[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1619 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1619

  To establish the Office of Sustainable Housing and Communities, to 
   establish the Interagency Council on Sustainable Communities, to 
   establish a comprehensive planning grant program, to establish a 
    sustainability challenge grant program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 6, 2009

   Mr. Dodd (for himself, Mr. Menendez, Mr. Merkley, Mr. Bennet, Mr. 
 Akaka, and Mr. Schumer) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
  To establish the Office of Sustainable Housing and Communities, to 
   establish the Interagency Council on Sustainable Communities, to 
   establish a comprehensive planning grant program, to establish a 
    sustainability challenge grant program, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Livable 
Communities Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
Sec. 5. Office of Sustainable Housing and Communities.
Sec. 6. Interagency Council on Sustainable Communities.
Sec. 7. Comprehensive planning grant program.
Sec. 8. Sustainability challenge grant program.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Demographic trends support the need for cooperation in 
        land use planning and the development of housing and 
        transportation. The population of the United States will grow 
        from approximately 307,000,000 people to approximately 
        439,000,000 people during the period between 2009 and 2050, an 
        increase of more than 40 percent.
            (2) The demographic groups that are most likely to use 
        public transportation are the groups that are projected to 
        increase in size the most during the period between 2009 and 
        2025.
            (3) By 2025, nearly 1 in every 5 people in the United 
        States will be 65 years of age or older.
            (4) During the period between 1980 and 2000, the growth of 
        the largest 99 metropolitan areas in the continental United 
        States consumed 16,000,000 acres of rural land, or about 1 acre 
        for every new household.
            (5) In 2007, traffic congestion caused people in large and 
        small metropolitan areas of the United States to waste 
        4,200,000,000 hours in traffic and to purchase an extra 
        2,800,000,000 gallons of fuel, for a congestion cost of 
        $87,200,000,000. This represents a 5-fold increase in wasted 
        time and cost since 1982.
            (6) The Energy Information Administration of the Department 
        of Energy forecasts that driving will increase 59 percent 
        between 2005 and 2030, far outpacing the projected 23 percent 
        increase in population.
            (7) According to the United States Census Bureau, only 54 
        percent of households in the United States have access to 
        public transportation.
            (8) In 2008, voters throughout the United States approved 
        State and local ballot initiatives that supported public 
        transportation 79 percent of the time, even when it meant local 
        taxes would be raised or continued.
            (9) Demographers estimate that as much as 30 percent of 
        current demand for housing is for housing in dense, walkable, 
        mixed-use communities, and that less than 2 percent of new 
        housing is in this category.
            (10) The average household spends 19 percent of its 
        household budget on transportation, and some very low-income 
        households spend as much as 55 percent of the household budget 
        on transportation. Households with good access to public 
        transportation spend only 9 percent of the household budget on 
        transportation, which increases the portion of the household 
        budget available for other critical household needs.
            (11) The need for safe and affordable housing is great. 
        Fifty-four percent of renters spend more than 30 percent of 
        their income on housing costs, and 29 percent of renters pay 
        more than 50 percent of their income for housing. In 2007, 
        there was a shortage of 2,800,000 units of affordable housing 
        for extremely low-income renter households.
            (12) People who live in areas of compact development (where 
        housing, shopping, jobs, and public transportation are in close 
        proximity) drive 20 to 40 percent less than people who live in 
        average development patterns in the United States.
            (13) When the effects of emissions savings from passengers 
        taking transit instead of driving and the reduction in vehicle 
        miles traveled due to the impact of transit on land use are 
        taken into account, public transportation in the United States 
        reduces carbon dioxide emissions by nearly 37,000,000 metric 
        tons each year.
            (14) Transportation accounts for 70 percent of the oil 
        consumed in the United States and nearly \1/3\ of carbon 
        emissions in the United States come from the transportation 
        sector. Reducing the growth of the number of miles driven and 
        providing transportation alternatives through good planning and 
        sustainable development is a necessary part of the energy 
        independence and climate change strategies of the United 
        States.
            (15) A number of studies, reports, and articles by 
        organizations including the Environmental Protection Agency, 
        the National Association of Realtors, and the Transit 
        Cooperative Research Project have found that one of the keys to 
        revitalizing and maintaining the character of town centers and 
        preserving surrounding agricultural land in small and rural 
        communities is to prevent commercial and residential 
        development on the outskirts of town, by promoting integrated 
        housing, economic, and transportation development in town 
        centers.
            (16) More than 1,600,000 rural households do not have 
        access to cars.
            (17) The burden of transportation costs is especially heavy 
        for low-income rural residents, because residents of rural 
        areas drive approximately 17 percent more than residents of 
        urban areas.
            (18) Demand for public transportation in rural and small 
        town communities is growing. Between 2002 and 2005, ridership 
        on small urban and rural public transportation systems 
        increased 20 percent.
            (19) Poorly planned development in rural areas can fragment 
        agricultural and forest lands, pollute waterways with surface 
        water runoff, cause unnecessary environmental impacts, strain 
        the capacity of rural roads, and sap economic vitality from 
        existing ``main street'' commercial areas.
            (20) Funding for integrated housing, transportation, 
        energy, environmental, and economic development and other land 
        use planning efforts at the local and regional levels is 
        necessary to provide for sustainable development and smart 
        growth.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to facilitate and improve the coordination of housing, 
        community development, transportation, energy, and 
        environmental policy in the United States;
            (2) to coordinate Federal policies and investments to 
        promote sustainable development;
            (3) to encourage regional planning for livable communities 
        and the adoption of sustainable development techniques, 
        including transit-oriented development;
            (4) to provide a variety of safe, reliable transportation 
        choices, with special emphasis on public transportation and 
        complete streets, in order to reduce traffic congestion, 
        greenhouse gas emissions, and dependence on foreign oil;
            (5) to provide affordable, energy-efficient, and location-
        efficient housing choices for people of all ages, incomes, 
        races, and ethnicities, and to make the combined costs of 
        housing and transportation more affordable to families;
            (6) to support, revitalize, and encourage growth in 
        existing communities, in order to maximize the cost 
        effectiveness of existing infrastructure and preserve 
        undeveloped lands;
            (7) to promote economic development and competitiveness by 
        connecting the housing and employment locations of workers, 
        reducing traffic congestion, and providing families with access 
        to essential services;
            (8) to preserve the environment and natural resources, 
        including agricultural and rural land and green spaces; and
            (9) to support public health and improve quality of life 
        for the residents of and workers in communities by promoting 
        healthy, walkable neighborhoods, access to green space, and the 
        mobility to pursue greater opportunities.

SEC. 4. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing, the cost of which does not exceed 30 percent of 
        the income of a family.
            (2) Census tract.--The term ``census tract'' means a small, 
        relatively permanent statistical subdivision of a county, 
        delineated by a local committee of census data users for the 
        purpose of presenting data.
            (3) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Interagency Council on Sustainable 
        Communities.
            (4) Complete street.--The term ``complete street'' means a 
        street that enables all travelers, particularly public transit 
        users, bicyclists, pedestrians (including individuals of all 
        ages and individuals with disabilities), and motorists, to use 
        the street safely and efficiently.
            (5) Comprehensive regional plan.--The term ``comprehensive 
        regional plan'' means a plan that--
                    (A) identifies land use, transportation, community 
                development, housing, economic development, 
                environmental, energy, and infrastructure needs and 
                goals in a region;
                    (B) provides strategies for meeting the needs and 
                goals described in subparagraph (A), including 
                strategies for--
                            (i) providing affordable, energy-efficient, 
                        and location-efficient housing choices for 
                        people of all ages, incomes, races, and 
                        ethnicities;
                            (ii) reducing growth in vehicle miles 
                        traveled, in order to reduce traffic congestion 
                        and regional greenhouse gas emissions from 
                        transportation;
                            (iii) encouraging economic competitiveness 
                        and economic development; and
                            (iv) increasing the connectivity of the 
                        region by increasing public transportation 
                        ridership and improving access to 
                        transportation alternatives; and
                    (C) prioritizes projects for funding and 
                implementation.
            (6) Consortium of units of general local governments.--The 
        term ``consortium of units of general local governments'' means 
        a consortium of geographically contiguous units of general 
        local government that the Secretary determines--
                    (A) represents all or part of a metropolitan 
                statistical area or a micropolitan statistical area;
                    (B) has the authority under State or local law to 
                carry out planning activities, including surveys, land 
                use studies, environmental or public health analyses, 
                and development of urban revitalization plans; and
                    (C) has provided documentation to the Secretary 
                sufficient to demonstrate that the purpose of the 
                consortium is to carry out a project using a grant 
                awarded under this Act.
            (7) Council.--The term ``Council'' means the Interagency 
        Council on Sustainable Communities established under section 6.
            (8) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (9) Director.--The term ``Director'' means the Director of 
        the Office of Sustainable Housing and Communities established 
        under section 5.
            (10) Extremely low-income family.--The term ``extremely 
        low-income family''--
                    (A) means a family that has an income that does not 
                exceed--
                            (i) 30 percent of the median income in the 
                        area where the family lives, as determined by 
                        the Secretary, with appropriate adjustments for 
                        the size of the family; or
                            (ii) a percentage of the median income in 
                        the area where the family lives, as determined 
                        by the Secretary upon a finding by the 
                        Secretary that such percentage is necessary due 
                        to unusually high or low family incomes in the 
                        area where the family lives; and
                    (B) includes a family that includes a person with 
                special needs, including an elderly person or a person 
                with disabilities, as those terms are defined in 
                section 3(b) of the United States Housing Act of 1937 
                (42 U.S.C. 1437a(b)).
            (11) High-poverty area.--The term ``high-poverty area'' 
        means a census tract, or a group of contiguous census tracts, 
        that has a poverty rate of 20 percent or more.
            (12) Livable community.--The term ``livable community'' 
        means a metropolitan, urban, suburban, rural, or neighborhood 
        community that--
                    (A) provides safe and reliable transportation 
                choices;
                    (B) provides affordable, energy-efficient, and 
                location-efficient housing choices for people of all 
                ages, incomes, races, and ethnicities;
                    (C) supports, revitalizes, and encourages the 
                growth of existing communities and maximizes the cost 
                effectiveness of existing infrastructure;
                    (D) promotes economic development and economic 
                competitiveness;
                    (E) preserves the environment and natural 
                resources;
                    (F) protects agricultural land, rural land, and 
                green spaces; and
                    (G) supports public health and improves the quality 
                of life for residents of and workers in the community.
            (13) Location-efficient.--The term ``location-efficient'' 
        characterizes development, housing, or neighborhoods that 
        integrate land use, mixed-use housing and commercial 
        development, employment, and transportation--
                    (A) to enhance mobility;
                    (B) to encourage transit-oriented development;
                    (C) to encourage infill development and the use of 
                existing infrastructure; and
                    (D) to reduce growth in vehicle miles traveled and 
                the transportation costs and energy requirements 
                associated with ownership or rental of a home.
            (14) Low-income family.--The term ``low-income family''--
                    (A) has the same meaning as in section 3(b) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437a(b)); 
                and
                    (B) includes a low-income family with a person with 
                special needs, including an elderly person or a person 
                with disabilities, as those terms are defined section 
                3(b) of the United States Housing Act of 1937 (42 
                U.S.C. 1437a(b)).
            (15) Metropolitan planning organization.--The term 
        ``metropolitan planning organization'' has the meaning given 
        that term in section 134(b) of title 23, United States Code, 
        and section 5303(b) of title 49, United States Code.
            (16) Metropolitan statistical area.--The term 
        ``metropolitan statistical area'' means a county or group of 
        counties that--
                    (A) is designated by the Office of Management and 
                Budget as a metropolitan statistical area; and
                    (B) has 1 or more large population centers with a 
                population of not less than 50,000 and adjacent 
                territory with a high level of integration with the 
                core.
            (17) Micropolitan statistical area.--The term 
        ``micropolitan statistical area'' means a county or group of 
        counties that--
                    (A) is designated by the Office of Management and 
                Budget as a micropolitan statistical area; and
                    (B) has 1 or more large urban clusters with a 
                population of not less than 10,000 and not more than 
                50,000.
            (18) Office.--The term ``Office'' means the Office of 
        Sustainable Housing and Communities established under section 
        5.
            (19) Regional council.--The term ``regional council'' means 
        a multi-service regional organization with State and locally 
        defined boundaries that is--
                    (A) accountable to units of general local 
                government;
                    (B) delivers a variety of Federal, State, and local 
                programs; and
                    (C) performs planning functions and provides 
                professional and technical assistance.
            (20) Rural planning organization.--The term ``rural 
        planning organization'' means a voluntary organization of local 
        elected officials and representatives of local transportation 
        systems that--
                    (A) works in cooperation with the department of 
                transportation (or equivalent entity) of a State to 
                plan transportation networks and advise officials of 
                the State on transportation planning; and
                    (B) is located in a rural area--
                            (i) with a population of not less than 
                        5,000; and
                            (ii) that is not located in an area 
                        represented by a metropolitan planning 
                        organization.
            (21) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (22) State.--The term ``State'' means the several States, 
        the District of Columbia, Puerto Rico, Guam, the Northern 
        Mariana Islands, the Virgin Islands, American Samoa, and the 
        Trust Territory of the Pacific Islands.
            (23) Sustainable development.--The term ``sustainable 
        development'' means a pattern of resource use designed to 
        create livable communities by--
                    (A) providing a variety of safe and reliable 
                transportation choices;
                    (B) providing affordable, energy-efficient, and 
                location-efficient housing choices for people of all 
                income levels, ages, races, and ethnicities;
                    (C) supporting, revitalizing, and encouraging the 
                growth of communities and maximizing the cost 
                effectiveness of existing infrastructure;
                    (D) promoting economic development and economic 
                competitiveness;
                    (E) preserving the environment and natural 
                resources;
                    (F) protecting agricultural land, rural land, and 
                green spaces; and
                    (G) supporting public health and improving the 
                quality of life for residents of and workers in a 
                community.
            (24) Transit-oriented development.--The term ``transit-
        oriented development'' means high-density, walkable, mixed-use 
        development (including commercial development, affordable 
        housing, and market-rate housing) that is within walking 
        distance of and accessible to 1 or more public transportation 
        facilities.
            (25) Unit of general local government.--The term ``unit of 
        general local government'' means--
                    (A) a city, county, town, township, parish, 
                village, or other general purpose political subdivision 
                of a State; or
                    (B) a combination of general purpose political 
                subdivisions, as determined by the Secretary.
            (26) Unit of special purpose local government.--The term 
        ``unit of special purpose local government''--
                    (A) means a division of a unit of general purpose 
                government that serves a special purpose and does not 
                provide a broad array of services; and
                    (B) includes an entity such as a school district, a 
                housing agency, a transit agency, and a parks and 
                recreation district.
            (27) Very low-income family.--The term ``very low-income 
        family''--
                    (A) has the same meaning as in section 3(b) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437a(b)); 
                and
                    (B) includes a very low-income family with a person 
                with special needs, including an elderly person or a 
                person with disabilities, as those terms are defined 
                section 3(b) of the United States Housing Act of 1937 
                (42 U.S.C. 1437a(b)).
            (28) Workforce housing.--The term ``workforce housing'' 
        means housing, the cost of which does not exceed 30 percent 
        of--
                    (A) 120 percent of the median income in the area 
                where the family lives, as determined by the Secretary, 
                with appropriate adjustments for the size of family; or
                    (B) a percentage, as determined by the Secretary, 
                of the median income in the area where the family 
                lives, upon a finding by the Secretary that such 
                percentage is necessary due to unusually high or low 
                family incomes in the area where the family lives.

SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMUNITIES.

    (a) Office Established.--There is established in the Department an 
Office of Sustainable Housing and Communities, which shall--
            (1) coordinate Federal policies and initiatives that foster 
        livable communities, including--
                    (A) encouraging sustainable development at the 
                State, regional, and local levels;
                    (B) encouraging the development of comprehensive 
                regional plans;
                    (C) fostering energy-efficient communities and 
                housing;
                    (D) providing affordable, location-efficient 
                housing choices for people of all ages, incomes, races, 
                and ethnicities, particularly for low-, very low-, and 
                extremely low-income families; and
                    (E) working with the Federal Transit Administration 
                of the Department of Transportation to--
                            (i) encourage transit-oriented development; 
                        and
                            (ii) coordinate Federal housing, community 
                        development, and transportation policies;
            (2) conduct research and advise the Secretary on the 
        research agenda of the Department relating to sustainable 
        development;
            (3) provide administrative support for participation by the 
        Secretary in the activities of the Council;
            (4) implement and oversee the grant programs established 
        under this Act by--
                    (A) developing grant applications for each grant 
                program;
                    (B) promulgating regulations relating to each grant 
                program;
                    (C) selecting recipients of grants under each grant 
                program;
                    (D) creating performance measures for recipients of 
                grants under each grant program;
                    (E) developing technical assistance and other 
                guidance to assist recipients of grants and potential 
                applicants for grants under each grant program;
                    (F) monitoring and evaluating the performance of 
                recipients of grants under each grant program; and
                    (G) carrying out such other activities relating to 
                the administration of the grant programs under this Act 
                as the Secretary determines are necessary;
            (5) provide guidance, information on best practices, and 
        technical assistance to communities seeking to adopt 
        sustainable development policies and practices;
            (6) provide guidance and technical assistance to 
        communities seeking to prepare applications for the 
        comprehensive planning grant program under section 7;
            (7) administer initiatives of the Department relating to 
        the policies described in paragraph (1), as determined by the 
        Secretary; and
            (8) coordinate with and conduct outreach to other Federal 
        agencies, including the Federal Transit Administration of the 
        Department of Transportation and the Office of Smart Growth of 
        the Environmental Protection Agency, on sustainability issues.
    (b) Director.--The head of the Office shall be the Director of the 
Office of Sustainable Housing and Communities.
    (c) Duties Relating to Grant Programs.--
            (1) In general.--The Director, in coordination with the 
        Council or a working group established by the Council under 
        section 6(b)(6), shall carry out the grant programs established 
        under this Act.
            (2) Interim working group.--During the period between the 
        date of enactment of this Act and the date on which a 
        memorandum of understanding is signed under section 6(a)(7), in 
        carrying out the grant programs under this Act, the Secretary 
        shall consult with an interim working group that includes the 
        Secretary of Transportation, the Administrator of the 
        Environmental Protection Agency (or the designee of such 
        Secretary or Administrator), and representatives from such 
        other Federal agencies, departments, or offices, as the 
        President may determine.
            (3) Technical assistance for grant recipients and 
        applicants.--The Director may--
                    (A) coordinate with the members of the Council to 
                establish interagency and multidisciplinary teams to 
                provide technical assistance to recipients of and 
                prospective applicants for grants under this Act;
                    (B) make contracts with third parties to provide 
                technical assistance to grant recipients and 
                prospective applicants for grants; and
                    (C) establish a technical assistance program for 
                prospective applicants, particularly prospective 
                applicants from smaller communities, preparing to apply 
                for grants under section 7.
    (d) Report on Housing Location Affordability Index.--
            (1) Study.--The Director shall conduct a study on--
                    (A) the development of a housing location 
                affordability index that includes housing and 
                transportation costs; and
                    (B) ways in which the affordability index described 
                in subparagraph (A) could be made available to the 
                public to inform consumers of the combined costs of 
                housing and transportation.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Director shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report on the study under paragraph (1).
    (e) Report on Incentives for Energy-Efficient Mortgages and 
Location-Efficient Mortgages.--
            (1) Definitions.--In this subsection--
                    (A) the term ``energy-efficient mortgage'' means a 
                mortgage loan under which the income of the borrower, 
                for purposes of qualification for such loan, is 
                considered to be increased by not less than $1 for each 
                $1 of savings projected to be realized by the borrower 
                as a result of cost-effective energy-saving design, 
                construction, or improvements (including use of 
                renewable energy sources, such as solar, geothermal, 
                biomass, and wind, super-insulation, energy-saving 
                windows, insulating glass and film, and radiant 
                barrier) for the home for which the loan is made; and
                    (B) the term ``location-efficient mortgage'' means 
                a mortgage loan under which--
                            (i) the income of the borrower, for 
                        purposes of qualification for such loan, is 
                        considered to be increased by not less than $1 
                        for each $1 of savings projected to be realized 
                        by the borrower because the location of the 
                        home for which the loan is made will result in 
                        decreased transportation costs for the 
                        household of the borrower; or
                            (ii) the sum of the principal, interest, 
                        taxes, and insurance due under the mortgage 
                        loan is decreased by not less than $1 for each 
                        $1 of savings projected to be realized by the 
                        borrower because the location of the home for 
                        which the loan is made will result in decreased 
                        transportation costs for the household of the 
                        borrower.
            (2) Study.--
                    (A) In general.--The Director shall conduct a study 
                on incentives for encouraging lenders to make, and 
                homebuyers and homeowners to participate in, energy-
                efficient mortgages and location-efficient mortgages, 
                including--
                            (i) fee reductions;
                            (ii) fee waivers;
                            (iii) interest rate reductions; and
                            (iv) adjustment of mortgage qualifications.
                    (B) Considerations.--In studying the incentives 
                under subparagraph (A), the Secretary shall consider 
                the potential for lower risk of default on energy-
                efficient mortgages and location-efficient mortgages in 
                comparison to mortgages that are not energy-efficient 
                or location-efficient.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Director shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report on the study under paragraph (2).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.

SEC. 6. INTERAGENCY COUNCIL ON SUSTAINABLE COMMUNITIES.

    (a) Establishment of Council.--
            (1) Establishment.--There is established in the executive 
        branch an independent entity to be known as the Interagency 
        Council on Sustainable Communities.
            (2) Members.--
                    (A) In general.--The members of the Council are--
                            (i) the Secretary, the Secretary of 
                        Transportation, and the Administrator of the 
                        Environmental Protection Agency; and
                            (ii) such representatives from other 
                        Federal agencies, departments, or offices in 
                        the executive branch as the President may 
                        prescribe.
                    (B) Designees.--
                            (i) In general.--The head of a Federal 
                        agency described in subparagraph (A) may select 
                        a designee to serve in the place of the head of 
                        the Federal agency on the Council.
                            (ii) Qualifications.--The head of a Federal 
                        agency that selects a designee under clause (i) 
                        shall ensure that the designee has the 
                        appropriate experience and authority to serve 
                        on the Council.
                    (C) Pay.--The members of the Council shall serve 
                with no additional pay.
            (3) Chairperson.--
                    (A) Chairperson.--The Chairperson of the Council 
                shall be, in successive terms--
                            (i) the Secretary;
                            (ii) the Secretary of Transportation; and
                            (iii) the Administrator of the 
                        Environmental Protection Agency.
                    (B) Duties.--The Chairperson shall--
                            (i) set the time, date, and location of 
                        each meeting of the Council; and
                            (ii) in consultation with the members of 
                        the Council, set the agenda for each meeting of 
                        the Council.
                    (C) Term.--The Chairperson shall serve for a term 
                of 1 year.
                    (D) First chairperson.--The Secretary shall be the 
                first individual to serve as Chairperson after the date 
                of enactment of this Act.
            (4) Executive director and staff.--
                    (A) Executive director.--
                            (i) Appointment and compensation.--The 
                        Council shall appoint an Executive Director, 
                        who shall be compensated at a rate not to 
                        exceed the rate of basic pay for level V of the 
                        Executive Schedule under section 5316 of title 
                        5, United States Code.
                            (ii) Sense of congress.--It is the sense of 
                        Congress that the Council should appoint an 
                        Executive Director not later than 90 days after 
                        the date of enactment of this Act.
                    (B) Additional personnel.--With the approval of the 
                Council, the Executive Director of the Council may 
                appoint and fix the compensation of such additional 
                personnel as the Executive Director determines are 
                necessary to carry out the duties of the Council.
                    (C) Detailees from other agencies.--Upon request of 
                the Council, the head of any Federal agency may detail 
                any of the personnel of such agency to the Council to 
                assist the Council in carrying out its duties under 
                this section.
                    (D) Experts and consultants.--With the approval of 
                the Council, the Executive Director of the Council may 
                procure temporary and intermittent services pursuant to 
                section 3109(b) of title 5, United States Code.
            (5) Consultation with additional secretaries and 
        administrators.--
                    (A) Consultation.--In carrying out its duties under 
                this section, the Council may consult with the heads of 
                departments, agencies, and offices in the executive 
                branch, including the Secretary of Energy, the 
                Secretary of Education, the Secretary of Agriculture, 
                the Secretary of Health and Human Services, the 
                Secretary of Commerce, the Chairman of the Council on 
                Environmental Quality, and the Director of the White 
                House Office of Urban Affairs.
                    (B) Participation in meetings of council.--The head 
                of a department, agency, or office with whom the 
                Council consults under subparagraph (A) may participate 
                in a meeting of the Council.
                    (C) Information sharing.--The head of each Federal 
                agency shall make available to the Council such 
                information as may be necessary for the Council to 
                carry out its duties under this section.
            (6) Meetings.--The Council shall meet--
                    (A) not later than 90 days after the date of 
                enactment of this Act; and
                    (B) not less frequently than 3 times each year.
            (7) Governance.--Not later than 120 days after the date of 
        enactment of this Act, the members of the Council shall develop 
        and sign a memorandum of understanding that establishes rules 
        relating to the governance of the Council, including rules 
        relating to the process by which decisions of the Council are 
        made.
            (8) Incorporation of work of interim working group.--Any 
        activities carried out by an interim working group pursuant to 
        section 5(c)(2) shall be incorporated into the activities of 
        the Council, effective on the date the memorandum of 
        understanding under paragraph (7) is signed.
    (b) Duties of the Council.--The Council shall--
            (1) ensure interagency coordination of Federal policy on 
        sustainable development;
            (2) conduct outreach to nonprofit and for-profit 
        organizations and State and local governments to build 
        partnerships and knowledge relating to sustainable development;
            (3) ensure that the research agendas of departments and 
        agencies of the Federal Government on sustainable development 
        are coordinated;
            (4) establish a clearinghouse for guidance, best practices, 
        and other information for communities undertaking activities 
        relating to sustainable development;
            (5) coordinate an assessment by departments and agencies of 
        the Federal Government of impediments to sustainable 
        development, including impediments created by Federal programs, 
        and the development of recommendations for methods for 
        overcoming such impediments; and
            (6) coordinate with the Director on activities relating to 
        the grant programs established under this Act, as described in 
        section 5(a)(4), or establish a working group to coordinate 
        with the Director on such activities.
    (c) Reports.--
            (1) Annual report.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter, the Council 
        shall submit to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report on the activities and 
        accomplishments of the Council.
            (2) Recommendations.--Not later than 1 year after the date 
        of enactment of this Act, the Council shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report that contains--
                    (A) an analysis of impediments to sustainable 
                development; and
                    (B) recommendations for action by the Federal 
                Government on issues relating to sustainable 
                development.
    (d) Study of Federal Actions.--Not later than 3 years after the 
date of enactment of this Act, the Comptroller General shall submit to 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Representatives a 
report that contains--
            (1) an updated analysis of impediments to sustainable 
        development, as described in subsection (c)(2)(A); and
            (2) a description of actions taken by the Federal 
        Government to implement the recommendations made by the Council 
        in the report under subsection (c)(2)(B).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 7. COMPREHENSIVE PLANNING GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``eligible entity'' means a partnership 
        between a consortium of units of general local government and 
        an eligible partner;
            (2) the term ``eligible partner'' means--
                    (A) a metropolitan planning organization, a rural 
                planning organization, or a regional council; or
                    (B) a metropolitan planning organization, a rural 
                planning organization, or a regional council, and a 
                State; and
            (3) the term ``grant program'' means the comprehensive 
        planning grant program established under subsection (b).
    (b) Comprehensive Planning Grant Program Established.--The Director 
shall establish a comprehensive planning grant program to make grants 
to eligible entities to carry out a project to--
            (1) coordinate land use, housing, transportation, and 
        infrastructure planning processes across jurisdictions and 
        agencies;
            (2) identify potential regional partnerships for developing 
        and implementing a comprehensive regional plan;
            (3) conduct or update housing, infrastructure, 
        transportation, energy, and environmental assessments to 
        determine regional needs and promote sustainable development;
            (4) develop or update--
                    (A) a comprehensive regional plan; or
                    (B) goals and strategies to implement an existing 
                comprehensive regional plan; and
            (5) implement local zoning and other code changes necessary 
        to implement a comprehensive regional plan and promote 
        sustainable development.
    (c) Grants.--
            (1) Amount of grants.--
                    (A) Micropolitan statistical areas and small 
                metropolitan statistical areas.--The amount awarded 
                under the grant program to an eligible entity that 
                represents all or part of a micropolitan area, or a 
                metropolitan statistical area with a population of not 
                more than 200,000, may not exceed $750,000.
                    (B) Mid-sized metropolitan statistical areas.--The 
                amount awarded under the grant program to an eligible 
                entity that represents all or part of a metropolitan 
                statistical area with a population of more than 200,000 
                and less than 500,000 may not exceed $1,500,000.
                    (C) Large metropolitan statistical areas.--The 
                amount awarded under the grant program to an eligible 
                entity that represents all or part of a metropolitan 
                statistical area with a population of 500,000 or more 
                may not exceed $5,000,000.
            (2) Federal share.--The Federal share of the cost of a 
        project carried out using a grant under the grant program may 
        not exceed 80 percent.
            (3) Availability of funds.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program shall--
                            (i) obligate any funds received under the 
                        grant program not later than 3 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made; and
                            (ii) expend any funds received under the 
                        grant program not later than 4 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made.
                    (B) Unobligated amounts.--After the date described 
                in subparagraph (A)(i), the Secretary may award to 
                another eligible entity, to carry out activities under 
                this section, any amounts that an eligible entity has 
                not obligated under subparagraph (A)(i).
    (d) Application.--
            (1) In general.--An eligible entity that desires a grant 
        under the grant program shall submit to the Director an 
        application at such time and in such manner as the Director 
        shall prescribe.
            (2) Contents.--Each application shall contain--
                    (A) a description of the project proposed to be 
                carried out by the eligible entity;
                    (B) a budget for the project that includes the 
                anticipated Federal share of the cost of the project 
                and a description of the source of the non-Federal 
                share;
                    (C) a signed copy of a memorandum of understanding 
                among local jurisdictions, including, as appropriate, a 
                State, units of general purpose local government, units 
                of special purpose local government, metropolitan 
                planning organizations, rural planning organizations, 
                and regional councils that demonstrates--
                            (i) the creation of a consortium of units 
                        of general local government;
                            (ii) a commitment to develop a 
                        comprehensive regional plan; and
                            (iii) a commitment to implement the plan 
                        after it is developed;
                    (D) a certification that the eligible entity has 
                created, or will create not later than 1 year after the 
                date of the grant award, a regional advisory board to 
                provide input and feedback on the development of the 
                comprehensive regional plan that includes, as 
                appropriate, representatives of a State, the 
                metropolitan planning organization, the rural planning 
                organization, the regional council, public 
                transportation agencies, public housing agencies, 
                economic development authorities, other local 
                governments, environmental agencies, public health 
                agencies, the nonprofit community, the private sector, 
                community-based organizations, citizen groups, 
                neighborhood groups, and members of the public;
                    (E) a certification that the eligible entity has 
                solicited public comment on the contents of the project 
                description under subparagraph (A) that includes--
                            (i) a certification that the eligible 
                        entity has held 1 or more public hearings;
                            (ii) a description of the process for 
                        receiving public comment;
                            (iii) a summary of the comments received; 
                        and
                            (iv) such other information as the Director 
                        may require;
                    (F) a description of how the eligible entity will 
                carry out the activities under subsection (f); and
                    (G) such additional information as the Director may 
                require.
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) furthers the creation of livable communities;
            (2) demonstrates the technical capacity of the eligible 
        entity to carry out the project;
            (3) demonstrates the extent to which the consortium has 
        developed partnerships throughout an entire micropolitan or 
        metropolitan statistical area, including, as appropriate, 
        partnerships with the entities described in subsection 
        (d)(2)(D);
            (4) demonstrates a commitment to--
                    (A) sustainable development;
                    (B) location-efficient and transit-oriented 
                development;
                    (C) developing new capacity for public 
                transportation and increasing ridership on public 
                transportation;
                    (D) providing affordable, energy-efficient, and 
                location-efficient housing choices for families of all 
                ages, incomes, races, and ethnicities;
                    (E) creating and preserving long-term affordable, 
                energy-efficient, and location-efficient housing for 
                low-, very low-, and extremely low-income families;
                    (F) revitalizing communities, neighborhoods and 
                commercial centers supported by existing 
                infrastructure;
                    (G) monitoring and improving environmental quality, 
                including air and water quality, energy use, greenhouse 
                gas emissions, and the redevelopment of brownfields; 
                and
                    (H) coordinating the provision of transportation 
                services to elderly, disabled, and low-income 
                populations;
            (5) demonstrates a plan for implementing a comprehensive 
        regional plan through regional infrastructure investment plans 
        and local land use plans;
            (6) promotes diversity among the geographic regions and the 
        sizes of the population of the communities served by recipients 
        of grants under this section;
            (7) promotes economic benefits;
            (8) demonstrates that a Federal grant is necessary to 
        accomplish the project proposed to be carried out;
            (9) has a high quality overall; and
            (10) demonstrates such other qualities as the Director may 
        determine.
    (f) Eligible Activities.--An eligible entity that receives a grant 
under this section shall carry out a project that includes 1 or more of 
the following activities:
            (1) Planning and coordinating across jurisdictions in the 
        region to develop a comprehensive regional plan.
            (2) Developing achievable goals and strategies for carrying 
        out the comprehensive regional plan, including--
                    (A) land use, zoning, and other code reform, 
                including reform of conservation zoning in agricultural 
                and other natural resource areas;
                    (B) promoting efficient land use, mixed-use 
                development, and the preservation of agricultural, 
                green, and open space;
                    (C) increasing access to and ridership on public 
                transportation;
                    (D) the creation and preservation of workforce 
                housing and affordable housing for low-, very low-, and 
                extremely low-income families, including housing with 
                access to jobs and public transportation;
                    (E) promoting economic development and transit-
                oriented development;
                    (F) revitalizing communities; and
                    (G) promoting environmental protection and public 
                health and reducing greenhouse gas emissions.
            (3) Developing a plan that outlines feasible steps for 
        implementing the comprehensive regional plan, including making 
        interjurisdictional agreements that provide for cooperative and 
        coordinated approaches to achieving the goals of the plan.
            (4) Assessing projected regional population growth or loss 
        and demographic changes.
            (5) Assessing how the regional population growth or loss 
        and demographic changes will impact the need for housing, 
        community development, and transportation, including public 
        transportation in the region.
            (6) Assessing the accessibility of job centers within the 
        region to public transportation facilities and housing.
            (7) Assessing transportation options in the region, 
        including--
                    (A) public transportation options;
                    (B) options for people with low incomes, people 
                living in high-poverty areas, elderly people, and 
                people with disabilities; and
                    (C) any obstacles to providing access to locations 
                that offer employment opportunities.
            (8) Developing techniques to inform decision makers on how 
        growth of population and employment, development patterns, and 
        investments in transportation infrastructure are likely to 
        affect travel, congestion, air quality, and quality of life.
            (9) Assessing the daily vehicle miles traveled in the 
        region and opportunities for reducing the growth in daily 
        vehicle miles traveled and traffic congestion.
            (10) Assessing housing needs, including the need for 
        workforce housing and affordable housing for low-, very low-, 
        and extremely low-income families, and the availability of 
        housing in the region to meet such needs.
            (11) Assessing the need to create, preserve, and improve 
        long-term affordable housing for low-, very low-, and extremely 
        low-income families and families that utilize workforce housing 
        in areas that--
                    (A) are undergoing redevelopment or carrying out 
                transit-oriented development; and
                    (B) have access to services including 
                transportation (particularly public transportation), 
                neighborhood commercial centers, and medical services.
            (12) Assessing methods for lowering the combined cost of 
        housing and transportation for families in the region, 
        particularly for families that utilize workforce housing and 
        for low-, very low-, and extremely low-income families.
            (13) Assessing existing infrastructure and infrastructure 
        needs in the region, including projected water needs and 
        sources, the need for sewer infrastructure, and the existence 
        of flood plains.
            (14) Assessing local land use and zoning policies and 
        opportunities for revising or expanding such policies to 
        implement a comprehensive regional plan.
            (15) Assessing the opportunity to revitalize existing 
        communities, including infill development.
            (16) Assessing environmental and public health needs in the 
        region and potential strategies for reducing greenhouse gas 
        emissions, improving air and water quality, and remediating 
        brownfield sites.
            (17) Assessing projected loss of agricultural and rural 
        land and other green space in the region to development, and 
        methods to minimize such loss.
            (18) Evaluating any tools or resources that are available 
        to address regional needs identified in an assessment under any 
        of paragraphs (4) through (7) and (9) through (17) and to 
        monitor progress in meeting such needs, including any existing 
        sources of funding and any sources of funding that are lacking.
            (19) Implementing land use, zoning, and other code reforms 
        to promote location efficiency and sustainable development.
            (20) Other activities consistent with the purposes of this 
        Act, as determined by the Director.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under this section shall agree to establish, in coordination with the 
Director, performance measures that must be met at the end of each year 
in which the eligible entity receives funds under the grant program.
    (h) Violation of Grant Agreement.--If the Director determines that 
an eligible entity has not met the performance measures established 
under subsection (g), is not making reasonable progress toward meeting 
such measures, or is otherwise in violation of the grant agreement, the 
Director may--
            (1) withhold financial assistance until the performance 
        measures are met; or
            (2) terminate the grant agreement.
    (i) Sustainability Challenge Grants.--An eligible entity that 
receives a grant under this section and has created a comprehensive 
regional plan may apply for a sustainability challenge grant under 
section 8.
    (j) Reports Required.--
            (1) Annual report.--Not later than 60 days after the end of 
        the first year after the grant agreement is made under 
        subsection (g), and each year thereafter, an eligible entity 
        that receives a grant under this section shall submit to the 
        Director a progress report that contains--
                    (A) a description of any progress made toward 
                meeting the performance measures established under 
                subsection (g), including--
                            (i) a description of any partnership 
                        created across policy and governmental 
                        jurisdictions and a description of any task 
                        force or multiagency group established by the 
                        eligible entity at the regional level; and
                            (ii) a description of--
                                    (I) housing, land use, 
                                transportation, public transportation, 
                                energy, infrastructure, and 
                                environmental needs in the region; or
                                    (II) the obstacles encountered that 
                                prevented the eligible entity from 
                                completing a comprehensive evaluation 
                                of housing, land use, transportation, 
                                public transportation, energy, 
                                infrastructure, and environmental 
                                needs, and a date by which the eligible 
                                entity expects to complete the 
                                evaluation;
                    (B) a description of any planning goals for the 
                region that address housing, transportation, public 
                transportation, energy, infrastructure, and 
                environmental needs;
                    (C) a description of--
                            (i) a strategy for meeting the goals 
                        described in subparagraph (B), including a 
                        discussion of potential transportation, 
                        housing, transit-oriented development, energy, 
                        infrastructure, or environmental activities; or
                            (ii) the obstacles encountered that 
                        prevented the eligible entity from completing a 
                        strategy for meeting the goals identified under 
                        clause (i) and a date by which the eligible 
                        entity expects to complete the strategy; and
                    (D) any other information the Director may require.
            (2) Final report.--Not later than 90 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under this section shall 
        submit to the Director a final report that contains--
                    (A) a description of a comprehensive regional plan 
                that includes specific projects that will help meet 
                housing, transportation, energy, infrastructure, and 
                environmental goals for the region;
                    (B) a detailed description of how the plan under 
                subparagraph (A) meets the performance measures 
                established under subsection (g);
                    (C) a plan for next steps to be taken by the 
                eligible entity, including whether the eligible entity 
                intends to apply for a sustainability challenge grant 
                under section 8; and
                    (D) any other information the Director may require.
    (k) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Secretary for the award of grants under this section, 
        $100,000,000 for each of fiscal years 2010 through 2013, to 
        remain available until expended.
            (2) Technical assistance.--The Director may use 2 percent 
        of the amounts made available under this subsection for a 
        fiscal year for technical assistance under section 5(c)(3).

SEC. 8. SUSTAINABILITY CHALLENGE GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``eligible entity'' means a partnership 
        between a consortium of units of general local government and 
        an eligible partner;
            (2) the term ``eligible partner'' means--
                    (A) a metropolitan planning organization, a rural 
                planning organization, or a regional council; or
                    (B) a metropolitan planning organization, a rural 
                planning organization, or a regional council, and a 
                State; and
            (3) the term ``grant program'' means the sustainability 
        challenge grant program established under subsection (b).
    (b) Sustainability Challenge Grant Program Established.--The 
Director shall establish a sustainability challenge grant program to 
make grants to eligible entities to--
            (1) promote integrated transportation, housing, energy, and 
        economic development activities carried out across policy and 
        governmental jurisdictions;
            (2) promote sustainable and location-efficient development; 
        and
            (3) implement projects identified in a comprehensive 
        regional plan.
    (c) Grants.--
            (1) Micropolitan statistical area or small metropolitan 
        statistical area.--The total amount awarded under this section 
        to an eligible entity that represents all or part of a 
        micropolitan area, or a metropolitan area with a population of 
        not more than 200,000, may not exceed $15,000,000.
            (2) Metropolitan statistical areas between 200,000 and 
        500,000.--The total amount awarded under this section to an 
        eligible entity that represents all or part of a metropolitan 
        statistical area with a population of more than 200,000 and 
        less than 500,000 may not exceed $35,000,000.
            (3) Large metropolitan areas.--The total amount awarded 
        under this section to an eligible entity that represents all or 
        part of a metropolitan area with a population of 500,000 may 
        not exceed $100,000,000.
            (4) Federal share.--The Federal share of the cost of a 
        project under this section may not exceed 80 percent.
            (5) Availability of funds.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program shall--
                            (i) obligate any funds received under the 
                        grant program not later than 3 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made; and
                            (ii) expend any funds received under the 
                        grant program not later than 5 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made.
                    (B) Unobligated amounts.--After the date described 
                in subparagraph (A)(i), the Secretary may award to 
                another eligible entity, to carry out activities under 
                this section, any amounts that an eligible entity has 
                not obligated under subparagraph (A)(i).
    (d) Application.--An eligible entity that desires a grant under 
this section shall submit to the Director an application that 
contains--
            (1) a copy of the comprehensive regional plan, whether 
        developed as part of the comprehensive planning grant program 
        under section 7 or developed independently;
            (2) a description of the project or projects proposed to be 
        carried out using a grant under the grant program;
            (3) a description of any preliminary actions that have been 
        or must be taken at the local or regional level to implement 
        the project or projects under paragraph (2), including the 
        revision of land use or zoning policies;
            (4) a signed copy of a memorandum of understanding among 
        local jurisdictions, including, as appropriate, a State, units 
        of general purpose local government, units of special purpose 
        local government, metropolitan planning organizations, rural 
        planning organizations, and regional councils that 
        demonstrates--
                    (A) the creation of a consortium of units of 
                general local government; and
                    (B) a commitment to implement the activities 
                described in the comprehensive regional plan;
            (5) a certification that the eligible entity has solicited 
        public comment on the contents of the project description under 
        paragraph (2) that includes--
                    (A) a certification that the eligible entity has 
                held 1 or more public hearings;
                    (B) a description of the process for receiving 
                public comment;
                    (C) a summary of the comments received; and
                    (D) such other information as the Director may 
                require;
            (6) a budget for the project that includes the Federal 
        share of the cost of the project or projects requested and a 
        description of the source of the non-Federal share; and
            (7) such additional information as the Director may 
        require.
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) furthers the creation of livable communities;
            (2) demonstrates the technical capacity of the eligible 
        entity to carry out the project;
            (3) demonstrates the extent to which the eligible entity 
        has developed partnerships throughout an entire micropolitan or 
        metropolitan statistical area, including partnerships with 
        units of special purpose local government and public 
        transportation agencies;
            (4) demonstrates clear and meaningful interjurisdictional 
        cooperation and coordination of housing, transportation, and 
        environmental policies and plans;
            (5) demonstrates a commitment to implementing a 
        comprehensive regional plan and documents action taken or 
        planned to implement the plan, including--
                    (A) rezoning or other changes to land use controls 
                to enable mixed-use, mixed-income development;
                    (B) planned or proposed public transportation 
                investments, including--
                            (i) financial contributions for capital and 
                        operating costs of public transportation;
                            (ii) improvements for bicycle riders and 
                        pedestrians;
                            (iii) action taken to increase the number 
                        of trips made using public transportation and 
                        bicycles and by walking; and
                            (iv) special efforts to address the needs 
                        of elderly, disabled, and low-income 
                        populations, including populations in rural 
                        areas;
                    (C) investment in and actions relating to plans or 
                proposals for incentives, subsidies, or requirements 
                for developers to create and preserve affordable 
                housing, including--
                            (i) workforce housing and affordable 
                        housing for low-income families, particularly 
                        housing in mixed-income, location-efficient 
                        neighborhoods with transit-oriented development 
                        and access to public transportation, 
                        employment, and commercial and other services; 
                        and
                            (ii) affordable housing for very low- and 
                        extremely low-income families, particularly 
                        housing in mixed-income, location-efficient 
                        neighborhoods with transit-oriented 
                        development;
                    (D) actions taken to promote transit-oriented 
                development, including plans or proposals for zoning, 
                or for incentives, subsidies, or requirements for 
                developers; and
                    (E) planned or proposed incentives, subsidies, or 
                requirements designed to preserve agricultural and 
                rural land and other green space, including planned or 
                proposed programs for the purchase of development 
                rights;
            (6) minimizes the Federal share necessary to carry out the 
        project;
            (7) identifies original and innovative ideas to overcoming 
        regional problems, including local land use and zoning (or 
        other code) obstacles to carrying out the comprehensive 
        regional plan;
            (8) promotes location-efficient development through--
                    (A) mixed-income, mixed-use residential and 
                commercial development that is accessible to jobs and 
                public transportation; or
                    (B) development that is pedestrian-friendly and 
                includes complete street projects;
            (9) promotes diversity among the geographic regions and the 
        sizes of the population of the communities served by recipients 
        of grants under this section;
            (10) demonstrates that a Federal grant is necessary to 
        accomplish the project or projects proposed to be carried out;
            (11) has a high quality overall; and
            (12) demonstrates such other qualities as the Director may 
        determine.
    (f) Grant Activities.--
            (1) Planning activities.--An eligible entity that receives 
        a grant under the grant program may use not more than 10 
        percent of the grant for planning activities.
            (2) Projects and investments.--An eligible entity that 
        receives a grant under the grant program shall carry out 1 or 
        more projects that--
                    (A) are designed to achieve goals identified in a 
                comprehensive regional plan; and
                    (B) promote livable communities through investment 
                in--
                            (i) transit-oriented development;
                            (ii) transportation infrastructure and 
                        facilities, including public transportation, 
                        projects that improve access to public 
                        transportation, structured parking near public 
                        transportation, and complete street projects;
                            (iii) short-term operating funds to 
                        initiate a demonstration of new public 
                        transportation services;
                            (iv) promotion of employer-based commuter 
                        benefit programs to increase public 
                        transportation ridership;
                            (v) promotion of trip reduction programs 
                        and the use of transportation alternatives;
                            (vi) creating or preserving affordable 
                        housing for low-, very low-, and extremely low-
                        income families in mixed-income, mixed-use 
                        neighborhoods with access to public 
                        transportation;
                            (vii) brownfield redevelopment, or other 
                        redevelopment of communities and commercial 
                        areas, including the main streets of small 
                        towns;
                            (viii) infrastructure maintenance and 
                        improvement initiatives that support regionally 
                        integrated planning and smart growth;
                            (ix) energy efficiency retrofit projects;
                            (x) land banking for transit-oriented 
                        development;
                            (xi) implementing land use, zoning, and 
                        other code reforms to promote location-
                        efficient development and sustainable 
                        development;
                            (xii) other economic development that is 
                        part of the comprehensive regional plan; and
                            (xiii) other activities consistent with the 
                        purposes of this Act, as determined by the 
                        Director.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under this section shall agree to establish, in coordination with the 
Director, performance measures and reporting requirements that must be 
met at the end of each year in which the eligible entity receives funds 
under the grant program.
    (h) Violation of Grant Agreement.--If the Director determines that 
an eligible entity has not met the performance measures established 
under subsection (g), is not making reasonable progress toward meeting 
such measures, or is otherwise in violation of the grant agreement, the 
Director may--
            (1) withhold financial assistance until the performance 
        measures are met; or
            (2) terminate the grant agreement.
    (i) Report on the Sustainability Challenge Grant.--
            (1) In general.--Not later than 90 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under this section shall 
        submit a final report on the project to the Council.
            (2) Contents of report.--The report shall include--
                    (A) a detailed explanation of the activities 
                undertaken using the grant, including an explanation of 
                the completed project and how it achieves specific 
                transit-oriented, transportation, housing, or 
                sustainable community goals within the region;
                    (B) a discussion of any obstacles encountered in 
                the planning and implementation process and how the 
                eligible entity overcame the obstacles;
                    (C) an evaluation of the success of the project 
                using the performance standards and measures 
                established under subsection (g), including an 
                evaluation of the planning and implementation process 
                and how the project contributes to carrying out the 
                comprehensive regional plan; and
                    (D) any other information the Director may require.
            (3) Interim report.--The Director may require an eligible 
        entity to submit an interim report, before the date on which 
        the project for which the grant is awarded is completed.
    (j) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Secretary for the award of grants under this section, to 
        remain available until expended--
                    (A) $750,000,000 for fiscal year 2011;
                    (B) $1,250,000,000 for fiscal year 2012; and
                    (C) $1,750,000,000 for fiscal year 2013.
            (2) Technical assistance.--Of amounts made available under 
        this subsection, the Director may use for technical assistance 
        under section 5(c)(3) an amount that does not exceed the lesser 
        of--
                    (A) 0.5 percent of the amounts made available under 
                this subsection for a fiscal year; and
                    (B) $2,000,000.
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