has decreased because of decreases in costs, the Secretary 
may approve, without further appropriation, the use of the excess funds 
(or a portion of the excess funds) by the recipient--
            ``(1) to increase the Federal share of the cost of a 
        project under this title to the maximum percentage allowable 
        under section 204; or
            ``(2) to improve the project.
    ``(b) Other Uses of Excess Funds.--Any amount of excess funds 
remaining after application of subsection (a) may be used by the 
Secretary for providing assistance under this Act.
    ``(c) Transferred Funds.--In the case of excess funds described in 
subsection (a) in projects using funds transferred from other Federal 
agencies pursuant to section 604, the Secretary shall--
            ``(1) use the funds in accordance with subsection (a), with 
        the approval of the originating agency; or
            ``(2) return the funds to the originating agency.
    ``(d) Review by Comptroller General.--
            ``(1) Review.--The Comptroller General of the United States 
        shall review the implementation of this section for each fiscal 
        year.
            ``(2) Annual report.--Not later than 1 year after the date 
        of enactment of this section, and annually thereafter, the 
        Comptroller General shall submit to the Committee on 
        Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives a 
report on the findings of the Comptroller General under this 
subsection.''.

SEC. 209. SPECIAL IMPACT AREAS.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding 
at the end the following:

``SEC. 214. SPECIAL IMPACT AREAS.

    ``(a) In General.--On the application of an eligible recipient that 
is determined by the Secretary to be unable to comply with the 
requirements of section 302, the Secretary may waive, in whole or in 
part, the requirements of section 302 and designate the area 
represented by the recipient as a special impact area.
    ``(b) Conditions.--The Secretary may make a designation under 
subsection (a) only after determining that--
            ``(1) the project will fulfill a pressing need of the area; 
        and
            ``(2) the project will--
                    ``(A) be useful in alleviating or preventing 
                conditions of excessive unemployment or 
                underemployment; or
                    ``(B) assist in providing useful employment 
                opportunities for the unemployed or underemployed 
                residents in the area.
    ``(c) Notification.--At the time of the designation under 
subsection (a), the Secretary shall submit to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives a 
written notice of the designation, including a justification for the 
designation.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 213 the following:

        ``Sec. 214. Special impact areas.''.

SEC. 210. PERFORMANCE AWARDS.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended by section 
209) is amended by adding at the end the following:

``SEC. 215. PERFORMANCE AWARDS.

    ``(a) In General.--The Secretary may make a performance award in 
connection with a grant made, on or after the date of enactment of this 
section, to an eligible recipient for a project under section 201 or 
209.
    ``(b) Performance Measures.--
            ``(1) Regulations.--The Secretary shall promulgate 
        regulations to establish performance measures for making 
        performance awards under subsection (a).
            ``(2) Considerations.--In promulgating regulations under 
        paragraph (1), the Secretary shall consider the inclusion of 
        performance measures that assess--
                    ``(A) whether the recipient meets or exceeds 
                scheduling goals;
                    ``(B) whether the recipient meets or exceeds job 
                creation goals;
                    ``(C) amounts of private sector capital investments 
                leveraged; and
                    ``(D) such other factors as the Secretary 
                determines to be appropriate.
    ``(c) Amount of Awards.--
            ``(1) In general.--The Secretary shall base the amount of a 
        performance award made under subsection (a) in connection with 
        a grant on the extent to which a recipient meets or exceeds 
        performance measures established in connection with the grant.
            ``(2) Maximum amount.--The amount of a performance award 
        may not exceed 10 percent of the amount of the grant.
    ``(d) Use of Awards.--A recipient of a performance award under 
subsection (a) may use the award for any eligible purpose under this 
Act, in accordance with section 602 and such regulations as the 
Secretary may promulgate.
    ``(e) Federal Share.--Notwithstanding section 204, the funds of a 
performance award may be used to pay up to 100 percent of the cost of 
an eligible project or activity.
    ``(f) Treatment in Meeting Non-Federal Share Requirements.--For the 
purposes of meeting the non-Federal share requirements under this, or 
any other, Act the funds of a performance award shall be treated as 
funds from a non-Federal source.
    ``(g) Terms and Conditions.--In making performance awards under 
subsection (a), the Secretary shall establish such terms and conditions 
as the Secretary considers to be appropriate.
    ``(h) Funding.--The Secretary shall use any amounts made available 
for economic development assistance programs to carry out this section.
    ``(i) Reporting Requirement.--The Secretary shall include 
information regarding performance awards made under this section in the 
annual report required under section 603.
    ``(j) Review by Comptroller General.--
            ``(1) Review.--The Comptroller General shall review the 
        implementation of this section for each fiscal year.
            ``(2) Annual report.--Not later than 1 year after the date 
        of enactment of this section, and annually thereafter, the 
        Comptroller General shall submit to the Committee on 
        Environment and Public Works of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report on the findings of the Comptroller 
        under this subsection.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 214 the following:

        ``Sec. 215. Performance awards.''.

SEC. 211. PLANNING PERFORMANCE AWARDS.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended by section 
210) is amended by adding at the end the following:

``SEC. 216. PLANNING PERFORMANCE AWARDS.

    ``(a) In General.--The Secretary may make a planning performance 
award in connection with a grant made, on or after the date of 
enactment of this section, to an eligible recipient for a project under 
this title located in an economic development district.
    ``(b) Eligibility.--The Secretary may make a planning performance 
award to an eligible recipient under subsection (a) in connection with 
a grant for a project if the Secretary determines before closeout of 
the project that--
            ``(1) the recipient actively participated in the economic 
        development activities of the economic development district in 
        which the project is located;
            ``(2) the project is consistent with the comprehensive 
        economic development strategy of the district;
            ``(3) the recipient worked with Federal, State, and local 
        economic development entities throughout the development of the 
        project; and
            ``(4) the project was completed in accordance with the 
        comprehensive economic development strategy of the district.
    ``(c) Maximum Amount.--The amount of a planning performance award 
made under subsection (a) in connection with a grant may not exceed 5 
percent of the amount of the grant.
    ``(d) Use of Awards.--A recipient of a planning performance award 
under subsection (a) shall use the award to increase the Federal share 
of the cost of a project under this title.
    ``(e) Federal Share.--Notwithstanding section 204, the funds of a 
planning performance award may be used to pay up to 100 percent of the 
cost of a project under this title.
    ``(f) Funding.--The Secretary shall use any amounts made available 
for economic development assistance programs to carry out this 
section.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 215 the following:

        ``Sec. 216. Planning performance awards.''.

SEC. 212. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended by section 
211) is amended by adding at the end the following:

``SEC. 217. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

    ``(a) In General.--Subject to subsection (b), a recipient of a 
grant under section 201, 203, or 207 may directly expend the grant 
funds or may redistribute the funds in the form of a subgrant to other 
eligible recipients to fund required components of the scope of work 
approved for the project.
    ``(b) Limitation.--A recipient may not redistribute grant funds 
received under section 201 or 203 to a for-profit entity.
    ``(c) Economic Adjustment.--Subject to subsection (d), a recipient 
of a grant under section 209 may directly expend the grant funds or may 
redistribute the funds to public and private entities in the form of a 
grant, loan, loan guarantee, payment to reduce interest on a loan 
guarantee, or other appropriate assistance.
    ``(d) Limitation.--Under subsection (c), a recipient may not 
provide any grant to a private for-profit entity.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 216 the following:

        ``Sec. 217. Direct expenditure or redistribution by 
                            recipient.''.

SEC. 213. BROWNFIELDS REDEVELOPMENT.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended by section 
212) is amended by adding at the end the following:

``SEC. 218. BROWNFIELDS REDEVELOPMENT.

    ``(a) Definition of Brownfield Site.--In this section, the term 
`brownfield site' has the meaning given the term in section 101(39) of 
the Comprehensive Environmental Response, Compensation, and Liability 
Act of 1980 (42 U.S.C. 9601(39)).
    ``(b) Grants.--On the application of eligible recipients, the 
Secretary may make grants for projects on brownfield sites to alleviate 
or prevent conditions of inadequate private capital investment, 
unemployment, underemployment, blight, underutilized or abandoned land, 
outmigration or population loss, or infrastructure deterioration, 
including projects consisting of--
            ``(1) acquisition, development, or reuse of land and 
        infrastructure improvements for a public works, service, or 
        facility;
            ``(2) development of public facilities, including design 
        and engineering, construction, rehabilitation, alteration, 
        expansion, or improvement, and related machinery and equipment;
            ``(3) business development (including funding of a 
        revolving loan fund);
            ``(4) planning;
            ``(5) technical assistance; and
            ``(6) any other assistance determined by the Secretary to 
        alleviate the economic impacts of brownfield sites consistent 
        with the objectives of this title.
    ``(c) Prohibition on Remediation.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Hazardous substance.--The term `hazardous 
                substance' has the meaning given the term in section 
                101(14) of the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 
                9601(14)).
                    ``(B) Release.--The term `release' has the meaning 
                given the term in section 101(22) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980 (42 U.S.C. 9601(22)).
                    ``(C) Remediation.--The term `remediation' does not 
                include response activities described in section 
                104(a)(3) of the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 
                9604(a)(3)).
            ``(2) Prohibition.--Except as provided in paragraph (3), a 
        grant made under this section shall not be used for remediation 
        to prevent or minimize the release of hazardous substances.
            ``(3) Exception for incidental remediation.--
                    ``(A) In general.--Paragraph (2) does not apply to 
                remediation that is incidental to the economic 
                redevelopment project.
                    ``(B) Limitation.--Except as provided in 
                subparagraph (C), incidental remediation shall not 
                exceed $50,000 at any individual project.
                    ``(C) Exceptional circumstances.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may waive subparagraph (B) in 
                        exceptional circumstances that further the 
                        mission of the Economic Development 
                        Administration.
                            ``(ii) Limitation.--If the Secretary waives 
                        subparagraph (B) for a project, the cost of the 
                        incidental remediation at the project shall not 
                        exceed $200,000.
                    ``(D) Standards.--A recipient of a grant under this 
                section that is used for incidental remediation shall--
                            ``(i) obtain written approval or clearance 
                        from the appropriate Federal and State 
                        regulatory authority for the hazardous waste 
                        remediation; and
                            ``(ii) comply with all applicable Federal 
                        and State laws.
            ``(4) Effect on federal and state laws.--Nothing in this 
        section affects any liability, obligation, or response 
        authority under Federal or State law.
    ``(d) Additional Limitations.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        grant made under this section shall be subject to section 
        104(k)(4)(B) of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 
        9604(k)(4)(B)).
            ``(2) Exceptions.--
                    ``(A) Administrative costs.--A recipient of a grant 
                made under this section may use grant funds for the 
                administrative costs of economic development 
                activities.
                    ``(B) Compliance costs.--A recipient of a grant 
                made under this section may use grant funds for the 
                compliance costs of economic development activities.
                    ``(C) Bona fide prospective purchaser.--For 
                purposes of the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.), a recipient of a grant under this section 
                that otherwise satisfies the definition of `bona fide 
                prospective purchaser' under section 101(40) of the 
                Comprehensive Environmental Response, Compensation, and 
                Liability Act of 1980 (42 U.S.C. 9601(40)) shall be 
                considered to be within that definition regardless of 
                the date on which the grant recipient acquires 
                ownership of a facility.
    ``(e) Assistance at Other Sites.--Nothing in this section affects 
the authority of the Secretary to provide assistance to eligible 
recipients under this Act for economic development projects at a site 
other than a brownfield site.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 217 the following:

        ``Sec. 218. Brownfields redevelopment.''.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS.

    Section 301(c)(1) of the Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3161(c)(1)) is amended by inserting after ``most 
recent Federal data available'' the following: ``(including data 
available from the Bureau of Economic Analysis, the Bureau of Labor 
Statistics, the Census Bureau, the Bureau of Indian Affairs, or any 
other Federal source determined by the Secretary to be appropriate)''.

SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

    (a) In General.--Section 302(a)(3)(A) of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3162(a)(3)(A)) is amended 
by inserting ``maximizes effective development and use of the workforce 
consistent with any applicable State or local workforce investment 
strategy, promotes the use of technology in economic development 
(including access to high-speed telecommunications),'' after 
``access,''.
    (b) Approval of Other Plan.--Section 302(c) of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3162(c)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary''; and
            (2) by adding at the end the following:
            ``(2) Existing strategy.--To the maximum extent 
        practicable, a plan submitted under this paragraph shall be 
        consistent and coordinated with any existing comprehensive 
economic development strategy for the area.''.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

SEC. 401. INCENTIVES.

    (a) In General.--Section 403 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3173) is repealed.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 
note) is amended by striking the item relating to section 403.

SEC. 402. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES TO 
              REGIONAL COMMISSIONS.

    (a) In General.--Section 404 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3174) is amended to read as follows:

``SEC. 404. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES 
              TO REGIONAL COMMISSIONS.

    ``If any part of an economic development district is in a region 
covered by 1 or more of the Regional Commissions, the economic 
development district shall ensure that a copy of the comprehensive 
economic development strategy of the district is provided to the 
affected Regional Commission.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by striking the item relating to 
section 404 and inserting the following:

        ``Sec. 404. Provision of comprehensive economic development 
                            strategies to Regional Commissions.''.

                        TITLE V--ADMINISTRATION

SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

    Section 502 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3192) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) maintain a central information clearinghouse on the 
        Internet with--
                    ``(A) information on economic development, economic 
                adjustment, disaster recovery, defense conversion, and 
                trade adjustment programs and activities of the Federal 
                Government;
                    ``(B) links to State economic development 
                organizations; and
                    ``(C) links to other appropriate economic 
                development resources;'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) assist potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, defense 
        conversion, and trade adjustment assistance under Federal and 
        State laws in locating and applying for the assistance;'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(4) obtain appropriate information from other Federal 
        agencies needed to carry out the duties under this Act.''.

SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.

    (a) In General.--Section 505 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3195) is repealed.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121 
note) is amended by striking the item relating to section 505.

SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

    (a) In General.--Section 506(c) of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3196(c)) is amended by striking 
``after the effective date of the Economic Development Administration 
Reform Act of 1998''.
    (b) Evaluation Criteria.--Section 506(d)(2) of the Public Works and 
Economic Development Act of 1965 (42 U.S.C. 3196(d)(2)) is amended by 
inserting ``program performance,'' after ``applied research,''.

SEC. 504. CONFORMING AMENDMENTS.

    Section 602 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3212) is amended--
            (1) in the first sentence, by striking ``in accordance 
        with'' and all that follows before the period at the end and 
        inserting ``in accordance with subchapter IV of chapter 31 of 
        title 40, United States Code''; and
            (2) in the third sentence, by striking ``section 2 of the 
        Act of June 13, 1934, as amended (40 U.S.C. 276c)'' and 
        inserting ``section 3145 of title 40, United States Code''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. ANNUAL REPORT TO CONGRESS.

    Section 603 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3213) is amended--
            (1) by striking ``Not later'' and inserting the following:
    ``(a) In General.--Not later''; and
            (2) by adding at the end the following:
    ``(b) Inclusions.--Each report required under subsection (a) 
shall--
            ``(1) include a list of the waivers issued under section 
        218(c)(3)(C);
            ``(2) include a list of all grant recipients by State, 
        including the projected private sector dollar to Federal dollar 
        investment ratio for each grant recipient;
            ``(3) include a discussion of any private sector leveraging 
        goal with respect to grants awarded to--
                    ``(A) rural and urban economically distressed 
                areas; and
                    ``(B) highly distressed areas; and
            ``(4) after the completion of a project, include the 
        realized private sector dollar to Federal dollar investment 
        ratio for the project.''.

SEC. 602. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

    Section 609 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3219) is amended--
            (1) by striking subsection (a); and
            (2) by striking ``(b) Assistance Under Other Acts.--''.

SEC. 603. SENSE OF CONGRESS REGARDING ECONOMIC DEVELOPMENT 
              REPRESENTATIVES.

    (a) Findings.--Congress finds that--
            (1) planning and coordination among Federal agencies, State 
        and local governments, Indian tribes, and economic development 
        districts is vital to the success of an economic development 
        program;
            (2) economic development representatives of the Economic 
        Development Administration provide distressed communities with 
        the technical assistance necessary to foster this planning and 
        coordination; and
            (3) in the 5 years preceding the date of enactment of this 
        Act, the number of economic development representatives has 
        declined by almost 25 percent.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary should maintain a sufficient number of economic development 
representatives to ensure that the Economic Development Administration 
is able to provide effective assistance to distressed communities and 
foster economic growth and development among the States.

                           TITLE VII--FUNDING

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    Section 701 of the Public Works and Economic Development Act of 
1965 (42 U.S.C. 3231) is amended to read as follows:

``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Economic Development Assistance Programs.--There are 
authorized to be appropriated for economic development assistance 
programs to carry out this Act, to remain available until expended--
            ``(1) $400,000,000 for fiscal year 2004;
            ``(2) $425,000,000 for fiscal year 2005;
            ``(3) $450,000,000 for fiscal year 2006;
            ``(4) $475,000,000 for fiscal year 2007; and
            ``(5) $500,000,000 for fiscal year 2008.''
    ``(b) Salaries and Expenses.--There are authorized to be 
appropriated for salaries and expenses of administering this Act, to 
remain available until expended--
            ``(1) $33,377,000 for fiscal year 2004; and
            ``(2) such sums as are necessary for each fiscal year 
        thereafter.''.

SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
              EXPENSES.

    (a) In General.--Title VII of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3231 et seq.) is amended by adding 
at the end the following:

``SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
              ADMINISTRATIVE EXPENSES.

    ``(a) In General.--Of the amounts made available under section 701 
for each fiscal year, not less than $27,000,000 shall be made available 
for grants provided under section 203.
    ``(b) Waiver.--Subsection (a) shall not apply in any case in which 
the total amount made available for a fiscal year for all programs 
under this Act (excluding programs described in paragraphs (1) and (2) 
of section 209(c)) is less than $255,000,000.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 703 the following:

        ``Sec. 704. Funding for grants for planning and grants for 
                            administrative expenses.''.




                                                       Calendar No. 754

108th CONGRESS

  2d Session

                                S. 1134

                          [Report No. 108-382]

_______________________________________________________________________

                                 A BILL

 To reauthorize and improve the program authorized by the Public Works 
                 and Economic Development Act of 1965.

_______________________________________________________________________

                            October 1, 2004

                       Reported with an amendment