[Senate Hearing 118-142]
[From the U.S. Government Publishing Office]



                                                        S. Hrg. 118-142

                    REAUTHORIZATION OF THE ECONOMIC
                   DEVELOPMENT ADMINISTRATION: STATE
                         AND LOCAL PERSPECTIVES

=======================================================================

                                HEARING

                               before the

                              COMMITTEE ON

                      ENVIRONMENT AND PUBLIC WORKS

                          UNITED STATES SENATE

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                             JUNE 21, 2023

                               __________

  Printed for the use of the Committee on Environment and Public Works





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        Available via the World Wide Web: http://www.govinfo.gov






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                 U.S. GOVERNMENT PUBLISHING OFFICE

53-731 PDF                WASHINGTON : 2023












               COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                  THOMAS R. CARPER, Delaware, Chairman
          SHELLEY MOORE CAPITO, West Virginia, Ranking Member

BENJAMIN L. CARDIN, Maryland         KEVIN CRAMER, North Dakota
BERNARD SANDERS, Vermont             CYNTHIA M. LUMMIS, Wyoming
SHELDON WHITEHOUSE, Rhode Island     MARKWAYNE MULLIN, Oklahoma
JEFF MERKLEY, Oregon                 PETE RICKETTS, Nebraska
EDWARD J. MARKEY, Massachusetts      JOHN BOOZMAN, Arkansas
DEBBIE STABENOW, Michigan            ROGER WICKER, Mississippi
MARK KELLY, Arizona                  DAN SULLIVAN, Alaska
ALEX PADILLA, California             LINDSEY O. GRAHAM, South Carolina
JOHN FETTERMAN, Pennsylvania

               Courtney Taylor, Democratic Staff Director
               Adam Tomlinson, Republican Staff Director









                            C O N T E N T S

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                                                                   Page

                             JUNE 21, 2023
                           OPENING STATEMENTS

Carper, Hon. Thomas R., U.S. Senator from the State of Delaware..     1
Capito, Hon. Shelley Moore, U.S. Senator from the State of West 
  Virginia.......................................................     4

                               WITNESSES

Cannon, Patricia, Director of Special Projects, Delaware 
  Department of State, Division of Small Business................     7
    Prepared statement...........................................    10
Fetzer, Chris, Executive Director, Northern Arizona Council of 
  Governments....................................................    13
    Prepared statement...........................................    15
    Responses to additional questions from Senator Kelly.........    21
Higgins, Eileen, Commissioner, Board of County Commissioners, 
  District 5, Miami-Dade County; Miami, Florida..................    24
    Prepared statement...........................................    26
Graney, Mike, Executive Director, West Virginia Department of 
  Economic Development...........................................    37
    Prepared statement...........................................    39
Day, Bryan, Executive Director, Little Rock Port Authority; 
  Little Rock, Arkansas..........................................    46
    Prepared statement...........................................    48

 
                    REAUTHORIZATION OF THE ECONOMIC
                   DEVELOPMENT ADMINISTRATION: STATE
                         AND LOCAL PERSPECTIVES

                              ----------                              


                        WEDNESDAY, JUNE 21, 2023

                                       U.S. Senate,
                 Committee on Environment and Public Works,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:01 a.m. in 
room 406, Dirksen Senate Office Building, Hon. Thomas R. Carper 
(Chairman of the Committee) presiding.
    Present: Senators Carper, Capito, Cardin, Markey, Kelly, 
Padilla, Boozman, Sullivan, and Ricketts.

          OPENING STATEMENT OF HON. THOMAS R. CARPER, 
            U.S. SENATOR FROM THE STATE OF DELAWARE

    Senator Carper. Good morning. We are delighted to see you 
all this morning and wish you a good morning. People are coming 
from far and wide. Senator Capito and I are delighted to be 
with you and delighted that you all could join us for this 
hearing.
    Today, we are going to hear from State and local officials 
on the reauthorization of the U.S. Economic Development Agency, 
or EDA, as we call it.
    To our witnesses, Ms. Cannon, very nice to see you, welcome 
Patty; Mr. Fetzer, great to see you. I have a son named 
Christopher. It is one of our favorite names.
    Ms. Higgins, nice to see you. Thanks so much for joining 
us.
    Mr. Graney, from Mount Hope, great to see you. There is 
hope in Mount Hope. And you are bringing us some hope here 
today.
    Mr. Day, nice to see you.
    Thank you all for joining us today and sharing your 
perspectives with us on EDA's important programs. We look 
forward to hearing what the EDA is doing well and what 
improvements might help the agency work even better. As my 
colleagues have heard me say more times than they want to 
remember, everything I do I know I can do better. And I think 
the same is true with all of us and the same is true with 
programs like EDA. Today we are going to try to figure out how 
to keep a good thing going but actually make it better and more 
effective.
    Before we hear from each of our witnesses, I want to share 
a couple of thoughts about EDA and why I think it is important 
for Congress to reauthorize this vital agency. Under the 
umbrella of the Department of Commerce, EDA leads the Federal 
Government's economic development agenda, as you know. EDA 
helps to bring job growth and economic opportunity to 
distressed communities in every region of our country. 
Additionally, EDA promotes innovation and competitiveness in 
local and regional economies across America to help them 
succeed in the global marketplace.
    As members of this Committee have heard me say more than a 
few times, I represent a State that, much like a prizefighter, 
punches above its weight in terms of its contributions to the 
U.S. economy. The same can be said about EDA. This small agency 
packs a big punch and makes an outsized impact across our 
country, in almost every corner of our country.
    Despite all of the exceptional work that EDA has done in 
every one of our States, the agency has not been reauthorized 
by Congress since 2004, that is about 20 years, two decades. 
That is too long for an agency with such an important mission 
to go without renewed authorization.
    Let's think about the many ways that our work force and our 
economy have changed since 2004. Just to mention a few, we have 
witnessed technological advances that have transformed the way 
that we live, the way that we work, and even the way that we 
travel. We have also seen significant changes in manufacturing, 
in energy production, and in the products we use on a daily 
basis.
    For example, the iPhone was first released in 2007, 3 years 
after EDA was last reauthorized. Broadband Internet, which only 
limited households and businesses had access to in 2004, has 
become a necessity in our daily lives and our work. In 
addition, businesses are experiencing new challenges, as well 
new opportunities, such as how to operate more sustainably on a 
warmer planet.
    Through reauthorization, we have an opportunity to 
modernize and improve EDA's ability to foster additional 
economic growth. Why is this so important? Well, let me 
paraphrase President Abraham Lincoln when I say that the role 
of government is to do for the people what they cannot do for 
themselves. Lincoln was once asked, what is the role of 
government? He said, to do for the people what they cannot do 
for themselves. EDA helps fulfill that role. Lincoln was unable 
to join us as a witness today but I thought I would give him a 
shout out.
    [Laughter.]
    Senator Carper. Some communities across our country are 
struggling with how to navigate today's economy. Over the past 
two decades, a number of factory towns have seen their last 
plant close and are seeking to attract new industries. In 
addition, cities are looking to reinvent themselves to compete 
on a global scale. EDA can play a role in helping communities 
turn their economic adversity into opportunity. Albert Einstein 
used to say, in adversity lies opportunity. He was right. And 
he is still right today.
    As many of you may have heard me say, when I had the 
privilege to serve as Governor of Delaware our State created 
more jobs than in any other 8 year period. I didn't create a 
single one of them. We have to create, as Patty will recall, 
have to create a nurturing environment for job creation and job 
preservation in our State. That was hugely helpful and still is 
helpful. By working together we can do the same thing in States 
across the country.
    There are many aspects to creating such an environment. I 
actually worked for a short while, right out of the Navy, got 
an MBA at Delaware at the GI Bill and went to work for about 6 
months in what was in the Division of Economic Development. 
People said, what did you learn in 6 months, when you were 
working at the Division of Economic Development? Among other 
things, I learned the importance of work force preparation and 
how that is a shared responsibility. I learned about access to 
capital, I learned about access to research funding, research 
that could be further enhanced. We learned about the protection 
of intellectual property. Those are just a few things that I 
learned. I only worked there for 6 months.
    The other thing I learned, I learned to paraphrase our 
President. He likes to say, all politics is personal, all 
diplomacy is personal. One of the other things I learned is 
economic development is personal. Economic development is 
personal as well. And EDA plays an important role in supporting 
programs in almost everything that I just mentioned.
    I have also had an opportunity to witness first hand the 
EDA's work in my home State of Delaware, and I am sure that 
many of our colleagues on this Committee could cite chapter and 
verse on experiences of their own. For example, for the First 
State, we only have three counties, in our southernmost county, 
Sussex County, EDA helped fund a Center for Automotive 
Excellence at the Delaware Technical Community College in 
Sussex County. Sussex County is one of the largest counties in 
America, they raise more chickens than any county in America, I 
believe. And maybe at one time raised more soybean than any 
other county in America. But we needed to diversify the economy 
there, and EDA has helped us to do that.
    One of the ways was through a center for automotive 
excellence at the Delaware Technical Community College just 
outside of Georgetown, county seat. This center has helped us 
fill a need for trained automotive technicians to work not just 
at our auto dealerships all up and down the State but also to 
help maintain the heavy duty trucks that are vital to our 
poultry industry.
    As I mentioned earlier, there are something like 300 
chickens for every person who lives in Delaware. And we have 
these chicken processing places, poultry processing places, and 
then we send chickens out across the country in these huge 
trucks. Those trucks need to be maintained. Now they are 
getting help and the kind of maintenance that they need through 
this program.
    Delaware has also received funding from EDA to help our 
travel and tourism sector, one of our State's largest economic 
drivers, during the pandemic.
    As we will hear from our witnesses today, EDA has an impact 
in communities large and small, in urban areas as well as rural 
ones. I look forward to working with our colleagues on this 
Committee, with the Ranking Member especially, to ensure that 
EDA has the necessary tools to help those communities punch 
above their weight, just like it has helped Delaware do, my 
adopted State, West Virginia, my native State, and many other 
States as well.
    Before we hear from our witnesses, I want to turn first to 
our Ranking Member, Senator Capito, for her opening statement 
and to give her the opportunity to introduce one of our 
witnesses today whom I think she knows pretty well.
    Senator Capito.

        OPENING STATEMENT OF HON. SHELLEY MOORE CAPITO, 
          U.S. SENATOR FROM THE STATE OF WEST VIRGINIA

    Senator Capito. Thank you, Mr. Chairman, and good morning 
to everybody, and thank you for calling today's hearing to 
discuss reauthorizing the EDA.
    Welcome to all of our witnesses traveling far and wide. 
Thank you for being here. We look forward to hearing from you.
    I would like to extend a particularly warm welcome to Mr. 
Graney. Thank you for being here today. Governor Jim Justice 
assembled a tremendous team of economic development experts and 
leaders who work tirelessly for the betterment of my home State 
of West Virginia. Mr. Graney plays a pivotal role on that team 
as the Executive Director of the Department of Economic 
Development.
    Mr. Graney brings years of professional experience to his 
current position. He has spent most of his career in executive 
or co-founder positions with companies related to the petroleum 
industry. He was also president of One Stop, a chain of 
convenience stores based in West Virginia.
    Mr. Graney is very active, I can attest to this because we 
live in the same community, in many community and non-profit 
organizations.
    So thank you, Mike, for coming.
    Economic development is difficult work, but the reward for 
West Virginia is obvious. Mr. Graney and the rest of his team 
will work with all government levels to bring economic 
opportunity to our State. And they have achieved some recent 
success, and I hope he will talk about that. Better jobs will 
allow West Virginians to continue to call the Mountain State 
home as well as provide new careers for those who want to 
return home or join us in West Virginia. So I thank him and his 
team for their dedication to this vital effort.
    As we hear from our witnesses today, EDA is an important 
partner across the Nation for those who are working to advance 
economic opportunities for their citizens. As the lead agency 
for the Federal economic development agenda, the EDA provides 
funding for critical infrastructure projects and other 
activities that support job creation and retention in 
economically disadvantaged urban and rural areas.
    During my time in the Senate, one of the things I sought to 
do is to strengthen EDA's presence and assistance in my home 
State of West Virginia. I have been successful, I think. Since 
2018, EDA has invested close to $233 million in 174 projects in 
West Virginia to help communities across our State grow 
economies, and keep those jobs too, and support thousands of 
jobs.
    So the EDA's core programs do work. They have successfully 
supported locally driven economic development since their 
inception. And I know our witnesses will share more success 
stories with us today.
    However, it has been 20 years, as the Chairman noted, since 
Congress last reauthorized EDA. Thankfully, we are kicking off 
this process to develop legislation to reauthorize the EDA. 
Time and time again, this Committee has proven that we can work 
together in a bipartisan manner to pass meaningful legislation 
that tackles the Nation's challenges and needs.
    I believe any reauthorization effort should focus on these 
things, reauthorizing EDA programs at fiscally responsible 
funding levels, and reasserting a congressional direction over 
EDA funding decisions. Two, enhancing congressional oversight 
of EDA activities and encouraging coordination between other 
Federal development programs and the private sector. Three, 
updating EDA's processes for program implementation and project 
delivery, and four, preserving locally driven economic 
development decisions. We must achieve an appropriate balance 
with this legislation.
    That balance must uphold the core functions and goals of 
the EDA while thoughtfully modernizing the EDA and its 
authorities and programs. Further, I do not believe that we 
should be creating new programs. In recent years, EDA received 
a total of $4.5 billion in funding from the American Rescue 
Plan Act and the CARES Act. This was on top of the $1.2 billion 
total in supplemental appropriations provided to EDA for 
disaster recovery in 2018 and 2019.
    The Recompete Pilot Program, which was one of two new EDA 
programs authorized in the CHIPS and Science Act, received a 
total of $200 million in regular and supplemental 
appropriations in fiscal year 2023 consolidated appropriations. 
The Recompete Pilot Program will use eligibility metrics that 
vary from existing EDA grant programs and focus on areas where 
prime age employment trails the national average.
    The other EDA program established by the CHIPS and Science 
Act was the Tech Hubs Program. This program is designed to 
accelerate regional technical growth and innovation through 
regional based investments with the goal of becoming globally 
competitive in certain technologies and industries. This 
program received a total of $500 million in regular and 
supplemental appropriations in fiscal year 2023 Consolidated 
Appropriations Act.
    Given the significant funding levels provided by Congress 
to EDA, it is concerning that the majority of the agency's 
programs are administered under expired authorizations. It is 
past due that we put forth a serious bipartisan reauthorization 
proposal. The U.S. economy looks very different than it did 20 
years ago, and EDA's authorizing statutes should reflect this 
reality.
    However, I must stress that the reauthorization legislation 
will not be successful if it departs from the EDA's traditional 
missions. The legislation should not be used to pick winners 
and losers. We must maintain EDA's focus on those areas that 
truly need assistance and continue with an industry agnostic 
approach that emphasizes locally driven economic development 
decisions.
    I look forward to hearing from our witnesses about what 
policy and programmatic improvements can be made.
    Thank you, Mr. Chairman, and I yield back my time.
    Senator Carper. If you would like to go ahead and introduce 
Mike Graney now, you are welcome to do that.
    Senator Capito. I just did that.
    Senator Carper. Did you want to say anything else?
    Senator Capito. He is a great guy.
    [Laughter.]
    Senator Carper. OK. That is all you need to know. I like to 
say the main thing is to keep the main thing the main thing. So 
that is a good thing to know.
    Welcome.
    I have the opportunity to introduce three of our witnesses, 
then turn to Senator Boozman to introduce his witness and thank 
him for being a big part of this Committee and the work that we 
do.
    I am delighted to welcome this morning Patty Cannon, who is 
Director of Special Projects with the Delaware Department of 
State, Division of Small Business. Patty has worked for many 
years on economic development in Delaware. People say how long, 
I say not long enough.
    In her current role, Patty works closely with the Economic 
Development Administration as well as with business and 
community leaders across the First State to help grow 
Delaware's economy.
    Welcome. It is great to see you.
    We are also joined today by Chris Fetzer, who is the 
Executive Director of the Northern Arizona Council of 
Governments.
    I think Senator Kelly was instrumental in inviting you to 
join us. He is tied up right now, but I am sure he will be 
joining us at some point in time in this hearing.
    I understand that Mr. Fetzer is also the current president 
of the board of National Association of Development 
Organizations, which advocates on behalf of economic 
development organizations across the country. When my wife asks 
me who I was with today, I will tell her I was with the 
president.
    [Laughter.]
    Senator Carper. We will just leave it at that, Chris.
    Third, I am pleased to note that we have been joined by 
Commissioner Eileen Higgins, from Miami-Dade County, Florida. 
She is joining us on behalf of NACO, I believe, the National 
Association of Counties. Commissioner Higgins was first elected 
to the Miami-Dade Commission in 2018, following a career that 
spanned being a business owner, a foreign service officer, and 
community advocate.
    Thank you for coming.
    Now let me turn to Senator Boozman and ask him if he will 
introduce Mr. Day for us.
    Senator Boozman. Thank you, Senator Carper. We appreciate 
yours and Senator Capito's leadership and the great example 
that you set in working together to try and find common ground 
for this really, so very important Committee.
    I have the opportunity to introduce Bryan Day.
    Thank you, Bryan, for joining us today.
    He is going to discuss the important role the Economic 
Development Administration has played in the Little Rock Port 
Authority's operations and expansion. Bryan has been involved 
with State and local government for over 35 years, and has been 
the executive director of the Little Rock Port Authority since 
2014.
    Under his leadership, the Port has attracted industry from 
around the world, with 50 businesses now calling the port home. 
Together, these businesses employ around 10,000 people and 
continue to contribute about a half a billion dollars annually 
to the region.
    Bryan and the Little Rock Port Authority have leveraged EDA 
dollars as well as anyone, and I look forward to hearing his 
expertise on why the EDA is important to so many communities 
like Little Rock, Arkansas. It has certainly been a pleasure 
working with Bryan for many years. And we appreciate all of his 
efforts for the great State of Arkansas.
    Thank you, Bryan, for being here.
    Thank you, Mr. Chairman.
    Senator Carper. Thank you, Senator Boozman.
    Before Patty Cannon speaks, we have one House member from 
Delaware in the U.S. House of Representatives. Her name is Lisa 
Blunt Rochester. She used to be an intern in my office when I 
was a Congressman years ago, and later on several occasions was 
a member of my cabinet when I was Governor.
    I put out a statement yesterday supporting her candidacy. 
One of the things I mentioned, I talked about, an old proverb 
that goes something like this, if you feed a person for a day, 
you can do that, but if you want to help a person eat for life, 
you teach them how to fish. If you give a person a fish, you 
feed them for a day. But if you want to make sure they can feed 
themselves for a lifetime, then you teach them how to fish. 
Part of what we do is involved in that, in work force training 
and work force development.
    So with that thought in mind, I think it is noble work, I 
think it is noble work and really important work.
    Patty, with that, you are welcomed and may proceed.
    Thank you.

  STATEMENT OF PATRICIA CANNON, DIRECTOR OF SPECIAL PROJECTS, 
    DELAWARE DEPARTMENT OF STATE, DIVISION OF SMALL BUSINESS

    Ms. Cannon. Thank you, Chairman Carper, Ranking Member 
Capito, and members of the Committee that we hope will join 
you, sir. Thank you for this opportunity to offer my testimony 
before you today.
    My name is Patty Cannon, and I am the Director of Special 
Projects for the State of Delaware under the Department of 
State within the Division of Small Business, where I also serve 
as the grantee administrator for foreign trade zone number 99, 
and as a member of the Delaware Workforce Development Board.
    I have worked closely with the U.S. Economic Development 
Administration, EDA, for over 20 years. And I come before you 
today to voice strong support for the reauthorization of the 
EDA.
    On their website, a quote says, ``Public works program 
investments help to facilitate the transition of communities 
from being distressed to becoming competitive by developing key 
public infrastructure.'' And while we firmly agree with that 
statement, and we strongly encourage the reauthorization of EDA 
to continue this important work, we would like to recommend 
some of the following changes to EDA's policy to allow for 
faster deployment of funds to the communities when they are in 
need.
    One, to eliminate or significantly reduce the required 
match. It is a burden for small or underserved communities that 
lack the resources to meet that financial match. Consider 
setting aside 10 percent of EDA'S public works allocation to be 
deployed via formula funding versus competitive funding.
    Allocate capacity building, non-competitive funding to 
communities and applicants that have failed to successfully 
compete for EDA funding. This would strengthen the grant 
writing and Federal reporting competencies in small, 
underserved communities and increase their capacity to seek 
funding from all funding sources, private, philanthropic, as 
well as government funding sources.
    Consider integrating the State and local work force boards 
into the EDA funding criteria as an approved alternative to the 
comprehensive economic development strategy, the CEDS, document 
currently on file with EDA. CEDS are required to be updated 
every 5 years, but the majority of membership in your local and 
State work force boards by U.S. Department of Labor 
requirements are, 50 percent of the majority are business 
owners that are CEOs, COOs, other individuals with optimum 
policymaking or hiring authority, and they provide employment 
in your demand occupations. So they may have a better pulse on 
what is happening.
    I currently serve as the program administrator for two EDA 
grants within the State of Delaware. The first was a CARES Act 
funded revolving loan fund, an RLF. This was a competitive 
application process, and we were ultimately awarded $1.5 
million. The second was an American Rescue Plan, ARPA, non-
competitive travel, tourism, and outdoor recreation funding, 
where Delaware was awarded $7,759,540.
    But there are compelling differences in these two 
applications and the time it took to get those funds deployed 
in the community. The competitive RLF application took almost a 
full year to get through the application approval process and 
then the implementation plan approval process. The RLF program 
was distributed to 31 small businesses, resulting in the 
retention of 349 jobs across the entire State of Delaware. To 
date, only one out of those 31 businesses is in default on 
their loan. The remaining 30 small businesses survived the 
pandemic as a result of this investment.
    Every job matters. Not just to the employees and their 
families, but to the economic prosperity of communities. It is 
true in Delaware; it is true in every community.
    The ARPA non-competitive application took less than 6 
months to work through the approval of the application and the 
approval of the implementation plan. The ARPA non-competitive 
travel, tourism, and outdoor recreation funding resulted in 
$760, $760 being returned to Delaware's economy for every $1 
invested, and saved an industry that was dramatically impacted 
by the COVID-19 pandemic.
    Visitor spending topped $5.9 billion, a 30 percent increase 
from 2020, and 2021 total visitor spending exceeding 2019, the 
previous high mark, by 11 percent, to set a new Delaware 
record. Tourism as an industry is the fourth largest private 
employer, 9 percent, 9 percent of all private sector jobs in 
Delaware are tied to the tourism industry.
    In closing, please know that the EDA staff at the 
Philadelphia regional office continue to be responsive, very 
patient, and highly committed to helping everyone in their 
region to be successful. We are grateful for the EDA funding 
that has been awarded to the State of Delaware, including 
funding to our universities and colleges that support 
sophisticated research and development and technology transfer.
    We respect, fully respect, that there will never be enough 
funding to support every important project. But we firmly 
believe that the work of the EDA is important to the U.S. 
economy, and we ask this Committee to move forward with the 
reauthorization.
    Thank you.
    [The prepared statement of Ms. Cannon follows:]


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    
    Senator Carper. You are 7 seconds over your time. That is 
pretty darned good around here.
    [Laughter.]
    Ms. Cannon. I am so sorry, sir.
    Senator Carper. No, no, no apology is necessary.
    Thank you very much again for joining us. Thank you very 
much for that testimony.
    Next, we are going to hear from Chris Fetzer.
    Mr. Fetzer, please proceed with your testimony. Thanks for 
joining us.

STATEMENT OF CHRIS FETZER, EXECUTIVE DIRECTOR, NORTHERN ARIZONA 
                     COUNCIL OF GOVERNMENTS

    Mr. Fetzer. Chairman Carper, Ranking Member Capito, members 
of the Committee, good morning, and thank you for the 
opportunity to testify today.
    My name is Chris Fetzer. I serve as the Executive Director 
of the Northern Arizona Council of Governments based in 
Flagstaff, Arizona. NACOG serves a four county region, and is 
an EDA designated economic development district.
    I also currently serve as the President of the National 
Association of Development Organizations, which advocates on 
behalf of a national network of more than 400 EDDs across the 
country.
    Today I will begin by speaking about the importance of EDA 
and how its investments have impacted northern Arizona. One 
prominent example of an ongoing challenge in my region has been 
the decline of the coal fired power industry. In late 2019, the 
operators of the Navajo Generating Station, a coal fired power 
plant located near the city of Page on the Navajo Nation, 
abruptly ended operations years prior to the facility's 
anticipate closure. While operational, the plant employed 
hundreds of workers and brought in millions in revenue.
    As you might imagine, the plant's sudden closure resulted 
in devastating losses of jobs, business income, and tax revenue 
that the region was not fully prepared to address. This closure 
disproportionately impacted rural, tribal, and economically 
distressed communities.
    Fortunately, EDA is making investments to help support 
northern Arizona's economic transition. As a result, we will be 
better positioned in the future to respond to similar 
scenarios.
    We are now engaging in planning measures to prepare for the 
impending closure of three remaining coal plants that are still 
operational in the region. These planning efforts are being 
supported by EDA funded grants.
    EDA's successes extend far beyond my region. Nationally, 
EDDs are often at the forefront of driving EDA's local impact 
as they have ever since EDA's creation in 1965. EDDs are 
important because they help local stakeholders access and 
navigate EDA funding opportunities. Our staffs serve as EDA 
funding experts who are trusted locally.
    We are especially essential in helping rural, small, or 
capacity constrained communities access funding. In other 
words, EDDs help those communities most in need secure Federal 
grants.
    In reauthorizing the EDA, I encourage this Committee to 
take the following actions. First, I encourage Congress to 
invest in the operational capacity of EDDs. Currently, the lack 
of adequate funding for staff capacity is an enormous challenge 
for most EDDs, in part because until recently EDA funding 
levels for EDDs had stagnated for decades.
    Second, Congress should increase the annual authorized 
funding level for EDA Partnership Planning grants. The 
foundation of every successful project is a thoughtful and 
intentional planning process. Planning helps ensure that 
subsequent Federal project investments are strategic, fiscally 
responsible, and aligned with local and regional priorities. 
NADO recommends Congress authorize EDA Partnership Planning 
grants at a level of at least $100 million annually.
    Third, I encourage the Committee to restructure cost share 
by reducing local match. EDA's current local match requirements 
are often as high as 50 percent. This creates a huge barrier to 
entry for many communities. NADO recommends raising EDA's 
Federal share to 90 percent, reducing local match to 10 percent 
for all EDA Partnership Planning grants.
    Additionally, we encourage reduction of local match for EDA 
funded project investments as well.
    Fourth, Congress should enhance EDA's approach to disaster 
mitigation. Disaster response work is something EDA is already 
doing successfully. But congressional reforms could improve 
service delivery. Currently, EDA disaster funding is often 
delayed in reaching communities, in part because this funding 
is typically appropriated via separate, end of year 
supplemental appropriations.
    In reauthorization, we encourage Congress to instead 
authorize an annual line item for disaster response as well as 
a dedicated disaster bureau within EDA. This would allow EDA to 
deploy funds more rapidly to communities in need.
    Finally, it has been remarkable over the past few years to 
see EDA receive historic funding levels. However, I urge the 
Committee to take steps that prevent EDA's original mission and 
structure from being undermined, particularly as new priorities 
and stakeholders emerge.
    In reauthorizing EDA, I encourage the Committee to 
prioritize EDA's traditional core programs, rather than 
creating new programs. Although some of the recent new 
initiatives have laid out exciting visions, it has become 
increasingly difficult for rural, tribal, and under-resourced 
communities to successfully compete in these new national 
competitions.
    Thank you for the opportunity to address the Committee 
today. I look forward to answering your questions.
    [The prepared statement of Mr. Fetzer follows:]

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    Senator Carper. Mr. Fetzer, thanks very much for that 
testimony and again for joining us today.
    Next, we have Commissioner Higgins. After Commissioner 
Higgins, we are going to hear from Mike Graney.
    Commissioner Higgins.

  STATEMENT OF EILEEN HIGGINS, COMMISSIONER, BOARD OF COUNTY 
  COMMISSIONERS, DISTRICT 5, MIAMI-DADE COUNTY; MIAMI, FLORIDA

    Ms. Higgins. Good morning, Chairman Carper, Ranking Member 
Capito, and distinguished members of the Committee. Thank you 
for inviting me to testify on the importance of reauthorizing 
the Economic Development Administration.
    I am Miami-Dade County Commissioner Eileen Higgins. Today I 
am sharing a local perspective and the recommendations from the 
National Association of Counties.
    Rural or urban, ag center or manufacturing hub, our 
counties differ in lots of ways. But we all share one 
fundamental responsibility, which is local and regional 
economic development. And EDA has been an essential partner to 
us in that development.
    EDA's mission is more important today than ever as the 
Nation deploys the historic Federal investments in 
infrastructure, climate, broadband, and manufacturing. But 
these investments in physical infrastructure must be 
accompanied by investments in work force infrastructure. The 
Nation needs workers ready to build these projects at the onset 
and maintain them in the long run. Many of these jobs are 
unlike the ones we have today.
    So for Miami-Dade County, that is tourism. Jobs in hotels 
and restaurants are plentiful. But they also don't pay well. 
And that is why 15 percent of our residents live in poverty. 
That is over 400,000 people not yet living the American dream. 
But new EDA partnerships are changing that by helping Miami-
Dade ready our work force for higher paying jobs.
    One EDA investment is building a construction trades 
institute to offer participants hands on experience in 
traditional certifications, plumbers, welders, electricians. 
But also in green certifications, such as solar panel 
installations. These certifications can be completed really 
quickly, in less than a year, literally propelling participants 
into the good paying construction and infrastructure jobs that 
have long provided a gateway to the middle class.
    Miami Tech Works was our response to EDA's Good Jobs 
challenges. That brings together business leaders with 
educational providers to align academic programs with industry 
needs for a skilled tech work force. The program upskills 
workers through certificate programs, associate degrees, 
bachelor's degrees, providing multiple pathways into the high 
paying tech sector.
    More than 170 companies are participating and in the past 3 
months have created 100 tech internships that did not exist 
before. So you can see reauthorizing the EDA matters to 
America's counties. But of course, NACO has some 
recommendations on how to make it even better.
    First, we would like to see more robust support for 
capacity building and pre-development, especially in 
communities that lack resources to fully build out their 
comprehensive economic development strategies. And please, do 
consider revising the match for Partnership Planning grants. It 
is a stretch that many small and rural counties cannot meet.
    The economic distress formula should also be reconstituted 
so that the funds meet the places most in need. The current 
matching requirements are a non-starter for lots of good 
projects. The reality is that in smaller communities, it is 
actually more expensive to build the physical infrastructure 
needed to attract new industries. And when a major disaster is 
declared, the Federal share should be 100 percent.
    Speaking of disasters, counties rely on EDA for post-
disaster economic recovery activities, and Congress does too, 
as evidenced by the many supplemental appropriations following 
disasters. It is time to formalize EDA's role in disaster 
recovery.
    So I think you probably can predict our final 
recommendation, it is pretty simple. We would like you to 
please increase EDA's annual authorized funding level to meet 
demand. In my county, EDA has connected people with high 
quality jobs. But nationally, it has a proven track record in 
driving economic growth and recovery. That is why I join NACO 
today to advocate for its reauthorization with increased 
financial support.
    EDA investments will long pay dividends by ensuring 
American workers, no matter where they live, have access to 
good paying jobs, economic mobility, and real prosperity.
    Thank you.
    [The prepared statement of Ms. Higgins follows:]

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    Senator Carper. Commissioner Higgins, thanks so much.
    Mr. Graney, are you from Mount Hope? Bill Clinton, with 
whom I served when I was Governor, he was President, I used to 
say I come from a place called Hope. And you come from a place 
called Mount Hope, higher and higher. There you go. Welcome 
aboard, please proceed.

         STATEMENT OF MIKE GRANEY, EXECUTIVE DIRECTOR, 
        WEST VIRGINIA DEPARTMENT OF ECONOMIC DEVELOPMENT

    Mr. Graney. Thank you, Mr. Chairman, Ranking Member Capito, 
members of the Committee. Good morning, and thank you for 
inviting me.
    I am Mike Graney. I am from Mount Hope, West Virginia, and 
I am the Executive Director of the West Virginia Department of 
Economic Development. I have been in this role for a little 
over 4 and a half years, since Governor Jim Justice appointed 
me. I still consider myself a recovering entrepreneur.
    Senator Carper. You are talking to at least one recovering 
Governor here.
    [Laughter.]
    Mr. Graney. In my brief time in this role, I have a clear 
understanding and belief that the USEDA is a critical partner 
to West Virginia. EDA has awarded over $220 million in funds to 
projects in West Virginia since 2018. EDA's Assistance to Coal 
Communities has funded so many critical projects in West 
Virginia since its inception.
    It is wonderful to have a Federal agency that understands 
the plight of rural America as it struggles to rebuild its 
economy after documented economic shocks. EDA has and I hope 
will continue to support community driven, economic development 
focused on creating good paying jobs, building economic 
resilience, and accelerating the economic recovery for 
industries and communities hit hardest by the downturn in the 
coal industry.
    Infrastructure has and I hope will continue to be the focus 
of a large percentage of EDA applications because it is the 
link to sustaining and expanding our existing businesses and 
critical to the attraction of new businesses and industry. 
Specific recent infrastructure, water, sewer, building 
construction/rehab, projects that assisted with new jobs for 
both new and existing industry expansion in West Virginia 
include Nucor Steel in the Mason County Public Service 
District, Mountain Top Beverage in the Morgantown Utility 
Board, the Great Barrel Company in the White Sulphur Springs 
Public Service District, Interstate Hardwoods in the Pocahontas 
PSD, AmeriCarbon Enterprises in the Wyoming County EDA, Gat 
Creek Furniture in the Berkeley Springs and Warm Springs PSD, 
Westlake and Blue Racer Midstream in the Grandview-Doolin PSD 
in the northern panhandle.
    West Virginia successfully applied for and obtained 
approximately 93 projects since 2018. The EDDs, in most cases, 
prepare the applications and administer the funds. We are one 
of the few States in the country that have every county in our 
State represented by EDDs.
    The West Virginia Economic Development Department works 
closely with all our local economic development authorities, 
all the Regional Planning and Development Councils, the EDDs, 
and the USEDA Representative to West Virginia, Tracey Rowan, 
who is truly a fantastic partner. We have nicknamed her The 
Rock Star. Actually, I gave her that title, and she truly is a 
rock star.
    It really does take local, State, and Federal 
collaboration, cooperation, and communication to deliver 
successful projects and ensure resiliency and sustainability. 
West Virginia has been an energy State and will continue to be 
by adopting an all of the above strategy. And we will likely 
need USEDA assistance as new methods of energy generation are 
put in operation.
    West Virginia has had several economic development 
successes in recent years, and we are pleased, but we must 
press forward. We need more. We are small, but we are nimble as 
a State, and this makes us very effective.
    While many of our counties have enjoyed the lower 20 
percent USEDA match requirement, often those places that need 
the infrastructure improvement the most have the least capacity 
to fund the match. Twenty percent of a $4 million project is 
$800,000; that is a lot of money, particularly for small, 
impoverished counties.
    I urge the USEDA to consider criteria that may qualify 
certain projects or areas to further reduce or eliminate the 
local match. I think I have heard that from other folks here. 
And it really is an important issue. Maybe there is criteria 
that says, OK, if these thresholds are met, we will reduce the 
match or eliminate the match.
    Thank you for the opportunity to share these remarks. Good 
luck with finding the appropriate level of funding to re-
authorize the critical work of USEDA.
    Thank you very much.
    [The prepared statement of Mr. Graney follows:]

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    Senator Carper. We thank you very much, Mr. Graney.
    We have been joined by our colleague from Arizona. He 
cannot stay with us for long.
    Senator Kelly, if you want to go ahead and ask a question, 
and maybe say a kind word about him, we will come to him. Go 
ahead.
    Senator Kelly. Thank you, Mr. Chairman. I have a couple of 
mark ups today in Armed Services, I have to run out of here.
    I have a couple of questions for Mr. Fetzer, from NACOG in 
Arizona. Thank you, Mr. Chairman.
    Mr. Fetzer, Chris, leads the Northern Arizona Council of 
Governments, which is the economic development district for 
northern Arizona. And he has been a leader in all economic 
development efforts in northern Arizona for the past decade.
    Thank you for that. You have been a tremendous asset to 
myself and my team.
    Chris, thank you for making the trip.
    I often hear from mayors and tribal leaders that it feels 
like they do not have the capacity to apply for Federal funding 
opportunities or secure private sector development deals 
because of a lack of funding or a lack of capacity.
    But I understand that EDA can help, especially through 
Partnership Planning grants. And I understand that currently, 
NACGO receives about $75,000 a year from a Partnership Planning 
grant.
    In your testimony, my understanding is your recommend 
increasing that allocation to $250,000 a year. If NACOG 
receives that level of funding, what additional resources would 
you be able to provide to the cities and Tribes in your region? 
And would you be able to better help rural and tribal 
communities take advantage of this funding?
    Mr. Fetzer. Chairman Carper, Senator Kelly, thank you for 
the question. It is very germane to much of the testimony that 
you have heard from myself and other members of the panel this 
morning.
    The work that EDDs do with the Partnership Planning grant 
funds that are provided currently is to provide technical 
assistance. And if additional funding were provided through the 
Partnership Planning grants, we would simply add staff.
    As you are very well aware, northern Arizona, our entire 
State is large geographically. Many of the communities that we 
serve are under 10,000. In that case, many of the staff working 
in those communities wear many hats. There are a few that do a 
lot of different jobs locally.
    While they have great needs for infrastructure development 
and different project ideas that will help to grow the local 
economy, just as important as creating jobs is retaining those 
existing jobs. They rely on the EDDs and our staff to be the 
technical expertise and provide the assistance in identifying 
the grant opportunities, helping develop the applications, and 
submitting those.
    Then on the back end, NACOG as well as many of our NADO 
members across the country, have the ability and the expertise 
to help with implementation as well as the management and 
administration of those grants in order to make sure they are 
being spent wisely and in accordance with all the applicable 
requirements.
    Senator Kelly. Thank you. It seems like that increase would 
certainly benefit these rural and tribal communities.
    I also want to discuss one more thing in my remaining time, 
and that is how EDA can better help local governments invest in 
site development expenses like utility hook ups, permitting 
expenses, and investments in work force development. Two weeks 
ago, I introduced a bill called the ONSHORE Act, with Senator 
Vance, which would provide EDA with a dedicated program to 
support site development projects in industries that are 
critical to our economic and national security.
    Chris, I know you discussed pre-development costs in your 
opening statement, or at least I was told that. I was hoping 
you could expand on this. Can you explain why these projects do 
not compete well for EDA funding under existing programs? And 
can you also explain why investing in site development can 
sometimes be worthwhile for a community as they try to attract 
companies?
    Mr. Fetzer. Chairman Carper, Senator Kelly, with respect to 
that question, much of the grant funding that is provided 
through, say, the economic adjustment program by EDA to 
communities, is for very specific aspects of projects that are 
based upon known companies that have committed to come to an 
area to expand.
    Sometimes we find that a community will be in a chicken and 
egg type of scenario where pre-development, site development 
funding would allow the attraction, or again the expansion of 
existing businesses in areas where without that investment, it 
is not likely to occur. There are other aspects of pre-
development that would be beneficial because like Commissioner 
Higgins mentioned in her testimony, as important as work force 
is, throughout the Intermountain West, and it is particularly 
acute in northern Arizona, is the availability of work force 
housing or more specifically, the lack of availability.
    So the ability to use pre-development or EDA planning funds 
to prepare work force housing assessments would also be 
valuable in preparing the community to be able to expand with 
those projects and be able to provide housing in a way that 
would actually allow the attraction of a work force.
    Senator Kelly. Thank you, Chris.
    Thank you, Mr. Chairman.
    Senator Carper. You bet. Thanks for making time to join us 
today.
    Mr. Day, are you ready? All right.
    Before you speak, I am going to telegraph a pitch. I love 
baseball. One of my favorite baseball terms is telegraphing a 
pitch. So the way the pitcher holds the ball, releases the 
ball, you can figure out whether it is a fast ball, curve ball, 
or whatever. So I am going to telegraph a pitch for when we 
start questioning. The first question I am going to ask is, 
where do you all agree, on what major points is there 
consensus. There are a lot of things here in Washington that 
divide us. Senator Capito and I are always looking for what 
brings us together.
    So one of the first questions, maybe the first question I 
will ask is, where do you agree? Where is the consensus on the 
major points that we need to be focused on. Thanks.
    Mr. Day.

          STATEMENT OF BRYAN DAY, EXECUTIVE DIRECTOR, 
       LITTLE ROCK PORT AUTHORITY; LITTLE ROCK, ARKANSAS

    Mr. Day. Chairman Carper, Ranking Member Capito, and 
members of the Committee, thank you for the opportunity to 
speak before you today to discuss the reauthorization of the 
Economic Development Administration.
    My name is Bryan Day, and I am the Executive Director of 
the Little Rock Port Authority.
    The Port of Little Rock is Arkansas's largest public port 
and industrial park. And its sole purpose is to create jobs for 
the central Arkansas.
    As you heard, the port is home to 50 businesses from across 
America and around the world. These businesses employ about 
10,000 people, contribute half a billion dollars a year to the 
local economy.
    As the Little Rock Port Authority works to attract industry 
and create jobs, we cannot do it alone. Over the last 20 years, 
we have been the recipient of a number of EDA grants via the 
Public Works/Economic Adjustment Assistance grant program. I 
would like to share a few examples.
    In 2002, the Little Rock Port Authority received $2 million 
from the EDA to build a dock on our slack water harbor. In 
2005, the Little Rock Port Authority received $1.5 million from 
the EDA to build two warehouses at the slack water harbor. The 
dock and the warehouse investments have created hundreds of 
opportunities to move commodities and attract new industry to 
the inland river system.
    In 2007, the Little Rock Port Authority received $1.5 
million from the EDA to build additional rail infrastructure to 
support Welspun, an Indian owned gas and oil pipe company. This 
company has invested over $400 million into their facility and 
currently employs 1,000 people.
    In 2019, Little Rock Port Authority received $2 million to 
assist with the development of road and the extension of 
utilities. This infrastructure investment allowed Amazon to 
locate at the port where they built a 4 million square foot 
distribution facility at a cost of approximately $500 million. 
Today, that facility employs 3,000 people.
    In 2022, the Little Rock Port Authority received $3 million 
from the EDA to extend rail infrastructure to support TREX, a 
manufacturer of composite lumber. When TREX is fully 
operational, they will have invested over $400 million in their 
facility and will employ over 500 people.
    The EDA has provided $13 million in grants to Little Rock 
Port Authority over the past 20 years. While that is not a lot 
of money, this investment has directly resulted in over $2.5 
billion in capital investment and the creation of over 5,000 
jobs. I can think of no better return on an investment than 
what we have accomplished with help from the EDA.
    I do hope the Committee recommends the continuation of 
funding for this program. It has helped communities across the 
Nation achieve objectives that they could not have done 
otherwise.
    However, as you consider reauthorization, I would like to 
ask that you take the following into consideration. One, the 
Economic Development Administration was created to help develop 
local economies by generating new employment and stimulating 
industrial and commercial development. This is an effective 
Federal program that creates lasting benefits for local 
communities.
    I would encourage the Committee to remain focused on the 
original intent of the program. The EDA has a proven track 
record that has worked and continues to work very well in 
communities across the country.
    Two, local communities have a better understanding of their 
respective needs and know what works best for them within their 
specific economic development arena. EDA grant programming 
should remain flexible enough to give local communities the 
ability to design and implement projects that are best suited 
for those individual environments.
    Oftentimes grant requirements from the agency have an 
adverse impact on a community's ability to apply for and manage 
the funds. Having the flexibility to use EDA funds with less 
stringent parameters will result in greater benefits to the 
local community.
    Three, the EDA grant process should remain simple. Smaller 
and rural communities often do not have the capacity to develop 
a grant application, complete the permitting, meet the 
timelines, and implement the program mandates established 
within the grant. Simplification of the process and 
modification of the guidelines will have a positive impact on 
many of our communities and their ability to utilize these 
funds.
    Finally, the EDA should explore redefining the grant 
program to allow communities the ability to design and build 
basic infrastructure to prepare those communities for future 
economic development growth. Many of the grants are tied into 
specific job creation requirements, and this often prohibits a 
local community from meeting their specific future economic 
development needs. Allowing the EDA to invest in creating 
shovel ready sites would be a game changer for our communities 
and greatly enhance their ability to attract jobs to the area.
    Thank you again for giving me an opportunity to appear 
before you. I wholeheartedly support the reauthorization of the 
Economic Development Administration. The Little Rock Port 
Authority could not have accomplished what we have over the 
past 20 years without help from the EDA. That is a given.
    I have shared with you some of my thoughts on changes that 
I believe would be beneficial to all our communities of all 
sizes. I hope you will give them consideration.
    Thank you again for the opportunity to appear before you.
    [The prepared statement of Mr. Day follows:]

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    Senator Carper. Mr. Day, thank you for those words, and our 
thanks to everybody on our panel.
    I mentioned I was telegraphing my pitch. That will be my 
last question. I will ask you, looking back at this hearing, 
where is the consensus you would like to really emphasize.
    I live in a State that is about 100 miles from north to 
south, about 50 miles from east to west. We have about a 
million people. Most of our people live in the northernmost 
county, but the fastest growing area is actually Sussex County 
down south.
    When you take State Route 1 from I-95 heading south, you go 
right through Sussex County. If you keep going, you go into--
Ben Cardin has joined us--you go into the MarVa of DelMarVa, 
into the State of Maryland. If you drive through, before you 
get into Sussex County, you go right past the town of Milford. 
Right on State Route 1, there are a bunch of auto dealerships.
    About 10 years ago, I held a press conference, I think it 
was on a Saturday morning, which is pretty unusual. We had it 
at one of those auto dealerships, I think it was the Chevrolet 
dealership. The idea was to unveil for the first time ever a 
built in America electric vehicle, the Chevrolet Volt. It got 
like 38 miles on a charge. We routinely get 300 miles on 
charges today.
    But it was the Chevrolet Volt. We had a press conference, 
well attended, on a Saturday morning. I would be behind the 
wheel of the Chevrolet Volt, and we would get a camera crew or 
two behind me, which was pretty crowded. Then we would just 
take off and hit the road. It was a hoot. We did it until all 
the camera crews got to go for a spin.
    Then we came back and concluded the event. And the fellow 
who was the president of the company there said, how would you 
like to come back and see our maintenance shop? I said, sure. 
It was a Saturday morning, nobody was working.
    I said, what are some of the challenges you face? He said, 
we have a hard time finding people who are trained, who are 
trainable, who will come to work and meet our work force needs. 
He said, it is not just us, it is not that dealership, he said, 
it is every dealership in the State.
    As it turned out, we found that not only was it auto 
dealerships, cars, trucks, vans, but also if you look at the 
poultry industry, which is huge in our State, if you look at 
all the integrators, they have trucks all the time out, across 
the eastern part of the United States, and they need people to 
maintain them as well.
    We put together this partnership that I alluded to earlier 
that involved EDA, the State, the counties, and the local 
governments who would do X, Y, and Z; EDA would do thus and so. 
It worked. And we got a bunch of auto dealerships, cars, 
trucks, vans, and said, we will do our part. The State said, we 
will do our part through Sussex County, our vo-tech school 
districts and through our educational system.
    Anyway, it worked. It is still working. That is one of our 
great successes.
    Ms. Cannon, would you share with us one or two other great 
successes? I like to say, find out what works, do more of that.
    Ms. Cannon. Yes, thank you, Senator.
    It is interesting that you chose to speak about the Del 
Tech example, the Delaware Technical Community College example, 
which is where that occurred. That actually occurred in 2016, 
and it is still thriving today. So it is a great example of how 
an EDA investment has a long term return on that investment, 
not just for the businesses, but for the people that could 
train there and then could go work anywhere with that skill 
set. Some of them go to Maryland, some of them go to New 
Jersey. They don't all stay in Delaware, but we are thrilled 
when they do.
    Senator Carper. What might be some other successes that you 
could point to, please?
    Ms. Cannon. The other two main successes that I think were 
made 4 or 5 years ago, actually in 2017 there was an investment 
made at Del State University as part of the University Center 
for Competitiveness. And that one is still thriving. It got 
additional funding in 2020. And in 2021, the University of 
Delaware got some of the funding from EDA for the tremendous 
work that they are doing there at the STAR campus. And then a 
Dupont experimental----
    Senator Carper. The STAR campus, is that where the Chrysler 
plant used to be?
    Ms. Cannon. It is where the Chrysler plant used to be.
    Senator Carper. It employed something like 4,000 people, 
and they closed it. We lost 4,000 jobs just like that. And now 
the STAR campus has been created, and about 4,000 people work 
there in all kinds of high tech businesses.
    Ms. Cannon. And working in collaboration with the students, 
which gives them some real life examples, experience.
    And then the Delaware Innovation Space, which was a Dupont 
facility that was shut down, I think 235,000 square feet. They 
helped to fund the renovation of that building.
    Senator Carper. Who is they, they helped to fund?
    Ms. Cannon. I am sorry, EDA, sir, thank you, helped to fund 
the renovation of that building. And it is now a high class 
step up incubator, so that when somebody starts in their 
garage, then they go to some of the smaller incubators. When 
they are ready to really ramp up, they go to the Delaware 
Innovation Space. And that has been a tremendous success for 
Delaware.
    We have a lot of great successes there in Delaware because 
of EDA.
    Senator Carper. Thank you for taking us on a walk down 
memory lane and right into the future. Thank you.
    That was my question.
    Senator Capito.
    Senator Capito. Thank you.
    Mr. Graney, you mentioned in your remarks about the 
Assistance to Coal Communities program. Certainly we have 
suffered in West Virginia with the downturn in the coal 
industry. And that is one of the reasons that I have been 
particularly supportive, obviously, of this issue.
    Can you talk a little bit more about that program and how 
it has been helpful, and maybe what you see for the future of 
that assistance for coal communities?
    Mr. Graney. Thank you very much, Senator Capito, for the 
question.
    Forty-four of the 55 counties of West Virginia are 
coalfield affected communities. So it is broad based throughout 
the State. And while there has been a big downturn in the coal 
economy and a lot of loss of jobs, indeed, the secondary 
induced and indirect jobs as well have been reduced.
    So, when we have the opportunity to attract a new business 
or an expansion of an existing business, and we get assistance 
from the USEDA, it really helps those communities recover. And 
while we have a number of communities that are still suffering 
and will continue until we identify that great opportunity for 
them, they will continue to suffer.
    What is unique about West Virginians is that they will 
travel a long way for a job, for a good job. And so what we are 
finding is that we had the Nucor Steel facility announced in 
Mason County, West Virginia. We will have people travel for an 
hour and a half to a good job like that from southern West 
Virginia where those coalfield affected communities are 
suffering.
    So having the USEDA support the sewer there is just 
critically important to make that happen.
    Senator Capito. Mr. Fetzer, you mentioned a coal community 
in Arizona. Are you using these funds, the Assistance to Coal 
Community program, for those improvements that you mentioned?
    Mr. Fetzer. Yes, Senator Capito. We have previously used 
Assistance to Coal Communities and are continuing to with a 
couple of current grants that are looking at future closures.
    One of the lessons we learned with the previous closure, it 
was accelerated much sooner than anticipated. The closures that 
are scheduled for the other remaining plants are a little bit 
further out, but one as soon as 2025. So those grants are 
looking at the existing assets that are there at the power 
plants in terms of buildings, equipment, infrastructure, water, 
sewer, transportation access, and the like, to determine what 
are the most suitable types of industries that those properties 
could be redeveloped to utilize. Again, that is EDA funded 
planning work that is ongoing.
    Senator Capito. OK, thank you.
    Mr. Graney, you mentioned, well, I wanted to ask you about, 
EDA maintains an interest in real property acquired, 
constructed, or improved with agency funds for the estimated 
useful life of a project, which is 20 years, I think.
    What obstacles have you encountered, and do you have any 
ideas for some additional flexibilities for those EDA owned 
properties?
    Mr. Graney. Ranking Member Capito, thanks for the question. 
It is a great question.
    In my short time there, there are a couple of properties 
that had that control put in place, that there was an interest 
in purchasing the property. Unfortunately, it could not be 
transacted, because currently, that program lasts for 20 years. 
You have to take the entire balance back if you sell the 
property before that 20 year anniversary.
    Senator Capito. Yes.
    Mr. Graney. To me, it makes sense that they would pay back 
the unamortized balance of the loan, that in the 19th year you 
wouldn't want to have to pay back $4 million, you could pay 
back $100,000 or whatever the unamortized balance is. I think 
that kind of flexibility would do well to reduce some of the 
strings that other folks have talked about.
    Senator Capito. Yes.
    Does anybody else have that issue? Have you run into that 
issue? OK.
    Let me ask you about, I can give you one answer on where 
everybody agrees, and that is the local match. So I am not 
going to ask that question. That one came through loud and 
clear.
    [Laughter.]
    Senator Capito. Capacity building was the other one I heard 
pretty much all the way through.
    So the other thing is the site ready portion of this, which 
I am exceedingly interested in from West Virginia as we are 
trying to grow our economy, and the developers have done a 
great job. But we also have areas that have either never been 
touched or have been touched maybe, you know, outside of a 
brownfield. The Brownfield program really works well in our 
State for that site development.
    But for those sites, I could imagine maybe we could use EDA 
funds, maybe not to build a physical infrastructure, or that 
would be good, but to at least do some of the prep work that 
would go in pre-building. Mr. Graney, how do you feel about 
that?
    Mr. Graney. I feel your point exactly. I agree completely.
    So, flexibility along those lines. West Virginia has 
recently passed site legislation to enable the development 
office to do some preliminary work, but not a lot of 
earthmoving. But doing the phase one, doing all the NEPA 
studies, doing archaeological studies, doing some preliminary 
engineering report work to understand, and then understanding 
what infrastructure might cost, water, sewer broadband, roads 
you have it.
    At least you would have that information, and you wouldn't 
have a 2 year study period to have to go through that process. 
I refer to it as the lip of the cup strategy. All you have to 
do is tap it in to get it done.
    So I think if we can have flexibility using USEDA funds to 
do that work it can be very, very helpful, as opposed to 
identifying that occupant and knowing they need a 10 inch water 
line or what have you, post. Having a site ready facility could 
mean the difference between having someone select West Virginia 
or not.
    Senator Capito. Right.
    Thank you.
    Senator Carper. Thank you very much, Senator Capito.
    We have been joined by Senator Cardin. He is my neighbor in 
DelMarVa, just south of us and west of us, he is everywhere. 
And he is on this Committee, has been stuck sitting next to me 
on the Finance Committee, too. I am glad he has hung in there.
    Senator Cardin. I am a neighbor of the Chairman in 
Delaware, of the Ranking Member in West Virginia, we are 
neighbors. I am sorry I am not a neighbor to my colleagues over 
there.
    [Laughter.]
    Senator Cardin. But Marylanders are all over.
    Welcome to the panel today.
    I strongly support the reauthorization of EDA; 2004 has 
been too long. I agree with the Ranking Member that there seems 
to be a great deal of consensus.
    I just want to add my support for capacity building. I 
think that is an extremely important point. We have strong 
regional councils in Maryland. EDA is important from Appalachia 
in the western part of our State, to the Eastern Shore, to 
Baltimore City. It is an important tool for economic growth. So 
it is important that we reauthorize it.
    I will give you one example, and Ms. Higgins, I want to ask 
you a question on resilience. We got a grant last year for a 
city dock in Annapolis. It is going to be economic growth for 
Annapolis. Annapolis, by the way, has more subsidized housing 
than most cities; people don't realize that about Annapolis. So 
it is going to help on economic growth.
    But it is also going to deal with resilience. Annapolis 
harbor floods all the time, not from extreme weather events, 
just tidal flooding. So it is going to be an important project 
for resilience.
    Ms. Higgins, Miami-Dade is challenged. Can you connect the 
dots for us on EDA, economic growth and resilience?
    Ms. Higgins. There are a number of things that are really 
important. Some of our work force development programs are 
literally looking at connecting these folks who now work in 
very low wage tourism jobs with the jobs we need to build the 
infrastructure. In some cases, we have physical infrastructure 
that is going to have to protect us from what is coming with 
rising seas and what not.
    But we also have to, and we do, depend on EDA all 
throughout the State of Florida for disaster recovery, 
particularly the economic assistance. That is one of the 
reasons, on behalf of the State and county, but also the 
National Association of Counties, we really do believe it is 
time to standardize and codify EDA's role in disaster recovery. 
When disaster hits, we need you to be ready, not to have EDA 
have to prep to get ready to arrive, whether it is 3 weeks or 4 
weeks later.
    So the role of EDA is everything from work force 
development to some of our smaller communities actually funding 
some of the physical infrastructure to actually responding just 
in case we need you.
    Senator Cardin. In Maryland, we are looking at wind energy, 
offshore wind. Absolutely, the work force issues and job 
training are critically important. Connecting that dot with EDA 
help would be extremely valuable.
    Ms. Cannon, I want to ask you a question about small 
businesses. I wear another hat; I chair the Small Business 
Committee here. We are looking at the reauthorization of the 
SBA programs.
    How do we coordinate better the tools that are available 
for economic growth under the SBA and the EDA program? A lot of 
it overlaps. I am not sure how well that is coordinated.
    Ms. Cannon. Thank you, Senator, that is a great question. I 
actually spent some time doing some research last night trying 
to imagine that kind of a question. So thank you for that.
    What I learned was that there is a lot of research out 
there, as I am sure you all know. Sixty-four percent of small 
businesses, after a disaster, suffer a loss in assets. That is 
what EDA focuses on, the assets, did you lose a building, did 
you lose a generator, do you need new equipment. But I believe 
it was 94 percent lose revenue.
    So in my world, in the Division of Small Business at the 
State of Delaware, we have tried our best when COVID hit and 
the shutdown happened to say, how do we save as many, as know 
that Ellicott City was a great case study for us in preparing 
what we wanted to do for COVID. Because when they flooded for 
the fourth or fifth time, what the case study showed was that 
some of the businesses just shut down. They said, we are done, 
we are tired, we are not rebuilding again.
    But some of them relocated. And when they relocated, 
working for the rebuilding to happen, they found a new home, 
and they found new customers. So they just never came back. So 
it is so important that the SBA focus on cash flow, getting 
those EIDL loans out to help them with the cash flow issue they 
have when revenue stops.
    Then EDA, I think, has to be able to step up. I think the 
biggest challenge for EDA in stepping up for small businesses 
is that at a high level, EDA says, well, who is going to own 
the asset? If a private company is going to own it, that is not 
really what we do.
    So my struggle is, how do I help my small businesses who 
need an asset when EDA says that is not really what I do?
    Senator Cardin. Thank you. I would just make an 
observation. Ellicott City had two 100 year floods within 20 
months. So it has been really challenged on how to deal with 
the increased flooding in that community.
    To Senator Capito, the western part of my State, as you 
know, also had coal. So it is important for us to use the tools 
we can on economic growth under EDA and also under the ARC 
program to help those communities. I am glad to see there is a 
focus on that.
    Senator Carper. Senator Cardin, thanks so much for joining 
us.
    Senator Boozman.
    Senator Boozman. Thank you, Mr. Chairman.
    Mr. Day, as you outlined in your testimony, the Little Rock 
Port Authority has had great success in partnership with EDA 
with acquiring $13 million in grant funding and leveraging it 
to tremendous economic development. Can you talk about the 
decisions that go into applying for EDA funding for the Little 
Rock Port and your experiences working with EDA in executing 
both the application process and the project delivery?
    Mr. Day. Thank you, Senator. And thank you for always 
supporting the Port of Little Rock and Central Arkansas. We are 
grateful for that.
    In terms of working with the EDA, we have a great 
relationship with the EDA. Your staff, the EDA staff does a 
remarkable job working with communities. We have no qualms with 
that. They are responsive and eager to help us. The folks we 
work with on a daily and weekly basis are really good.
    When we work with EDA grants through the Port, and I am 
mainly talking about kind of the public works infrastructure 
investment, they are all tied into specific job creation. And 
that is time consuming. Sometimes you have to wait until you 
get a prospect that announces. Then you contact the EDA and 
say, we have got this prospect that is going to bring 500 jobs 
and invest X number of dollars. Can we apply for 
infrastructure, can we apply for road extension assistance?
    And as you have heard today in this capacity conversation, 
when a prospect comes to a community, any community in America, 
they are not looking to locate at the community. They are 
looking for reasons to not locate at the community. If we tell 
them that is going to take 6 to 12 to 18 months to get the site 
ready, then that is a reason they might choose to go elsewhere.
    We are no longer just competing with our neighbors, we are 
competing with the world. With what we saw with the pandemic 
and supply chain challenges, there is a lot of interest in 
reinvesting in manufacturing and distribution.
    So in working with the EDA and how we decide to do it, when 
this prospect comes and they finally choose us, we convince 
them that we can deliver the site within 12 to 18 months with 
all the infrastructure, the roads, we work with the State and 
the county and the local governments, and we bring EDA into the 
equation as part of that ongoing conversation. We tell them, 
here is what we can bring, here is what we need, and they work 
with us.
    So the Committee has heard today that it would be nice to 
be able to do some preliminary work, some advance work. That is 
what I hope we will be able to do in the future.
    Senator Boozman. Arkansas is a small State, we all kind of 
know each other and work together. As you know, many rural 
communities in Arkansas, similar to rural communities across 
the United States, are losing businesses, employment 
opportunities, and population. Fifty-three percent of the 
counties in America lost population last census.
    Many of these areas have benefited from programs that 
target rural economic development, such as investment from the 
EDA. The EDA is such a valuable resource for so many people who 
need this help.
    However, most of these communities are at a disadvantage 
when applying for any grant funding because they lack the 
bandwidth or expertise to submit a ``top'' application.
    Can you talk about the importance of keeping this process 
as simple as possible? I hope that is the theme of today, in 
addition to being focused on the intent of the program.
    Mr. Day. Yes, sir, thank you. Good question.
    As I mentioned in my comments, we have to keep the program 
simple. I will tell you, we get a lot of grants from different 
Federal agencies. The EDA is easier to work with than others.
    But when you go into a small, rural community, and you have 
to get all the engineering done, the permitting, the cost 
analysis, the benefit, and you have to implement the mandates 
for the program that might be apprenticeships or resiliency or 
equity, and all of those things are important, but a small 
community struggles with that.
    You have heard today from all of my colleagues that the 
match is burdensome. If it is a million dollar project, and it 
is a 20 percent match, $200,000 is hard for a small community 
to get.
    So as you look to reauthorize, if you can make it simpler. 
I heard someone talk about a kind of a formula based incentive 
instead of competitive. That might be a good approach for 
certain communities.
    But we do know, we have seen success in rural Arkansas, if 
you have an available property, an available building, a 
prospect will locate there. But for a community to have to do 
all the heavy lifting on the front end, to manage the grant, 
and then even after the fact, once you build it, you are not 
done with the management of the grant. You have to report 
annually and keep coming back.
    That does create challenges for a community that has a 
volunteer city council or volunteer court that has a staff of 
four or five people. It is a challenge. So simple is better.
    Senator Boozman. Thank you very much.
    Thank you, Mr. Chairman.
    Senator Carper. Thank you.
    Senator Markey, thank you for coming back. You are 
recognized. And after you, Senator Ricketts.
    Senator Markey. Thank you, Mr. Chairman.
    It is hard for some communities to even get started. Match 
requirements are one reason why communities struggle to get 
projects off the ground.
    Ms. Cannon, how would reducing or eliminating funding match 
requirements in Economic Development Administration programs 
help smaller communities access these investments?
    Ms. Cannon. Senator, I think it would an amazing change 
that would help the smallest and most rural communities to get 
access to these funds. I did some research just on the 
Philadelphia regional office, because I lived in Delaware all 
my life, it is what I know. So I looked, at just at the State 
level compared the unemployment rate of every State and the two 
territories, Puerto Rico, and Virgin Islands, that the EDA 
office in Philadelphia is responsible for.
    None of them would have qualified for the maximum 
contribution from EDA or the maximum investment in 2004. And as 
recently as April 2023, only one from a statewide perspective 
would have qualified, and that would have been the United 
States Virgin Islands.
    So when you look at those numbers, Senator Carper had asked 
us a couple of months ago to pull together a focus group in our 
rural part of the State, because they were so frustrated with 
EDA. Again, EDA folks are really nice, they try really hard. 
But the EDA staff was frustrated that our rural community folks 
did not have the capacity.
    So it was kind of a chicken and egg scenario where 
everybody wants to get to yes, but they couldn't get there. SO 
I think that change would be dramatic.
    Senator Markey. Thank you.
    Aside from having cash on hand to fulfill match 
requirements, there is a lot of work that has to happen before 
communities are even ready to apply for grants, much less 
construct and develop projects. Communities need to pay for 
environmental studies, put together business plans and grant 
applications, and conduct architectural and engineering work. 
And all of that requires money and time.
    Ms. Cannon, based on your experience working with 
communities who are interested in making the most of funding 
opportunities, what can help communities best prepare shovel 
ready projects?
    Ms. Cannon. In the State of Delaware, we were fortunate in 
that that issue became a big issue. Geographically we are 
relatively small. So we were able to for the last 3 years, our 
Governor and our legislature approved $10 million a year in 
what they call a site readiness fund. And they compete directly 
for those dollars, the developers do, that have sites that they 
want to get ready.
    The problem is it is not enough. And it certainly isn't 
enough if you try to do that across the country.
    But EDA today would say, when you look at the NOFO, and you 
try to find a way to get to yes, the NOFO looks like maybe they 
would provide funding for that. But then when you set up the 
call with the EDA regional office and your community that wants 
to do it, they start asking questions, how far along are you on 
the engineering, do you have this, do you have that. And the 
local communities get frustrated then hang up and call us and 
say, we don't think the EDA is easy to work with.
    Senator Markey. I get it.
    Mr. Fetzer, would funding for project pre-development and 
technical assistance help communities navigate the overwhelming 
number of grant programs and funding opportunities?
    Mr. Fetzer. Senator Markey, absolutely. Those types of 
activities that you just described in your remarks are very 
consistent with Ms. Cannon's comments as well in terms of how 
communities can be prepared to bring that investment. 
Currently, without that eligibility, that is a barrier.
    Senator Markey. That is why I am planning to reintroduce 
the Local Infrastructure Funding and Technical Assistance Act, 
or the LIFT Act, which would provide grants to under-resourced 
communities that want to bring beneficial projects into their 
communities. The funding would help cover the costs of market 
assessment, business plan preparation, capacity building for 
local governments and organizations, grant writing, and much 
more.
    Mr. Fetzer, would you agree that dedicated funding for pre-
development activities could help kickstart projects that may 
otherwise never go forward?
    Mr. Fetzer. Yes, Senator Markey, I would agree with that 
statement. I had a similar question earlier from Senator Kelly, 
and described it in some scenarios as a chicken and egg. And 
this type of funding would certainly allow us to overcome that, 
and allow projects to proceed.
    Senator Markey. Thank you, and rural communities, urban 
communities, low income communities, everyone deserves a chance 
to build resilient infrastructure and benefit from these new 
historic programs. We thank all of you for your work on it.
    Thank you, Mr. Chairman and Ranking Member.
    Senator Carper. Thank you, Senator.
    Senator Ricketts, thanks for coming again and again.
    Senator Ricketts. My pleasure. Thank you, Chairman Carper 
and Ranking Member Capito, for calling this hearing so we can 
talk about the EDA.
    I want to thank our panelists for your testimony and 
sharing your experiences with the EDA.
    Nebraska has been a recipient of a number of these grants. 
One in particular I am going to highlight has to do with Blair, 
Nebraska. We received a grant through the Assistance to Nuclear 
Closure Communities for over $1.5 million, which helped the 
city of Blair expand its water line. And one of the things it 
did when it expanded this water line was support a 
biotechnology campus that produces enzymes that help us 
produce--guess what, Chairman Carper? Ethanol.
    [Laughter.]
    Senator Capito. Wait a minute----
    [Laughter.]
    Senator Ricketts. You knew I was going to figure out a way 
to tie this back into ethanol, didn't you? I love this 
Committee, because we get to talk about ethanol.
    One of the other companies on this campus, which you would 
be fascinated to know about, has a unique fermentation process 
that takes some of the same sugars that come out of ethanol and 
produce omega-3 fatty acids, which then are fed to salmon in 
fish farms, which prevents the need for going out and catching 
wild fish, cutting them up and feeding to the salmon so that 
they get the same omega-3. So it became much more sustainable. 
A very cool way to make a sustainable way to have fish farms. 
That is one of the other businesses supported on doing it.
    The point is it allows smaller communities like Blair to be 
able to invest and grow campuses that create great paying jobs. 
These are great paying jobs that they have here. And I was just 
on with my entire Nebraska delegation, we are doing a Farm Bill 
tour on Monday, and heard consistently about the importance of 
water infrastructure for small communities to be able to, for 
example, facilitate food processing or dairy operations or 
things like that.
    So it is absolutely a critical thing to be able to do. I 
wanted to be here today to add my sentiments to what has 
already been expressed about the need to reauthorize the EDA at 
fiscally responsible levels, and to preserve the ability of 
local economic development decision.
    With that, I yield back.
    Senator Carper. Thanks, Senator Ricketts. Thanks for 
bringing the perspective of a recovering Governor, at least two 
of us here.
    Senator Padilla, welcome.
    Senator Padilla. Thank you, Mr. Chairman, and Ranking 
Member Capito. I appreciate the opportunity to chime in on this 
hearing as well.
    Let me begin by echoing one of the items and issues that 
Senator Markey raised, that is utilizing resources to assist 
smaller cities, smaller jurisdictions that may not have the 
capacity of larger jurisdictions in preparation and competing 
for different grants and other resources. I won't be repetitive 
of his questions, just want to associate myself with his 
concern as a priority as well.
    Separately, we often discuss loss of life and physical 
damage in the aftermath of natural disasters. But we rarely 
focus on the longer term economic challenges for entire 
communities that can persist for months or years after a 
disaster hits. This Committee has had numerous hearings and 
conversations about wildfires, long term drought, flooding, 
other types of extreme storms, routinely forcing shops to 
close, small businesses to shut down, jobs to leave towns, and 
personal savings to run dry when individuals have to dip into 
their own pockets to cover insurance, and entrepreneurs, small 
business owners, have to rebuild.
    In times of increasingly devastating natural disasters, 
EDA's mission to promote a resilient economy and address 
rapidly evolving economic conditions I think must prioritize 
disaster recovery. Again, not just in the aftermath, but in the 
long term. That is one of the reasons I plan to introduce 
legislation to establish the Office of Disaster Recovery within 
the EDA. This office would be tasked with coordinating post-
disaster economic recovery initiatives and assure that we 
rebuild holistically our impacted communities, beyond just 
initial critical repairs.
    Ms. Higgins and Mr. Fetzer, this sounds familiar to you 
because in both your written and your verbal testimony earlier, 
you referenced your specific recommendations for the 
establishment of an EDA Office of Disaster Resilience and 
Recovery. Would you just take a minute to reinforce to the 
Committee why it is so important for Congress to do so? 
Beginning with Ms. Higgins.
    Ms. Higgins. Thank you, Senator. Having a robust role that 
is codified for EDA in disaster recovery is really important. 
Congress is using EDA in this role, but because we haven't 
reauthorized and formalized it, it can be ad hoc, and it can 
often by reactive rather than proactive.
    So the idea of formalizing is really important to America's 
counties for a couple of reasons. It means the agency has 
institutional knowledge that carries on from one community's 
experience to another. It has leadership that has led through 
these difficult situations, and then quite frankly, it has good 
relationships and knowledge about the communities that are 
often on the receiving end of these considerations.
    EDA is also very helpful because, I use the example, versus 
the IDA loans in SBA, very strict, quite frankly, to apply for 
one of those. During COVID, our small businesses could not meet 
the requirements.
    But then we have other revolving loan funds that EDA allows 
to establish which are more attuned to these local businesses 
that have never, ever had to have access to capital before. So 
it is a great marriage between having the disaster recovery 
response and the long term knowledge that EDA already has in 
economic assistance.
    Senator Padilla. Thank you.
    Mr. Fetzer, anything to add?
    Mr. Fetzer. Senator Padilla, yes, I would agree with 
Commissioner Higgins' comments. Really institutionalizing it in 
a way that retains that knowledge and the ability to be, again, 
proactive and not a lagging response when communities are most 
in need would be quite valuable.
    Senator Padilla. Great.
    I want to make sure I am clear that our main streets, our 
commercial corridors and business districts, especially in 
smaller jurisdictions, need our ongoing attention, not just in 
the aftermath of a disaster. In the last Congress, Senator 
Wicker and I introduced the Revitalizing Small and Local 
Businesses Act, which would provide resources for non-profit 
organizations to also provide operating support, technical 
assistance, and training to networks of business district 
organizations working on the ground in underserved and rural 
communities as well as urban neighborhoods.
    Ms. Higgins, how do partnerships with local organizations 
and larger non-profit organizations strengthen EDA's efforts to 
serve these business districts?
    Ms. Higgins. I will give you one example. We have a great 
EDA grant that is working to enable folks from low wage jobs to 
get into high paying tech jobs. But when you are transferring 
people from the service economy into middle class and higher 
paying jobs, that transition is just not you take a class and 
get certified in this. Folks have trouble getting to work. They 
may need social services or supportive services about how to 
transition into a more professional style of work force.
    So in our EDA grant, we actually have non-profit partners 
that are providing those wraparound services for one entire 
year after the person gets their first high paying job, to make 
sure that it is a long term success. We want people lifted out 
of poverty with EDA assistance. We want them to stay out of 
poverty, not falling back because this is their first time in a 
different sort of workplace.
    Senator Padilla. Thank you very much.
    Thank you, Mr. Chair.
    Senator Carper. You bet. Thanks so much for joining us.
    Senator Capito.
    Senator Capito. Thank you, Mr. Chairman.
    I thank all of you.
    I just have one final question for the panel. EDA 
investment priorities, which are used as a criterion in 
reviewing project applications, can change from Administration 
to Administration. For example, the Biden administration 
removed critical infrastructure and opportunity zones as 
priorities, while equity and environmentally sustainable 
development were added. It seems to me that Congress should 
provide some stability here.
    So we will start with you, Ms. Cannon. Do you have any 
light to shed on that particular issue?
    Ms. Cannon. I will pause for a moment, because obviously, I 
led the State of Delaware's effort on opportunity zones when 
that was first passed. I think that the biggest concern most of 
us who were involved in opportunity zones had was that the 
original intent was to really get the funds invested in those 
really distressed communities.
    Senator Capito. Right.
    Ms. Cannon. And what ended up happening or what it appears 
to have happened was really rich people that were going to 
build a hotel in a really upscale neighborhood----
    Senator Capito. The same thing happened in our State.
    Ms. Cannon. Right. It happened everywhere. But I think the 
spirit of the opportunity zone was good. I would hope that we 
go back to looking at a census tract level, to Mr. Padilla's 
comment about the main street corridors.
    The biggest challenge I think when EDA is looking at their 
objectives is that you might have a little pocket community 
that just had a plant shut down or just had something horrible 
happen, but they are surrounded by a neighborhood, a census 
tract next door that is doing really well. So as a standalone 
census tract with 5,000 or 8,000 people, sometimes they can't 
get the help they need.
    So yes, I think having Congress put some stability into 
that, that if in fact an economic development office in a 
State, in a county, in a community builds around that objective 
that that objective doesn't change.
    Senator Capito. Mr. Fetzer, do you have any comments?
    Mr. Fetzer. Senator Capito, I believe that some of those 
considerations that you mentioned are important. But the 
predictability because of the needs of communities, 
particularly rural, small communities, those needs don't change 
over time. They are foundational to building a strong, economic 
ecosystem so that you can attract and retain business.
    So those things are important. But they could also become a 
distraction from pursuing the investments that our communities 
need.
    Senator Capito. So basically, the way I am interpreting 
your answer here, is the core functions have to remain the 
same, or the core decisionmaking has to revolve around the same 
core principles from Administration to Administration. You 
could add things on maybe as things go around. But I am 
thinking, as we are looking at a reauthorization, I am not sure 
how specific we would want to be, but we have got to have the 
core functions remain the same.
    Am I interpreting that correctly?
    Mr. Fetzer. I would agree. There is regulatory flexibility, 
too, within EDA that helps to address changes over time.
    Senator Capito. Right. So keep that.
    Ms. Higgins, do you have a comment on that?
    Ms. Higgins. We had a similar situation with opportunity 
zones as Ms. Cannon had. I think opportunity zones locked us 
into an actual place versus economic development opportunities, 
which can occur in a different piece of property, but still 
aptly serve people who are in need of routes to prosperity and 
better jobs.
    I think predictability matters. It certainly matters for 
these smaller counties. If they have managed to apply once, why 
the heck do you want to make it so complicated to apply a 
second time? But even a big county like mine, with the pre-
development on these sites which can take 2 years, if 4 years 
later the rules are changed, we may have the resources to do 
our pre-development in the way that rural counties may not. But 
then we might not qualify for something in the long run.
    So some consistency is always a good thing.
    Senator Capito. Mr. Graney.
    Mr. Graney. I think these guys are the pros. I have only 
been doing this for 4 years. I can't add to what they have 
said.
    Senator Capito. All right.
    Mr. Day.
    Mr. Day. Yes, Senator, I agree. I think that the change in 
priorities, changing requirements, changing programs from 
Administration to Administration makes it a burden on 
communities. Not everyone can do it. It is a federalism at its 
finest. The program works well. Let's keep it simple, let's 
keep it streamlined, let's focus on the creation of jobs and 
not put those other requirements every 4 years, every 8 years, 
into the program.
    It is a team sport, it is a long sport, and it takes a lot 
of time to get there. Thank you.
    Senator Capito. Thank you.
    My final comment, Mr. Chairman, is Mr. Graney mentioned 
Tracey Rowan, who is in our West Virginia EDA. What a 
difference she makes. Having that right resource that is paying 
attention to your State, and in our lucky case, our State 
alone, and her consistency and knowledge, has been incredible. 
So I want to give a shout out to our rock star, Tracey Rowan at 
the EDA. She is fantastic.
    Senator Carper. Thank you so much for that. She doesn't 
just say this at a hearing.
    Senator Capito. I don't say that about you--oh, just 
kidding.
    [Laughter.]
    Senator Carper. She doesn't just brag on the EDA's point 
person in West Virginia in a hearing, she says it regularly. We 
are blessed in our region as well.
    We have been joined by Senator Dan Sullivan from the great 
State of Alaska.
    Go right ahead.
    Senator Sullivan. Thank you, Mr. Chairman.
    I want to thank the witnesses.
    I have just really one basic question to get your insights, 
to all the witnesses. It is really actually reflective of the 
title of the hearing, which is getting State and local 
perspectives. In Alaska, we are often subject, and I think most 
States feel this way, where the Federal Government is about 
5,000 miles away from my State, and they often don't understand 
us. And then they come up with one size fits all approaches to 
policy and economic development that was crafted here. And of 
course, it just doesn't work in my State.
    I am assuming that all of you have had similar experiences. 
Maybe I can just start with the basic question of, when we are 
looking at the reauthorization process now, which is a good 
opportunity, to instill the value of preserving locally driven 
economic development decisions and making sure EDA does not 
become kind of an entity that is a Washington, DC, bureaucracy 
that directs everybody.
    So how do we ensure that locally driven economic 
development decisions as a key component of EDA, and I am 
assuming you guys all think that is important, so Mr. Day, why 
don't we start with you and go down the line.
    Mr. Day. Thank you, Senator. I do think that every 
community is different, and every community knows what is best 
for them. So as you draft the reauthorization, you look at the 
programs, try to preserve the ability for that community to 
present a project or implement a program that meets their 
needs. Because what works in Alaska might not work in Arkansas, 
might not work on the East Coast.
    I am not quite sure how you do that in the programmatic 
drafting of the bill. But don't lose sight of local communities 
know best for them.
    Senator Sullivan. And your point, in Arkansas there might 
be a real emphasis on one area of your economy that we don't 
even have in Alaska and vice versa.
    Mr. Day. That is true, yes, sir.
    Senator Sullivan. Good.
    Mr. Graney. Senator, I would agree with everything he just 
said. I think it is critically important to keep the local 
flavor. And Alaska is different from West Virginia; West 
Virginia is different from Arkansas and Miami-Dade County.
    Senator Sullivan. Do you think that a current EDA approach 
has enough of that local flavor, or is it getting too 
centralized in Washington?
    Mr. Graney. I have only been in this role for about 4 and a 
half years, but it has been my impression that it does have 
that local flavor currently.
    Senator Sullivan. Ok. Good.
    Ms. Higgins. Senator, I think I agree. Mr. Graney said it 
well: There is a lot of ability, and from the examples we have 
shared here, we are all from different places, that how we are 
implementing in different counties and different States, 
economic development, EDA has been able to help us fund.
    But I think one of the themes you have heard us talk about 
today is that there are places that remain locked out of 
getting this funding and the match requirements have been rigid 
enough, particularly for some smaller places. Good projects, 
and remember, we talk about locking projects and places out of 
economic opportunity. We are actually locking people out of 
that option.
    So I think in this reauthorization, looking at making sure 
those matching requirements are not stopping development in 
places that really need it is a way to make EDA even more 
responsive and responsible for these locally developed 
initiatives.
    Senator Sullivan. Good, thank you.
    Mr. Fetzer. Senator Sullivan, in terms of the matching fund 
burden requirements, I am in full agreement that we need to 
reduce those.
    Senator Sullivan. I don't even know what it is right now. 
What is the typical match?
    Mr. Fetzer. Well, it can be as much as 50 percent in some 
cases. But it depends. That is probably the best answer.
    Senator Sullivan. And is it dependent upon ability to pay?
    Mr. Fetzer. It is not dependent on ability to pay, it is 
based on distress factors. That is one of the things that many 
of us have touched on in our testimony here today, is that the 
needs or the merits of projects may not have a direct 
relationship with the ability of that jurisdiction to pay 
match. But the need is great.
    Senator Sullivan. So you think that is a reform that is 
recommended?
    Mr. Fetzer. Correct. I would also speak to the planning 
process, because there have been numerous references to locally 
driven solutions. And while EDA has a requirement for each 
economic development district to create a comprehensive 
economic development strategy known as the CEDS, the CEDS, if 
it is done right within a region, is all about locally driven 
solutions in response to what is different between Alaska and 
Arizona and Massachusetts can be accounted for in those 
planning processes, so that we can identify what the most 
important needs are and how to grow local economies. And if we 
do it right, too, we are using a robust engagement process with 
stakeholders to really understand their needs.
    Senator Sullivan. Good. Great. Thank you.
    Ms. Cannon. Great question, Senator. I will say this, that 
I have a minor in psychology, which makes me dangerous because 
I think I know things. But I will tell you that my perspective 
of EDA and how they implement is that they implement from a 
utilitarian perspective. They want to do the greatest good for 
the greatest number of people.
    The tech hub solicitation or NOFO that is out now is 
saying, and they told us specifically, don't apply as a State. 
We want you to be regional. We want you to be able to say, we 
touch this many people in this many geographic territories.
    While that is noble in some respect to say for every public 
dollar we invested we touched the greatest number of 
communities and the greatest number of people, the reality is 
that some of the people with the greatest need will never get 
the opportunity to participate in EDA funding because they 
can't meet the match, they can't meet the eligibility criteria.
    So I am a firm believer, I used to be the executive 
director of the Delaware Workforce Board, I am an active member 
now, I firmly believe that every community across this country 
has an active local and State board that lives under the U.S. 
Department of Labor Regulations. They meet regularly. The 50 
percent membership has to be from the private sector who are 
creating those jobs. They have to have ultimate hiring and 
decisionmaking authority and policy setting authority. I think 
there are ways to help EDA find the right balance.
    Again, to some degree, there is real value in the 
utilitarian approach. But I would hope, I can tell you right 
now, I have three little communities that will never qualify 
under EDA standards for the match, for the eligibility. But the 
need is great. And I don't know how to help them in the absence 
of some of those changes.
    So we are hoping that that happens through reauthorization.
    Senator Sullivan. Great. Thank you. Those are great 
answers.
    Thank you, Mr. Chairman.
    Senator Carper. Thank you. Senator Sullivan, thanks so much 
for joining us.
    Senator Sullivan raised the issue that led us to talking 
about CEDS, which is Comprehensive Economic Development 
Strategy. For years, we couldn't understand why we couldn't get 
to first base on economic development, EDA support. It turns 
out we were not providing and updating on a regular basis a 
comprehensive economic development strategy.
    Do you have any idea of other States that are guilty of not 
providing an updated CEDS on a regular basis? Does anybody 
know? That seems like, in terms of an admission to actually 
making progress and getting support from the EDA, you have to 
have a CEDS. Do you believe that most States do that? Does 
anybody know?
    Ms. Higgins. I may not know, Senator, about the States, 
because at least in our State, we have several regions that 
have to create them.
    But Mr. Fetzer highlighted this very clearly. Right now for 
smaller communities, some of the EDDs that develop the CEDS are 
huge geographically. And the $70,000 to $75,000 that is 
currently allowed, it doesn't matter where you live, that does 
not cover the cost of one full time employee, to get into these 
things.
    So I would say they may, even if they are complying, they 
don't have the staffing because of that level of funding to 
make sure that it is adequate, it is up to date, and it is 
inspiring to attract economic development in some areas.
    Senator Carper. OK.
    Patty, did you want to say something?
    Ms. Cannon. Yes. I can tell you that if you submit an 
application----
    Senator Carper. Who is you? If you submit, if you submit--
you said if you submit----
    Ms. Cannon. If anybody submits an application----
    Senator Carper. Well, not anybody can submit. When you say 
you, who are you talking about?
    Ms. Cannon. An eligible entity.
    Senator Carper. Thank you.
    Ms. Cannon. I am so sorry, sir. An eligible entity submits 
an application to EDA. The first thing they will do is look to 
see if you have an active CEDS. If you do not, it doesn't go 
any further.
    Maybe that is an important criteria to try to encourage 
States and communities. But I think Ms. Higgins makes a great 
point in that Delaware geographically and demographically is 
small. So the people who get involved in writing the CEDS 
generally all know each other. The larger the State, the less 
likely that is to be true.
    So that is the other reason that I firmly believe that 
while the CEDS is a nice thing to have every 5 years and to 
have to synch it together with stakeholders and say, what do we 
envision our State to look like over the next 5 years, I still 
think the State and local boards, the work force boards, are 
where the rubber meets the road in most of our communities.
    Senator Carper. All right. Thanks for that.
    When I was Governor, I had the opportunity to participate 
in the National Governors Association. And I remember us 
petitioning, at that time I think it was the Clinton 
administration, then later the Bush administration, for Federal 
support. There was always a question about how, what would be 
an appropriate balance of Federal support as opposed to State 
and local support.
    One of the things I learned early on, rather than just 
giving money to States, you have to have some skin in the game. 
I think there is a balance here between making sure that we are 
providing the money where it is most needed and can be put to 
best use, but also make sure that there is skin in the game. If 
there is not, then sometimes we don't spend the moneys wisely 
as otherwise we should.
    I have a follow up question on climate resilience for Ms. 
Higgins. The EDA's public works program helps distressed 
communities upgrade and build physical infrastructure, as you 
know. Due to the climate crisis, low lying places like Miami-
Dade County and my own State of Delaware, in Maryland and other 
coastal States, are under threat due to rising sea levels and 
an increased frequency of extreme weather events that we see 
all too often.
    Commissioner Higgins, do you think there are opportunities 
for EDA to maybe do more to incorporate climate resiliency into 
its public works program?
    Ms. Higgins. I certainly think it should be considered. 
This would be another case where perhaps EDA can collaborate 
with other programs that exist. For example, in the 
Infrastructure Investment and Jobs Act, there is funding 
available for example for raising off system bridges to be more 
accommodating to rising seas, to looking at improvements that 
make not just coastal communities but communities across 
America less vulnerable to things like flooding.
    So yes, public works right now, we should be thinking, and 
I believe every local community is thinking about what do we 
need to be building to make sure our communities are more 
resilient in the face of a changing climate and in the face of 
a changing work force and economic conditions. Resiliency, I 
can't think of a single county in Florida that doesn't have 
resiliency as a top priority, from the largest one in mine, 
Miami-Dade County, to our most rural counties in Florida.
    Senator Carper. All right, thank you.
    My sister and I were born in a coal mining town, as Senator 
Capito knows, born in a coal mining town called Beckley, about 
70, 80 miles south of Charleston. Our grandparents' neighbors 
were coal miners. I remember my sister and I as little kids 
being at our grandparents' house.
    Mr. Meadows, who was their neighbor, would come home late 
afternoon from mining coal, his face black with soot. He would 
clean up and go out and milk his cow. I still remember, he 
would invite my sister and I to come and help him milk his cow. 
We were just little kids. Then we would get to drink some of 
the milk. It is a memory I will always cherish. I think my 
sister does, too.
    My grandfather was a butcher. He was not just a butcher at 
Patton's Market in Beckley, but before that he was a butcher at 
a general store that was owned by a coal mining company. And 
the coal mining company, in the next region, next to where my 
grandfather was a butcher, the butcher there was Robert Byrd, 
who went on to become the most elected Senator in the history 
of the country. So you never know where those butchers are 
going to go.
    So I have an interest and concern about coal mining. West 
Virginia has been part of who I am all of my life.
    Having said that, the State that I live in now is a State 
where, as my colleagues have heard me say probably too often, 
we are the lowest lying State in the country, as Patty Cannon 
knows, the lowest lying State. My State is sinking; the seas 
around us are rising.
    That is not a good thing, when one of the top two 
industries in your State is tourism. One of the reasons why 
people flock to Delaware is because we have more five star 
beaches than any other State in the country.
    So the ability to actually how do we address climate 
change, how do we do that in a way to increase jobs, as it 
turns out, there are a ton of jobs that are being created off 
of our shores. Senator Cardin mentioned it, he said, in 
Maryland we are looking at offshore wind. They are not just 
looking at offshore wind, we are deploying offshore windmill 
farms off of Rhode Island all the way down to Maryland. And we 
are doing it by putting thousands of people to work in good 
paying jobs, a lot of jobs created just in building the wind 
turbines that are being deployed.
    But as we do all that, I mentioned some of the factors that 
drive economic development that I learned a long time ago when 
I was a youngster working at the Division of Economic 
Development, I did not mention the cost of power. That is a 
hugely important element in a lot of industries and a lot of 
job creation.
    One of the places we have learned how to address, create 
power fairly cheaply, is wind and solar. In the meantime, the 
question is what we do with all the people who are displaced, 
like folks who work in fossil fuel industries. I think we have 
a moral obligation to look after them as well.
    In our State, I hope we are taking that moral obligation 
seriously. I know they are in West Virginia.
    I said earlier I wanted to telegraph my pitch. The pitch I 
want to telegraph is to ask this last question. Where do you 
think there is consensus here, maybe important consensus? 
Senator Sullivan and I spent a lot of years in the military, he 
is a retired Marine colonel, I am a retired Navy captain. We 
were in a lot of training in the Navy, most people think you 
graduate from high school or college, you go into the military 
and you never have any more training. No, you train and train 
all the time.
    In the Navy, we would have to take tests and so forth. Our 
instructors would stomp their foot, literally, and say, these 
are some things that are going to be on the test. And they 
would not always say, this is going to be on the test, but they 
would stomp their foot. This is a chance for you to stomp your 
feet and to tell us what is going to be on the test, for if we 
take out nothing else from here, at the end of this hearing, 
what are one or two really important things. Just very crisply 
and succinctly.
    Patty, would you lead us off, please?
    Ms. Cannon. Thank you, sir. So you just want one item?
    Senator Carper. Just give us one.
    Ms. Cannon. One item is let's fix that match. I don't know 
what that fix looks like, but I think we need to fix that 
match.
    Senator Carper. Thank you.
    Mr. Fetzer.
    Mr. Fetzer. Thank you, Chairman Carper. I really do 
appreciate the dialogue that we have had with the Committee 
today. I think first and foremost would be increasing the 
investment in EDA's core programs, like Partnership Planning.
    Senator Carper. All right, thank you.
    Ms. Higgins.
    Ms. Higgins. First and foremost, reauthorize the EDA. 
Because all of these reforms cannot happen and modernization if 
that does not occur. And I think all the ideas and all the 
examples you have seen here, but also some of the challenges we 
face can be addressed if we have a modern reauthorization that 
helps with match, that helps with access, that helps with the 
different sorts of projects and work force that didn't exist 
when it was reauthorized last.
    Senator Carper. Good. Thank you for that.
    Mr. Graney.
    Mr. Graney. Fix the match, however that is appropriate to 
do. Keep it simple and keep making it a little more flexible, 
have it address other needs.
    Senator Carper. In the Navy we had something called the 
KISS, Keep It Simple Stupid.
    [Laughter.]
    Senator Carper. Mr. Day.
    Mr. Day. I agree with all that has been said, Senator. I 
would add that, allow local communities the ability to grow 
their own, build their capacity for future economic development 
through the creation of shovel ready sites.
    Senator Carper. Thanks.
    Senator Capito, any last words?
    Senator Capito. Thank you all very much. It was terrific.
    We have a vote, and so I am going to be slipping out. Thank 
you very much.
    Senator Carper. Thank you very much.
    Our thanks to our staffs as well.
    Maybe one last thought. I talked about a moral obligation. 
People ask me what I like most about my job. I like helping 
people. And I think if you ask Senator Capito or anybody else 
who serves on this Committee, they would pretty much say the 
same thing, we love helping people.
    One of the best ways you can help somebody is make sure 
they have a job, and make sure they have a job so they can 
support themselves and their families and be a contributing 
member of our society. There are a lot of different ways we 
make that happen. One of the important ways is through an 
entity we call the Economic Development Administration.
    As I said early on, everything I do I know I can do better. 
Clearly, you have all come up with some ideas how the Federal 
Government can meet its obligations and opportunities better by 
making some changes within the EDA. And you have given us 
plenty to think about.
    The other thing I want to say is thank you for what you do 
with your lives. I hope your work gives you as much joy as mine 
has given me for all these years. But if we don't have jobs, 
people who don't go to work and support themselves and their 
families, at the end of the day, we don't have much. It is just 
critically important stuff.
    The last thing is, not that you would know this, this is a 
Committee that actually works well together. We are a Committee 
that believes that bipartisan solutions generally are lasting 
solutions. So that is where we work, whether it is bipartisan 
infrastructure legislation, water, roads, highways, bridges, 
you name it, clean air, we try to do as much work across the 
aisle as much as we can to get things done. There are a lot of 
instances that not only do good things for the planet, but 
actually create economic opportunities and jobs for people to 
go to.
    So with that, I would say in closing, I have some 
boilerplate stuff I have to read so we will be in good shape 
here. I want to thank all of you for joining us today. We have 
to do some housekeeping.
    Senators will be allowed to submit written questions for 
the record by close of business on Wednesday, July 12th. We 
will compile those questions and send them to you, to our 
witnesses. We are going to ask you to try to reply to us by 
Wednesday, July 26th.
    Again, I just want to say to our staffs who have worked 
diligently to pull all of you together and to make sure this 
was a meaningful hearing and a productive hearing, our thanks 
to all of them.
    With that, it is a wrap. This hearing is adjourned.
    [Whereupon, at 11:58 a.m., the hearing was adjourned.]

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