[Congressional Record Volume 149, Number 148 (Tuesday, October 21, 2003)]
[House]
[Pages H9759-H9770]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    ECONOMIC DEVELOPMENT ADMINISTRATION REAUTHORIZATION ACT OF 2003

  Mr. LaTOURETTE. Mr. Speaker, pursuant to the order of the House of 
Monday, October 20, 2003, I call up the bill (H.R. 2535) to reauthorize 
and improve the program authorized by the Public Works and Economic 
Development Act of 1965, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to the order of the House of 
Monday, October 20, 2003, the bill is considered read for amendment.
  The text of H.R. 2535 is as follows:

                               H.R. 2535

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Economic Development 
     Administration Reauthorization Act of 2003''.

     SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC DEVELOPMENT 
                   ACT OF 1965.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or a repeal of, a section or other provision, 
     the reference shall be considered to be made to a section or 
     other provision of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 et seq.).

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. FINDINGS AND DECLARATIONS.

       Section 2 (42 U.S.C. 3121) is amended to read as follows:

     ``SEC. 2. FINDINGS AND DECLARATIONS.

       ``(a) Findings.--Congress finds the following:
       ``(1) There continue to be areas experiencing chronic high 
     unemployment, underemployment, outmigration, and low per 
     capita incomes, as well as areas facing sudden and severe 
     economic dislocations due to structural economic changes, 
     changing trade patterns, certain Federal actions (including 
     environmental requirements that result in the removal of 
     economic activities from a locality), and natural disasters.
       ``(2) Economic growth in our Nation, States, cities, and 
     rural areas is produced by expanding economic opportunities, 
     expanding free enterprise through trade, developing and 
     strengthening public infrastructure, and creating a climate 
     for job creation and business development.
       ``(3) The goal of Federal economic development programs is 
     to raise the standard of living for all citizens and increase 
     the wealth and overall rate of growth of the economy by 
     encouraging communities to develop a more competitive and 
     diversified economic base by--
       ``(A) creating an environment that promotes economic 
     activity by improving and expanding public infrastructure;
       ``(B) promoting job creation through increased innovation, 
     productivity, and entrepreneurship; and
       ``(C) empowering local and regional communities 
     experiencing chronic high unemployment and low per capita 
     income to develop private sector business and attract 
     increased private sector capital investment.
       ``(4) While economic development is an inherently local 
     process, the Federal Government should work in partnership 
     with public and private local, regional, tribal, and State 
     organizations to maximize the impact of existing resources 
     and enable regions, communities, and citizens to participate 
     more fully in the American dream and national prosperity.
       ``(5) In order to avoid duplication of effort and achieve 
     meaningful, long-lasting results, Federal, State, tribal, and 
     local economic development activities should have a clear 
     focus, improved coordination, a comprehensive approach, and 
     simplified and consistent requirements.
       ``(6) Federal economic development efforts will be more 
     effective if they are coordinated with, and build upon, the 
     trade, workforce investment, transportation, and technology 
     programs of the United States.
       ``(b) Declarations.--In order to promote a strong and 
     growing economy throughout the United States, Congress 
     declares the following:
       ``(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, Indian tribes, and the 
     Federal Government to increase their capacity to develop and 
     implement comprehensive economic development strategies to 
     alleviate economic distress and enhance competitiveness in 
     the global economy.
       ``(3) Whether suffering from long-term distress or a sudden 
     dislocation, distressed communities should be encouraged to 
     support entrepreneurship to take advantage of the development 
     opportunities afforded by technological innovation and 
     expanding newly opened global markets.''.

     SEC. 102. DEFINITIONS.

       (a) Eligible Recipient.--Section 3(4)(A) (42 U.S.C. 
     3122(4)(A)) is amended--
       (1) by striking clause (i) and redesignating clauses (ii) 
     through (vii) as clauses (i) through (vi), respectively; and
       (2) in clause (iv) (as so redesignated) by inserting ``, 
     including a special purpose unit of a State or local 
     government engaged in economic or infrastructure development 
     activities,'' after ``State''.
       (b) Regional Commissions.--Section 3 (42 U.S.C. 3122) is 
     amended--
       (1) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (9), (10), and (11), respectively; and
       (2) by inserting after paragraph (7) the following:
       ``(8) Regional commissions.--The term `Regional 
     Commissions' means the following entities:
       ``(A) The Appalachian Regional Commission established under 
     chapter 143 of title 40, United States Code.
       ``(B) The Delta Regional Authority established under 
     subtitle F of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 2009aa et seq).
       ``(C) The Denali Commission established under the Denali 
     Commission Act of 1998 (42 U.S.C. 2131 note; 112 Stat. 2681-
     637 et seq.).
       ``(D) The Northern Great Plains Regional Authority 
     established under subtitle F of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2009bb et seq.).''.
       (c) University Center.--Section 3 (42 U.S.C. 3122) is 
     amended by adding at the end the following:
       ``(12) University center.--The term `university center' 
     means an institution of higher education or a consortium of 
     institutions of higher education established as a University 
     Center for Economic Development under section 
     207(a)(2)(D).''.

     SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

       Section 101 (42 U.S.C. 3131) is amended--
       (1) in subsection (b) by striking ``and multi-State 
     regional organizations'' and inserting ``multi-State regional 
     organizations, and nonprofit organizations''; and
       (2) in subsection (d)(1) by striking ``adjoining'' each 
     place it appears.

     SEC. 104. COORDINATION.

       Section 103 (42 U.S.C. 3132) is amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary'';
       (2) in subsection (a) (as so designated) by inserting 
     ``Indian tribes,'' after ``districts,''; and

[[Page H9760]]

       (3) by adding at the end the following:
       ``(b) Meetings.--To carry out the responsibilities in 
     subsection (a), or for any other purpose related to economic 
     development activities, the Secretary may convene meetings 
     with Federal agencies, State and local governments, economic 
     development districts, Indian tribes, and other appropriate 
     planning and development organizations.''.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

     SEC. 201. GRANTS FOR PLANNING.

       Section 203(d) (42 U.S.C. 3143(d)) is amended--
       (1) in paragraph (1) by inserting ``, to the maximum extent 
     practicable,'' after ``developed'' the second place it 
     appears;
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Coordination.--Before providing assistance for a 
     State plan under this section, the Secretary shall consider 
     the extent to which the State will consider local and 
     economic development district plans.''; and
       (3) in paragraph (4)--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (C) by inserting after subparagraph (C) the following:
       ``(D) assist in carrying out a State's workforce investment 
     strategy; and''.

     SEC. 202. COST SHARING.

       (a) Federal Share.--Section 204(a) (42 U.S.C. 3144(a)) is 
     amended to read as follows:
       ``(a) Federal Share.--The Secretary shall issue regulations 
     to establish the Federal share of the cost of projects 
     carried out under this title based on the relative needs of 
     the areas in which the projects will be located. Except as 
     provided in subsection (c), the Federal share of the cost of 
     any project carried out under this title shall not exceed 80 
     percent.''.
       (b) Non-Federal Share.--Section 204(b) (42 U.S.C. 3144(b)) 
     is amended by inserting ``assumptions of debt,'' after 
     ``equipment,''.
       (c) Increase in Federal Share.--Section 204 (42 U.S.C. 
     3144) is amended by adding at the end the following:
       ``(c) Increase in Federal Share.--
       ``(1) Indian tribes.--In the case of a grant to an Indian 
     tribe for a project under this title, the Secretary may 
     increase the Federal share above the percentage specified in 
     subsection (a) up to 100 percent of the cost of the project.
       ``(2) 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 increase the 
     Federal share above the percentage specified in subsection 
     (a) up to 100 percent of the cost of the project.''.

     SEC. 203. SUPPLEMENTARY GRANTS.

       (a) In General.--Section 205(b) (42 U.S.C. 3145(b)) is 
     amended to read as follows:
       ``(b) Supplementary Grants.--Subject to subsection (c), in 
     order to assist eligible recipients in taking advantage of 
     designated Federal grant programs, on the application of an 
     eligible recipient, the Secretary may make a supplementary 
     grant for a project for which the recipient is eligible but 
     for which the recipient cannot provide the required non-
     Federal share because of the recipient's economic 
     situation.''.
       (b) Requirements Applicable to Supplementary Grants.--
     Section 205(c) (42 U.S.C. 3145(c)) is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Amount of supplementary grants.--The share of the 
     project cost supported by a supplementary grant under this 
     section may not exceed the applicable Federal share under 
     section 204.
       ``(2) Form of supplementary grants.--The Secretary shall 
     make supplementary grants by--
       ``(A) the payment of funds made available under this Act to 
     the heads of the Federal agencies responsible for carrying 
     out the applicable Federal programs; or
       ``(B) the award of funds under this Act, which will be 
     combined with funds transferred from other Federal agencies 
     in projects administered by the Secretary.''; and
       (2) by striking paragraph (4).

     SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

       Section 206 (42 U.S.C. 3146) is amended--
       (1) by striking ``and'' at the end of paragraph (1)(B);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) grants made under this title promote job creation and 
     will have a high probability of meeting or exceeding 
     applicable performance requirements established in connection 
     with the grants.''.

     SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                   ASSISTANCE.

       (a) In General.--Section 207(a)(2) (42 U.S.C. 3147(a)(2)) 
     is amended--
       (1) by striking ``and'' at the end of subparagraph (F);
       (2) by redesignating subparagraph (G) as subparagraph (H); 
     and
       (3) by inserting after subparagraph (F) the following:
       ``(G) studies that evaluate the effectiveness of 
     coordinating projects funded under this Act with projects 
     funded under other Acts; and''.
       (b) Cooperation Requirement.--Section 207(a) (42 U.S.C. 
     3147(a)) is amended by adding at the end the following:
       ``(4) Cooperation requirement.--In the case of a project 
     assisted under this section that is national or regional in 
     scope, the Secretary may waive the provision in section 
     3(4)(A)(vi) requiring a nonprofit organization or association 
     to act in cooperation with officials of a political 
     subdivision of a State.''.

     SEC. 206. PREVENTION OF UNFAIR COMPETITION.

       Section 208 (42 U.S.C. 3148), and the item relating to 
     section 208 in the table of contents contained in section 
     1(b), are repealed.

     SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

       (a) Direct Expenditure or Redistribution by Recipient.--
     Section 209(d) (42 U.S.C. 3149(d)) is amended by striking 
     ``an eligible recipient'' each place it appears and inserting 
     ``a recipient''.
       (b) Special Provisions Relating to Revolving Loan Fund 
     Grants.--Section 209 (42 U.S.C. 3149) is amended by adding at 
     the end the following:
       ``(e) Special Provisions Relating to Revolving Loan Fund 
     Grants.--
       ``(1) In general.--The Secretary shall issue regulations to 
     maintain the proper operation and financial integrity of 
     revolving loan funds established by recipients with 
     assistance under this section.
       ``(2) Efficient administration.--The Secretary may--
       ``(A) at the request of a grantee, amend and consolidate 
     grant agreements governing revolving loan funds to provide 
     flexibility with respect to lending areas and borrower 
     criteria;
       ``(B) assign or transfer assets of a revolving loan fund to 
     a third party for the purpose of liquidation, and a third 
     party may retain assets of the fund to defray costs 
     related to liquidation; and
       ``(C) take such actions as are appropriate to enable 
     revolving loan fund operators to sell or securitize loans 
     (except that the actions may not include issuance of a 
     Federal guaranty by the Secretary).
       ``(3) Treatment of actions.--An action taken by the 
     Secretary under this subsection with respect to a revolving 
     loan fund shall not constitute a new obligation if all grant 
     funds associated with the original grant award have been 
     disbursed to the recipient.''.

     SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                   PROJECTED COST.

       Section 211 (42 U.S.C. 3151) is amended to read as follows:

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

       ``(a) In General.--In the case of a grant to a recipient 
     for a construction project under section 201 or 209, if the 
     Secretary determines, before closeout of the project, that 
     the cost of the project, based on the designs and 
     specifications that were the basis of the grant, has 
     decreased because of decreases in costs, the Secretary may 
     approve, without further appropriations action, the use of 
     the excess funds (or a portion of the excess funds) by the 
     recipient to increase the Federal share of the cost of a 
     project under this subtitle to the maximum percentage 
     allowable under section 204 or to improve the project.
       ``(b) Other Uses of Excess Funds.--Any amount of excess 
     funds remaining after application of subsection (a) may be 
     used by the Secretary for providing assistance under this 
     Act.
       ``(c) Transferred Funds.--In the case of excess funds 
     described in subsection (a) in projects utilizing funds 
     transferred from other Federal agencies pursuant to section 
     604, the Secretary shall--
       ``(1) utilize the funds in accordance with subsection (a), 
     with the approval of the originating agency; or
       ``(2) return the funds to the originating agency.''.

     SEC. 209. SPECIAL IMPACT AREAS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 214. SPECIAL IMPACT AREAS.

       ``(a) In General.--On the application of an eligible 
     recipient, the Secretary may determine that the recipient is 
     unable to comply with the requirements of section 302 and 
     designate the area represented by the recipient as a special 
     impact area.
       ``(b) Waivers.--Subject to the requirements of this 
     section, the Secretary may waive, in whole or in part, as 
     appropriate, the requirements of section 302 with respect to 
     a special impact area designated under subsection (a) if the 
     Secretary determines that the waiver will carry out the 
     purposes of the Act.
       ``(c) Notification Requirement.--At least 30 days before 
     issuing a waiver under this section, the Secretary shall 
     transmit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Environment and Public Works of the Senate a 
     written notice of the waiver, including a justification for 
     the waiver.''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 213 the following:

``Sec. 214. Special impact areas.''.

     SEC. 210. PERFORMANCE INCENTIVE GRANTS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

[[Page H9761]]

     ``SEC. 215. PERFORMANCE INCENTIVE GRANTS.

       ``(a) In General.--The Secretary may make a performance 
     incentive grant in connection with a project grant made, on 
     or after the date of enactment of this section, to an 
     eligible recipient under section 201 or 209.
       ``(b) Performance Measures.--
       ``(1) Regulations.--The Secretary shall issue regulations 
     to establish performance measures for making performance 
     incentive grants under subsection (a).
       ``(2) Considerations.--In issuing regulations under 
     paragraph (1), the Secretary shall consider including 
     performance measures that assess the following factors:
       ``(A) Whether the recipient meets or exceeds scheduling 
     goals.
       ``(B) Whether the recipient meets or exceeds job creation 
     goals.
       ``(C) Amounts of private sector capital investments 
     leveraged.
       ``(D) Such other factors as the Secretary determines 
     appropriate.
       ``(c) Amount of Grants.--
       ``(1) In general.--The Secretary shall base the amount of a 
     performance incentive grant under subsection (a) on the 
     extent to which a recipient meets or exceeds performance 
     measures established in connection with the applicable 
     project grant.
       ``(2) Maximum amount.--The amount of a performance 
     incentive grant may not exceed 10 percent of the amount of 
     the applicable project grant.
       ``(3) Federal share.--Notwithstanding section 204, the 
     amounts of a performance incentive grant may be used for up 
     to 100 percent of the cost of an eligible project or 
     activity. For the purposes of meeting the non-Federal share 
     requirements of this Act, or any other Act, the amounts of a 
     performance grant shall be treated as funds from a non-
     Federal source.
       ``(d) Use of Performance Incentive Grants.--A recipient of 
     a performance incentive grant under subsection (a) may use 
     the grant for any eligible purpose under this Act, in 
     accordance with section 602 and such regulations as the 
     Secretary may prescribe.
       ``(e) Terms and Conditions.-- In making performance 
     incentive grants under subsection (a), the Secretary shall 
     establish such terms and conditions as the Secretary 
     considers appropriate.
       ``(f) Funding.--The Secretary shall carry out this section 
     using any amounts made available for economic development 
     assistance programs.
       ``(g) Reporting Requirement.--The Secretary shall include 
     information regarding the award of performance incentive 
     grants under this section in the annual report required under 
     section 603.
       ``(h) Review by Comptroller General.--
       ``(1) Review.--The Comptroller General shall review the 
     implementation of this section in each fiscal year.
       ``(2) Annual report.--Not later than one year after the 
     date of enactment of this section, and annually thereafter, 
     the Comptroller General shall transmit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate a report on the Comptroller's findings 
     under this subsection.''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 214 the following:

``Sec. 215. performance incentive grants.''.

     SEC. 211. SUBGRANTS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 216. SUBGRANTS.

       ``(a) In General.--Subject to subsection (b), a recipient 
     of a grant under section 201, 203, or 207 may directly expend 
     the grant funds or may redistribute the funds in the form of 
     a subgrant to other eligible recipients to fund required 
     components of the scope of work approved for the project.
       ``(b) Limitation.--A recipient may not redistribute grant 
     funds received under section 201 or 203 to a for-profit 
     entity.''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 215 the following:

``Sec. 216. Subgrants.''.

     SEC. 212. BROWNFIELDS REDEVELOPMENT.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 217. BROWNFIELDS REDEVELOPMENT.

       ``(a) In General.--On the application of a qualified 
     eligible recipient, the Secretary may make grants under 
     sections 201, 203, 207, and 209 for projects to expand, 
     redevelop, or reuse brownfield sites.
       ``(b) Limitations.--Projects carried out under this section 
     shall be subject to the limitations of section 104(k)(4)(B) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)).
       ``(c) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Brownfield site.--The term `brownfield site' has the 
     meaning given such term in section 101(39) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(39)).
       ``(2) Qualified eligible recipient.--The term `qualified 
     eligible recipient' means an eligible recipient that meets 
     the definition of `eligible entity' in section 104(k)(1) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9604(k)(1)).''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 216 the following:

``Sec. 217. Brownfields redevelopment.''.

     SEC. 213. BRIGHTFIELDS DEMONSTRATION PROGRAM.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.

       ``(a) In General.--On the application of a qualified 
     eligible recipient, the Secretary may make a grant for a 
     project for the development of brightfield sites if the 
     Secretary determines that the project will--
       ``(1) utilize solar energy technologies to develop 
     abandoned or contaminated sites for commercial use; and
       ``(2) improve the commercial and economic opportunities in 
     the area where the project is located.
       ``(b) Limitations.--Projects carried out under this section 
     shall be subject to the limitations of section 104(k)(4)(B) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)).
       ``(c) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Brightfield site.--The term `brightfield site' means 
     a brownfield site (as defined in section 217) that is 
     redeveloped through the incorporation of solar energy 
     technologies.
       ``(2) Qualified eligible recipient.--The term `qualified 
     eligible recipient' has the meaning given such term in 
     section 217.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2004 through 2008. Such sums shall 
     remain available until expended.''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 217 the following:

``Sec. 218. Brightfields demonstration program.''.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

     SEC. 301. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

       (a) In General.--Section 302(a)(3)(A) (42 U.S.C. 
     3162(a)(3)(A)) is amended by inserting ``maximizes effective 
     development and use of the workforce consistent with any 
     applicable State or local workforce investment strategy,'' 
     after ``access,''.
       (b) Approval of Other Plan.--Section 302(c) (42 U.S.C. 
     3162(c)) is amended by adding at the end the following: ``To 
     the maximum extent practicable, a plan submitted under this 
     paragraph shall be consistent and coordinated with any 
     existing comprehensive economic development strategy for the 
     area.''.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

     SEC. 401. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT 
                   STRATEGIES TO REGIONAL COMMISSIONS.

       (a) In General.--Section 404 (42 U.S.C. 3174) is amended to 
     read as follows:

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

       ``If any part of an economic development district is in a 
     region covered by one or more of the Regional Commissions (as 
     defined in section 3), the economic development district 
     shall ensure that a copy of the comprehensive economic 
     development strategy of the district is provided to the 
     affected Regional Commission.''.
       (b) Conforming Amendment.--The table of sections contained 
     in section 1(b) is amended by striking the item relating to 
     section 404 and inserting the following:

``Sec. 404. Provision of comprehensive economic development strategies 
              to Regional Commissions.''.

                        TITLE V--ADMINISTRATION

     SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

       Section 502 (42 U.S.C. 3192) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) maintain a central information clearinghouse on the 
     Internet with--
       ``(A) information on economic development, economic 
     adjustment, disaster recovery, defense conversion, and trade 
     adjustment programs and activities of the Federal Government;
       ``(B) links to State economic development organizations; 
     and
       ``(C) links to other appropriate economic development 
     resources;'';
       (2) by striking ``and'' at the end of paragraph (2);
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) obtain appropriate information from other Federal 
     agencies needed to carry out the duties under this Act.''.

     SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.

       Section 505 (42 U.S.C. 3195), and the item relating to 
     section 505 in the table of contents contained in section 
     1(b), are repealed.

     SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       Section 506(c) (42 U.S.C. 3196(c)) is amended by striking 
     ``after the effective date of the Economic Development 
     Administration Reform Act of 1998''.

     SEC. 504. CONFORMING AMENDMENTS.

       (a) Standards.--Section 602 (42 U.S.C. 3212) is amended--

[[Page H9762]]

       (1) in the first sentence by striking ``in accordance 
     with'' and all that follows before the period at the end and 
     inserting ``in accordance with subchapter IV of chapter 31 of 
     title 40, United States Code''; and
       (2) in the third sentence by striking ``section 2 of the 
     Act of June 13, 1934, as amended (40 U.S.C. 276c)'' and 
     inserting ``section 3145 of title 40, United States Code''.
       (b) Evaluation Criteria.--Section 506(d)(2) (42 U.S.C. 
     3196(d)(2)) is amended by inserting ``program performance,'' 
     after ``applied research,''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

       Section 609 (42 U.S.C. 3219) is amended--
       (1) by striking subsection (a); and
       (2) by striking ``(b) Assistance Under Other Acts.--''.

                           TITLE VII--FUNDING

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

       Section 701 (42 U.S.C. 3231) is amended to read as follows:

     ``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Economic Development Assistance Programs.--There are 
     authorized to be appropriated for economic development 
     assistance programs to carry out this Act--
       ``(1) $400,000,000 for fiscal year 2004;
       ``(2) $425,000,000 for fiscal year 2005;
       ``(3) $450,000,000 for fiscal year 2006;
       ``(4) $475,000,000 for fiscal year 2007; and
       ``(5) $500,000,000 for fiscal year 2008.

     Such sums shall remain available until expended.
       ``(b) Salaries and Expenses.--There are authorized to be 
     appropriated for salaries and expenses of administering this 
     Act $33,377,000 for fiscal year 2004 and such sums as may be 
     necessary for each fiscal year thereafter. Such sums shall 
     remain available until expended.''.

  The SPEAKER pro tempore. The committee amendment in the nature of a 
substitute printed in the bill, modified by the amendment designated by 
the previous order of the House, is adopted.
  The text of the committee amendment in the nature of a substitute, as 
modified, is as follows:

                               H.R. 2535

       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 Reauthorization Act of 2003''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to Public Works and Economic Development Act of 
              1965.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings and declarations.
Sec. 102. Definitions.
Sec. 103. Establishment of economic development partnerships.
Sec. 104. Coordination.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

Sec. 201. Grants for planning.
Sec. 202. Cost sharing.
Sec. 203. Supplementary grants.
Sec. 204. Regulations on relative needs and allocations.
Sec. 205. Grants for training, research, and technical assistance.
Sec. 206. Prevention of unfair competition.
Sec. 207. Grants for economic adjustment.
Sec. 208. Use of funds in projects constructed under projected cost.
Sec. 209. Special impact areas.
Sec. 210. Performance awards.
Sec. 211. Planning performance awards.
Sec. 212. Subgrants.
Sec. 213. Brownfields redevelopment.
Sec. 214. Brightfields demonstration program.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

Sec. 301. Comprehensive economic development strategies.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

Sec. 401. Incentives.
Sec. 402. Provision of comprehensive economic development strategies to 
              regional commissions.

                        TITLE V--ADMINISTRATION

Sec. 501. Economic development information clearinghouse.
Sec. 502. Businesses desiring Federal contracts.
Sec. 503. Performance evaluations of grant recipients.
Sec. 504. Conforming amendments.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Relationship to assistance under other law.
Sec. 602. Sense of Congress regarding economic development 
              representatives.

                           TITLE VII--FUNDING

Sec. 701. Authorization of appropriations.

     SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC DEVELOPMENT 
                   ACT OF 1965.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or a repeal of, a section or other provision, 
     the reference shall be considered to be made to a section or 
     other provision of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 et seq.).

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. FINDINGS AND DECLARATIONS.

       Section 2 (42 U.S.C. 3121) is amended to read as follows:

     ``SEC. 2. FINDINGS AND DECLARATIONS.

       ``(a) Findings.--Congress finds the following:
       ``(1) There continue to be areas experiencing chronic high 
     unemployment, underemployment, outmigration, and low per 
     capita incomes, as well as areas facing sudden and severe 
     economic dislocations due to structural economic changes, 
     changing trade patterns, certain Federal actions (including 
     environmental requirements that result in the removal of 
     economic activities from a locality), and natural disasters.
       ``(2) Economic growth in our Nation, States, cities, and 
     rural areas is produced by expanding economic opportunities, 
     expanding free enterprise through trade, developing and 
     strengthening public infrastructure, and creating a climate 
     for job creation and business development.
       ``(3) The goal of Federal economic development programs is 
     to raise the standard of living for all citizens and increase 
     the wealth and overall rate of growth of the economy by 
     encouraging communities to develop a more competitive and 
     diversified economic base by--
       ``(A) creating an environment that promotes economic 
     activity by improving and expanding public infrastructure;
       ``(B) promoting job creation through increased innovation, 
     productivity, and entrepreneurship; and
       ``(C) empowering local and regional communities 
     experiencing chronic high unemployment and low per capita 
     income to develop private sector business and attract 
     increased private sector capital investment.
       ``(4) While economic development is an inherently local 
     process, the Federal Government should work in partnership 
     with public and private local, regional, tribal, and State 
     organizations to maximize the impact of existing resources 
     and enable regions, communities, and citizens to participate 
     more fully in the American dream and national prosperity.
       ``(5) In order to avoid duplication of effort and achieve 
     meaningful, long-lasting results, Federal, State, tribal, and 
     local economic development activities should have a clear 
     focus, improved coordination, a comprehensive approach, and 
     simplified and consistent requirements.
       ``(6) Federal economic development efforts will be more 
     effective if they are coordinated with, and build upon, the 
     trade, workforce investment, transportation, and technology 
     programs of the United States.
       ``(b) Declarations.--In order to promote a strong and 
     growing economy throughout the United States, Congress 
     declares the following:
       ``(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, Indian tribes, and the 
     Federal Government to increase their capacity to develop and 
     implement comprehensive economic development strategies to 
     alleviate economic distress and enhance competitiveness in 
     the global economy.
       ``(3) Whether suffering from long-term distress or a sudden 
     dislocation, distressed communities should be encouraged to 
     support entrepreneurship to take advantage of the development 
     opportunities afforded by technological innovation and 
     expanding newly opened global markets.''.

     SEC. 102. DEFINITIONS.

       (a) Eligible Recipient.--Section 3(4)(A) (42 U.S.C. 
     3122(4)(A)) is amended--
       (1) by striking clause (i) and redesignating clauses (ii) 
     through (vii) as clauses (i) through (vi), respectively; and
       (2) in clause (iv) (as so redesignated) by inserting ``, 
     including a special purpose unit of a State or local 
     government engaged in economic or infrastructure development 
     activities,'' after ``State''.
       (b) Regional Commissions.--Section 3 (42 U.S.C. 3122) is 
     amended--
       (1) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (9), (10), and (11), respectively; and
       (2) by inserting after paragraph (7) the following:
       ``(8) Regional commissions.--The term `Regional 
     Commissions' means the following entities:
       ``(A) The Appalachian Regional Commission established under 
     chapter 143 of title 40, United States Code.
       ``(B) The Delta Regional Authority established under 
     subtitle F of the Consolidated Farm and Rural Development Act 
     (7 U.S.C. 2009aa et seq.).
       ``(C) The Denali Commission established under the Denali 
     Commission Act of 1998 (42 U.S.C. 2131 note; 112 Stat. 2681-
     637 et seq.).
       ``(D) The Northern Great Plains Regional Authority 
     established under subtitle F of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2009bb et seq.).''.
       (c) University Center.--Section 3 (42 U.S.C. 3122) is 
     amended by adding at the end the following:
       ``(12) University center.--The term `university center' 
     means an institution of higher education or a consortium of 
     institutions of higher education established as a University 
     Center for Economic Development under section 
     207(a)(2)(D).''.

     SEC. 103. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

       Section 101 (42 U.S.C. 3131) is amended--
       (1) in subsection (b) by striking ``and multi-State 
     regional organizations'' and inserting ``multi-State regional 
     organizations, and nonprofit organizations''; and
       (2) in subsection (d)(1) by striking ``adjoining'' each 
     place it appears.

     SEC. 104. COORDINATION.

       Section 103 (42 U.S.C. 3132) is amended--

[[Page H9763]]

       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary'';
       (2) in subsection (a) (as so designated) by inserting 
     ``Indian tribes,'' after ``districts,''; and
       (3) by adding at the end the following:
       ``(b) Meetings.--To carry out the responsibilities in 
     subsection (a), or for any other purpose related to economic 
     development activities, the Secretary may convene meetings 
     with Federal agencies, State and local governments, economic 
     development districts, Indian tribes, and other appropriate 
     planning and development organizations.''.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

     SEC. 201. GRANTS FOR PLANNING.

       Section 203(d) (42 U.S.C. 3143(d)) is amended--
       (1) in paragraph (1) by inserting ``, to the maximum extent 
     practicable,'' after ``developed'' the second place it 
     appears;
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Coordination.--Before providing assistance for a 
     State plan under this section, the Secretary shall consider 
     the extent to which the State will consider local and 
     economic development district plans.''; and
       (3) in paragraph (4)--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (C) by adding after subparagraph (C) the following:
       ``(D) assist in carrying out a State's workforce investment 
     strategy; and''.

     SEC. 202. COST SHARING.

       (a) Federal Share.--Section 204(a) (42 U.S.C. 3144(a)) is 
     amended to read as follows:
       ``(a) Federal Share.--The Secretary shall issue regulations 
     to establish the Federal share of the cost of projects 
     carried out under this title based on the relative needs of 
     the areas in which the projects will be located. Except as 
     provided in subsection (c), the Federal share of the cost of 
     any project carried out under this title shall not exceed 80 
     percent.''.
       (b) Non-Federal Share.--Section 204(b) (42 U.S.C. 3144(b)) 
     is amended by inserting ``assumptions of debt,'' after 
     ``equipment,''.
       (c) Increase in Federal Share.--Section 204 (42 U.S.C. 
     3144) is amended by adding at the end the following:
       ``(c) Increase in Federal Share.--
       ``(1) Indian tribes.--In the case of a grant to an Indian 
     tribe for a project under this title, the Secretary may 
     increase the Federal share above the percentage specified in 
     subsection (a) up to 100 percent of the cost of the project.
       ``(2) 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 increase the 
     Federal share above the percentage specified in subsection 
     (a) up to 100 percent of the cost of the project.''.
       (d) Planning Grants.--Section 204 (42 U.S.C. 3144) is 
     further amended by adding at the end the following:
       ``(d) Planning Grants.--Notwithstanding subsection (a), the 
     Federal share of the costs of planning activities under 
     section 203 shall be at least 65 percent and not more than 80 
     percent.''.

     SEC. 203. SUPPLEMENTARY GRANTS.

       (a) In General.--Section 205(b) (42 U.S.C. 3145(b)) is 
     amended to read as follows:
       ``(b) Supplementary Grants.--Subject to subsection (c), in 
     order to assist eligible recipients in taking advantage of 
     designated Federal grant programs, on the application of an 
     eligible recipient, the Secretary may make a supplementary 
     grant for a project for which the recipient is eligible but 
     for which the recipient cannot provide the required non-
     Federal share because of the recipient's economic 
     situation.''.
       (b) Requirements Applicable to Supplementary Grants.--
     Section 205(c) (42 U.S.C. 3145(c)) is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Amount of supplementary grants.--The share of the 
     project cost supported by a supplementary grant under this 
     section may not exceed the applicable Federal share under 
     section 204.
       ``(2) Form of supplementary grants.--The Secretary shall 
     make supplementary grants by--
       ``(A) the payment of funds made available under this Act to 
     the heads of the Federal agencies responsible for carrying 
     out the applicable Federal programs; or
       ``(B) the award of funds under this Act, which will be 
     combined with funds transferred from other Federal agencies 
     in projects administered by the Secretary.''; and
       (2) by striking paragraph (4).

     SEC. 204. REGULATIONS ON RELATIVE NEEDS AND ALLOCATIONS.

       Section 206 (42 U.S.C. 3146) is amended--
       (1) by striking ``and'' at the end of paragraph (1)(B);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) grants made under this title promote job creation and 
     will have a high probability of meeting or exceeding 
     applicable performance requirements established in connection 
     with the grants.''.

     SEC. 205. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                   ASSISTANCE.

       (a) In General.--Section 207(a)(2) (42 U.S.C. 3147(a)(2)) 
     is amended--
       (1) by striking ``and'' at the end of subparagraph (F);
       (2) by redesignating subparagraph (G) as subparagraph (H); 
     and
       (3) by inserting after subparagraph (F) the following:
       ``(G) studies that evaluate the effectiveness of 
     coordinating projects funded under this Act with projects 
     funded under other Acts; and''.
       (b) Cooperation Requirement.--Section 207(a) (42 U.S.C. 
     3147(a)) is amended by adding at the end the following:
       ``(4) Cooperation requirement.--In the case of a project 
     assisted under this section that is national or regional in 
     scope, the Secretary may waive the provision in section 
     3(4)(A)(vi) requiring a nonprofit organization or association 
     to act in cooperation with officials of a political 
     subdivision of a State.''.

     SEC. 206. PREVENTION OF UNFAIR COMPETITION.

       Section 208 (42 U.S.C. 3148), and the item relating to 
     section 208 in the table of contents contained in section 
     1(b), are repealed.

     SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

       (a) Direct Expenditure or Redistribution by Recipient.--
     Section 209(d) (42 U.S.C. 3149(d)) is amended by striking 
     ``an eligible recipient'' each place it appears and inserting 
     ``a recipient''.
       (b) Special Provisions Relating to Revolving Loan Fund 
     Grants.--Section 209 (42 U.S.C. 3149) is amended by adding at 
     the end the following:
       ``(e) Special Provisions Relating to Revolving Loan Fund 
     Grants.--
       ``(1) In general.--The Secretary shall issue regulations to 
     maintain the proper operation and financial integrity of 
     revolving loan funds established by recipients with 
     assistance under this section.
       ``(2) Efficient administration.--The Secretary may--
       ``(A) at the request of a grantee, amend and consolidate 
     grant agreements governing revolving loan funds to provide 
     flexibility with respect to lending areas and borrower 
     criteria;
       ``(B) assign or transfer assets of a revolving loan fund to 
     a third party for the purpose of liquidation, and a third 
     party may retain assets of the fund to defray costs related 
     to liquidation; and
       ``(C) take such actions as are appropriate to enable 
     revolving loan fund operators to sell or securitize loans 
     (except that the actions may not include issuance of a 
     Federal guaranty by the Secretary).
       ``(3) Treatment of actions.--An action taken by the 
     Secretary under this subsection with respect to a revolving 
     loan fund shall not constitute a new obligation if all grant 
     funds associated with the original grant award have been 
     disbursed to the recipient.
       ``(4) Preservation of Securities Laws.--
       ``(A) Not treated as exempted securities.--No securities 
     issued pursuant to paragraph (2)(C) shall be treated as 
     exempted securities for purposes of the Securities Act of 
     1933 or the Securities Exchange Act of 1934, unless exempted 
     by rule or regulation of the Securities and Exchange 
     Commission.
       ``(B) Preservation.--Except as provided in subparagraph 
     (A), no provision of this subsection or any regulation issued 
     by the Secretary under this subsection shall supersede or 
     otherwise affect the application of the securities laws (as 
     such term is defined in section 2(a)(47) of the Securities 
     Exchange Act of 1934) or the rules, regulations, or orders of 
     the Securities and Exchange Commission or a self-regulatory 
     organization thereunder.''.

     SEC. 208. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                   PROJECTED COST.

       Section 211 (42 U.S.C. 3151) is amended to read as follows:

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

       ``(a) In General.--In the case of a grant to a recipient 
     for a construction project under section 201 or 209, if the 
     Secretary determines, before closeout of the project, that 
     the cost of the project, based on the designs and 
     specifications that were the basis of the grant, has 
     decreased because of decreases in costs, the Secretary may 
     approve, without further appropriations action, the use of 
     the excess funds (or a portion of the excess funds) by the 
     recipient to increase the Federal share of the cost of a 
     project under this title to the maximum percentage allowable 
     under section 204 or to improve the project.
       ``(b) Other Uses of Excess Funds.--Any amount of excess 
     funds remaining after application of subsection (a) may be 
     used by the Secretary for providing assistance under this 
     Act.
       ``(c) Transferred Funds.--In the case of excess funds 
     described in subsection (a) in projects utilizing funds 
     transferred from other Federal agencies pursuant to section 
     604, the Secretary shall--
       ``(1) utilize the funds in accordance with subsection (a), 
     with the approval of the originating agency; or
       ``(2) return the funds to the originating agency.''.

     SEC. 209. SPECIAL IMPACT AREAS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 214. SPECIAL IMPACT AREAS.

       ``(a) In General.--On the application of an eligible 
     recipient, the Secretary may determine that the recipient is 
     unable to comply with the requirements of section 302 and 
     designate the area represented by the recipient as a special 
     impact area.
       ``(b) Waivers.--Subject to the requirements of this 
     section, the Secretary may waive, in whole or in part, as 
     appropriate, the requirements of section 302 with respect to 
     a special impact area designated under subsection (a) if the 
     Secretary determines that the waiver will carry out the 
     purposes of the Act.
       ``(c) Notification Requirement.--At least 30 days before 
     issuing a waiver under this section,

[[Page H9764]]

     the Secretary shall transmit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate a written notice of the waiver, including 
     a justification for the waiver.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 213 the following:

``Sec. 214. Special impact areas.''.

     SEC. 210. PERFORMANCE AWARDS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 215. PERFORMANCE AWARDS.

       ``(a) In General.--The Secretary may make a performance 
     award in connection with a grant made, on or after the date 
     of enactment of this section, to an eligible recipient for a 
     project under section 201 or 209.
       ``(b) Performance Measures.--
       ``(1) Regulations.--The Secretary shall issue regulations 
     to establish performance measures for making performance 
     awards under subsection (a).
       ``(2) Considerations.--In issuing regulations under 
     paragraph (1), the Secretary shall consider including 
     performance measures that assess the following factors:
       ``(A) Whether the recipient meets or exceeds scheduling 
     goals.
       ``(B) Whether the recipient meets or exceeds job creation 
     goals.
       ``(C) Amounts of private sector capital investments 
     leveraged.
       ``(D) Such other factors as the Secretary determines 
     appropriate.
       ``(c) Amount of Awards.--
       ``(1) In general.--The Secretary shall base the amount of a 
     performance award made under subsection (a) in connection 
     with a grant on the extent to which a recipient meets or 
     exceeds performance measures established in connection with 
     the grant.
       ``(2) Maximum amount.--The amount of a performance award 
     may not exceed 10 percent of the amount of the grant.
       ``(d) Use of Awards.--A recipient of a performance award 
     under subsection (a) may use the award for any eligible 
     purpose under this Act, in accordance with section 602 and 
     such regulations as the Secretary may prescribe.
       ``(e) Federal Share.--Notwithstanding section 204, the 
     amounts of a performance award may be used for up to 100 
     percent of the cost of an eligible project or activity.
       ``(f) Treatment in Meeting Non-Federal Share 
     Requirements.--For the purposes of meeting the non-Federal 
     share requirements of this Act, or any other Act, the amounts 
     of a performance award shall be treated as funds from a non-
     Federal source.
       ``(g) Terms and Conditions.-- In making performance awards 
     under subsection (a), the Secretary shall establish such 
     terms and conditions as the Secretary considers appropriate.
       ``(h) Funding.--The Secretary shall carry out this section 
     using any amounts made available for economic development 
     assistance programs.
       ``(i) Reporting Requirement.--The Secretary shall include 
     information regarding performance awards made under this 
     section in the annual report required under section 603.
       ``(j) Review by Comptroller General.--
       ``(1) Review.--The Comptroller General shall review the 
     implementation of this section in each fiscal year.
       ``(2) Annual report.--Not later than one year after the 
     date of enactment of this section, and annually thereafter, 
     the Comptroller General shall transmit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Environment and Public 
     Works of the Senate a report on the Comptroller's findings 
     under this subsection.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 214 the following:

``Sec. 215. Performance awards.''.

     SEC. 211. PLANNING PERFORMANCE AWARDS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 216. PLANNING PERFORMANCE AWARDS.

       ``(a) In General.--The Secretary may make a planning 
     performance award in connection with a grant made, on or 
     after the date of enactment of this section, to an eligible 
     recipient for a project under this title located in an 
     economic development district.
       ``(b) Eligibility.--The Secretary may make a planning 
     performance award to an eligible recipient under subsection 
     (a) in connection with a grant for a project if the Secretary 
     determines before closeout of the project that--
       ``(1) the recipient actively participated in the economic 
     development activities of the economic development district 
     in which the project is located;
       ``(2) the project is consistent with the comprehensive 
     economic development strategy of the district;
       ``(3) the recipient worked with Federal, State, and local 
     economic development entities throughout the development of 
     the project; and
       ``(4) the project was completed in accordance with the 
     comprehensive economic development strategy of the district.
       ``(c) Maximum Amount.--The amount of a planning performance 
     award made under subsection (a) in connection with a grant 
     may not exceed 5 percent of the amount of the grant.
       ``(d) Use of Awards.--A recipient of a planning performance 
     award under subsection (a) shall use the award to increase 
     the Federal share of the cost of a project under this title.
       ``(e) Federal Share.--Notwithstanding section 204, the 
     amounts of a planning performance award may be used for up to 
     100 percent of the cost of a project under this title.
       ``(f) Funding.--The Secretary shall carry out this section 
     using any amounts made available for economic development 
     assistance programs.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 215 the following:

``Sec. 216. Planning performance awards.''.

     SEC. 212. SUBGRANTS.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 217. SUBGRANTS.

       ``(a) In General.--Subject to subsection (b), a recipient 
     of a grant under section 201, 203, or 207 may directly expend 
     the grant funds or may redistribute the funds in the form of 
     a subgrant to other eligible recipients to fund required 
     components of the scope of work approved for the project.
       ``(b) Limitation.--A recipient may not redistribute grant 
     funds received under section 201 or 203 to a for-profit 
     entity.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 216 the following:

``Sec. 217. Subgrants.''.

     SEC. 213. BROWNFIELDS REDEVELOPMENT.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 218. BROWNFIELDS REDEVELOPMENT.

       ``(a) In General.--On the application of a qualified 
     eligible recipient, the Secretary may make grants under 
     sections 201, 203, 207, and 209 for projects to expand, 
     redevelop, or reuse brownfield sites.
       ``(b) Limitations.--Projects carried out under this section 
     shall be subject to the limitations of section 104(k)(4)(B) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)); except 
     that recipients may use grant funds awarded under this 
     section for the administrative costs of economic development 
     activities.
       ``(c) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Brownfield site.--The term `brownfield site' has the 
     meaning given such term in section 101(39) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(39)).
       ``(2) Qualified eligible recipient.--The term `qualified 
     eligible recipient' means an eligible recipient that meets 
     the definition of `eligible entity' in section 104(k)(1) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9604(k)(1)); except that for 
     any project undertaken under this section the term may 
     include a nonprofit organization acting in cooperation with 
     officials of a political subdivision of a State.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 217 the following:

``Sec. 218. Brownfields redevelopment.''.

     SEC. 214. BRIGHTFIELDS DEMONSTRATION PROGRAM.

       (a) In General.--Title II (42 U.S.C. 3141 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 219. BRIGHTFIELDS DEMONSTRATION PROGRAM.

       ``(a) In General.--On the application of a qualified 
     eligible recipient, the Secretary may make a grant for a 
     project for the development of brightfield sites if the 
     Secretary determines that the project will--
       ``(1) utilize solar energy technologies to develop 
     abandoned or contaminated sites for commercial use; and
       ``(2) improve the commercial and economic opportunities in 
     the area where the project is located.
       ``(b) Limitations.--Projects carried out under this section 
     shall be subject to the limitations of section 104(k)(4)(B) 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9604(k)(4)(B)); except 
     that recipients may use grant funds awarded under this 
     section for the administrative costs of economic development 
     activities.
       ``(c) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Brightfield site.--The term `brightfield site' means 
     a brownfield site (as defined in section 217) that is 
     redeveloped through the incorporation of solar energy 
     technologies.
       ``(2) Qualified eligible recipient.--The term `qualified 
     eligible recipient' has the meaning given such term in 
     section 217; except that for any project undertaken under 
     this section the term may include a nonprofit organization 
     acting in cooperation with officials of a political 
     subdivision of a State.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2004 through 2008. Such sums shall 
     remain available until expended.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by inserting after the item 
     relating to section 218 the following:

``Sec. 219. Brightfields demonstration program.''.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

     SEC. 301. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

       (a) In General.--Section 302(a)(3)(A) (42 U.S.C. 
     3162(a)(3)(A)) is amended by inserting

[[Page H9765]]

     ``maximizes effective development and use of the workforce 
     consistent with any applicable State or local workforce 
     investment strategy,'' after ``access,''.
       (b) Approval of Other Plan.--Section 302(c) (42 U.S.C. 
     3162(c)) is amended by adding at the end the following: ``To 
     the maximum extent practicable, a plan submitted under this 
     paragraph shall be consistent and coordinated with any 
     existing comprehensive economic development strategy for the 
     area.''.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

     SEC. 401. INCENTIVES.

       Section 403 (42 U.S.C. 3173), and the item relating to 
     section 403 in the table of contents contained in section 
     1(b), are repealed.

     SEC. 402. PROVISION OF COMPREHENSIVE ECONOMIC DEVELOPMENT 
                   STRATEGIES TO REGIONAL COMMISSIONS.

       (a) In General.--Section 404 (42 U.S.C. 3174) is amended to 
     read as follows:

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

       ``If any part of an economic development district is in a 
     region covered by one or more of the Regional Commissions (as 
     defined in section 3), the economic development district 
     shall ensure that a copy of the comprehensive economic 
     development strategy of the district is provided to the 
     affected Regional Commission.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) is amended by striking the item relating to 
     section 404 and inserting the following:

``Sec. 404. Provision of comprehensive economic development strategies 
              to Regional Commissions.''.

                        TITLE V--ADMINISTRATION

     SEC. 501. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

       Section 502 (42 U.S.C. 3192) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) maintain a central information clearinghouse on the 
     Internet with--
       ``(A) information on economic development, economic 
     adjustment, disaster recovery, defense conversion, and trade 
     adjustment programs and activities of the Federal Government;
       ``(B) links to State economic development organizations; 
     and
       ``(C) links to other appropriate economic development 
     resources;'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) assist potential and actual applicants for economic 
     development, economic adjustment, disaster recovery, defense 
     conversion, and trade adjustment assistance under Federal and 
     State laws in locating and applying for the assistance;'';
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) obtain appropriate information from other Federal 
     agencies needed to carry out the duties under this Act.''.

     SEC. 502. BUSINESSES DESIRING FEDERAL CONTRACTS.

       Section 505 (42 U.S.C. 3195), and the item relating to 
     section 505 in the table of contents contained in section 
     1(b), are repealed.

     SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       Section 506(c) (42 U.S.C. 3196(c)) is amended by striking 
     ``after the effective date of the Economic Development 
     Administration Reform Act of 1998''.

     SEC. 504. CONFORMING AMENDMENTS.

       (a) Standards.--Section 602 (42 U.S.C. 3212) is amended--
       (1) in the first sentence by striking ``in accordance 
     with'' and all that follows before the period at the end and 
     inserting ``in accordance with subchapter IV of chapter 31 of 
     title 40, United States Code''; and
       (2) in the third sentence by striking ``section 2 of the 
     Act of June 13, 1934, as amended (40 U.S.C. 276c)'' and 
     inserting ``section 3145 of title 40, United States Code''.
       (b) Evaluation Criteria.--Section 506(d)(2) (42 U.S.C. 
     3196(d)(2)) is amended by inserting ``program performance,'' 
     after ``applied research,''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

       Section 609 (42 U.S.C. 3219) is amended--
       (1) by striking subsection (a); and
       (2) by striking ``(b) Assistance Under Other Acts.--''.

     SEC. 602. SENSE OF CONGRESS REGARDING ECONOMIC DEVELOPMENT 
                   REPRESENTATIVES.

       (a) Findings.--Congress finds the following:
       (1) Planning and coordination among Federal agencies, State 
     and local governments, Indian tribes, and economic 
     development districts is vital to the success of an economic 
     development program.
       (2) Economic Development Representatives of the Economic 
     Development Administration provide distressed communities 
     with the technical assistance necessary to foster this 
     planning and coordination.
       (3) In the past five years, the number of Economic 
     Development Representatives has declined by almost 25 
     percent.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary should maintain a sufficient number of Economic 
     Development Representatives to ensure that the Economic 
     Development Administration is able to provide effective 
     assistance to distressed communities and foster economic 
     growth and development among the States.

                           TITLE VII--FUNDING

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

       Section 701 (42 U.S.C. 3231) is amended to read as follows:

     ``SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Economic Development Assistance Programs.--There are 
     authorized to be appropriated for economic development 
     assistance programs to carry out this Act--
       ``(1) $400,000,000 for fiscal year 2004;
       ``(2) $425,000,000 for fiscal year 2005;
       ``(3) $450,000,000 for fiscal year 2006;
       ``(4) $475,000,000 for fiscal year 2007; and
       ``(5) $500,000,000 for fiscal year 2008.

     Such sums shall remain available until expended.
       ``(b) Salaries and Expenses.--There are authorized to be 
     appropriated for salaries and expenses of administering this 
     Act $33,377,000 for fiscal year 2004 and such sums as may be 
     necessary for each fiscal year thereafter. Such sums shall 
     remain available until expended.''.

              TITLE VIII--APPALACHIAN REGIONAL DEVELOPMENT

     SEC. 801. ADDITIONS TO APPALACHIAN REGION.

       (a) Kentucky.--Section 14102(a)(1)(C) of title 40, United 
     States Code, is amended--
       (1) by inserting ``Nicholas,'' after ``Morgan,''; and
       (2) by inserting ``Robertson,'' after ``Pulaski,''.
       (b) Ohio.--Section 14102(a)(1)(H) of such title is 
     amended--
       (1) by inserting ``Ashtabula,'' after ``Adams,'';
       (2) by inserting ``Fayette,'' after ``Coshocton,'';
       (3) by inserting ``Mahoning,'' after ``Lawrence,''; and
       (c) Tennessee.--Section 14102(a)(1)(K) of such title is 
     amended--
       (1) by inserting ``Giles,'' after ``Franklin,''; and
       (2) by inserting ``Lawrence, Lewis, Lincoln,'' after 
     ``Knox,''.
       (d) Virginia.--Section 14102(a)(1)(L) of such title is 
     amended--
       (1) by inserting ``Henry,'' after ``Grayson,''; and
       (2) by inserting ``Patrick,'' after ``Montgomery,''.

     SEC. 802. AUTHORIZATION OF APPROPRIATIONS.

       Section 14703(a) of title 40, United States Code, is 
     amended by striking paragraphs (1) through (3) and inserting 
     the following:
       ``(1) $88,000,000 for each of fiscal years 2002 and 2003.
       ``(2) $91,000,000 for fiscal year 2004.
       ``(3) $93,000,000 for fiscal year 2005.
       ``(4) $95,000,000 for fiscal year 2006.''.

  The SPEAKER pro tempore. The gentleman from Ohio (Mr. LaTourette) and 
the gentlewoman from the District of Columbia (Ms. Norton) each will 
control 30 minutes.
  The Chair recognizes the gentleman from Ohio (Mr. LaTourette).
  Mr. LaTOURETTE. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, H.R. 2535, the Economic Development Administration 
Reauthorization Act, continues the work of the EDA by reauthorizing the 
agency for 5 years, updates the statute to reflect a changing economy, 
promotes the efficient use of resources, eliminates unnecessary and 
outdated provisions, and gives the Secretary flexibility to assist 
particularly hard-hit parts of the country. This reauthorization also 
includes several new provisions that will be important additions to the 
work of the EDA.
  This legislation creates a performance-based incentive program in 
which eligible recipients are eligible for a bonus of up to 10 percent 
of the project cost by meeting criteria established in regulation; 
allows for the improved management and operation of revolving loan 
funds by amending loan areas and consolidating overlapping loans with 
the operator's consent and by crafting regulations that would allow for 
the securitization of loans consistent with security laws; and creates 
a planning performance award that awards up to 5 percent of a grant 
amount if a recipient meets several mandated criteria. By adding these 
provisions, EDA can better serve its constituents and do more to 
improve the economic future of America.
  This legislation was developed through an intense process of hearings 
and markups. It was an open process that allowed for the input of all 
Members and groups with an interest in the legislation. This process 
has resulted in legislation that has broad bipartisan support, the 
support of the administration, and the support of such important 
partners as the National Association of Development Organizations, 
International Economic Development Council, National League of Cities, 
National Association of Counties, and the United States Conference of 
Mayors. This is a well-crafted piece of legislation. I want to thank 
the chairman of our full committee the gentleman from Alaska (Mr. 
Young); the ranking member of the full committee the gentleman from 
Minnesota (Mr. Oberstar); and my distinguished ranking

[[Page H9766]]

member on the subcommittee the gentlewoman from the District of 
Columbia (Ms. Norton) for helping us put this legislation together.
  I urge my colleagues to join me in supporting it.
  Mr. Speaker, I reserve the balance of my time.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, first I want to commend the chair of the subcommittee 
for the several hearings he had with great profit on the bill before us 
today and with the way he conducted those hearings so as to bring out 
many new ideas that have improved this bill. I rise, therefore, in 
support of H.R. 2535 as amended by the manager's amendment, a bill to 
reauthorize the program authorized by the Public Works and Economic 
Development Act of 1965.
  This bill will reauthorize the Economic Development Administration 
for 5 years and provide authorization for sufficient funding levels to 
carry out its statutory obligations to provide economic opportunities 
in distressed areas of our country. This bill is of great importance to 
many struggling rural communities in our country and has very strong 
bipartisan support in this body.
  The bill being considered this morning authorizes some new concepts, 
such as performance grants, and reinforces some tried and true 
approaches, such as ensuring economic development proceeds with close 
cooperation between local governments and Federal partners. One of the 
new concepts is the authorization of a performance grant program. Under 
this new program, grantees that meet or exceed goals for projects 
scheduled, jobs creation and financial leverage will be eligible for a 
performance grant of up to 10 percent of the project grant.
  Further, for purposes of this act, the grantee can consider the 
proceeds as local funds to meet the non-Federal share requirements of 
this or other economic development acts. This is a new and innovative 
approach to rewarding high performance and provides the grantees with a 
tangible asset for future use. This will, we think, bring important new 
efficiencies to a program where there was already great efficiency 
according to many who testified.
  The bill also authorizes the Secretary to make grants for projects to 
expand, redevelop or reuse brownfields sites. This is a much needed 
authority for major industrial sites.
  I also appreciate the consideration the committee gave to my own 
interest in university centers and the expertise and resources they can 
bring to small and disadvantaged communities, just as they are well 
known to bring such advantages to big cities. Report language will 
highlight the committee's intent that the EDA should consider 
increasing the number of university centers. With the increase in 
authorized sums, I hope new university centers will become a reality.
  Most of the districts that will benefit from this bill are rural 
communities, some of them very small, some of them larger communities. 
Many communities wanted to be a part of this bill because of its long 
history of promoting economic development and leveraging private 
resources, where otherwise that would be very difficult. Although, I 
represent a highly-urbanized district, I certainly know firsthand the 
singular importance of economic development, the benefits associated 
with economic opportunities that are created with a strong, vibrant 
economic development program and, of course, the persistent need for 
funding to transform ideas into reality.
  At the April hearing on economic development, I mentioned the recent 
opening of the new Washington Convention Center and the immediate 
economic effect that it is having on my community and on the residents 
and community at large, including the entire region. I want to 
especially thank Chairman Young and Ranking Member Oberstar for their 
constant and beneficial leadership on this bill. I also extend my 
personal thanks and congratulations to the gentleman from Ohio (Mr. 
LaTourette) for the interest and attention and expertise in committee 
he brought to reauthorizing this agency which is so vital to so many 
rural Americans. I strongly support H.R. 2535 and urge its passage.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, it is my pleasure to yield 3 minutes to 
the gentleman from Pennsylvania (Mr. Peterson).
  Mr. PETERSON of Pennsylvania. Mr. Speaker, I want to commend the 
gentleman from Ohio (Mr. LaTourette) and the gentlewoman from the 
District of Columbia (Ms. Norton) for their good work on the 
reauthorization of EDA. I, as the cochairman of the Congressional Rural 
Caucus, rise today in strong support of this reauthorization for the 
Economic Development Agency. The programs under the EDA are 
tremendously vital to rural areas. Without Federal economic development 
investment in rural economies, many of these communities would lack the 
resources to attract the next generation of manufacturing jobs and they 
would wither and dry up.
  The reauthorization passed in the 105th Congress focused these 
programs toward serving the most needy, and I am pleased this 
reauthorization will continue to build upon those achievements. I have 
seen firsthand how the past reauthorization has focused Federal dollars 
to target communities that lack the resources.
  I want to give my colleagues a few examples. When Knox Glass closed 
in Clarion County, it was EDA who stepped up to the plate with a grant 
that allowed them to build a new industrial park there on 80 and 
replace many of those jobs. When Franklin Steel closed, it was an EDA 
grant that allowed Franklin Industries to reopen that factory and have 
several hundred people working there. When Kendall Refining closed in 
McKean County, and now we reopened American Refineries, it was an EDA 
grant that allowed that to happen. When the Stackpole Corporation 
closed and thousands of jobs left Elk County in Pennsylvania, it was an 
EDA grant through the North Central Planning Commission that now has 
200 and 300 people working in different companies within that complex. 
And when the Cyclops Steel Plant closed 5 miles from my home and 1,000 
good jobs went down the drain, it was an EDA grant that allowed that 
facility to be taken over by a local development agency, and there are 
several hundred jobs and about 20 companies providing employment there 
today.
  Do we need it in the future? Yes, we do. In my 16-county rural 
district in Pennsylvania, we have lost 17,000 manufacturing jobs in the 
year 2001 and 2002. So I stand here today saying we need an expanded 
EDA. We need an EDA with more money, with a bigger budget. And I am 
here today on behalf of the reauthorization of this agency because 
their structure allows them to go into a rural community that has been 
devastated by losing their major employer and give that grant that is 
the glue that will put an economic opportunity back there in those 
communities.
  Rural America is in trouble. We need a bigger, stronger EDA to help 
us. They have an agency with a good track record. I want to commend 
Secretary David Sampson for his strong leadership there, and I want to 
commend the committee for their good work in bringing forth this 
reauthorization.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  I want to thank the gentleman who has just spoken. I want him to know 
that I think I would speak for the chair, as well as myself, when I say 
it was heartbreaking not to have more money for this bill because of 
the way in which communities came forward and wanted to be included. 
But we thought that pretty soon you are going to have every community 
from a rural area in the United States included in this bill, and for 
good reason. What made it heartbreaking, of course, is that we are not 
just talking about another bill that will throw some money out here for 
communities, even hard-pressed communities. What was really so 
rewarding was to hear experts who had looked at the program testify as 
to its benefits and its efficiency.
  There came a time in the hearings when I wondered if I was hearing a 
discussion of a Federal program when its efficiencies were being touted 
the way they were. What the chairman and I did was to work on making 
these efficiencies even more widespread with new ways to not only 
measure performance but to reward performance. I do want to say a word 
about rewarding performance. The incentive portion of

[[Page H9767]]

this bill will also mean that the private sector, whose resources get 
leveraged as well, will understand why this bill is important for their 
participation, because they understand incentives. The joining of the 
performance with incentives, which means that some of that actually 
comes back to you to use, is a model I would like to see in other 
Federal legislation as well. I regret that there was not more money. I 
applaud the fact that there is a greater amount than before. I thank 
the gentleman from Ohio (Mr. LaTourette) for his hard work on this 
bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, I yield myself such time as I may 
consume to make a couple of observations. One, to thank the gentleman 
from Pennsylvania for his eloquent statement. I think as he recited 
those communities that have been helped by the EDA, that was the only 
commercial that we needed for the reauthorization of this valuable 
program. In the exhaustive hearings that we had on this issue where the 
gentlewoman from the District and I had the opportunity to listen to 
economic development experts from around the country, they talked about 
the fact that the average size of EDA grant is $600,000. So we are not 
talking about hundreds of millions, we are not talking about billions, 
but that $600,000 when then translated into the local community and 
what it meant, as recounted by the gentleman from Pennsylvania, I think 
was truly remarkable. It really is life-changing and community-changing 
money, and the work that they do is certainly not only well-spent but 
it is productive.
  The second piece, the amendment that was self-executed by the 
agreement of the House of yesterday, I think, is important in that we 
have added 12 counties to the Appalachian Regional Commission. Some 
people expressed concern about that, particularly those communities 
that are already located within the ARC. I want to highlight and 
commend the distinguished work of one of our committee members, the 
gentlewoman from West Virginia (Mrs. Capito) that was concerned about 
the fact that that might stress the resources. She made sure that an 
amendment was included therein that also made sure that there were 
sufficient funds so that that fine organization could continue its work 
and continue its work at a fiscally responsible level.

                              {time}  1230

  Mr. Speaker, I yield 2 minutes to the distinguished gentleman from 
Michigan (Mr. Hoekstra).
  Mr. HOEKSTRA. Mr. Speaker, I thank my colleague for yielding me this 
time and allowing me the opportunity to speak on this bill.
  I am enthusiastic about this bill. It has bipartisan support, 
supported by development organizations. It is supported by the U.S. 
Conference of Mayors, the Education Association of the University 
Centers. So it has clearly met the needs of a number of folks. But as 
we take a look at what the bill does specifically, it creates a new 
program that allows for the designation of special impact areas which 
allows the Secretary to waive certain planning requirements to help 
isolated areas in distressed communities.
  This designation, I think, really will enable the Secretary to 
respond more quickly to get help to those areas, to get economic help 
to those communities that need it; and when they need it, they need it 
quickly. It creates a performance-based incentive program that rewards 
high performance, as determined by criteria established in regulation, 
with a bonus of up to 10 percent of the project cost that can be used 
on other eligible activities.
  Again, these reforms focus on getting better results. It creates a 
planning performance award equal to 5 percent of the grant amount, 
which may be awarded prior to closeout of a grant if the recipient 
satisfies four mandated criteria. And as with any program or any 
reform, it removes outdated and burdensome administrative procedures. 
It updates several citations and allows for subgranting of assistance 
to eligible recipients. It also authorizes the issuance of grants for 
brownfields redevelopment. Again, important in many communities because 
if we want to revitalize a community, what we want to do is we want to 
revitalize those areas that we classify as brownfields. It also allows 
the EDA to explore the use of photovoltaic technology in brownfield 
redevelopment on a limited basis, again, enabling us to use perhaps 
break-through technology in cleaning up the brownfields. So I rise in 
strong support of H.R. 2535, the Economic Development Administration 
Reauthorization bill, and I thank my colleague.
  Mr. LaTOURETTE. Mr. Speaker, we have had a couple of additional 
speakers show up here, and I am not sure whether the gentlewoman from 
the District of Columbia was expecting that. So I would ask unanimous 
consent that the time that she has yielded back be restored to her in 
case she wants to make some observations.
  The SPEAKER pro tempore (Mr. Shaw). Without objection, the 
gentlewoman from the District of Columbia's (Ms. Norton) time is 
restored.
  There was no objection.
  Mr. LaTOURETTE. Mr. Speaker, I yield 3 minutes to the gentleman from 
North Carolina (Mr. Hayes).
  Mr. HAYES. Mr. Speaker, I thank the gentleman from Ohio (Mr. 
LaTourette) for his hard work and dedication in increasing economic 
opportunities through the reauthorization of the Economic Development 
Administration.
  I strongly support this legislation. Established in 1965, the ADA was 
created in an effort to improve conditions of substantial and 
persistent economic distress throughout the United States. I am 
fortunate to have been able to work with the EDA, and specifically Dr. 
David Sampson, on economic development issues that are vitally 
important to the future and the people of the eighth district of North 
Carolina.
  H.R. 2535 requires Federal agencies to coordinate their economic 
development initiatives, including a requirement for comprehensive 
economic development strategies, CEDS, to maximize the effective use of 
workforce investment strategies. Our CEDS committee is a local 
initiative led by Chairwoman Judy Stevens and comprised of local 
economic development, education, and chamber officials. With the hard 
work of Dr. Sampson and his staff at EDA, our CEDS committee is coming 
closer to a final recommendation to present to EDA which will serve as 
a blueprint for regional economic development for the eighth district 
of North Carolina.
  With relatively small investments of Federal funds, the EDA has been 
able to achieve remarkable successes and change the economic outlook 
for many citizens. As an example, since 1965, the Appalachian Regional 
Commission has invested over $400 million toward transportation, 
business development, education, health care, and community projects in 
North Carolina. As a direct result of this investment, poverty rates in 
the commission region have been cut almost in half.
  These are real results for real people, and I look forward to 
continuing to work with Dr. Sampson and the EDA as we continue to 
address economic development and jobs in areas such as the eighth 
district of North Carolina. I am hopeful that the 108th Congress will 
authorize the Southeast Crescent Authority, or SECA, which will provide 
428 counties in the southeastern United States access to Federal funds 
and expertise that will support increased economic opportunity, 
prosperity, and jobs for our citizens.
  I again thank the gentleman from Ohio (Mr. LaTourette) for his 
service and leadership on his issue, and I support the bill strongly.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  I thank the gentleman for moving to restore my time by unanimous 
consent. And since we do have the time, I want to note how long-lasting 
this bill has been. I mentioned that it was first authorized in 1965 
when the President was Lyndon Johnson. It was a bipartisan bill then, 
and it remains bipartisan today. And it comes at a time of special need 
for such a bill.
  Since January, 2001, if we look nationwide, the number of unemployed 
have increased by 50 percent. We know what that means in big cities 
because of the media in big cities. The effect on small communities is 
far more serious because they do not have the economic development 
vehicles in the first place and because those areas by definition have 
found it harder to attract the vehicles on their own.

[[Page H9768]]

  The importance of this bill is that it has given the signal to the 
private sector to come on in, and the bill is so successful because 
that is exactly what the private sector has done in rural communities 
where they would not have thought of coming without the Economic 
Development Act. So these grants are critical to economic development 
in good times and in poor times. They keep economic development alive 
very often. And what kind of money are we talking about? The chairman 
indicated the size of the average grant. When we come on the floor with 
a bill that authorizes $400 million for fiscal year 2004 and $500 
million by the year 2008, we are really talking pocket change for bills 
that come before this body. And look at what it does. Hundreds of 
millions more is leveraged from private resources because of this bill.
  I am very proud of the work the committee has done, but I am prouder 
still of what came before us in the form of benefits to rural 
communities and efficiencies that they had incorporated into their own 
economic development work.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, I yield 3 minutes to the gentleman from 
Colorado (Mr. Beauprez).
  Mr. BEAUPREZ. Mr. Speaker, I thank the gentleman for yielding me this 
time, and I congratulate him and the ranking member on bringing this 
important legislation to the floor. And I am rising in strong support 
of passage of H.R. 2535.
  I would like to share a very personal story. Sometimes we talk in 
grand pictures and sometimes abstract pictures about our impact of 
legislation. I want to cite for the Members of this body a very 
specific example. In 1995 with the BRAC closures, the Base Realignment 
and Closure Act, the Fitzsimmons Army Medical Hospital in Aurora, just 
on the edge of Denver, found itself on that list. And one can imagine 
the impact on a community when it finds out that about 4,500 jobs, both 
direct and indirect, are going to be lost from that community, a 
tremendous financial and economic impact to a relatively small 
neighborhood and a community. To make lemonade out of lemons, the EDA 
came in with some assistance, provided assistance in the form of an 
infrastructure grant to provide basic infrastructure needs, 
transportation needs for this old Army base. That Army base now is 
going to be home for a health sciences center, a collaborative health 
sciences center, involving the University of Colorado Health Sciences. 
We hope the Veterans Hospital will move there. We have an cancer center 
there, an eye center there. A bioethics clinic is locating there.
  A long story made short, 35,000 jobs, 35,000 jobs are expected to be 
on that site by the year 2010, 35,000 high-paying jobs. And indirectly 
we estimate 66,000 jobs will come to Colorado in large part because of 
the EDA's willingness to step up to the plate, be a partner with the 
community in redeveloping a site and creating a huge opportunity.
  Net gains in Colorado for a $5.1 million grant by the EDA to provide 
this basic infrastructure, as the ranking member just cited a minute 
ago, so as to attract private industry, it is estimated that by 2010, 
$3.1 billion will be generated for the Colorado economy and $6.3 
billion once the site is fully developed in about another 10 years.
  So it is with great pride that I again compliment the chairman and 
the ranking member on bringing this legislation to the floor and with 
great comfort that I can strongly support this legislation.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  To close, I just want to remind Members of what the mission is of 
this bill that was declared in 1965, to enhance community success in 
attracting private capital investment and lucrative job opportunities. 
This is not a classic public works program. What we are providing, Mr. 
Speaker, is seed money. And the indication of that is worth putting on 
the record. The average project, EDA project, leverages $10 million in 
private sector investment for every $1 million in Federal assistance. 
And I spoke earlier of the efficiency of this program that was 
presented at hearings. Here is an indication of that: 99 percent, that 
is 99 percent, which is a rare number on this floor, of EDA 
infrastructure projects are completed as planned and 91 percent of 
projects are completed on time. Would that we could say that about some 
other projects I can think of. I will not even mention the Visitors 
Center.
  Mr. Speaker, I yield back the balance of my time.
  Mr. LaTOURETTE. Mr. Speaker, I yield myself such time as I may 
consume.
  I again thank the gentlewoman from the District of Columbia, who has 
truly been a wonderful cooperative partner during this first year of 
the 108th Congress, and I look forward to a good number of legislative 
successes with her in the coming year.
  Mr. OXLEY. Mr. Speaker, I rise in strong support of H.R. 2535, the 
Economic Development Administration Reauthorization Act, offered by my 
colleague from the great state of Ohio, Mr. LaTourette, and urge its 
immediate passage. As you know, the Committee on Financial Services has 
jurisdiction over aid to commerce and industry, and based on that 
jurisdiction received an additional referral of the bill.
  Mr. Speaker, while the country experienced record growth during the 
1990s, there continued to be pockets of the country that did not enjoy 
that bounty. An economic downturn of the sort we have had over the past 
couple of years hits these area especially hard. Now, as the economy is 
turning up again, even as we tend to the economic wounds suffered by 
the rest of the country, we must remember that these areas were even 
harder-hit, and for this reason I salute Mr. LaTourette's diligent work 
on this matter.
  Operating out of six regional offices as widely spread as Seattle and 
Philadelphia, the EDA provides community and regional grants on a cost-
share basis for economic adjustment assistance, public works, 
development facilities, and planning and technical assistance, all 
aimed at leveraging public and private sector investments, creating or 
retaining long-term private-sector jobs and generating industrial and 
commercial development in both urban and rural areas.
  Importantly, Mr. Speaker, the EDA is focused not only on reversing or 
mitigating the effects of long-term economic distress, but also on 
dealing with sudden economic impact brought on by the closing of, say, 
a military base or a large manufacturer or group of manufacturers in a 
particular industry. As the United States economy experiences the loss 
of some manufacturing jobs due to increased foreign competition, it is 
imperative for us to find or stimulate new jobs for displaced workers, 
and the EDA is an important tool in this effort.
  David A. Sampson, Assistant Secretary of Commerce for Economic 
Development, is fond of saying that President Bush is committed to 
increasing the productivity and wealth of the American economy, and 
then noting that the President is firmly committed to ensuring that 
``all regions, States and communities share in economic opportunity.'' 
Mr. Speaker, I echo the President and Secretary Sampson. I am sure that 
the President's goal is the goal of each and every one of us, 
regardless of which state or which party we represent.
  I commend Mr. LaTourette for his creativity in this area, and note 
that the reauthorization of the EDA contains a number of new and 
exciting programs, including the securitization of some economic 
development loans in a way that will give us even more bang for our 
economic buck in these areas. This is a forward-looking bill that seeks 
to help some of America's hardest-hit economic areas. I commend it, and 
seek its immediate passage.
  Mrs. MYRICK. Mr. Speaker, I come here today in support of the 
reauthorization of the Economic Development Administration at Commerce. 
We in the Ninth District of North Carolina have had great success with 
the programs from EDA. Most importantly, EDA helped my district come 
together and formulate a comprehensive economic development plan for 
the next decade. This was the first time all of the economic 
development officials, business leaders, and community developers came 
to one place and really discussed where they saw our counties going and 
what was needed to ensure economic success.
  Our area has been hit extremely hard by job losses, particularly in 
the manufacturing and textile sectors. The help that the EDA has 
provided and will continue to provide has given my district a vision 
for the future and a way for each citizen to become involved in its 
community. I thank the EDA for their help and assistance and commend 
them for the important work they do in districts like mine all around 
the country.
  If the EDA is given the resources provided in this bill, it will 
result in the creation of approximately 623,314 jobs and the leveraging 
of $46.4 billion in private-sector investments over 5 years. With job 
challenges facing all of our districts every day, how can we not 
support a bill that will result in this many jobs being created?

[[Page H9769]]

  I support this bill and I urge my colleagues to support it.
  Mr. OBERSTAR. Mr. Speaker, I rise in support of H.R. 2535, as amended 
by the manager's amendment, a bill to reauthorize the Economic 
Development Administration (EDA). In 1965, I was present when President 
Lyndon Johnson signed the Public Works and Economic Development Act 
creating EDA. In fact, I still have the pen he used at the signing 
ceremony. Since its inception, I have been a strong supporter of EDA 
and now, nearly 40 years later, I continue to believe in EDA's core 
mission--to create economic opportunity for those living and working in 
economically distressed communities.
  EDA's mission--to create economic opportunities for all--remains as 
vital and necessary today as it was four decades ago. As our economy 
continues to struggle, the importance of EDA becomes even more 
apparent. Since January 2001, the national unemployment rate has risen 
to 6.1 percent, the highest level in 9 years. Further, in that time, 
the number of unemployed workers has increased from 5.9 million people 
to almost 9 million--an increase of more than 3 million unemployed 
workers, or 50 percent. Moreover, workers who have lost their jobs are 
having more trouble finding new jobs. The average length of 
unemployment is now almost 20 weeks, the longest it has been in nearly 
two decades. Within the last 2 weeks, the number of workers who have 
been unemployed for longer than 6 months has increased by more than 1.5 
million to more than 2.1 million--an increase of 218 percent. One-half 
of the unemployed are out of work for more than 9 weeks and more than 
one in five have been out of work for more than 6 months. As in every 
recession, it is the people living in our Nation's economically 
distressed communities--the very people who are served by EDA--that are 
hardest hit by the economic downturn.
  Mr. Speaker, EDA works. I know it works because I've seen it work--
providing jobs, job training, and real economic opportunities in 
distressed communities across the country. A recent series of Rutgers 
University studies found that every $1 million in EDA public work 
funding creates 325 jobs; leverages $10 million in private sector 
investment; and increases the local tax base by $10 million.
  EDA grants are particularly vital for many smaller, rural communities 
where deterioration of infrastructure facilities is especially 
prevalant. Deterioration in infrastructure is often part of a downward 
cycle that contributes to erosion of human and financial resources. For 
these rural communities, EDA grants are critical to improve their 
economic condition.
  This bill enhances the agency's ability to deliver economic 
development services to those who need it most. The bill authorizes EDA 
for 5 years and provides the agency with the financing levels necessary 
to affect real growth and development in economically distressed 
communities. To that end, the bill authorizes $400 million for the 
agency in fiscal year 2004, increasing to $500 million in fiscal year 
2008. Further, the bill moves the agency forward by building on a solid 
base of good administrative practices. It requires comprehensive 
economic development planning at the State and local level. Such 
planning is essential for state and local governments to tackle 
effectively the tremendous economic development challenges they face 
and to take full advantage of EDA's program. EDA planning grants, which 
are reauthorized under the bill, provide a vital tool for state and 
local governments to undertake this important planning.
  There are also many new, innovative programs in the bill. For 
example, the bill authorizes EDA to award performance incentive awards 
to high performing grantees. Grantees can use their performance award 
money in any manner consistent with the Act. The bill also authorizes 
an EDA brownfields program and establishes a demonstration program for 
brightfields, which are brownfields developed through the use of 
photovoltaic solar energy systems. The ability to invest in these areas 
and technologies provides communities with the tools needed to reap 
further benefits.
  When EDA was last reauthorized in 1998, this House and the 
Transportation and Infrastructure Committee took the lead in enacting 
that legislation. I am proud that we are again leading the efforts to 
reauthorize EDA with this bill. It is a true bipartisan product, and I 
extend my thanks to Chairman Young, Subcommittee Chairman LaTourette, 
and Subcommittee Ranking Member Norton for their hard work and 
diligence on this bill. I urge its passage.
  Mr. COSTELLO. Mr. Speaker, I rise today in support of H.R. 2535, 
legislation to reauthorize the Economic Development Agency for an 
additional 5 years.
  Since its inception in 1965, the EDA has been successful. Positive 
changes have occurred in every State of this Nation. More than $18 
billion in Federal money has been invested in rural and urban 
communities, which has leveraged more than $74 billion in private 
sector investments. More than 2.8 million jobs have been created. In my 
congressional district, the EDA has provided assistance for a variety 
of economic development projects--ranging from ports to business 
parts--to improve the region's economy.
  The bill we have before us today will continue the success of the EDA 
by providing the agency with $2.25 billion over a 5-year period for 
economic development assistance. These resources will result in the 
creation of almost 625,000 jobs and leverage $46.4 billion in private 
sector investments.
  Mr. Speaker, the bill we have before us today is a good bill. It 
builds on the success of the EDA, and will improve the responsiveness 
and flexibility of the EDA, while improving coordination with other 
Federal agencies.
  I urge my colleagues to join me in supporting this bill.
  Mr. HINOJOSA. Mr. Speaker, I rise in strong support for H.R. 2535, 
the Economic Development Administration Reauthorization. In my 
congressional district, under the leadership of Pedro Garza, the Austin 
regional director, EDA has been a strong partner in helping my rural 
and urban communities in a variety of ways.
  EDA grants have helped my small rural towns build wastewater 
facilities and other infrastructure projects. With EDA grants, South 
Texas Community College has built an allied health center that is 
training hundreds of new nurses and health professionals. These 
students will have the opportunity to work in a high-paying career and 
alleviate the nursing shortage that is plaguing the entire State of 
Texas. EDA funding helped us complete a new pediatric speciality clinic 
in one of the poorest counties in the nation. An EDA planning grant is 
currently helping the Delta Region of Hidalgo County develop an 
economic development plan that will lead the region into a new era of 
economic growth. Whenever we have called on Mr. Garza, he has been 
there to help us to the best of his ability. I want to thank him for 
all he has done for the 15th Congressional District of Texas.
  The EDA model of leveraging public and private sector investment is a 
proven success. Every $1 million in EDA investment helps rural and 
urban communities leverage $10.8 million in private-sector investments. 
We need to encourage this type of success in other Federal programs. I 
urge my colleagues to vote in favor of H.R. 2535 and allow EDA to 
continue its mission of helping our rural and urban communities grow.
  Mr. RAHALL. Mr. Speaker, I want to express my strong support for the 
reauthorization of the Economic Development Administration (EDA).
  The EDA enhances regional competitiveness and provides critical long-
term support for regional economies. In my own district of southern 
West Virginia, the EDA has been an important catalyst that has created 
or saved an estimated 2,240 jobs just since 1993. Similarly, over $31 
million in federal funding has enabled 78 projects in southern West 
Virginia to leverage more than $50 million in private sector funding as 
well as approximately $24 million in state and local funding. In 2003. 
alone, EDA programs have provided much-needed funding for projects as 
diverse as University Center funding at several of West Virginia's 
institutions of higher education, an airport business park in Raleigh 
County, and engineering for building construction in Hinton, WV.
  But in some regions of our Nation, EDA cannot complete its mission 
without additional help. For example, the Appalachian Regional 
Commission (ARC) works in coordination with EDA to serve America's 
Appalachian region. Historically, the Appalachian region has faced 
levels of poverty and economic distress higher that national averages 
as a result of its geographic isolation and inadequate infrastructure. 
My home State of West Virginia lies entirely in the Appalachian region. 
Mr. Speaker, neither of these two important programs can sufficiently 
serve the area without the other.
  For over 30 years, the ARC has provided for development and jobs for 
more than 22 million people. The ARC's assistance to West Virginia, and 
to my constituents in the southern part of the state, through the West 
Virginia Infrastructure and Jobs Development Council has been critical. 
It has aided the West Virginia Department of Health and Human Resources 
to develop educational funding, training and job opportunities for 
local health care. In my district, the ARC made $1 million available to 
the Mingo County Redevelopment Authority to provide water service, and 
to create 130 jobs by processing West Virginia timber into hardwood 
flooring and related projects. Similarly, the ARC provided water 
service to 312 new customers in Crum, West Virginia, and it helped to 
improve the quality of mathematics and science education in Bluefield, 
WV.

[[Page H9770]]

  Tragically, however, the Bush administration proposed decreased 
funding levels for the ARC's nonhighway program by more than 50 
percent. Of course, President Bush's friends in the Republican-led 
House followed through with his wishes by imposing the cuts in 
appropriations for next year. Now, the administration and the House 
Republicans say that they want to shift the ARC's nonhighway 
responsibilities to EDA for larger multijurisdictional projects, 
diluting the unique attention ARC provides this region of vast 
potential to serve our Nation.
  Mr. Speaker, I am glad to have to be able to express my strong 
support for the EDA, and I support reauthorization of this vital 
agency. But, on behalf of West Virginians and all those throughout the 
Appalachian region, I mourn for the cuts to the ARC.
  Mr. LaTOURETTE. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to the order of the House of Monday, October 20, 2003, the 
previous question is ordered on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

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