Congressional Record, Volume 144 Issue 145 (Tuesday, October 13, 1998)

[Congressional Record Volume 144, Number 145 (Tuesday, October 13, 1998)]
[House]
[Pages H10734-H10748]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

ECONOMIC DEVELOPMENT ADMINISTRATION AND APPALACHIAN REGIONAL
DEVELOPMENT REFORM ACT OF 1998

Mr. SHUSTER. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 2364) to reauthorize and make reforms to programs
authorized by the Public Works and Economic Development Act of 1965 and
the Appalachian Regional Development Act of 1965.
The Clerk read as follows:

S. 2364

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Economic
Development Administration and Appalachian Regional
Development Reform Act of 1998''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--ECONOMIC DEVELOPMENT

Sec. 101. Short title.
Sec. 102. Reauthorization of Public Works and Economic Development Act
of 1965.
Sec. 103. Conforming amendment.
Sec. 104. Transition provisions.
Sec. 105. Effective date.

TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

Sec. 201. Short title.
Sec. 202. Findings and purposes.
Sec. 203. Meetings.
Sec. 204. Administrative expenses.
Sec. 205. Compensation of employees.
Sec. 206. Administrative powers of Commission.
Sec. 207. Cost sharing of demonstration health projects.
Sec. 208. Repeal of land stabilization, conservation, and erosion
control program.
Sec. 209. Repeal of timber development program.
Sec. 210. Repeal of mining area restoration program.
Sec. 211. Repeal of water resource survey.
Sec. 212. Cost sharing of housing projects.
Sec. 213. Repeal of airport safety improvements program.
Sec. 214. Cost sharing of vocational education and education
demonstration projects.
Sec. 215. Repeal of sewage treatment works program.
Sec. 216. Repeal of amendments to Housing Act of 1954.
Sec. 217. Supplements to Federal grant-in-aid programs.
Sec. 218. Program development criteria.
Sec. 219. Distressed and economically strong counties.
Sec. 220. Grants for administrative expenses and commission projects.
Sec. 221. Authorization of appropriations for general program.
Sec. 222. Extension of termination date.
Sec. 223. Technical amendment.
TITLE I--ECONOMIC DEVELOPMENT

SEC. 101. SHORT TITLE.

This title may be cited as the ``Economic Development
Administration Reform Act of 1998''.

SEC. 102. REAUTHORIZATION OF PUBLIC WORKS AND ECONOMIC
DEVELOPMENT ACT OF 1965.

(a) First Section Through Title VI--The Public Works and
Economic Development Act of 1965 (42 U.S.C. 3121 et seq.) is
amended by striking the first section and all that follows
through the end of title VI and inserting the following:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

``(a) Short Title.--This Act may be cited as the `Public
Works and Economic Development Act of 1965'.
``(b) Table of Contents.--The table of contents of this Act
is as follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings and declarations.
``Sec. 3. Definitions.

``TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND
COORDINATION

``Sec. 101. Establishment of economic development partnerships.
``Sec. 102. Cooperation of Federal agencies.
``Sec. 103. Coordination.

``TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

``Sec. 201. Grants for public works and economic development.
``Sec. 202. Base closings and realignments.
``Sec. 203. Grants for planning and grants for administrative expenses.
``Sec. 204. Cost sharing.
``Sec. 205. Supplementary grants.
``Sec. 206. Regulations on relative needs and allocations.
``Sec. 207. Grants for training, research, and technical assistance.
``Sec. 208. Prevention of unfair competition.
``Sec. 209. Grants for economic adjustment.
``Sec. 210. Changed project circumstances.
``Sec. 211. Use of funds in projects constructed under projected cost.
``Sec. 212. Reports by recipients.
``Sec. 213. Prohibition on use of funds for attorney's and consultant's
fees.

``TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

``Sec. 301. Eligibility of areas.
``Sec. 302. Comprehensive economic development strategies.

``TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

``Sec. 401. Designation of economic development districts.
``Sec. 402. Termination or modification of economic development
districts.
``Sec. 403. Incentives.
``Sec. 404. Provision of comprehensive economic development strategies
to Appalachian Regional Commission.
``Sec. 405. Assistance to parts of economic development districts not
in eligible areas.

``TITLE V--ADMINISTRATION

``Sec. 501. Assistant Secretary for Economic Development.
``Sec. 502. Economic development information clearinghouse.
``Sec. 503. Consultation with other persons and agencies.
``Sec. 504. Administration, operation, and maintenance.
``Sec. 505. Businesses desiring Federal contracts.
``Sec. 506. Performance evaluations of grant recipients.
``Sec. 507. Notification of reorganization.

``TITLE VI--MISCELLANEOUS

``Sec. 601. Powers of Secretary.
``Sec. 602. Maintenance of standards.
``Sec. 603. Annual report to Congress.
``Sec. 604. Delegation of functions and transfer of funds among Federal
agencies.
``Sec. 605. Penalties.
``Sec. 606. Employment of expediters and administrative employees.
``Sec. 607. Maintenance and public inspection of list of approved
applications for financial assistance.
``Sec. 608. Records and audits.
``Sec. 609. Relationship to assistance under other law.
``Sec. 610. Acceptance of certifications by applicants.

``TITLE VII--FUNDING

``Sec. 701. General authorization of appropriations.

[[Page H10735]]

``Sec. 702. Authorization of appropriations for defense conversion
activities.
``Sec. 703. Authorization of appropriations for disaster economic
recovery activities.

``SEC. 2. FINDINGS AND DECLARATIONS.

``(a) Findings.--Congress finds that--
``(1) while the economy of the United States is undergoing
a sustained period of economic growth resulting in low
unemployment and increasing incomes, there continue to be
areas suffering economic distress in the form of high
unemployment, low incomes, underemployment, and outmigration
as well as areas facing sudden economic dislocations due to
industrial restructuring and relocation, defense base
closures and procurement cutbacks, certain Federal actions
(including environmental requirements that result in the
removal of economic activities from a locality), and natural
disasters;
``(2) as the economy of the United States continues to
grow, those distressed areas contain significant human and
infrastructure resources that are underused;
``(3) expanding international trade and the increasing pace
of technological innovation offer both a challenge and an
opportunity to the distressed communities of the United
States;
``(4) while economic development is an inherently local
process, the Federal Government should work in partnership
with public and private local, regional, and State
organizations to ensure that existing resources are not
wasted and all Americans have an opportunity to participate
in the economic growth of the United States;
``(5) in order to avoid wasteful duplication of effort and
to limit the burden on distressed communities, Federal,
State, and local economic development activities should be
better planned and coordinated and Federal program
requirements should be simplified and made more consistent;
``(6) the goal of Federal economic development activities
should be to work in partnership with local, regional, and
State public and private organizations to support the
development of private sector businesses and jobs in
distressed communities;
``(7) Federal economic development efforts will be more
effective if they are coordinated with, and build upon, the
trade and technology programs of the United States; and
``(8) under this Act, new employment opportunities should
be created by developing and expanding new and existing
public works and other facilities and resources rather than
by merely transferring jobs from one area of the United
States to another.
``(b) Declarations.--Congress declares that, in order to
promote a strong and growing economy throughout the United
States--
``(1) assistance under this Act should be made available to
both rural and urban distressed communities;
``(2) local communities should work in partnership with
neighboring communities, the States, and the Federal
Government to increase their capacity to develop and
implement comprehensive economic development strategies to
address existing, or deter impending, economic distress; and
``(3) whether suffering from long-term distress or a sudden
dislocation, distressed communities should be encouraged to
take advantage of the development opportunities afforded by
technological innovation and expanding and newly opened
global markets.

``SEC. 3. DEFINITIONS.

``In this Act:
``(1) Comprehensive economic development strategy.--The
term `comprehensive economic development strategy' means a
comprehensive economic development strategy approved by the
Secretary under section 302.
``(2) Department.--The term `Department' means the
Department of Commerce.
``(3) Economic development district.--
``(A) In general.--The term `economic development district'
means any area in the United States that--
``(i) is composed of areas described in section 301(a) and,
to the extent appropriate, neighboring counties or
communities; and
``(ii) has been designated by the Secretary as an economic
development district under section 401.
``(B) Inclusion.--The term `economic development district'
includes any economic development district designated by the
Secretary under section 403 (as in effect on the day before
the effective date of the Economic Development Administration
Reform Act of 1998).
``(4) Eligible recipient.--
``(A) In general.--The term `eligible recipient' means--
``(i) an area described in section 301(a);
``(ii) an economic development district;
``(iii) an Indian tribe;
``(iv) a State;
``(v) a city or other political subdivision of a State or a
consortium of political subdivisions;
``(vi) an institution of higher education or a consortium
of institutions of higher education; or
``(vii) a public or private nonprofit organization or
association acting in cooperation with officials of a
political subdivision of a State.
``(B) Training, research, and technical assistance
grants.--In the case of grants under section 207, the term
`eligible recipient' also includes private individuals and
for-profit organizations.
``(5) Federal agency.--The term `Federal agency' means a
department, agency, or instrumentality of the United States.
``(6) Grant.--The term `grant' includes a cooperative
agreement (within the meaning of chapter 63 of title 31,
United States Code).
``(7) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, pueblo, or other organized group
or community, including any Alaska Native village or Regional
Corporation (as defined in or established under the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), that
is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians.
``(8) Secretary.--The term `Secretary' means the Secretary
of Commerce.
``(9) State.--The term `State' means a State, the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Republic
of Palau.
``(10) United states.--The term `United States' means all
of the States.
``TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND
COORDINATION

``SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT
PARTNERSHIPS.

``(a) In General.--In providing assistance under this
title, the Secretary shall cooperate with States and other
entities to ensure that, consistent with national objectives,
Federal programs are compatible with and further the
objectives of State, regional, and local economic development
plans and comprehensive economic development strategies.
``(b) Technical Assistance.--The Secretary may provide such
technical assistance to States, political subdivisions of
States, sub-State regional organizations (including
organizations that cross State boundaries), and multi-State
regional organizations as the Secretary determines is
appropriate to--
``(1) alleviate economic distress;
``(2) encourage and support public-private partnerships for
the formation and improvement of economic development
strategies that sustain and promote economic development
across the United States; and
``(3) promote investment in infrastructure and
technological capacity to keep pace with the changing global
economy.
``(c) Intergovernmental Review.--The Secretary shall
promulgate regulations to ensure that appropriate State and
local government agencies have been given a reasonable
opportunity to review and comment on proposed projects under
this title that the Secretary determines may have a
significant direct impact on the economy of the area.
``(d) Cooperation Agreements.--
``(1) In general.--The Secretary may enter into a
cooperation agreement with any 2 or more adjoining States, or
an organization of any 2 or more adjoining States, in support
of effective economic development.
``(2) Participation.--Each cooperation agreement shall
provide for suitable participation by other governmental and
nongovernmental entities that are representative of
significant interests in and perspectives on economic
development in an area.

``SEC. 102. COOPERATION OF FEDERAL AGENCIES.

``In accordance with applicable laws and subject to the
availability of appropriations, each Federal agency shall
exercise its powers, duties and functions, and shall
cooperate with the Secretary, in such manner as will assist
the Secretary in carrying out this title.

``SEC. 103. COORDINATION.

``The Secretary shall coordinate activities relating to the
preparation and implementation of comprehensive economic
development strategies under this Act with Federal agencies
carrying out other Federal programs, States, economic
development districts, and other appropriate planning and
development organizations.
``TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

``SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.

``(a) In General.--On the application of an eligible
recipient, the Secretary may make grants for--
``(1) acquisition or development of land and improvements
for use for a public works, public service, or development
facility; and
``(2) acquisition, design and engineering, construction,
rehabilitation, alteration, expansion, or improvement of such
a facility, including related machinery and equipment.
``(b) Criteria for Grant.--The Secretary may make a grant
under this section only if the Secretary determines that--
``(1) the project for which the grant is applied for will,
directly or indirectly--
``(A) improve the opportunities, in the area where the
project is or will be located, for the successful
establishment or expansion of industrial or commercial plants
or facilities;
``(B) assist in the creation of additional long-term
employment opportunities in the area; or
``(C) primarily benefit the long-term unemployed and
members of low-income families;
``(2) the project for which the grant is applied for will
fulfill a pressing need of the area, or a part of the area,
in which the project is or will be located; and
``(3) the area for which the project is to be carried out
has a comprehensive economic development strategy and the
project is consistent with the strategy.

[[Page H10736]]

``(c) Maximum Assistance for Each State.--Not more than 15
percent of the amounts made available to carry out this
section may be expended in any 1 State.

``SEC. 202. BASE CLOSINGS AND REALIGNMENTS.

``Notwithstanding any other provision of law, the Secretary
may provide to an eligible recipient any assistance available
under this title for a project to be carried out on a
military or Department of Energy installation that is closed
or scheduled for closure or realignment without requiring
that the eligible recipient have title to the property or a
leasehold interest in the property for any specified term.

``SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE
EXPENSES.

``(a) In General.--On the application of an eligible
recipient, the Secretary may make grants to pay the costs of
economic development planning and the administrative expenses
of organizations that carry out the planning.
``(b) Planning Process.--Planning assisted under this title
shall be a continuous process involving public officials and
private citizens in--
``(1) analyzing local economies;
``(2) defining economic development goals;
``(3) determining project opportunities; and
``(4) formulating and implementing an economic development
program that includes systematic efforts to reduce
unemployment and increase incomes.
``(c) Use of Planning Assistance.--Planning assistance
under this title shall be used in conjunction with any other
available Federal planning assistance to ensure adequate and
effective planning and economical use of funds.
``(d) State Plans.--
``(1) Development.--Any State plan developed with
assistance under this section shall be developed
cooperatively by the State, political subdivisions of the
State, and the economic development districts located wholly
or partially in the State.
``(2) Comprehensive economic development strategy.--As a
condition of receipt of assistance for a State plan under
this subsection, the State shall have or develop a
comprehensive economic development strategy.
``(3) Certification to the secretary.--On completion of a
State plan developed with assistance under this section, the
State shall--
``(A) certify to the Secretary that, in the development of
the State plan, local and economic development district plans
were considered and, to the maximum extent practicable, the
State plan is consistent with the local and economic
development district plans; and
``(B) identify any inconsistencies between the State plan
and the local and economic development district plans and
provide a justification for each inconsistency.
``(4) Comprehensive planning process.--Any overall State
economic development planning assisted under this section
shall be a part of a comprehensive planning process that
shall consider the provision of public works to--
``(A) promote economic development and opportunity;
``(B) foster effective transportation access;
``(C) enhance and protect the environment; and
``(D) balance resources through the sound management of
physical development.
``(5) Report to secretary.--Each State that receives
assistance for the development of a plan under this
subsection shall submit to the Secretary an annual report on
the planning process assisted under this subsection.

``SEC. 204. COST SHARING.

``(a) Federal Share.--Subject to section 205, the amount of
a grant for a project under this title shall not exceed 50
percent of the cost of the project.
``(b) Non-Federal Share.--In determining the amount of the
non-Federal share of the cost of a project, the Secretary may
provide credit toward the non-Federal share for all
contributions both in cash and in-kind, fairly evaluated,
including contributions of space, equipment, and services.

``SEC. 205. SUPPLEMENTARY GRANTS.

``(a) Definition of Designated Federal Grant Program.--In
this section, the term `designated Federal grant program'
means any Federal grant program that--
``(1) provides assistance in the construction or equipping
of public works, public service, or development facilities;
``(2) the Secretary designates as eligible for an
allocation of funds under this section; and
``(3) assists projects that are--
``(A) eligible for assistance under this title; and
``(B) consistent with a comprehensive economic development
strategy.
``(b) Supplementary Grants.--
``(1) In general.--On the application of an eligible
recipient, the Secretary may make a supplementary grant for a
project for which the eligible recipient is eligible but,
because of the eligible recipient's economic situation, for
which the eligible recipient cannot provide the required non-
Federal share.
``(2) Purposes of grants.--Supplementary grants under
paragraph (1) may be made for purposes that shall include
enabling eligible recipients to use--
``(A) designated Federal grant programs; and
``(B) direct grants authorized under this title.
``(c) Requirements Applicable to Supplementary Grants.--
``(1) Amount of supplementary grants.--Subject to paragraph
(4), the amount of a supplementary grant under this title for
a project shall not exceed the applicable percentage of the
cost of the project established by regulations promulgated by
the Secretary, except that the non-Federal share of the cost
of a project (including assumptions of debt) shall not be
less than 20 percent.
``(2) Form of supplementary grants.--In accordance with
such regulations as the Secretary may promulgate, the
Secretary shall make supplementary grants by increasing the
amounts of grants authorized under this title or by the
payment of funds made available under this Act to the heads
of the Federal agencies responsible for carrying out the
applicable Federal programs.
``(3) Federal share limitations specified in other laws.--
Notwithstanding any requirement as to the amount or source of
non-Federal funds that may be applicable to a Federal
program, funds provided under this section may be used to
increase the Federal share for specific projects under the
program that are carried out in areas described in section
301(a) above the Federal share of the cost of the project
authorized by the law governing the program.
``(4) Lower non-federal share.--
``(A) Indian tribes.--In the case of a grant to an Indian
tribe, the Secretary may reduce the non-Federal share below
the percentage specified in paragraph (1) or may waive the
non-Federal share.
``(B) Certain states, political subdivisions, and nonprofit
organizations.--In the case of a grant to a State, or a
political subdivision of a State, that the Secretary
determines has exhausted its effective taxing and borrowing
capacity, or in the case of a grant to a nonprofit
organization that the Secretary determines has exhausted its
effective borrowing capacity, the Secretary may reduce the
non-Federal share below the percentage specified in paragraph
(1).

``SEC. 206. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

``In promulgating rules, regulations, and procedures for
assistance under this title, the Secretary shall ensure
that--
``(1) the relative needs of eligible areas are given
adequate consideration by the Secretary, as determined based
on, among other relevant factors--
``(A) the severity of the rates of unemployment in the
eligible areas and the duration of the unemployment;
``(B) the income levels and the extent of underemployment
in eligible areas; and
``(C) the outmigration of population from eligible areas
and the extent to which the outmigration is causing economic
injury in the eligible areas; and
``(2) allocations of assistance under this title are
prioritized to ensure that the level of economic distress of
an area, rather than a preference for a geographic area or a
specific type of economic distress, is the primary factor in
allocating the assistance.

``SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL
ASSISTANCE.

``(a) In General.--
``(1) Grants.--On the application of an eligible recipient,
the Secretary may make grants for training, research, and
technical assistance, including grants for program evaluation
and economic impact analyses, that would be useful in
alleviating or preventing conditions of excessive
unemployment or underemployment.
``(2) Types of assistance.--Grants under paragraph (1) may
be used for--
``(A) project planning and feasibility studies;
``(B) demonstrations of innovative activities or strategic
economic development investments;
``(C) management and operational assistance;
``(D) establishment of university centers;
``(E) establishment of business outreach centers;
``(F) studies evaluating the needs of, and development
potential for, economic growth of areas that the Secretary
determines have substantial need for the assistance; and
``(G) other activities determined by the Secretary to be
appropriate.
``(3) Reduction or waiver of non-federal share.--In the
case of a project assisted under this section, the Secretary
may reduce or waive the non-Federal share, without regard to
section 204 or 205, if the Secretary finds that the project
is not feasible without, and merits, such a reduction or
waiver.
``(b) Methods of Provision of Assistance.--In providing
research and technical assistance under this section, the
Secretary, in addition to making grants under subsection (a),
may--
``(1) provide research and technical assistance through
officers or employees of the Department;
``(2) pay funds made available to carry out this section to
Federal agencies; or
``(3) employ private individuals, partnerships, businesses,
corporations, or appropriate institutions under contracts
entered into for that purpose.

``SEC. 208. PREVENTION OF UNFAIR COMPETITION.

``No financial assistance under this Act shall be extended
to any project when the result would be to increase the
production of goods, materials, or commodities, or the
availability of services or facilities, when there is not
sufficient demand for such goods, materials, commodities,
services, or

[[Page H10737]]

facilities, to employ the efficient capacity of existing
competitive commercial or industrial enterprises.

``SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.

``(a) In General.--On the application of an eligible
recipient, the Secretary may make grants for development of
public facilities, public services, business development
(including funding of a revolving loan fund), planning,
technical assistance, training, and any other assistance to
alleviate long-term economic deterioration and sudden and
severe economic dislocation and further the economic
adjustment objectives of this title.
``(b) Criteria for Assistance.--The Secretary may provide
assistance under this section only if the Secretary
determines that--
``(1) the project will help the area to meet a special need
arising from--
``(A) actual or threatened severe unemployment; or
``(B) economic adjustment problems resulting from severe
changes in economic conditions; and
``(2) the area for which a project is to be carried out has
a comprehensive economic development strategy and the project
is consistent with the strategy, except that this paragraph
shall not apply to planning projects.
``(c) Particular Community Assistance.--Assistance under
this section may include assistance provided for activities
identified by communities, the economies of which are injured
by--
``(1) military base closures or realignments, defense
contractor reductions in force, or Department of Energy
defense-related funding reductions, for help in diversifying
their economies through projects to be carried out on Federal
Government installations or elsewhere in the communities;
``(2) disasters or emergencies, in areas with respect to
which a major disaster or emergency has been declared under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), for post-disaster
economic recovery;
``(3) international trade, for help in economic
restructuring of the communities; or
``(4) fishery failures, in areas with respect to which a
determination that there is a commercial fishery failure has
been made under section 312(a) of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1861a(a)).
``(d) Direct Expenditure or Redistribution by Recipient.--
``(1) In general.--Subject to paragraph (2), an eligible
recipient of a grant under this section may directly expend
the grant funds or may redistribute the funds to public and
private entities in the form of a grant, loan, loan
guarantee, payment to reduce interest on a loan guarantee, or
other appropriate assistance.
``(2) Limitation.--Under paragraph (1), an eligible
recipient may not provide any grant to a private for-profit
entity.

``SEC. 210. CHANGED PROJECT CIRCUMSTANCES.

``In any case in which a grant (including a supplementary
grant described in section 205) has been made by the
Secretary under this title (or made under this Act, as in
effect on the day before the effective date of the Economic
Development Administration Reform Act of 1998) for a project,
and, after the grant has been made but before completion of
the project, the purpose or scope of the project that was the
basis of the grant is modified, the Secretary may approve,
subject (except for a grant for which funds were obligated in
fiscal year 1995) to the availability of appropriations, the
use of grant funds for the modified project if the Secretary
determines that--
``(1) the modified project meets the requirements of this
title and is consistent with the comprehensive economic
development strategy submitted as part of the application for
the grant; and
``(2) the modifications are necessary to enhance economic
development in the area for which the project is being
carried out.

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

``In any case in which a grant (including a supplementary
grant described in section 205) has been made by the
Secretary under this title (or made under this Act, as in
effect on the day before the effective date of the Economic
Development Administration Reform Act of 1998) for a
construction project, and, after the grant has been made but
before completion of the project, the cost of the project
based on the designs and specifications that was the basis of
the grant has decreased because of decreases in costs--
``(1) the Secretary may approve, subject to the
availability of appropriations, the use of the excess funds
or a portion of the funds to improve the project; and
``(2) any amount of excess funds remaining after
application of paragraph (1) shall be deposited in the
general fund of the Treasury.

``SEC. 212. REPORTS BY RECIPIENTS.

``(a) In General.--Each recipient of assistance under this
title shall submit reports to the Secretary at such intervals
and in such manner as the Secretary shall require by
regulation, except that no report shall be required to be
submitted more than 10 years after the date of closeout of
the assistance award.
``(b) Contents.--Each report shall contain an evaluation of
the effectiveness of the economic assistance provided under
this title in meeting the need that the assistance was
designed to address and in meeting the objectives of this
Act.

``SEC. 213. PROHIBITION ON USE OF FUNDS FOR ATTORNEY'S AND
CONSULTANT'S FEES.

``Assistance made available under this title shall not be
used directly or indirectly for an attorney's or consultant's
fee incurred in connection with obtaining grants and
contracts under this title.
``TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

``SEC. 301. ELIGIBILITY OF AREAS.

``(a) In General.--For a project to be eligible for
assistance under section 201 or 209, the project shall be
located in an area that, on the date of submission of the
application, meets 1 or more of the following criteria:
``(1) Low per capita income.--The area has a per capita
income of 80 percent or less of the national average.
``(2) Unemployment rate above national average.--The area
has an unemployment rate that is, for the most recent 24-
month period for which data are available, at least 1 percent
greater than the national average unemployment rate.
``(3) Unemployment or economic adjustment problems.--The
area is an area that the Secretary determines has experienced
or is about to experience a special need arising from actual
or threatened severe unemployment or economic adjustment
problems resulting from severe short-term or long-term
changes in economic conditions.
``(b) Political Boundaries of Areas.--An area that meets 1
or more of the criteria of subsection (a), including a small
area of poverty or high unemployment within a larger
community in less economic distress, shall be eligible for
assistance under section 201 or 209 without regard to
political or other subdivisions or boundaries.
``(c) Documentation.--
``(1) In general.--A determination of eligibility under
subsection (a) shall be supported by the most recent Federal
data available, or, if no recent Federal data is available,
by the most recent data available through the government of
the State in which the area is located.
``(2) Acceptance by secretary.--The documentation shall be
accepted by the Secretary unless the Secretary determines
that the documentation is inaccurate.
``(d) Prior Designations.--Any designation of a
redevelopment area made before the effective date of the
Economic Development Administration Reform Act of 1998 shall
not be effective after that effective date.

``SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

``(a) In General.--The Secretary may provide assistance
under section 201 or 209 (except for planning assistance
under section 209) to an eligible recipient for a project
only if the eligible recipient submits to the Secretary, as
part of an application for the assistance--
``(1) an identification of the economic development
problems to be addressed using the assistance;
``(2) an identification of the past, present, and projected
future economic development investments in the area receiving
the assistance and public and private participants and
sources of funding for the investments; and
``(3)(A) a comprehensive economic development strategy for
addressing the economic problems identified under paragraph
(1) in a manner that promotes economic development and
opportunity, fosters effective transportation access,
enhances and protects the environment, and balances resources
through sound management of development; and
``(B) a description of how the strategy will solve the
problems.
``(b) Approval of Comprehensive Economic Development
Strategy.--The Secretary shall approve a comprehensive
economic development strategy that meets the requirements of
subsection (a) to the satisfaction of the Secretary.
``(c) Approval of Other Plan.--The Secretary may accept as
a comprehensive economic development strategy a satisfactory
plan developed under another federally supported program.
``TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

``SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

``(a) In General.--In order that economic development
projects of broad geographic significance may be planned and
carried out, the Secretary may designate appropriate economic
development districts in the United States, with the
concurrence of the States in which the districts will be
wholly or partially located, if--
``(1) the proposed district is of sufficient size or
population, and contains sufficient resources, to foster
economic development on a scale involving more than a single
area described in section 301(a);
``(2) the proposed district contains at least 1 area
described in section 301(a); and
``(3) the proposed district has a comprehensive economic
development strategy that--
``(A) contains a specific program for intra-district
cooperation, self-help, and public investment; and
``(B) is approved by each affected State and by the
Secretary.
``(b) Authorities.--The Secretary may, under regulations
promulgated by the Secretary--
``(1) invite the States to determine boundaries for
proposed economic development districts;

[[Page H10738]]

``(2) cooperate with the States--
``(A) in sponsoring and assisting district economic
planning and economic development groups; and
``(B) in assisting the district groups in formulating
comprehensive economic development strategies for districts;
and
``(3) encourage participation by appropriate local
government entities in the economic development districts.

``SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC
DEVELOPMENT DISTRICTS.

``The Secretary shall, by regulation, promulgate standards
for the termination or modification of the designation of
economic development districts.

``SEC. 403. INCENTIVES.

``(a) In General.--Subject to the non-Federal share
requirement under section 205(c)(1), the Secretary may
increase the amount of grant assistance for a project in an
economic development district by an amount that does not
exceed 10 percent of the cost of the project, in accordance
with such regulations as the Secretary shall promulgate, if--
``(1) the project applicant is actively participating in
the economic development activities of the district; and
``(2) the project is consistent with the comprehensive
economic development strategy of the district.
``(b) Review of Incentive System.--In promulgating
regulations under subsection (a), the Secretary shall review
the current incentive system to ensure that the system is
administered in the most direct and effective manner to
achieve active participation by project applicants in the
economic development activities of economic development
districts.

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

``If any part of an economic development district is in the
Appalachian region (as defined in section 403 of the
Appalachian Regional Development Act of 1965 (40 U.S.C.
App.)), the economic development district shall ensure that a
copy of the comprehensive economic development strategy of
the district is provided to the Appalachian Regional
Commission established under that Act.

``SEC. 405. ASSISTANCE TO PARTS OF ECONOMIC DEVELOPMENT
DISTRICTS NOT IN ELIGIBLE AREAS.

``Notwithstanding section 301, the Secretary may provide
such assistance as is available under this Act for a project
in a part of an economic development district that is not in
an area described in section 301(a), if the project will be
of a substantial direct benefit to an area described in
section 301(a) that is located in the district.
``TITLE V--ADMINISTRATION

``SEC. 501. ASSISTANT SECRETARY FOR ECONOMIC DEVELOPMENT.

``(a) In General.--The Secretary shall carry out this Act
through an Assistant Secretary of Commerce for Economic
Development, to be appointed by the President, by and with
the advice and consent of the Senate.
``(b) Compensation.--The Assistant Secretary of Commerce
for Economic Development shall be compensated at the rate
payable for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
``(c) Duties.--The Assistant Secretary of Commerce for
Economic Development shall carry out such duties as the
Secretary shall require and shall serve as the administrator
of the Economic Development Administration of the Department.

``SEC. 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

``In carrying out this Act, the Secretary shall--
``(1) maintain a central information clearinghouse on
matters relating to economic development, economic
adjustment, disaster recovery, defense conversion, and trade
adjustment programs and activities of the Federal and State
governments, including political subdivisions of States;
``(2) assist potential and actual applicants for economic
development, economic adjustment, disaster recovery, defense
conversion, and trade adjustment assistance under Federal,
State, and local laws in locating and applying for the
assistance; and
``(3) assist areas described in section 301(a) and other
areas by providing to interested persons, communities,
industries, and businesses in the areas any technical
information, market research, or other forms of assistance,
information, or advice that would be useful in alleviating or
preventing conditions of excessive unemployment or
underemployment in the areas.

``SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

``(a) Consultation on Problems Relating to Employment.--The
Secretary may consult with any persons, including
representatives of labor, management, agriculture, and
government, who can assist in addressing the problems of area
and regional unemployment or underemployment.
``(b) Consultation on Administration of Act.--The Secretary
may provide for such consultation with interested Federal
agencies as the Secretary determines to be appropriate in the
performance of the duties of the Secretary under this Act.

``SEC. 504. ADMINISTRATION, OPERATION, AND MAINTENANCE.

``The Secretary shall approve Federal assistance under this
Act only if the Secretary is satisfied that the project for
which Federal assistance is granted will be properly and
efficiently administered, operated, and maintained.

``SEC. 505. BUSINESSES DESIRING FEDERAL CONTRACTS.

``The Secretary may provide the procurement divisions of
Federal agencies with a list consisting of--
``(1) the names and addresses of businesses that are
located in areas described in section 301(a) and that wish to
obtain Federal Government contracts for the provision of
supplies or services; and
``(2) the supplies and services that each business
provides.

``SEC. 506. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

``(a) In General.--The Secretary shall conduct an
evaluation of each university center and each economic
development district that receives grant assistance under
this Act (each referred to in this section as a `grantee') to
assess the grantee's performance and contribution toward
retention and creation of employment.
``(b) Purpose of Evaluations of University Centers.--The
purpose of the evaluations of university centers under
subsection (a) shall be to determine which university centers
are performing well and are worthy of continued grant
assistance under this Act, and which should not receive
continued assistance, so that university centers that have
not previously received assistance may receive assistance.
``(c) Timing of Evaluations.--Evaluations under subsection
(a) shall be conducted on a continuing basis so that each
grantee is evaluated within 3 years after the first award of
assistance to the grantee after the effective date of the
Economic Development Administration Reform Act of 1998, and
at least once every 3 years thereafter, so long as the
grantee receives the assistance.
``(d) Evaluation Criteria.--
``(1) Establishment.--The Secretary shall establish
criteria for use in conducting evaluations under subsection
(a).
``(2) Evaluation criteria for university centers.--The
criteria for evaluation of a university center shall, at a
minimum, provide for an assessment of the center's
contribution to providing technical assistance, conducting
applied research, and disseminating results of the activities
of the center.
``(3) Evaluation criteria for economic development
districts.--The criteria for evaluation of an economic
development district shall, at a minimum, provide for an
assessment of management standards, financial accountability,
and program performance.
``(e) Peer Review.--In conducting an evaluation of a
university center or economic development district under
subsection (a), the Secretary shall provide for the
participation of at least 1 other university center or
economic development district, as appropriate, on a cost-
reimbursement basis.

``SEC. 507. NOTIFICATION OF REORGANIZATION.

``Not later than 30 days before the date of any
reorganization of the offices, programs, or activities of the
Economic Development Administration, the Secretary shall
provide notification of the reorganization to the Committee
on Environment and Public Works and the Committee on
Appropriations of the Senate, and the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives.
``TITLE VI--MISCELLANEOUS

``SEC. 601. POWERS OF SECRETARY.

``(a) In General.--In carrying out the duties of the
Secretary under this Act, the Secretary may--
``(1) adopt, alter, and use a seal, which shall be
judicially noticed;
``(2) subject to the civil service and classification laws,
select, employ, appoint, and fix the compensation of such
personnel as are necessary to carry out this Act;
``(3) hold such hearings, sit and act at such times and
places, and take such testimony, as the Secretary determines
to be appropriate;
``(4) request directly, from any Federal agency, board,
commission, office, or independent establishment, such
information, suggestions, estimates, and statistics as the
Secretary determines to be necessary to carry out this Act
(and each Federal agency, board, commission, office, or
independent establishment may provide such information,
suggestions, estimates, and statistics directly to the
Secretary);
``(5) under regulations promulgated by the Secretary--
``(A) assign or sell at public or private sale, or
otherwise dispose of for cash or credit, in the Secretary's
discretion and on such terms and conditions and for such
consideration as the Secretary determines to be reasonable,
any evidence of debt, contract, claim, personal property, or
security assigned to or held by the Secretary in connection
with assistance provided under this Act; and
``(B) collect or compromise all obligations assigned to or
held by the Secretary in connection with that assistance
until such time as the obligations are referred to the
Attorney General for suit or collection;
``(6) deal with, complete, renovate, improve, modernize,
insure, rent, or sell for cash or credit, on such terms and
conditions and for such consideration as the Secretary
determines to be reasonable, any real or personal property
conveyed to or otherwise acquired by the Secretary in
connection with assistance provided under this Act;

[[Page H10739]]

``(7) pursue to final collection, by means of compromise or
other administrative action, before referral to the Attorney
General, all claims against third parties assigned to the
Secretary in connection with assistance provided under this
Act;
``(8) acquire, in any lawful manner, any property (real,
personal, or mixed, tangible or intangible), to the extent
appropriate in connection with assistance provided under this
Act;
``(9) in addition to any powers, functions, privileges, and
immunities otherwise vested in the Secretary, take any
action, including the procurement of the services of
attorneys by contract, determined by the Secretary to be
necessary or desirable in making, purchasing, servicing,
compromising, modifying, liquidating, or otherwise
administratively dealing with assets held in connection with
financial assistance provided under this Act;
``(10)(A) employ experts and consultants or organizations
as authorized by section 3109 of title 5, United States Code,
except that contracts for such employment may be renewed
annually;
``(B) compensate individuals so employed, including
compensation for travel time; and
``(C) allow individuals so employed, while away from their
homes or regular places of business, travel expenses,
including per diem in lieu of subsistence, as authorized by
section 5703 of title 5, United States Code, for persons
employed intermittently in the Federal Government service;
``(11) establish performance measures for grants and other
assistance provided under this Act, and use the performance
measures to evaluate the economic impact of economic
development assistance programs under this Act, which
establishment and use of performance measures shall be
provided by the Secretary through--
``(A) officers or employees of the Department;
``(B) the employment of persons under contracts entered
into for such purposes; or
``(C) grants to persons, using funds made available to
carry out this Act;
``(12) conduct environmental reviews and incur necessary
expenses to evaluate and monitor the environmental impact of
economic development assistance provided and proposed to be
provided under this Act, including expenses associated with
the representation and defense of the actions of the
Secretary relating to the environmental impact of the
assistance, using any funds made available to carry out
section 207;
``(13) sue and be sued in any court of record of a State
having general jurisdiction or in any United States district
court, except that no attachment, injunction, garnishment, or
other similar process, mesne or final, shall be issued
against the Secretary or the property of the Secretary; and
``(14) establish such rules, regulations, and procedures as
the Secretary considers appropriate for carrying out this
Act.
``(b) Deficiency Judgments.--The authority under subsection
(a)(7) to pursue claims shall include the authority to obtain
deficiency judgments or otherwise pursue claims relating to
mortgages assigned to the Secretary.
``(c) Inapplicability of Certain Other Requirements.--
Section 3709 of the Revised Statutes (41 U.S.C. 5) shall not
apply to any contract of hazard insurance or to any purchase
or contract for services or supplies on account of property
obtained by the Secretary as a result of assistance provided
under this Act if the premium for the insurance or the amount
of the services or supplies does not exceed $1,000.
``(d) Property Interests.--
``(1) In general.--The powers of the Secretary under this
section, relating to property acquired by the Secretary in
connection with assistance provided under this Act, shall
extend to property interests of the Secretary relating to
projects approved under--
``(A) this Act;
``(B) title I of the Public Works Employment Act of 1976
(42 U.S.C. 6701 et seq.);
``(C) title II of the Trade Act of 1974 (19 U.S.C. 2251 et
seq.); and
``(D) the Community Emergency Drought Relief Act of 1977
(42 U.S.C. 5184 note; Public Law 95-31).
``(2) Release.--The Secretary may release, in whole or in
part, any real property interest, or tangible personal
property interest, in connection with a grant after the date
that is 20 years after the date on which the grant was
awarded.
``(e) Powers of Conveyance and Execution.--The power to
convey and to execute, in the name of the Secretary, deeds of
conveyance, deeds of release, assignments and satisfactions
of mortgages, and any other written instrument relating to
real or personal property or any interest in such property
acquired by the Secretary under this Act may be exercised by
the Secretary, or by any officer or agent appointed by the
Secretary for that purpose, without the execution of any
express delegation of power or power of attorney.

``SEC. 603. ANNUAL REPORT TO CONGRESS.

``Not later than July 1, 2000, and July 1 of each year
thereafter, the Secretary shall submit to Congress a
comprehensive and detailed annual report on the activities of
the Secretary under this Act during the most recently
completed fiscal year.

``SEC. 604. DELEGATION OF FUNCTIONS AND TRANSFER OF FUNDS
AMONG FEDERAL AGENCIES.

``(a) Delegation of Functions to Other Federal Agencies.--
The Secretary may--
``(1) delegate to the heads of other Federal agencies such
functions, powers, and duties of the Secretary under this Act
as the Secretary determines to be appropriate; and
``(2) authorize the redelegation of the functions, powers,
and duties by the heads of the agencies.
``(b) Transfer of Funds to Other Federal Agencies.--Funds
authorized to be appropriated to carry out this Act may be
transferred between Federal agencies, if the funds are used
for the purposes for which the funds are specifically
authorized and appropriated.
``(c) Transfer of Funds From Other Federal Agencies.--
``(1) In general.--Subject to paragraph (2), for the
purposes of this Act, the Secretary may accept transfers of
funds from other Federal agencies if the funds are used for
the purposes for which (and in accordance with the terms
under which) the funds are specifically authorized and
appropriated.
``(2) Use of funds.--The transferred funds--
``(A) shall remain available until expended; and
``(B) may, to the extent necessary to carry out this Act,
be transferred to and merged by the Secretary with the
appropriations for salaries and expenses.

``SEC. 605. PENALTIES.

``(a) False Statements; Security Overvaluation.--A person
that makes any statement that the person knows to be false,
or willfully overvalues any security, for the purpose of--
``(1) obtaining for the person or for any applicant any
financial assistance under this Act or any extension of the
assistance by renewal, deferment, or action, or by any other
means, or the acceptance, release, or substitution of
security for the assistance;
``(2) influencing in any manner the action of the
Secretary; or
``(3) obtaining money, property, or any thing of value,
under this Act;

shall be fined under title 18, United States Code, imprisoned
not more than 5 years, or both.
``(b) Embezzlement and Fraud-Related Crimes.--A person that
is connected in any capacity with the Secretary in the
administration of this Act and that--
``(1) embezzles, abstracts, purloins, or willfully
misapplies any funds, securities, or other thing of value,
that is pledged or otherwise entrusted to the person;
``(2) with intent to defraud the Secretary or any other
person or entity, or to deceive any officer, auditor, or
examiner--
``(A) makes any false entry in any book, report, or
statement of or to the Secretary; or
``(B) without being duly authorized, draws any order or
issue, puts forth, or assigns any note, debenture, bond, or
other obligation, or draft, bill of exchange, mortgage,
judgment, or decree thereof;
``(3) with intent to defraud, participates or shares in or
receives directly or indirectly any money, profit, property,
or benefit through any transaction, loan, grant, commission,
contract, or any other act of the Secretary; or
``(4) gives any unauthorized information concerning any
future action or plan of the Secretary that might affect the
value of securities, or having such knowledge invests or
speculates, directly or indirectly, in the securities or
property of any company or corporation receiving loans,
grants, or other assistance from the Secretary;

shall be fined under title 18, United States Code, imprisoned
not more than 5 years, or both.

``SEC. 606. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE
EMPLOYEES.

``Assistance shall not be provided by the Secretary under
this Act to any business unless the owners, partners, or
officers of the business--
``(1) certify to the Secretary the names of any attorneys,
agents, and other persons engaged by or on behalf of the
business for the purpose of expediting applications made to
the Secretary for assistance of any kind, under this Act, and
the fees paid or to be paid to the person for expediting the
applications; and
``(2) execute an agreement binding the business, for the 2-
year period beginning on the date on which the assistance is
provided by the Secretary to the business, to refrain from
employing, offering any office or employment to, or retaining
for professional services, any person who, on the date on
which the assistance or any part of the assistance was
provided, or within the 1-year period ending on that date--
``(A) served as an officer, attorney, agent, or employee of
the Department; and
``(B) occupied a position or engaged in activities that the
Secretary determines involved discretion with respect to the
granting of assistance under this Act.

``SEC. 607. MAINTENANCE AND PUBLIC INSPECTION OF LIST OF
APPROVED APPLICATIONS FOR FINANCIAL ASSISTANCE.

``(a) In General.--The Secretary shall--
``(1) maintain as a permanent part of the records of the
Department a list of applications approved for financial
assistance under this Act; and
``(2) make the list available for public inspection during
the regular business hours of the Department.

[[Page H10740]]

``(b) Additions to List.--The following information shall
be added to the list maintained under subsection (a) as soon
as an application described in subsection (a)(1) is approved:
``(1) The name of the applicant and, in the case of a
corporate application, the name of each officer and director
of the corporation.
``(2) The amount and duration of the financial assistance
for which application is made.
``(3) The purposes for which the proceeds of the financial
assistance are to be used.

``SEC. 608. RECORDS AND AUDITS.

``(a) Recordkeeping and Disclosure Requirements.--Each
recipient of assistance under this Act shall keep such
records as the Secretary shall require, including records
that fully disclose--
``(1) the amount and the disposition by the recipient of
the proceeds of the assistance;
``(2) the total cost of the project in connection with
which the assistance is given or used;
``(3) the amount and nature of the portion of the cost of
the project provided by other sources; and
``(4) such other records as will facilitate an effective
audit.
``(b) Access to Books for Examination and Audit.--The
Secretary, the Inspector General of the Department, and the
Comptroller General of the United States, or any duly
authorized representative, shall have access for the purpose
of audit and examination to any books, documents, papers, and
records of the recipient that relate to assistance received
under this Act.

``SEC. 609. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

``(a) Previously Authorized Assistance.--Except as
otherwise provided in this Act, all financial and technical
assistance authorized under this Act shall be in addition to
any Federal assistance authorized before the effective date
of the Economic Development Administration Reform Act of
1998.
``(b) Assistance Under Other Acts.--Nothing in this Act
authorizes or permits any reduction in the amount of Federal
assistance that any State or other entity eligible under this
Act is entitled to receive under any other Act.

``SEC. 610. ACCEPTANCE OF CERTIFICATIONS BY APPLICANTS.

``Under terms and conditions determined by the Secretary,
the Secretary may accept the certifications of an applicant
for assistance under this Act that the applicant meets the
requirements of this Act.''.
(b) Title VII.--The Public Works and Economic Development
Act of 1965 (42 U.S.C. 3121 et seq.) is amended--
(1) by redesignating section 712 as section 602 and moving
that section to appear after section 601 (as amended by
subsection (a));
(2) in section 602 (as added by paragraph (1))--
(A) by striking the section heading and all that follows
through ``All'' and inserting the following:

``SEC. 602. MAINTENANCE OF STANDARDS.

``All''; and
(B) by striking ``sections 101, 201, 202, 403, 903, and
1003'' and inserting ``this Act''; and
(3) by striking title VII (as amended by paragraph (1)) and
inserting the following:
``TITLE VII--FUNDING

``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this
Act $397,969,000 for fiscal year 1999, $368,000,000 for
fiscal year 2000, $335,000,000 for fiscal year 2001,
$335,000,000 for fiscal year 2002, and $335,000,000 for
fiscal year 2003, to remain available until expended.

``SEC. 702. AUTHORIZATION OF APPROPRIATIONS FOR DEFENSE
CONVERSION ACTIVITIES.

``(a) In General.--In addition to amounts made available
under section 701, there are authorized to be appropriated
such sums as are necessary to carry out section 209(c)(1), to
remain available until expended.
``(b) Pilot Projects.--Funds made available under
subsection (a) may be used for activities including pilot
projects for privatization of, and economic development
activities for, closed or realigned military or Department of
Energy installations.

``SEC. 703. AUTHORIZATION OF APPROPRIATIONS FOR DISASTER
ECONOMIC RECOVERY ACTIVITIES.

``(a) In General.--In addition to amounts made available
under section 701, there are authorized to be appropriated
such sums as are necessary to carry out section 209(c)(2), to
remain available until expended.
``(b) Federal Share.--The Federal share of the cost of
activities funded with amounts made available under
subsection (a) shall be up to 100 percent.''.
(c) Titles VIII Through X.--The Public Works and Economic
Development Act of 1965 is amended by striking titles VIII
through X (42 U.S.C. 3231 et seq.).

SEC. 103. CONFORMING AMENDMENT.

Section 5316 of title 5, United States Code, is amended by
striking ``Administrator for Economic Development.''.

SEC. 104. TRANSITION PROVISIONS.

(a) Existing Rights, Duties, and Obligations.--This title,
including the amendments made by this title, does not affect
the validity of any right, duty, or obligation of the United
States or any other person arising under any contract, loan,
or other instrument or agreement that was in effect on the
day before the effective date of this title.
(b) Continuation of Suits.--No action or other proceeding
commenced by or against any officer or employee of the
Economic Development Administration shall abate by reason of
the enactment of this title.
(c) Liquidating Account.--The Economic Development
Revolving Fund established under section 203 of the Public
Works and Economic Development Act of 1965 (42 U.S.C. 3143)
(as in effect on the day before the effective date of this
title) shall continue to be available to the Secretary of
Commerce as a liquidating account (as defined in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) for
payment of obligations and expenses in connection with
financial assistance provided under--
(1) the Public Works and Economic Development Act of 1965
(42 U.S.C. 3121 et seq.);
(2) the Area Redevelopment Act (42 U.S.C. 2501 et seq.);
and
(3) the Trade Act of 1974 (19 U.S.C. 2101 et seq.).
(d) Administration.--The Secretary of Commerce shall take
such actions authorized before the effective date of this
title as are appropriate to administer and liquidate grants,
contracts, agreements, loans, obligations, debentures, or
guarantees made by the Secretary under law in effect before
the effective date of this title.

SEC. 105. EFFECTIVE DATE.

This title and the amendments made by this title shall take
effect on a date determined by the Secretary of Commerce, but
not later than 90 days after the date of enactment of this
Act.
TITLE II--APPALACHIAN REGIONAL DEVELOPMENT

SEC. 201. SHORT TITLE.

This title may be cited as the ``Appalachian Regional
Development Reform Act of 1998''.

SEC. 202. FINDINGS AND PURPOSES.

Section 2 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended by adding at the end the
following:
``(c) 1998 Findings and Purposes.--
``(1) Findings.--Congress further finds and declares that,
while substantial progress has been made in fulfilling many
of the objectives of this Act, rapidly changing national and
global economies over the past decade have created new
problems and challenges for rural areas throughout the United
States and especially for the Appalachian region.
``(2) Purposes.--In addition to the purposes stated in
subsections (a) and (b), it is the purpose of this Act--
``(A) to assist the Appalachian region in--
``(i) providing the infrastructure necessary for economic
and human resource development;
``(ii) developing the region's industry;
``(iii) building entrepreneurial communities;
``(iv) generating a diversified regional economy; and
``(v) making the region's industrial and commercial
resources more competitive in national and world markets;
``(B) to provide a framework for coordinating Federal,
State, and local initiatives to respond to the economic
competitiveness challenges in the Appalachian region
through--
``(i) improving the skills of the region's workforce;
``(ii) adapting and applying new technologies for the
region's businesses; and
``(iii) improving the access of the region's businesses to
the technical and financial resources necessary to
development of the businesses; and
``(C) to address the needs of severely and persistently
distressed areas of the Appalachian region and focus special
attention on the areas of greatest need so as to provide a
fairer opportunity for the people of the region to share the
quality of life generally enjoyed by citizens across the
United States.''.

SEC. 203. MEETINGS.

(a) Annual Meeting Requirement.--Section 101 of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended--
(1) by striking ``(a) There'' and inserting the following:
``(a) In General.--
``(1) Establishment.--There''; and
(2) by adding at the end the following:
``(2) Meetings.--
``(A) In general.--The Commission shall conduct at least 1
meeting each year with the Federal Cochairman and at least a
majority of the State members present.''.
(b) Additional Meetings by Electronic Means.--Section 101
of the Appalachian Regional Development Act of 1965 (40
U.S.C. App.) is amended--
(1) in subsection (a)(2) (as added by subsection (a)(2)),
by adding at the end the following:
``(B) Additional meetings.--The Commission may conduct such
additional meetings by electronic means as the Commission
considers advisable, including meetings to decide matters
requiring an affirmative vote.''; and
(2) in the fourth sentence of subsection (c), by striking
``to be present''.
(c) Decisions Requiring a Quorum.--Section 101(b) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended by striking the third sentence and inserting the
following: ``A decision involving Commission policy, approval
of any State, regional, or subregional development plan or
implementing investment program,

[[Page H10741]]

any modification or revision of the Appalachian Regional
Commission Code, any allocation of funds among the States, or
any designation of a distressed county or an economically
strong county shall not be made without a quorum of the State
members.''.

SEC. 204. ADMINISTRATIVE EXPENSES.

Section 105 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended--
(1) by striking ``(a) For the period'' in the first
sentence and all that follows through ``such expenses'' in
the second sentence and inserting ``Administrative expenses
of the Commission''; and
(2) by striking subsection (b).

SEC. 205. COMPENSATION OF EMPLOYEES.

Section 106(2) of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App.) is amended by striking ``the salary
of the alternate to the Federal Cochairman on the Commission
as provided in section 101'' and inserting ``the maximum rate
of basic pay for the Senior Executive Service under section
5382 of title 5, United States Code, including any applicable
locality-based comparability payment that may be authorized
under section 5304(h)(2)(C) of that title''.

SEC. 206. ADMINISTRATIVE POWERS OF COMMISSION.

Section 106(7) of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App.) is amended by striking ``1982'' and
inserting ``2001''.

SEC. 207. COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

(a) Operation Costs.--Section 202(c) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended
by striking ``100 per centum of the costs thereof'' in the
first sentence and all that follows through the period at the
end of the second sentence and inserting ``50 percent of the
costs of that operation (or 80 percent of those costs in the
case of a project to be carried out in a county for which a
distressed county designation is in effect under section
226).''.
(b) Cost Sharing.--Section 202 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by adding
at the end the following:
``(f) Maximum Commission Contribution After September 30,
1998.--
``(1) In general.--Subject to paragraph (2), after
September 30, 1998, a Commission contribution of not more
than 50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act.
``(2) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county
designation is in effect under section 226, the maximum
Commission contribution under paragraph (1) may be increased
to the lesser of--
``(A) 80 percent; or
``(B) the maximum Federal contribution percentage
authorized by this section.''.
(c) Technical Amendments.--Section 202 of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
(1) by striking ``Secretary of Health, Education, and
Welfare'' each place it appears and inserting ``Secretary of
Health and Human Services''; and
(2) in subsection (c), by striking the last sentence.

SEC. 208. REPEAL OF LAND STABILIZATION, CONSERVATION, AND
EROSION CONTROL PROGRAM.

Section 203 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 209. REPEAL OF TIMBER DEVELOPMENT PROGRAM.

Section 204 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 210. REPEAL OF MINING AREA RESTORATION PROGRAM.

Section 205 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 211. REPEAL OF WATER RESOURCE SURVEY.

Section 206 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 212. COST SHARING OF HOUSING PROJECTS.

(a) Loans.--Section 207(b) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended in the
first sentence by striking ``80 per centum'' and inserting
``50 percent (or 80 percent in the case of a project to be
carried out in a county for which a distressed county
designation is in effect under section 226)''.
(b) Grants.--Section 207(c)(1) of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by
striking ``80 per centum'' and inserting ``50 percent (or 80
percent in the case of a project to be carried out in a
county for which a distressed county designation is in effect
under section 226)''.

SEC. 213. REPEAL OF AIRPORT SAFETY IMPROVEMENTS PROGRAM.

Section 208 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 214. COST SHARING OF VOCATIONAL EDUCATION AND EDUCATION
DEMONSTRATION PROJECTS.

(a) Operation Costs.--Section 211(b)(3) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended
by striking ``100 per centum of the costs thereof'' in the
first sentence and all that follows through the period at the
end of the second sentence and inserting ``50 percent of the
costs of that operation (or 80 percent of those costs in the
case of a project to be carried out in a county for which a
distressed county designation is in effect under section
226).''
(b) Cost Sharing.--Section 211 of the Appalachian Regional
Development Act of 1965 (40 U.S.C. App.) is amended by adding
at the end the following:
``(c) Maximum Commission Contribution After September 30,
1998.--
``(1) In general.--Subject to paragraph (2), after
September 30, 1998, a Commission contribution of not more
than 50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act.
``(2) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county
designation is in effect under section 226, the maximum
Commission contribution under paragraph (1) may be increased
to the lesser of--
``(A) 80 percent; or
``(B) the maximum Federal contribution percentage
authorized by this section.''.
(c) Technical Amendments.--Section 211 of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
(1) in subsection (a), by striking ``Secretary of Health,
Education, and Welfare'' and inserting ``Secretary of
Education''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``Secretary of the
Department of Health, Education, and Welfare'' and inserting
``Secretary of Education''; and
(B) in paragraph (3), by striking the last sentence.

SEC. 215. REPEAL OF SEWAGE TREATMENT WORKS PROGRAM.

Section 212 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 216. REPEAL OF AMENDMENTS TO HOUSING ACT OF 1954.

Section 213 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is repealed.

SEC. 217. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS.

(a) Availability of Amounts.--Section 214(a) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended in the first sentence by striking ``the President
is authorized to provide funds to the Federal Cochairman to
be used'' and inserting ``the Federal Cochairman may use
amounts made available to carry out this section''.
(b) Cost Sharing.--Section 214(b) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
(1) by striking ``(b) The Federal'' and inserting the
following:
``(b) Cost Sharing.--
``(1) In general.--The Federal''; and
(2) by adding at the end the following:
``(2) Maximum commission contribution after september 30,
1998.--
``(A) In general.--Subject to subparagraph (B), after
September 30, 1998, a Commission contribution of not more
than 50 percent of any project cost eligible for financial
assistance under this section may be provided from funds
appropriated to carry out this Act.
``(B) Distressed counties.--In the case of a project to be
carried out in a county for which a distressed county
designation is in effect under section 226, the maximum
Commission contribution under subparagraph (A) may be
increased to 80 percent.''.
(c) Definition of Federal Grant-in-Aid Programs.-- Section
214(c) of the Appalachian Regional Development Act of 1965
(40 U.S.C. App.) is amended in the first sentence--
(1) by striking ``on or before December 31, 1980,''; and
(2) by striking ``Titles I and IX of the Public Works and
Economic Development Act of 1965'' and inserting ``sections
201 and 209 of the Public Works and Economic Development Act
of 1965''.
(d) Limitation on Covered Road Projects.--Section 214(c) of
the Appalachian Regional Development Act of 1965 (40 U.S.C.
App.) is amended in the second sentence by inserting
``authorized by title 23, United States Code'' after ``road
construction''.

SEC. 218. PROGRAM DEVELOPMENT CRITERIA.

(a) Considerations.--Section 224(a)(1) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended
by inserting before the semicolon at the end the following:
``or in a severely and persistently distressed county or
area''.
(b) Outcome Measurements.--Section 224(a) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended--
(1) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(2) by adding at the end the following:
``(6) the extent to which the project design provides for
detailed outcome measurements by which grant expenditures may
be evaluated.''.
(c) Removal of Limitations.--Section 224 of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is amended
by striking subsection (b) and inserting the following:
``(b) Limitation.--Financial assistance made available
under this Act shall not be used to assist establishments
relocating from 1 area to another.''.
(d) Conforming Amendment.--Section 302(b)(1) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended in the first sentence by striking
``Notwithstanding'' and all that follows through ``the
Commission'' and inserting ``The Commission''.

[[Page H10742]]

SEC. 219. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

Part C of title II of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App.) is amended by adding at the end
the following:

``SEC. 226. DISTRESSED AND ECONOMICALLY STRONG COUNTIES.

``(a) Designations.--
``(1) In general.--Not later than 90 days after the date of
enactment of this section, and annually thereafter, the
Commission, in accordance with such criteria as the
Commission may establish, shall--
``(A) designate as `distressed counties' those counties in
the region that are the most severely and persistently
distressed; and
``(B) designate 2 categories of economically strong
counties, consisting of--
``(i) `competitive counties', which shall be those counties
in the region that are approaching economic parity with the
rest of the United States; and
``(ii) `attainment counties', which shall be those counties
in the region that have attained or exceeded economic parity
with the rest of the United States.
``(2) Annual review of designations.--The Commission
shall--
``(A) conduct an annual review of each designation of a
county under paragraph (1) to determine if the county still
meets the criteria for the designation; and
``(B) renew the designation for another 1-year period only
if the county still meets the criteria.
``(b) Distressed Counties.--In program and project
development and implementation and in the allocation of
appropriations made available to carry out this Act, the
Commission shall give special consideration to the needs of
those counties for which a distressed county designation is
in effect under this section.
``(c) Economically Strong Counties.--
``(1) Competitive counties.--Except as provided in
paragraphs (3) and (4), in the case of a project that is
carried out in a county for which a competitive county
designation is in effect under this section, assistance under
this Act shall be limited to not more than 30 percent of the
project cost.
``(2) Attainment counties.--Except as provided in
paragraphs (3) and (4), no funds may be provided under this
Act for a project that is carried out in a county for which
an attainment county designation is in effect under this
section.
``(3) Exceptions.--The requirements of paragraphs (1) and
(2) shall not apply to--
``(A) any project on the Appalachian development highway
system authorized by section 201;
``(B) any local development district administrative project
assisted under section 302(a)(1); or
``(C) any multicounty project that is carried out in 2 or
more counties designated under this section if--
``(i) at least 1 of the participating counties is
designated as a distressed county under this section; and
``(ii) the project will be of substantial direct benefit to
1 or more distressed counties.
``(4) Waiver.--
``(A) In general.--The Commission may waive the
requirements of paragraphs (1) and (2) for a project upon a
showing by the recipient of assistance for the project of 1
or more of the following:
``(i) The existence of a significant pocket of distress in
the part of the county in which the project is carried out.
``(ii) The existence of a significant potential benefit
from the project in 1 or more areas of the region outside the
designated county.
``(B) Reports to congress.--The Commission shall submit to
the Committee on Environment and Public Works of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives an annual report describing each
waiver granted under subparagraph (A) during the period
covered by the report.''.

SEC. 220. GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION
PROJECTS.

(a) Availability of Amounts.--Section 302(a) of the
Appalachian Regional Development Act of 1965 (40 U.S.C. App.)
is amended--
(1) by striking ``The President'' and inserting ``The
Commission''; and
(2) in paragraphs (1), (2), and (3), by striking ``to the
Commission'' each place it appears.
(b) Cost Sharing.--Section 302(a) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``75 per centum'' and
inserting ``50 percent''; and
(B) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(3) by striking ``(a) The'' and inserting the following:
``(a) Authorization To Make Grants.--
``(1) In general.--The'';
(4) by adjusting the margins of subparagraphs (A), (B), and
(C) (as redesignated by paragraph (2)) to reflect the
amendment made by paragraph (3); and
(5) by adding at the end the following:
``(2) Cost sharing after september 30, 1998.--
``(A) In general.--Except as provided in subparagraph (B),
after September 30, 1998, not more than 50 percent (or 80
percent in the case of a project to be carried out in a
county for which a distressed county designation is in effect
under section 226) of the costs of any activity eligible for
financial assistance under this section may be provided from
funds appropriated to carry out this Act.
``(B) Discretionary grants.--
``(i) In general.--Discretionary grants made by the
Commission to implement significant regional initiatives, to
take advantage of special development opportunities, or to
respond to emergency economic distress in the region may be
made without regard to the percentage limitations specified
in subparagraph (A).
``(ii) Limitation on aggregate amount.--For each fiscal
year, the aggregate amount of discretionary grants referred
to in clause (i) shall not exceed 10 percent of the amounts
appropriated under section 401 for the fiscal year.''.
(c) Conforming and Technical Amendments.--
(1) Section 302 of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App.) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``Federal Energy
Administration, the Energy Research and Development
Administration'' and inserting ``Secretary of Energy''; and
(ii) by striking paragraphs (3) and (4); and
(B) by striking subsections (d) and (e).
(2) Section 210(a) of title 35, United States Code, is
amended--
(A) by striking paragraph (11); and
(B) by redesignating paragraphs (12) through (22) as
paragraphs (11) through (21), respectively.

SEC. 221. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL
PROGRAM.

Section 401 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

``(a) In General.--In addition to amounts authorized by
section 201 and other amounts made available for the
Appalachian development highway system program, there are
authorized to be appropriated to the Commission to carry out
this Act--
``(1) $68,000,000 for fiscal year 1999;
``(2) $69,000,000 for fiscal year 2000; and
``(3) $70,000,000 for fiscal year 2001.
``(b) Availability.--Sums made available under subsection
(a) shall remain available until expended.''.

SEC. 222. EXTENSION OF TERMINATION DATE.

Section 405 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App.) is amended by striking ``1982'' and
inserting ``2001''.

SEC. 223. TECHNICAL AMENDMENT.

Section 5334(a) of title 5, United States Code, is amended
in the second sentence by striking ``title 40, appendix, or
by a regional commission established pursuant to section 3182
of title 42, under section 3186(a)(2) of that title'' and
inserting ``the Appalachian Regional Development Act of 1965
(40 U.S.C. App.)''.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Pennsylvania (Mr. Shuster) and the gentleman from Minnesota (Mr.
Oberstar), each will control 20 minutes.
The Chair recognizes the gentleman from Pennsylvania (Mr. Shuster).
Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
I rise in strong support of this legislation, which reauthorizes and
reforms the programs of the Economic Development Administration and the
Appalachian Regional Commission.
This is an historic occasion. Despite the fact that the House has
passed reauthorization in every Congress since the authorization
expired in 1982, the Senate, for the first time in 17 years, has passed
an EDA and ARC reauthorization. The Senate-passed bill is modeled after
the House reported bill and is acceptable on a bipartisan basis.
The House bill, the companion bill, has over 100 cosponsors on a
bipartisan basis, is supported by the administration and every major
economic development association, by the governors, by the League of
Cities, by the counties, and was passed unanimously by our committee
with every Republican and every Democrat on the committee voting in
favor of it.
The EDA and the ARC are two programs that work. They provide economic
opportunity to our Nation's most distressed communities, particularly
in rural areas. The bill reforms both agencies by encouraging regional
cooperation in economic development and targeting funds, and this is
very important, reforming by targeting funds into the truly distressed
communities across our country.
This legislation addresses the concerns of critics of these programs.
For example, the legislation no longer allows 85 percent of the Nation
to be eligible for EDA grants. Indeed, recent

[[Page H10743]]

studies by Rutgers University found that EDA is a cost-effective agency
that provides real economic development to really distressed
communities. In addition, the study found that the number of jobs
doubled in the 6 years after project completion in those EDA areas
where indeed they were focused on truly economic distress.
This report also deals with the 1996 GAO report that suggested there
was not a strong link. Rutgers instead found that EDA investments have
a statistical significant and positive effect on county total
employment and that the cost per job, get this, the cost per job for
the EDA program is estimated at just around $1000.
In addition, EDA is a major Federal program to assist communities
adversely affected by defense cutbacks and base closures. The EDA has
already helped more than 100 communities who have suffered base
closure. Given these facts, our committee has focused the
authorizations on the EDA programs which demonstrated effectiveness. In
this area of block granting, the ARC serves as a model program for
State and Federal cooperation.
Every Federal funding and policy decision made by ARC requires the
concurrence of both the States and the Federal government. It is very
important to emphasize this point. The ARC program is not one which is
dictated from Washington but, rather, must have the concurrence of the
States involved.
Indeed, this legislation is historic in nature and should be passed.
In fact, with the ARC funding, the Appalachian Regional Commission
receives on a per capita basis 14 percent fewer Federal resources than
the rest of the country.
In summary, the need for the ARC is there. The program works. It is a
model for Federal and local cooperation. By passing this legislation,
the House will have taken an historic step toward reforming and
improving these proven programs. I urge my colleagues to support this
legislation.
Mr. Speaker, I reserve the balance of my time.

{time} 1400

Mr. OBERSTAR. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to compliment our chairman, the gentleman from
Pennsylvania (Mr. Shuster) for doggedly sticking with these two
programs, EDA, and the Appalachian Regional Commission for our
encouraging and motivating our subcommittee members to pursue the
hearings, to markup the bill, move it through subcommittee, move it
through full committee, to work with the Senate in bringing this
legislation to the floor in that body, because that has always been the
problem for years.
We have never been able to move authorization legislation through the
Senate because of various objections by one or another Member of that
body. Commend him for staying with it. That is one of the chairman's
greatest qualities is stick-to-it-iveness. He does not give up and does
not give up easily.
We have, as a result, as the chairman described, true bipartisan
participation in this legislation achieved, a truly historic landmark
today.
For three decades, I have, as a staff Member of the former Committee
on Public Works as administrative assistant to my predecessor, John
Blatnik, one of the original authors of the predecessor of EDA, the
Area Redevelopment Program, and also co-author of the Appalachian
Regional Development Program, I have watched the ebb and flow of this
program through presidencies beginning with that of John F. Kennedy all
through the current Clinton administration.
I have seen communities that were down on their luck, no opportunity
for economic development or growth, rise with new jobs, new
opportunities, claim a new future for themselves and for their young
people because of this little bit of helping hand that has come from
EDA.
I have seen the enormous success and pride that local communities
have taken in projects initiated about funding from the economic
development administration for one very simple reason. All of these are
projects and programs initiated locally by the development team at the
county level, the township level, the community level.
None of the EDA programs are top down, directed from Washington. They
are initiated by the development organizations who see their own
problems, see their own needs, describe what they need best to attract
jobs or expand existing industries and create a better economic future
for themselves and their children.
That has been the essential ingredient of success, both for EDA and,
as the gentleman from Pennsylvania (Chairman Shuster) described, for
the Appalachian Regional Commission.
That we are here today with this bill is a tribute to two former
Members for whom I have only the greatest respect and affection, Don
Clausen on the Republican side from California, who was an avid
advocate of EDA and Appalachia, the lesser because he did not represent
a region of Appalachia, and my dearest friend of many years Bill
Clinger, the gentleman from Pennsylvania who served as the ranking
Republican on the Economic Development Subcommittee during the years
that I had the good fortune to chair that subcommittee and who was
former chief counsel of the economic development administration.
Together, we worked to reshape EDA, recognizing the objections raised
by President Reagan in his State of the Union message when he proposed
to eliminate EDA and Appalachia. We said, no, let us reshape it. Let us
reform it, but let us keep what is good.
The ideas reflected in this legislation are the ideas that together
we brought to the committee and to the House. On three different
occasions and three separate Congresses by votes of three and four to
one, we passed what is essentially the bill we bring to the House
today. It never got through the Senate.
That is the great achievement of our chairman, the gentleman from
Pennsylvania (Mr. Shuster), that he was unflagging in his determination
to bring this legislation to fruition. I really greatly appreciate the
work that the gentleman from Pennsylvania, our chairman, has
accomplished.
I just want to cite one fact that emerged from the hearings Mr.
Clinger and I together conducted in the early 1980s on the history of
EDA. We found that, with a relatively modest investment over a period
of 15 years of $4.7 billion, EDA projects, locally initiated, locally
carried out, generated 1.4 million private sector jobs, leveraged $9
billion in private investment capital, and every year returned $6.5
billion in tax revenue to Federal State and local treasuries.
That is a record unmatched by any other Federal program. I challenge
anyone to exceed those accomplishments.
So what we have today is a bill that narrows the focus even further
of EDA to only the most urgently needy areas of the country, require
them to prepare a comprehensive economic development plan that is their
plan, not Washington's plan, to focus their efforts on future economic
growth opportunities, and to reduce the scope of this program from its
alleged coverage of 80 percent of the population to less than 36
percent of the population in this country, and to focus the resources
on those areas that are chronically in economic decline.
I want to thank the chairman of the subcommittee, the gentleman from
California (Mr. Kim), and I want to thank the ranking Democratic
Member, the gentleman from Ohio (Mr. Traficant), for their splendid
bipartisan cooperation in working to reshape, reform this bill.
I want to express my appreciation to Jesse White, cochairman of the
Appalachian Regional Commission, the Governors throughout Appalachia,
and the Assistant Secretary for Economic Development at the Department
of Commerce, Phil Singerman who has worked very cooperatively with us
in reshaping the legislation.
I recall during one of our subcommittee hearings in West Virginia
going into an area that was both EDA and ARC eligible, a little town
where the mayor was a member of the development commission, and brought
me to a small store that was operated by one of his city councilmen.
On the wall behind the cash register was a sign that said ``God never
put nobody in a place too small to grow.'' I said, ``Have you benefited
in this community? You tell me what you have done to grow in this
community.'' ``Yes,'' he said, ``before the Appalachia Commission, we
were so far down, we had to look up to see bottom.''

[[Page H10744]]

They do not have to look up to see bottom anymore. There was a time
when much of Appalachia, most of the rural south, and most of the
midwest was characterized by 80 acres and a mule. There was a time when
opportunity for people in Appalachia met a bus ticket north to the
industrial cities of the midwest.
Today, because of ARC, because of EDA, there is job opportunity,
there is economic growth. There is hope for the future. These counties
now are achieving parity with the rest of the country in per capita
income, and they do not have to look up to see bottom. God never put
nobody in a place too small to grow.
Mr. Speaker, I reserve the balance of my time.
Mr. SHUSTER. Mr. Speaker, I yield 3 minutes to the distinguished
gentleman from California (Mr. Kim), chairman of the subcommittee.
Mr. KIM. Mr. Speaker, the gentleman from Pennsylvania (Mr. Shuster)
already did an eloquent job to explain why we need to reauthorize this
ARP and EDA programs.
I just want to reemphasize that the Subcommittee on Public Buildings
and Economic Development, which I chair, held two days of hearing on
these programs already and developed H.R. 4275, which is the companion
to S. 2364. The Senate bill follows the general reforms and
authorizations of the House-reported legislation.
I want to thank our ranking member, the gentleman from Ohio (Mr.
Traficant), our ranking member of the full committee, the gentleman
from Minnesota (Mr. Oberstar), and of course our chairman the gentleman
from Pennsylvania (Mr. Shuster) for their effort in helping to produce
this historic legislation.
The bill reauthorizes the EDA for 5 years and the ARC for 3 years at
levels consistent with current appropriations action.
S. 2364 provides the most significant reforms the EDA and ARC have
had in decades. It eliminates the grandfathering of eligibility and
directs funds toward truly distressed areas. Let me emphasize these two
areas.
While tightening the eligibility, the bill also explicitly recognizes
the problems of pockets of poverty in otherwise healthy areas, it has
never done that, which provides means to assisting these pockets of
poverty in rich areas.
In addition, the legislation clarifies that innovative financing
tools, such as loan guarantee programs and interest rate buydown
program, are eligible under section 209 of this legislation. Those are
two very historic ideas in my opinion.
Additionally, the bill reforms both agencies' programs to improve
regional coordination, focus on core programs with demonstrated cost-
effectiveness, and limit waivers of tough new matching requirements.
In summary, as funds continue to be provided for these programs in
the appropriations process, this legislation insures that tax dollar
will be properly and intelligently spent on meeting the needs of our
Nation's most distressed community areas.
Mr. Speaker, I urge my colleagues to join me in supporting this
historic legislation.
Mr. OBERSTAR. Mr. Speaker, may I inquire of the chair the remaining
time on both sides.
The SPEAKER pro tempore (Mr. Barrett of Nebraska). The gentleman from
Minnesota (Mr. Oberstar) has 10\1/2\ minutes remaining. The gentleman
from (Mr. Shuster) Pennsylvania has 14 minutes remaining.
Mr. SHUSTER. Mr. Speaker, I am pleased to yield 2 minutes to the
gentlewoman from Missouri (Mrs. Emerson), a distinguished member of our
committee.
Mrs. EMERSON. Mr. Speaker, I want to commend the gentleman from
Pennsylvania (Chairman Shuster), the gentleman from Minnesota (Mr.
Oberstar), the ranking member and the gentleman from California (Mr.
Kim) and all of the Committee on Transportation and Infrastructure
staff for the hard work that they have done in crafting EDA
reauthorization legislation and in securing consideration of it on the
floor today.
I also want to pay tribute to Assistant Secretary Phil Singerman,
too, for the exemplary work that he has done on behalf of the Economic
Development Administration and truly making it in tune and in touch
with the needs of the folks in our districts.
As the Chairman said, this is the first time in 17 years that we are
on the verge of enacting EDA reauthorization legislation that will
streamline and focus the program to serve our local communities more
efficiently and more effectively, all the while saving taxpayer
dollars.
It reminds me very much of a good friend of mine, Pig Paul, who is
the presiding commissioner in Howell County, Missouri, who has taken
that county into the 21st Century with a bang because he has worked
very, very hard with the EDA to bring grants to that county.
As a result of those grants, we have had an explosion of jobs and
companies wanting to come because of the good cooperative work that we
have been able to do with EDA.
I have seen successes of the program in other rural communities
within my district, and I have a very, very rural district. So this is
a program that does work. It does work for our local communities.
I urge all of my colleagues to vote for EDA reauthorization.
Mr. OBERSTAR. Mr. Speaker, I am happy to yield 5 minutes to the
gentleman from Ohio (Mr. Traficant).
Mr. TRAFICANT. Mr. Speaker, I heard earlier our ranking member the
gentleman from Minnesota (Mr. Oberstar) say that the gentleman from
Pennsylvania (Mr. Shuster) deserves a lot of credit, and he certainly
does. But he says he deserves a lot of credit because he never quits.
I wanted to just give a definition and a reason why the gentleman
from Pennsylvania (Mr. Shuster) never quits. Because he is a Pitt man,
a graduate of the University of Pittsburgh, a fellow alumnist of mine.
I want to compliment the gentleman from Pennsylvania (Mr. Shuster) for
having accomplished something with the gentleman from Minnesota (Mr.
Oberstar), for 20 years, we have been continuing through an
appropriation process, and this certainly is historic.

{time} 1415

The efforts of the gentleman from Pennsylvania (Mr. Shuster) and the
gentleman from Minnesota (Mr. Oberstar) are not to be taken lightly
here. These are two fine national programs targeted towards needy areas
that did have abuse in their past but have been reconciled over a
period of years with reasonable management and oversight to make them
once again, as the gentleman from Minnesota alluded to, very effective
tools. Having said that, I am a little saddened that the Senate had
their way completely and some of the innovations of the House were not
totally enacted, one being a specific pilot program that I authored
that would allow for the utilization of EDA moneys to be used to buy
down interest rates. Let me say something. No matter how much money we
have for grants, it will not address the problems and the gravity and
size of those problems by itself. We must leverage private sector
dollars and we must incentivize these programs, and that pilot project
to buy down interest rates was a specific tool targeted in that regard.
Having said that, I think there are certain things that still can be
salvaged from this bill.
Before I move for a colloquy with the two distinguished leaders, I
would like to compliment Phil Singerman of EDA and Jesse White of the
ARC programs. They are doing a remarkable job. There are several
administrators in this Clinton administration that have really not only
earned their pay but have been really great for the United States of
America. Also, I would like to compliment, this may be the last
significant bill of any import from our subcommittee, the respective
subcommittee members, including, both sides, the gentleman from
Louisiana (Mr. Cooksey), the gentleman from Tennessee (Mr. Duncan), the
gentleman from Ohio (Mr. LaTourette), the gentleman from Virginia (Mr.
Davis), and on our side the gentlewoman from the District of Columbia
(Ms. Norton) one of the real dynamos of the House without a doubt; the
gentleman from Pennsylvania (Mr. Holden) the sheriff; and the gentleman
from Texas (Mr. Lampson). Also our staff Susan Brita, Rose Hamlin and
Ward McCarragher, the new counsel of our committee. Thank you, Ward,
for the job you did

[[Page H10745]]

with the EDA bill and in working with our committee on EDA issues. I
would also like to compliment Rick Barnett of the Republican staff, the
gentleman from California (Mr. Kim) and all of those who worked on it.
Having said all these nice things I would like a colloquy if I could
with the gentleman from Pennsylvania and the gentleman from Minnesota
to make sure they are both on the same page here. Being concerned about
that interest rate buydown program and once again having the Senate
basically write most of these laws, that does bother me. The House
bill, H.R. 4275, included my pilot innovative financing program to
enable grants to be used to buy down the interest rate of loans to
businesses and nonprofit organizations for economic development. It is
my understanding that although the Senate bill, S. 2364, that we have
before us does not include such a specific pilot program, interest rate
subsidies are, however, still eligible under section 209 of the bill.
Even though the program is not specifically on a pilot basis
authorized, is it not a fact that interest rate subsidies are eligible
and Phil Singerman could in fact effect such a program?
Mr. SHUSTER. Mr. Speaker, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentleman from Pennsylvania.
Mr. SHUSTER. First I would like to respond to my good friend that
this legislation before us is largely a House product. We negotiated
with the Senate and we did have to strike some compromises, but the
bill if we pass it today and send it to the President will largely be a
product of our committee and of the House, with help from the Senate.
In direct answer to the gentleman's question, he is correct that
although the Senate bill does not include a specific pilot program,
interest rate subsidies are indeed eligible under section 209 of the
bill. Moreover, the Committee on Transportation and Infrastructure
strongly encourages EDA to demonstrate the use of this authority and
report back to the committee regarding the success of this innovative
financing tool. I would also like to note that public works loan
guarantees are also eligible under section 209.
Mr. TRAFICANT. Further on my colloquy, then Phil Singerman could in
fact design such a demonstration of said program even though it is not
specifically delineated within the bill?
Mr. SHUSTER. Not only could he, we strongly encourage him to do so. I
would not be surprised if Youngstown, Ohio might be one of the
candidates.
Mr. TRAFICANT. I would certainly hope so.
Mr. OBERSTAR. Mr. Speaker, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentleman from Minnesota.
Mr. OBERSTAR. I concur in the remarks of the chairman. As the
chairman strongly supported the gentleman's initiative for interest
buydown, it has proven to be a very effective tool in economic
development in various parts of the country, but even though we were
not able to keep legislative language directing a pilot program,
certainly that authority that we wrote into the bill is authority
within the general powers of the Economic Development Administration
and could be initiated by EDA, by the Assistant Secretary upon request
of an application submitted by an interested party that complies with
the EDA requirements. As the chairman said, certainly if Youngstown
were the first to submit such a proposal, it would be among the first
considered and very likely we would see that ultimately approved by
EDA, I am quite confident.
Mr. TRAFICANT. I appreciate that. I would just like to say that the
legislative history here today clearly indicates the intent of the
House to proceed in such an incentivized type of program to in fact
attract and leverage local private dollars. The banks have got to get
involved in this, folks. We do not have enough money. But I would also
like to ask the two respective leaders of our committee who have done a
tremendous job this year, and the Congress should really be thankful of
the job on the highway, the BESTEA bill and other things that have come
forth, that I would like to see us move strongly in that direction as a
specific piece of legislation to create that economic tool to bring
about some changes in these needy communities. I will support the bill
naturally. I want to thank both the gentleman from Pennsylvania and the
gentleman from Minnesota for a tremendous job.
Mr. SHUSTER. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman
from Ohio (Mr. Ney) a very hardworking member of our committee.
Mr. NEY. Mr. Speaker, I thank the gentleman for yielding me this
time, and I want to thank the gentleman from Pennsylvania and also the
gentleman from Minnesota for a tremendous piece of legislation and also
previously this year a great teamwork effort to do another good piece
of legislation which is the highway bill that is going to help with
growth and jobs and do something real for our economy not only for the
district I represent but for everywhere across this great nation.
Today I rise in support of S. 2364. As we know, the bill reauthorizes
two very important programs that benefit needy communities throughout
the country, especially within Ohio and the 18th Congressional District
which I represent. The Economic Development Administration has
continually been active in our State, in the State of Ohio, directing
Federal resources to economically distressed communities in order to
develop their local economies. Through public works, technical
assistance, planning, community investments and revolving loan fund
programs, EDA has established local partnerships, Mr. Speaker, that
have provided critical infrastructure development and other economic
incentives that have made our way of life better. Since it came into
existence in Ohio, the EDA has alone invested more than $488 million
into our local economies. I have worked very closely with organizations
that coordinate and implement the EDA and ARC moneys, including the
Hocking Valley Regional Development District, the Ohio Mid-Eastern
Governments Association and the Ohio Valley Regional Development
Council. I want to point out, Mr. Speaker, I think it is important that
we recognize these are local groups, so this is a program that comes
from Washington, D.C. and the local hands are in it. I cannot think of
a better scenario for our people than to have that relationship. I am
proud of both the EDA and the ARC and what they do for our communities.
The bill also reauthorizes the Appalachian Regional Commission and
its programs. Those programs have come under fire. The gentleman from
Ohio (Mr. Traficant) I think eloquently stated how the ARC is doing
good things. I also need to mention that I used to work for the
Appalachian Regional Commission through the State of Ohio, I was one of
the State workers and I saw all the good firsthand of what we do with
dental programs and with health care programs.
I just wanted to say in closing, Mr. Speaker, that the bill continues
ARC's tradition of good works. The EDA helps with local projects that
benefit people and create jobs. I look forward to working in the future
with the National Association of Development Organizations, their
members, the EDA and the ARC. I want to thank Jeff Janas of our staff
for working with our local officials and with the staff here in
Washington. I urge the support of this great bill.
Mr. SHUSTER. Mr. Speaker, I yield 2 minutes to the gentleman from
Pennsylvania (Mr. Peterson) who, let me emphasize, played a key role
over these past several days in bringing some of our Members around to
our point of view. I thank him for that.
Mr. PETERSON of Pennsylvania. Mr. Speaker, I thank the gentleman for
yielding me this time, and I want to congratulate both the gentleman
from Pennsylvania and the gentleman from Minnesota for their bipartisan
work to reauthorize two vital programs. These are well-targeted
programs to assist communities to rebuild their fractured economic
base.
I want to give my colleagues an example right now. I have a community
where a steel mill that had 1,000 people closed 4 years ago. Two years
later a regional bank merged with an out-of-state bank and hundreds of
jobs were gone. Not only did we lose those jobs, we lost our leaders,
the people who led the communities. With help from ARC and EDA, we are
now helping this community to reuse this old steel mill and hopefully
in a couple of years we can

[[Page H10746]]

come back here and share with you the hundreds of jobs that will be
there from several people. We were able to negotiate with this steel
company to give the plant to the local community for a buck, but
without the ARC and EDA help, they would not have the ability to use
this facility.
I have a large rural district. Four regional development districts
have used these programs successfully and effectively. Rural counties
like Union, Centre, McKean, Jefferson, Venango, Elk, Warren and Forest,
and those just come from my memory, are communities and counties that
have used these programs to rebuild when plants have left and left
those communities flat. They help leverage local and State programs,
they help millions of dollars of corporate investment back into towns
that are struggling to survive. These programs are vital to the success
of rural America, our small towns. It will help remove men and women
from the unemployment benefit line and make them taxpayers. That is
government money well-spent, programs that are well-targeted, programs
that have proven their way. I am pleased that we are on our way to
authorizing them in the future.
Mr. OBERSTAR. Mr. Speaker, I yield 2 minutes to the gentleman from
West Virginia (Mr. Wise).
Mr. WISE. Mr. Speaker, I want to thank the chairman and ranking
member for speeding this bill to the floor. Mr. Speaker, I think it has
been, I have to defer to the ranking member but 17 years. Actually I
just brought my daughter on the floor. We are doing a little child care
at home. The last time these programs were reauthorized was 8 years
before she was born. She is 9 now. But I am happy to report to her and
to many others that these programs have been reauthorized through a
bipartisan effort.
The reauthorization of the ARC and the EDA means that they will
continue to be the economic linchpins that are so vital to many parts
of our nation and certainly to Appalachia as we begin to rebuild from
the devastation and dislocation of losing mining and manufacturing
jobs, as we begin to build those highways, as we begin to build those
educational opportunities, as we begin to build opportunities for
children across this country.
I also think it should be noted that on a bipartisan basis,
Republicans and Democrats alike worked to make sure that the money is
targeted to the most neediest areas, to those areas that are hardest
hit so that we can guarantee greater utilization, greater effectiveness
in using these funds. This is a great day. It has taken us a long time
to get to this point on the floor. There are a lot of people that
deserve our thanks for doing it. To the people of Appalachia but
particularly to the people across the country with the reauthorization
of the Economic Development Administration and the Appalachian Regional
Commission, we can make sure that we can continue this development in
many of the hardest-hit areas of our country.
Mr. SHUSTER. Mr. Speaker, I yield 1\1/2\ minutes to the distinguished
gentleman from Maryland (Mr. Gilchrest) who is a member of our
committee.
Mr. GILCHREST. Mr. Speaker, I want to thank the gentleman for
yielding me this time, and I also want to thank the chairman and the
ranking member from the Committee on Transportation and Infrastructure
for all the work they have done, their tenacity, their patience and
their determination to make sure these worthy programs are reauthorized
and re-funded. I also want to thank the staff for all their hard work.
In my district, Mr. Speaker, we put together a consortium of the
private sector along with an EDA grant to work with each of the
economic development officers from each of the counties in my district.
That is 10 counties that normally were competing with each other
against economic growth and economic development.

{time} 1430

Along with this EDA grant and two utility companies that contributed
dollars, these economic development officers worked together for about
a year and-a-half. They put together what we would call in modern
vernacularism for computers a CD/ROM to represent not one county, not
two counties, but our district as a region.
We put a CD/ROM together for the whole region. The First
Congressional District is one economic development region. We made
2,000 of those CD/ROMs, and we distributed those 2,000 CD/ROMs to
corporations and businesses not only in our region and not only in the
United States, but from around the world, and those corporations that
have specific people designated as locators to find new areas for their
industries to move into were given each one of those CD/ROMs, and now
our district is an economic development region, we are having a great
deal of prosperity, and a lot of thanks goes to the Economic
Development Administration.
Mr. SHUSTER. Mr. Speaker, I yield 2 minutes of my time to the
gentleman from Minnesota (Mr. Oberstar).
Mr. OBERSTAR. Mr. Speaker, I yield myself the balance of my time.
The SPEAKER pro tempore (Mr. Barrett of Nebraska). The gentleman from
Minnesota is recognized for 2\1/2\ minutes.
Mr. OBERSTAR. Mr. Speaker, I want to pay tribute to the gentlewoman
from Missouri (Mrs. Emerson) for the splendid role she played along
with the gentleman from Ohio (Mr. Ney) and Mr. Peterson in bringing the
coalition together that was necessary to bring this bill to the House
floor. I want also to compliment the staff members, Bill Hughes, who
does the budget work on the majority side, and Charlie Ziegler, with
whom I have worked many years, many different capacities, for their
splendid work and Ward McCarragher on the Democratic side for carrying
this bill to its present exalted place and ready to be launched to the
White House.
In closing, I just want to recall an observation from a hearing that
we held on EDA in the 1980's in which Red Robinson, member of the board
of the Southern Virginia Development District, said to the committee,
with her proud mountain, conservative mountain, people. We are not
asking for a handout. We are just asking for the little bit of resource
that we need that we cannot provide for ourselves to lift ourselves out
of poverty.
And he told a story of a young boy who arrived in school with a shoe
under his arm, barefoot otherwise, and the teacher said, ``Johnnie, did
you loose your shoe on the way to school?''
And the boy said, ``No, m'am. I found this good one.''
And Red Robinson said, ``We found a good program that helps us do
good for people. Don't let it go away.''
EDA is not going away, Red Robinson. We found a good one. We are
going to make it better, and we are going to make all of America
better.
I thank the gentleman for his splendid work and splendid cooperation,
and I urge support of the pending bill.
Mr. SHUSTER. Mr. Speaker, I yield such time as he may consume to the
gentleman from Mississippi (Mr. Wicker).
(Mr. WICKER asked and was given permission to revise and extend his
remarks.)
Mr. WICKER. Mr. Speaker, I rise in support of this legislation and in
support of EDA and ARC and thanking the gentleman from Minnesota (Mr.
Oberstar) and the gentleman from Pennsylvania (Mr. Shuster) for their
leadership.
I take the floor today to express my strong support for S. 2364, the
Economic Development Partnership Act.
Dollar for dollar, the Appalachian Regional Commission and the
Economic Development Agency are two of the best bargains in government.
These agencies spend only a small fraction of their funds on
administration while the return on their investments are immense.
Most of EDA's funds go toward important grants and low cost loans.
When the Canadian-owned Norbord company invested $88 million in a new
Mississippi plant inn 1995, it was an EDA grant of $750,000 for a water
supply system that made that new plant possible. Now that water system
is helping keep more than 250 workers employed in good jobs, who
generate tax revenues and contribute to the local economy. All over the
country, EDA helps economically distressed communities build a solid
base on which sustainable economic development can be established and
maintained.
Similarly, ARC has a long track record of success. Just last year,
the ARC, along with the City of New Albany and Union County,
Mississippi, worked together to begin construction on a new 500,000
gallon water storage tank. ARC provided less than 50% of the

[[Page H10747]]

funds for this storage tank which was necessary for the city to receive
a commitment from Wal-Mart to build a new Distribution Center. This
center has helped spur the economy of the region by creating
approximately 525 new jobs in 3 separate businesses.
It is also important to note that the ARC approval process is a model
of local, state, and federal cooperation. Under ARC, projects originate
from the local level and are selected by each state's governor. This is
a bottom up program, not a Washington solution for local problems.
Mr. Chairman, I also want to thank Chairman Shuster and Ranking
Member Oberstar for bringing this important legislation before the
House today. This legislation represents an efficient and effective use
of taxpayer dollars, and I look forward to hearing about more success
stories in the future.
Mr. SHUSTER. Mr. Speaker, I yield myself the balance of my time.
As I close, Mr. Speaker, I would like to deal with the question of
what has this Congress done. In fact more specifically, what has this
committee of the Congress of the United States done.
Indeed, today we are passing historic legislation. For the first time
in 17 years, economic development for the most depressed, most needy
parts of our country, an investment in assets for the future to create
jobs so that there will be a tax base, so schools and churches and
synagogues and communities can again thrive. That is what is happening
here today. It is happening on a bipartisan basis.
But not only has this committee done that this year, this committee
passed the most historic transportation legislation in the history of
our country excepting perhaps the creation of the interstate system. We
passed a transportation bill which unlocks the Highway Trust Fund for
highways and transit and safety so we can rebuild America and save
thousands of lives in the process, make our country more competitive
and prosperous and make travel more convenient for the American people.
And beyond that, we passed an ocean shipping bill to create more
competition in shipping for our industries in America. And, as we wind
down this Congress, it appears we have an agreement on an airport
improvement program, a short term extension which will put us in the
position to deal with the overall issue next year to unlock the
Aviation Trust Fund, something vital to the future of America. And the
water resources bill is in final stages of this negotiation right now.
With a little luck we will have that to the floor.
What do all of these bills represent? Well, they do not represent
talking about Bosnia, they do not represent who slept in the Lincoln
bedroom. What they represent is building America to deal with the
issues that affect the lives of virtually every American every day.
These are the things that make our country a better place in which to
live and work, and this committee, on a bipartisan basis, with the
cooperation of the Democrats and the Republicans and indeed with
cooperation of many in the Clinton administration, and I would
particularly single out Jesse White and Phil Singerman on EDA and ARC,
and likewise Secretary Slater, and the Office of Management and Budget
which is so often maligned, but nevertheless played a key role as we
developed the historic transportation legislation just a few months
ago.
These are the things that this committee has done and has done
because of the bipartisan nature of the committee and because of the
support of the governors, the mayors, the county commissioners, the
citizens all across America.
So, Mr. Speaker, when one asks what has this Congress done, I suggest
they look at the results, the bipartisan results, of the Committee on
Transportation and Infrastructure because therein lies a large part of
the answer.
Mr. CUMMINGS. Mr. Speaker, I rise today in strong support of the
reauthorization of the Economic Development Administration.
The EDA reauthorization has been a long time coming and I commend
this Congress for finally taking a strong stand in support of local
community economic development.
Baltimore city and Baltimore county are currently working with EDA as
the recipients of several EDA grants.
In fact, communities in my district have been working with EDA
throughout it's tenure.
These grants have proven to be unparalleled in the assistance they
provide the communities in my district, in my state and across the
country as they work towards economic stability and equality for their
citizens.
I thank the EDA for it's efforts.
The EDA plays such a crucial role in local economic development
because it is guided by the basic principle that distressed communities
must be empowered to develop and implement their own economic
development and revitalization strategies.
This respect for local input and participation makes EDA unique among
federal agencies and an organization most worthy of our continued and
sustained support.
Mr. Speaker, many areas of this country and individuals in our
districts are not receiving all of the benefits of the latest economic
boom.
The EDA is one of the few federal agencies that has and continues to
play a major role in helping these communities help themselves to build
a strong and lasting economic base in the face of difficult
circumstances.
Furthermore, the EDA has enacted numerous necessary and highly
beneficial reforms over the past several years to make it a more
focused and efficient organization.
Today's legislation will aid the agency in this process and ensure
that it becomes an even more effective agency in the future.
I commend the members of the Committee for this legislation and I
strongly support its final passage.
Mr. STRICKLAND. Mr. Speaker, I rise today in support of the
Appalachian Regional Commission and the Economic Development
Administration. These two programs work to uplift those regions in this
nation that have been left out of many of the rapid improvements in
transportation systems, infrastructure development, communications
capabilities, and health care accessibility.
In my District in southern Ohio, the median family income is less
than $22,000 a year, and the college-going rate is less than half the
national average. The area is medically underserved, and unemployment
rates are consistently above the state and national average.
My constitutents want to participate in the economic recovery in this
country. The Economic Development Administration (EDA) and the
Appalachian Regional Commission (ARC), under the direction of Dr.
Singerman and Dr. White, target the specific needs of areas like
southern Ohio with health care grants, highway construction, incentives
to encourage entrepreneurship, and basic infrastructure development.
Residents in the Sixth Congressional District can attest to the
tremendous value of these two programs by pointing to numerous projects
that would have been impossible without the support of EDA and ARC.
I am pleased to support today's reauthorization legislation, which
will ensure the ongoing mission of these two important agencies. I
would like to thank the Transportation and Commerce Committees for
their work on this important bill, and commend Federal Co-Chair Jesse
White and Assistant Commerce Secretary Singerman for their emergetic
labor. And I look forward to working with both of them as the ARC and
the EDA move forward into the 21st Century.
Mr. RAHALL. Mr. Speaker, I rise in strong support of this legislation
to reauthorize the Appalachian Regional Commission (ARC) and the
Economic Development Administration Act (EDA).
It is time, Mr. Speaker, to have reached agreement to reauthorize
these two economic development programs--the ARC and EDA--for the first
time in nearly 17 years.
As passed by the Senate, the legislation before us is similar to H.R.
4275, the bill reauthorizing ARC/EDA that was reported by the
Transportation & Infrastructure Committee, and its Subcommittee on
Public Buildings and Economic Development, where I am pleased to serve
and proud to be a part of our bipartisan efforts to provide economic
development assistance to the most distressed areas of the country.
The House, Mr. Speaker, has passed reauthorization legislation every
one of the past 17 years except for the 103rd Congress--and it was the
bipartisan, positive attention given to it by the Chairmen of the
Committee on Transportation and Infrastructure and its Subcommittee on
Economic Development who distinguished themselves as leaders in the
effort to keep the ARC and EDA programs alive.
I want to commend Subcommittee Chairman Jay Kim and the ranking
Member Jim Traficant, as well as Chairman Shuster and ranking Member
Jim Oberstar, my good friends and able chairmen for their enormous
efforts to bring reauthorization legislation for these two vital
economic development programs to a vote after all these years.
This legislation preserves the basics of the Economic Development
Administration, as well as those of the ARC. The bill recognizes that
the EDA programs have been enormously successful in aiding distressed
regions of the nation. The bill strengthens EDA by reforming program
delivery, and tightening eligibility so that funding no longer goes to
over 85 percent of the country.

[[Page H10748]]

The EDA reauthorization adds new economic development tools, and it
responds to communities subject to base closings and defense cutbacks.
The bill also recognizes and builds upon the ARC, a well-known,
highly successful model for Federal-state cooperation.
Because of the foresight of the Transportation & Infrastructure
Committee, and with the strong support of the senior Senator from West
Virginia, Robert C. Byrd, the ARC's Appalachian Development Highway is
now funded from the Highway Trust Fund as authorized under TEA21.
Carving the development highway out of the ARC has reduced authorized
funding by $100 million a year, to $67 million in FY99 and--as newly
configured--permits better targeting of ARC funds to truly distressed
regions within the 13 State, 400 county region.
Mr. Speaker despite being unauthorized since 1982, both the EDA and
the ARC have continued to receive strong bipartisan support for
continued funding over the years, but it wasn't always easy. I think it
appropriate to thank the House Appropriations Committee leaders from
both sides of the aisle over the past 17 years, for keeping hope alive
for the ARC and the EDA.
I can think of hundreds of ARC projects that have helped West
Virginia--but one that comes to mind is the Gardner Interchange and
Industrial Park Water and Sewer Improvements. This project in Mercer
county helped retain and create more than 768 jobs in an area
struggling against economic decline and severe stress. And as I said,
it is only one of many projects funded by the ARC to help the people of
Appalachia continue to grow and to realize their full potential.
The Economic Development Administration--the EDA--has undergone
significant downsizing over these 17 years--but the downsizing has
strengthened rather than weakened it, improving its efficiency. This
reauthorization today will give EDA the stability it lacked over these
many years. Now it can move forward in response to the changing needs
of America's distressed communities, and it can do so with confidence.
I applaud today's vote on the reauthorization of the EDA and the ARC,
and can think of no more fitting way to continue the many economic
benefits of these two vital programs than to carry them forward, into
the 21st Century.
I urge my colleagues to vote in favor of this legislation.
Mr. SHUSTER. Mr. Speaker, I yield back the balance of my time.
Mr. OBERSTAR. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Pennsylvania (Mr. Shuster) that the House suspend the
rules and pass the Senate bill, S. 2364.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the Senate bill was passed.
A motion to reconsider was laid on the table.

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