Short title

This Act may be cited as the

Economic Development Revitalization Act of 2008

Definitions

Section 3(8) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3122(8)) is amended— (1)in subparagraph (C), by striking and at the end; (2)in subparagraph (D), by striking the period at the end and inserting ; and; and (3)by adding at the end the following:

(E)the Southeast Crescent Regional Commission, Northern Border Regional Commission, and Southwest Border Regional Commission established by section 15301(a) of title 40, United States Code.

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)— (A)in the matter preceding paragraph (1), by inserting economic development districts, university centers, after multi-State regional organizations,; and (B)in paragraph (3), by inserting , innovation, entrepreneurship, sustainable development, after infrastructure; (2)in subsection (c), by inserting (including economic development districts) after local government agencies; and (3)by adding at the end the following:

(e)

Excellence in economic development awards

(1)

Establishment of program

To recognize innovative economic development strategies of national significance, the Secretary may establish and carry out a program, to be known as the Excellence in Economic Development Award Program (referred to in this subsection as the program). (2)

Eligible entities

To be eligible for recognition under the program, an entity shall be an eligible recipient that is not a for-profit organization or institution. (3)

Nominations

Before making an award under the program, the Secretary shall solicit nominations publicly, in accordance with such selection and evaluation procedures as the Secretary may establish in the solicitation. (4)

Categories

The categories of awards under the program shall include awards for— (A)urban or suburban economic development; (B)rural economic development; (C)environmental or energy economic development; (D)economic diversification strategies that respond to economic dislocations, including economic dislocations caused by natural disasters and military base realignment and closure actions; (E)university-led strategies to enhance economic development; (F)community entrepreneurship; (G)historic preservation-led strategies to enhance economic development; and (H)such other categories as the Secretary determines to be appropriate. (5)

Provision of awards

The Secretary may provide to each entity selected to receive an award under this subsection a plaque, bowl, or similar article to commemorate the accomplishments of the entity. (6)

Funding

Of amounts made available to carry out this Act, the Secretary may use not more than $2,000 for each fiscal year to carry out this subsection.

Grants for planning and grants for administrative expenses

Section 203 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3143) is amended— (1)in subsection (b)— (A)in paragraph (3), by striking and at the end; (B)in paragraph (4), by striking the period at the end and inserting ; and; and (C)by adding at the end the following:

(5)fostering regional collaboration among local jurisdictions and organizations.

; and

(2)in subsection (d)(5), by striking subsection shall and all that follows through the end of the paragraph and inserting the following: “subsection shall—

(A)submit to the Secretary an annual report on the planning process assisted under this subsection; and (B)provide a copy of each annual report to each economic development district within the State.

Cost sharing

(a)

Federal share

Section 204(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(a)) is amended by striking shall not exceed— and all that follows through the end of the subsection and inserting shall not exceed 50 percent.. (b)

Increase in Federal share

Section 204(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(c)) is amended— (1)by redesignating paragraphs (1) through (3) as paragraphs (2) through (4), respectively; (2)by inserting before paragraph (2) (as redesignated by paragraph (1)) the following:

(1)

Relative needs of an area

(A)

150-percent higher unemployment rate

In the case of a grant made in an area for which the 24-month unemployment rate is at least 150 percent of the national average or the per capita income is not more than 70 percent of the national average, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 60 percent of the cost of the project. (B)

175-percent higher unemployment rate

In the case of a grant made in an area for which the 24-month unemployment rate is at least 175 percent of the national average or the per capita income is not more than 60 percent of the national average, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 70 percent of the cost of the project. (C)

200-percent higher unemployment rate

In the case of a grant made in an area for which the 24-month unemployment rate is at least 200 percent of the national average or the per capita income is not more than 50 percent of the national average, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 80 percent of the cost of the project. (D)

Additional criteria

The Secretary may establish eligibility criteria in addition to the criteria described in this paragraph to address areas impacted by severe outmigration, sudden and severe economic dislocations, and other related economic circumstances.

;

(3)in paragraph (2) (as redesignated by paragraph (1))— (A)by striking may and inserting shall; and (B)by inserting to 75 percent of the cost of the project, and may increase after subsection (a); and (4)by adding at the end the following:

(5)

Federally declared disaster areas

In the case of a grant for an area with respect to which a major disaster or emergency has been declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) during the 18-month period ending on the date on which the Federal share is determined, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

Grants for training, research, and technical assistance

Section 207(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3147(a)) is amended— (1)in paragraph (1), by inserting , outmigration, after unemployment; and (2)in paragraph (2)— (A)in subparagraph (H), by striking and at the end; (B)by redesignating subparagraph (I) as subparagraph (J); and (C)by inserting after subparagraph (H) the following:

(I)a peer exchange program to promote industry-leading practices and innovations relating to the organizational development, program delivery, and regional initiatives of economic development districts; and

Enhancement of recipient flexibility to deal with project assets

(a)

Particular community assistance

Section 209(c)(5) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(c)(5)) is amended by inserting , natural resource-based, agricultural, or service sector after manufacturing. (b)

Revolving loan fund program flexibility

Section 209(d) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(d)) is amended— (1)by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively; (2)by inserting after paragraph (1) the following:

(2)

Comments

(A)

In general

The Secretary shall periodically solicit from the individuals and entities described in subparagraph (B)— (i)comments regarding the guidelines and performance requirements for the revolving loan fund program; and (ii)recommendations for improving the performance of the program and grantees under the program. (B)

Description of individuals and entities

The individuals and entities referred to in subparagraph (A) are— (i)the public; and (ii)in particular, revolving loan fund grantees, national experts, and employees of Federal agencies with knowledge of international, national, regional, and statewide trends, innovations, and noteworthy practices relating to business development finance, including public and private lending and technical assistance intermediaries.

;

(3)in subparagraph (A) of paragraph (5) (as redesignated by paragraph (1)), by striking paragraph (2)(C) and inserting paragraph (3)(C); and (4)by adding at the end the following:

(6)

Conversion of project assets

(A)

Request

If a recipient determines that a revolving loan fund established using assistance provided under this section is no longer needed, or that the recipient could make better use of the assistance in light of the current economic development needs of the recipient if the assistance was made available to carry out any other project that meets the requirements of this Act, the recipient may submit to the Secretary a request to approve the conversion of the assistance. (B)

Methods of conversion

A recipient the request to convert assistance of which is approved under subparagraph (A) may accomplish the conversion by— (i)selling to a third party any assets of the applicable revolving loan fund; or (ii)retaining repayments of principal and interest amounts on loans provided through the applicable revolving loan fund. (C)

Requirements

(i)

Sale

(I)

In general

Subject to subclause (II), a recipient shall use the net proceeds from a sale of assets under subparagraph (B)(i) to pay any portion of the costs of 1 or more projects that meet the requirements of this Act. (II)

Treatment

For purposes of subclause (I), a project described in that subclause shall be considered to be eligible under section 301. (ii)

Retention of repayments

Retention by a recipient of any repayment under subparagraph (B)(ii) shall be carried out in accordance with a strategic reuse plan approved by the Secretary that provides for the increase of capital over time until sufficient amounts (including interest earned on the amounts) are accumulated to fund other projects that meet the requirements of this Act. (D)

Terms and conditions

The Secretary may require such terms and conditions regarding a proposed conversion of the use of assistance under this paragraph as the Secretary determines to be appropriate. (E)

Expediency requirement

The Secretary shall ensure that any assistance intended to be converted for use pursuant to this paragraph is used in an expeditious manner. (7)

Program administration

The Secretary may allocate not more than 2 percent of the amounts made available for grants under this section for the development and maintenance of an automated tracking and monitoring system to ensure the proper operation and financial integrity of the revolving loan program established under this section.

Brightfields demonstration program

Section 218(d) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3154d(d)) is amended by striking 2004 through 2008 and inserting 2009 through 2013.

Designation of economic development districts

Section 401 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3171) is amended by adding at the end the following:

(c)

Operations

(1)

In general

Each economic development district shall engage in the full range of economic development activities included in the list contained in the comprehensive economic development strategy of the economic development district that has been approved by the Economic Development Administration, including— (A)coordinating and implementing economic development activities in the economic development district; (B)carrying out economic development research, planning, implementation, and advisory functions identified in the comprehensive economic development strategy; and (C)coordinating the development and implementation of the comprehensive economic development strategy with other local, State, Federal, and private organizations. (2)

Contracts

An economic development district may elect to enter into contracts for services to accomplish the activities described in paragraph (1).

10.

Consultation with other persons and agencies

Section 503(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3193(a)) is amended by inserting , outmigration, after regional unemployment.

11.

Notification of reorganization

Section 507 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3197) is amended— (1)by striking Not later than and inserting the following:

(a)

Notification

Not later than

; and

(2)by adding at the end the following:

(b)

State of Montana

The State of Montana shall be served by the Seattle office of the Economic Development Administration.

12.

Maintenance of effort

Title VI of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3211 et seq.) is amended by adding at the end the following:

613.

Maintenance of effort

(a)

Expected period of best efforts

(1)

Establishment

To carry out the purposes of this Act, before providing investment assistance for a construction project under this Act, the Secretary shall establish the expected period during which the recipient of the assistance shall make best efforts to achieve the economic development objectives of the assistance. (2)

Treatment of property

To obtain the best efforts of a recipient during the period established under paragraph (1), during that period— (A)any property that is acquired or improved, in whole or in part, using investment assistance under this Act shall be held in trust by the recipient for the benefit of the project; and (B)the Secretary shall retain an undivided equitable reversionary interest in the property. (3)

Termination of Federal interest

(A)

In general

Beginning on the date on which the Secretary determines that a recipient has fulfilled the obligations of the recipient for the applicable period under paragraph (1), taking into consideration the economic conditions existing during that period, the Secretary may terminate the reversionary interest of the Secretary in any applicable property under paragraph (2)(B). (B)

Alternative method of termination

(i)

In general

On a determination by a recipient that the economic development needs of the recipient have changed during the period beginning on the date on which investment assistance for a construction project is provided under this Act and ending on the expiration of the expected period established for the project under paragraph (1), the recipient may submit to the Secretary a request to terminate the reversionary interest of the Secretary in property of the project under paragraph (2)(B) before the date described in subparagraph (A). (ii)

Approval

The Secretary may approve a request of a recipient under clause (i) if— (I)in any case in which the request is submitted during the 10-year period beginning on the date on which assistance is initially provided under this Act for the applicable project, the recipient repays to the Secretary an amount equal to 100 percent of the fair market value of the pro rata Federal share of the project; or (II)in any case in which the request is submitted after the expiration of the 10-year period described in subclause (I), the recipient repays to the Secretary an amount equal to the fair market value of the pro rata Federal share of the project as if that value had been amortized over the period established under paragraph (1), based on a straight-line depreciation of the project throughout the estimated useful life of the project. (b)

Terms and conditions

The Secretary may establish such terms and conditions under this section as the Secretary determines to be appropriate, including by extending the period of a reversionary interest of the Secretary under subsection (a)(2)(B) in any case in which the Secretary determines that the performance of a recipient is unsatisfactory. (c)

Previously extended assistance

With respect to any recipient to which the term of provision of assistance was extended under this Act before the date of enactment of this section, the Secretary may approve a request of the recipient under subsection (a) in accordance with the requirements of this section to ensure uniform administration of this Act, notwithstanding any estimated useful life period that otherwise relates to the assistance. (d)

Conversion of use

If a recipient of assistance under this Act demonstrates to the Secretary that the intended use of the project for which assistance was provided under this Act no longer represents the best use of the property used for the project, the Secretary may approve a request by the recipient to convert the property to a different use for the remainder of the term of the Federal interest in the property, subject to the condition that the new use shall be consistent with the purposes of this Act. (e)

Status of authority

The authority of the Secretary under this section is in addition to any authority of the Secretary pursuant to any law or grant agreement in effect on the date of enactment of this section.

13.

Extension of authorization of appropriations

Section 701(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3231(a)) is amended— (1)in paragraph (1), by striking 2004 and inserting 2009; (2)in paragraph (2), by striking 2005 and inserting 2010; (3)in paragraph (3), by striking 2006 and inserting 2011; (4)in paragraph (4), by striking 2007 and inserting 2012; and (5)in paragraph (5), by striking 2008 and inserting 2013.

14.

Funding for grants for planning and grants for administrative expenses

Section 704 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3234) is amended to read as follows:

704.

Funding for grants for planning and grants for administrative expenses

(a)

In general

Subject to subsection (b), of the amounts made available under section 701 for each fiscal year, not less than $27,000,000 shall be made available to provide grants under section 203. (b)

Subject to total appropriations

For any fiscal year, the amount made available pursuant to subsection (a) shall be increased to— (1)$28,000,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $280,000,000; (2)$29,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $320,000,000; (3)$31,000,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $350,000,000; (4)$32,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $380,000,000; and (5)$34,500,000, if the total amount made available under subsection 701(a) for the fiscal year is equal to or greater than $420,000,000.