Release of certain interests

Section 601(d)(2) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3211(d)(2)) is amended—(1)by striking the paragraph designation and heading and all that follows through The Secretary may and inserting the following:

(2)

Release

(A)

In general

Except as provided in subparagraph (B), the Secretary may

; and

(2)by adding at the end the following:

(B)

Certain releases

(i)

In general

On written request from a recipient of a grant under section 209(d), the Secretary shall release, in accordance with this subparagraph, any Federal interest in connection with the grant, if—(I)the request is made not less than 7 years after the final disbursement of the original grant;(II)the recipient has complied with the terms and conditions of the grant to the satisfaction of the Secretary;(III)any proceeds realized from the grant will be used for 1 or more activities that continue to carry out the economic development purposes of this Act; and(IV)the recipient includes in the written request a description of how the recipient will use the proceeds of the grant in accordance with subclause (III).(ii)

Deadline

(I)

In general

Except as provided in subclause (II), the Secretary shall complete all closeout actions for the grant by not later than 180 days after receipt and acceptance of the written request under clause (i).(II)

Extension

The Secretary may extend a deadline under subclause (I) by an additional 180 days if the Secretary determines the extension to be necessary.(iii)

Savings provision

Section 602 shall continue to apply to a project assisted with a grant under section 209(d) regardless of whether the Secretary releases a Federal interest under clause (i).