[Congressional Record Volume 150, Number 125 (Wednesday, October 6, 2004)]
[Senate]
[Pages S10504-S10512]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    ECONOMIC DEVELOPMENT ADMINISTRATION REAUTHORIZATION ACT OF 2004

  Ms. COLLINS. Madam President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 754, S. 1134.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1134) to reauthorize and improve the program 
     authorized by the Public Works and Economic Development Act 
     of 1965.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Environment and Public 
Works with an amendment to strike all after the enacting clause and 
insert in lieu thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                S. 1134

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

     [SECTION 1. SHORT TITLE.

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

     [SEC. 2. FINDINGS AND DECLARATIONS.

       [Section 2 of the Public Works and Economic Development Act 
     of 1965, as amended (``PWEDA'') (42 U.S.C. 3121), is revised 
     to read as follows:

     [``SEC. 2. FINDINGS AND DECLARATIONS.

       [``(a) Findings.--Congress finds that--
       [``(1) while the fundamentals for growth in the American 
     economy remain strong, there continue to be areas 
     experiencing chronic high unemployment, underemployment, low 
     per capita incomes, and outmigration 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) sustained economic growth in our Nation, States, 
     cities and rural areas is produced by expanding free 
     enterprise through trade and enhanced competitiveness of 
     regions;
       [``(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 local and regional communities to develop a more 
     competitive and diversified economic base by:
       [``(A) promoting job creation through increased innovation, 
     productivity, and entrepreneurship; and
       [``(B) empowering local and regional communities 
     experiencing chronic high unemployment and low per capita 
     income to attract substantially 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 wasteful 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, common measures of success, and simplified and 
     consistent requirements; and
       [``(6) Federal economic development efforts will be more 
     effective if they are coordinated with, and build upon, the 
     trade, workforce investment, and technology programs of the 
     United States.
       [``(b) Declarations.--Congress declares that, in order to 
     promote a strong and growing economy throughout the United 
     States:
       [``(1) assistance under this Act should be made available 
     to both rural and urban distressed communities;
       [``(2) local communities should work in partnership with 
     neighboring communities, Indian tribes, the States, and the 
     Federal Government to increase their capacity to develop and 
     implement comprehensive economic development strategies to 
     enhance regional competitiveness in the global economy and 
     support long-term development of regional economies; and
       [``(3) whether suffering from long-term distress or a 
     sudden dislocation, distressed communities should be 
     encouraged to focus on strengthening entrepreneurship and 
     competitiveness, and to take advantage of the development 
     opportunities afforded by technological innovation and 
     expanding and newly opened global markets.''.

     [SEC. 3. DEFINITIONS.

       [Section 3 of PWEDA (42 U.S.C. 3122) is amended as follows:
       [(1) Subparagraph (4)(A) of this section is amended by 
     striking subparagraph (i) and redesignating successive 
     subparagraphs (ii) through (vii) as (i) through (vi) and 
     revising subparagraph (iv) as re-designated to read as 
     follows:
       [``(iv) a city or other political subdivision of a State, 
     including a special purpose unit of State or local 
     government, or a consortium of political subdivisions;''.
       [(2) Subparagraph 4(B) is amended by adding at the end 
     thereof a new sentence:
       [``The requirement under subparagraph (A)(vi) that the 
     nonprofit organization or association is `acting in 
     cooperation with officials of a political subdivision of a 
     State' does not apply in the case of research, training and 
     technical assistance grants under section 207 that are 
     national or regional in scope.''.
       [(3) Paragraphs (8), (9) and (10) are amended by re-
     designating them as paragraphs (9), (10), and (11) and a new 
     paragraph (8) is added as follows:
       [``(8) Regional commissions.--The term `Regional 
     Commissions' as used in section 403 of this Act refers to the 
     regional economic development authorities: the Delta Regional 
     Authority (Public Law No. 106-554, sec. 1(a)(4) [div. B, 
     title VI], 114 Stat. 2763A-268) (7 U.S.C. 2009aa et seq.), 
     the Denali Commission (Public Law No. 105-277, div. C, title 
     III, 112 Stat. 2681-637) (42 U.S.C. 3121 note), and the 
     Northern Great Plains Regional Authority (Public Law No. 107-
     171, 116 Stat. 375) (7 U.S.C. 2009bb et seq.).''.
       [(4) A new paragraph (12) is added at the end to read as 
     follows:
       [``(12) University center.--The term `university center' 
     refers to a University Center for Economic Development 
     established pursuant to the authority of section 207(a)(2)(D) 
     of this Act.''.

     [SEC. 4. WORKING WITH NONPROFIT ORGANIZATIONS IN 
                   ESTABLISHMENT OF ECONOMIC DEVELOPMENT 
                   PARTNERSHIPS.

       [Section 101 of PWEDA (42 U.S.C. 3131) is amended as 
     follows:
       [(1) In subsection (b) strike ``and multi-State regional 
     organizations'' and insert in lieu thereof ``multi-State 
     regional organizations, and nonprofit organizations''.
       [(2) In subsection (d), strike ``adjoining'' each time it 
     occurs.

     [SEC. 5. SUB-GRANTS IN CONNECTION WITH PUBLIC WORKS PROJECTS.

       [Section 201 of PWEDA (42 U.S.C. 3141) is amended by adding 
     a new subsection (d) as follows:
       [``(d) Sub-Grants.--
       [``(1) Subject to paragraph (2), a recipient of a grant 
     under this section may directly expend the grant funds or may 
     redistribute the funds in the form of a sub-grant to other 
     recipients eligible to receive assistance under this section 
     to fund required components of the scope of work approved for 
     the project.
       [``(2) Under paragraph (1), a recipient may not 
     redistribute grant funds to a for-profit entity.''.

     [SEC. 6. CLARIFICATION OF GRANTS FOR STATE PLANNING.

       [Section 203 of PWEDA (42 U.S.C. 3143) is amended as 
     follows:
       [(1) Revise paragraph (1) of subsection (d) to read as 
     follows:
       [``(1) Development.--Any State plan developed with 
     assistance under this section shall, to the maximum extent 
     practicable, take into consideration regional economic 
     development strategies.'';
       [(2) Strike paragraph (3) of subsection (d) in its entirety 
     and re-designate paragraphs (4) and (5) as (3) and (4);
       [(3) Revise re-designated paragraph (3) of subsection (d) 
     by striking ``and'' at the end of subparagraph (C) and re-
     designating current subparagraph (D) as (E) and adding a new 
     subparagraph (D) to read as follows:
       [``(D) assist in carrying out state's workforce investment 
     strategy (as outlined in the State plan required under 
     section 112 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2822)); and'';
       [(4) Add a new subsection (e) at the end thereof as 
     follows:
       [``(e) Sub-Grants.--
       [``(1) Subject to paragraph (2), a recipient of a grant 
     under this section may directly expend the grant funds or may 
     redistribute the funds in the form of a sub-grant to other 
     recipients eligible to receive assistance under this section 
     to fund required components of the scope of work approved for 
     the project.
       [``(2) Under paragraph (1), a recipient may not 
     redistribute grant funds to a for-profit entity.''.

[[Page S10505]]

     [SEC. 7. SIMPLIFICATION OF DETERMINATION OF GRANT RATES.

       [Sections 204 and 205 of PWEDA (42 U.S.C. 3144, 3145) are 
     amended to read as follows:

     [``SEC. 204. COST SHARING.

       [``(a) Federal Share.--The Secretary shall issue 
     regulations to establish the applicable grant rates for 
     projects based on the relative needs of the areas in which 
     the projects are located. Except as provided in subsection 
     (c) below, the amount of a grant for a project under this 
     title may not exceed 80 percent of the cost of the project.
       [``(b) Non-Federal Share.--In determining the amount of the 
     non-Federal share of the cost of a project, the Secretary may 
     provide credit toward the non-Federal share for all 
     contributions both in cash and in-kind, fairly evaluated, 
     including contributions of space, equipment, and services, 
     and assumptions of debt.
       [``(c) Increase in Federal Share.--
       [``(1) Indian tribes.--In the case of a grant to an Indian 
     tribe, 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. 205. GRANTS SUPPLEMENTING OTHER AGENCY GRANTS (42 
                   U.S.C. 3145).

       [``(a) Definition of Designated Federal Grant Program.--In 
     this section, the term `designated Federal grant program' 
     means any Federal grant program that--
       [``(1) provides assistance in the construction or equipping 
     of public works, public service, or development facilities;
       [``(2) is designated as eligible for an allocation of funds 
     under this section by the Secretary; and
       [``(3) assists projects that are--
       [``(A) eligible for assistance under this title; and
       [``(B) consistent with a comprehensive economic development 
     strategy.
       [``(b) Supplementary Grants.--Subject to subsection (c) 
     below, in order to assist eligible recipients to take 
     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 eligible 
     recipient is eligible but, because of the recipient's 
     economic situation, for which the eligible recipient cannot 
     provide the required non-Federal share.
       [``(c) Requirements Applicable to Supplementary Grants.--
       [``(1) Amount of supplementary grants.--The share of the 
     project cost supported by a supplementary grant under this 
     section may not exceed the applicable grant rate 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.
       [``(3) Federal share limitations specified in other laws.--
     Notwithstanding any requirement as to the amount or source of 
     non-Federal funds that may be applicable to a Federal 
     program, funds provided under this section may be used to 
     increase the Federal share for specific projects under the 
     program that are carried out in areas described in section 
     301(a) above the Federal share of the cost of the project 
     authorized by the law governing the program.''.

     [SEC. 8. REGULATIONS ON ALLOCATIONS TO ENSURE JOB CREATION 
                   POTENTIAL.

       [Subsection 206 of PWEDA (42 U.S.C. 3146) is amended by 
     striking ``and'' at the end of subparagraph (1)(C), inserting 
     ``and'' at the end of paragraph (2), and adding a new 
     paragraph (3) at the end thereof to read as follows:
       [``(3) allocations of assistance under this title promote 
     job creation through increased innovation, productivity, and 
     entrepreneurship, and financial assistance extended pursuant 
     to such allocations will have a high probability of meeting 
     or exceeding applicable performance requirements established 
     in connection with extension of the assistance.''.

     [SEC. 9. INCREASED FLEXIBILITY IN GRANTS FOR TRAINING, 
                   RESEARCH, AND TECHNICAL ASSISTANCE.

       [(a) Section 207 of PWEDA (42 U.S.C. 3147) is amended by 
     striking ``and'' at the end of subparagraph (2)(F) of 
     subsection (a), re-designating current subparagraph (G) as 
     (H), and adding a new subparagraph (G) to read as follows:
       [``(G) studies that evaluate the effectiveness of 
     collaborations between projects funded under this Act with 
     projects funded under the Workforce Investment Act of 1998 
     (29 U.S.C. 2801 et seq.); and''.
       [(b) Section 207 is further amended by adding a new 
     subsection (c) to read as follows:
       [``(c) Sub-Grants.--A recipient of a grant under this 
     section may directly expend the grant funds or may 
     redistribute the funds in the form of a sub-grant to other 
     recipients eligible to receive assistance under this section 
     to fund required components of the scope of work approved for 
     the project.''.

     [SEC. 10. REMOVAL OF SECTION.

       [Section 208 of PWEDA (42 U.S.C. 3148) is stricken in its 
     entirety and insert in lieu thereof:

     [``SEC. 208. [REPEALED].''.

     [SEC. 11. IMPROVEMENTS IN ADMINISTRATION GRANTS FOR ECONOMIC 
                   ADJUSTMENT INVOLVING REVOLVING LOAN FUND 
                   PROJECTS.

       [(a) Subsection (d) of section 209 of PWEDA (42 U.S.C. 
     3149) is amended by striking ``an eligible'' in each case it 
     occurs in paragraphs (1) and (2) and inserting in lieu 
     thereof ``a recipient''.
       [(b) Section 209 of PWEDA (42 U.S.C. 3149) is amended by 
     adding a new subsection (e) at the end thereof as follows:
       [``(e) Special Provisions Relating to Revolving Loan Fund 
     Grants.--The Secretary shall promulgate regulations to ensure 
     the proper operation and financial integrity of revolving 
     loan funds established by recipients with assistance under 
     this section.
       [``(1) Efficient administration.--In order to improve the 
     ability to manage and administer the Federal interest in 
     revolving loan funds and in accordance with regulations 
     issued for such purposes, the Secretary may amend and 
     consolidate grant agreements governing revolving loan funds 
     to provide flexibility with respect to lending areas and 
     borrower criteria. In addition, the Secretary may 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. 
     The Secretary may also take such other actions with respect 
     to management and administration as the Secretary determines 
     to be appropriate to carry out the purposes of this Act, 
     including actions to enable revolving loan funds operators to 
     sell or securitize loans to the secondary market (except that 
     such actions may not include issuance of a Federal guaranty 
     by the Secretary).
       [``(2) Release of federal interests.--The Secretary may 
     release, in whole or in part, any property interest in 
     connection with a revolving loan fund grant after the date 
     that is 20 years after the date on which the grant was 
     awarded, provided that the recipient--
       [``(A) is in compliance with the terms of its grant and 
     operating the fund at an acceptable level of performance as 
     determined by the Secretary; and
       [``(B) reimburses the government prior to the release for 
     the amount of the Secretary's investment in the fund or the 
     pro-rata share of the fund at the time of the release, 
     whichever is less.
     Any action taken by the Secretary pursuant to this subsection 
     with respect to a revolving loan fund shall not constitute a 
     new obligation provided that all grant funds associated with 
     the original grant award have been disbursed to the 
     recipient.''.

     [SEC. 12. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                   PROJECTED COST.

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

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

       [``In any case in which the Secretary has made a grant for 
     a construction project under sections 201 or 209 of this 
     title, and before closeout of the project, the Secretary 
     determines 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--
       [``(1) without further appropriations action, the Secretary 
     may approve the use of the excess funds or a portion of the 
     funds to improve the project; and
       [``(2) any amount of excess funds remaining after 
     application of paragraph (1) may be used for other 
     investments authorized for support under this Act.
     In addition to paragraphs (1) and (2) of this section, in the 
     event of construction underruns in projects utilizing funds 
     transferred from other Federal agencies pursuant to section 
     604 of this Act, the Secretary may utilize these funds in 
     conjunction with paragraphs (1) or (2) with the approval of 
     the originating agency or will return the funds to the 
     originating agency.''.

     [SEC. 13. SPECIAL IMPACT AREAS.

       [Title II of PWEDA is further amended by adding a new 
     section 214 as follows:

     [``SEC. 214. SPECIAL IMPACT AREAS.

       [``Special Impact Areas.--The Secretary is authorized to 
     make grants, enter into contracts and provide technical 
     assistance for projects and programs that the Secretary finds 
     will fulfill a pressing need of the area and be useful in 
     alleviating or preventing conditions of excessive 
     unemployment or underemployment or assist in providing useful 
     employment opportunities for the unemployed or underemployed 
     residents in the area. In extending assistance under this 
     section, the Secretary may waive, in whole or in part, as 
     appropriate, the provisions of section 302 of this Act 
     provided that the Secretary determines that such assistance 
     will carry out the purposes of the Act.''.

     [SEC. 14. PERFORMANCE INCENTIVES.

       [Title II of PWEDA is further amended by adding a new 
     section 215 as follows:

     [``SEC. 215. PERFORMANCE INCENTIVES.

       [``(a) In accordance with regulations issued for such 
     purposes, the Secretary may award

[[Page S10506]]

     transferable performance credits in an amount that does not 
     exceed 10 percent of the grant amount awarded under sections 
     201 or 209 of this Act on or after the effective date of this 
     amendment. The Secretary shall base such performance 
     incentives on the extent to which a recipient meets or 
     exceeds performance requirements established in connection 
     with extension of the assistance.
       [``(b) A recipient awarded a transferable performance 
     credit under this section may redeem the credit to increase 
     the Federal share of a subsequent grant funded under sections 
     201 and 209 of this Act above the maximum Federal share 
     allowable under section 204 up to 80 percent of the project 
     cost. A performance credit must be redeemed within 5 years of 
     its issue date.
       [``(c) An original recipient may also sell or transfer the 
     credit in its entirety to another eligible recipient for use 
     in connection with a grant approved by the Secretary under 
     this Act without reimbursement to the Secretary for 
     redemption in accordance with subsection (b) above.
       [``(d) The Secretary shall attach such terms and conditions 
     or limitations as the Secretary deems appropriate in issuing 
     a performance credit. Performance credits shall be paid out 
     of appropriations for economic development assistance 
     programs made available in the year of redemption to the 
     extent of availability.
       [``(e) The Secretary shall include information regarding 
     issuance of performance credits in the annual report under 
     section 603 of this Act.''.

     [SEC. 15. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

       [Subparagraph (a)(3)(A) of section 302 of PWEDA (42 U.S.C. 
     3162) is amended by adding ``maximizes effective development 
     and use of the workforce (consistent with any applicable 
     state and local workforce investment strategy under the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.),'' 
     between ``access,'' and ``enhances''.

     [SEC. 16. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

       [Subparagraph (a)(3)(B) of section 401 of PWEDA (42 U.S.C. 
     3171) is amended by striking ``by each affected State and''.

     [SEC. 17. DISTRICT INCENTIVES.

       [Section 403 of PWEDA (42 U.S.C. 3173) is amended by 
     striking it in its entirety and redesignating sections 404 
     and 405 as sections 403 and 404. Section 403 as re-designated 
     is amended by adding at the end the following new sentence: 
     ``If any part of an economic development district is in a 
     region covered by one or more other Regional Commissions as 
     defined in section 3(8) of this Act, 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.''.

     [SEC. 18. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE.

       [Section 502 of PWEDA (42 U.S.C. 3192) is amended to read 
     as follows:

     [``SEC 502. ECONOMIC DEVELOPMENT INFORMATION CLEARINGHOUSE

       [``In carrying out this Act, the Secretary shall--
       [``(1) maintain a central information clearinghouse on the 
     Internet with information on economic development, economic 
     adjustment, disaster recovery, defense conversion, and trade 
     adjustment programs and activities of the Federal Government, 
     links to State economic development organizations, and links 
     to other appropriate economic development resources;
       [``(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) assist areas described in section 301(a) and other 
     areas by providing to interested persons, communities, 
     industries, and businesses in the areas any technical 
     information, market research, or other forms of assistance, 
     information, or advice that would be useful in alleviating or 
     preventing conditions of excessive unemployment or 
     underemployment in the areas; and
       [``(4) obtain appropriate information from other Federal 
     agencies needed to carry out the duties under this Act.''.

     [SEC. 19. REMOVAL OF UNUSED AUTHORITY.

       [Section 505 of PWEDA (42 U.S.C. 3195) is amended by 
     striking it in its entirety and sections 506 and 507 are re-
     designated as sections 505 and 506.

     [SEC. 20. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       [Section 505 of PWEDA (42 U.S.C. 3196) as re-designated is 
     amended as follows:
       [(1) In subsection (c), strike ``after the effective date 
     of the Economic Development Administration Reform Act of 
     1998''.
       [(2) In paragraph (d)(2), strike ``and'' before 
     ``disseminating results'' and insert ``, and measuring the 
     outcome-based results of the university centers' activities'' 
     before the period at the end thereof.
       [(3) In paragraph (d)(3) of section 506, insert before the 
     period at the end thereof ``as evidenced by outcome-based 
     results, including the number of jobs created or retained, 
     and amount of private-sector funds leveraged''.
       [(4) In subsection (e) of section 506, strike ``university 
     center or'' each occasion it occurs.

     [SEC. 21. CITATION CORRECTIONS.

       [Section 602 PWEDA (42 U.S.C. 3212) is amended by striking 
     the citations to ``40 U.S.C. 276A--276A-5'' and ``section 
     276c'' and inserting in lieu thereof, ``40 U.S.C. 3141 et 
     seq.'' and ``section 3154'', respectively.

     [SEC. 22. DELETION OF UNNECESSARY PROVISION.

       [Section 609 of PWEDA (42 U.S.C. 3219) is amended by 
     striking subsection (a) in its entirety and striking the 
     subsection designation ``(b)''.

     [SEC. 23. GENERAL AUTHORIZATION OF APPROPRIATIONS.

       [Section 701 of PWEDA (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 $331,027,000 for 
     fiscal year 2004, and such sums as may be necessary for 
     fiscal years 2005, 2006, 2007, and 2008, to 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 of the fiscal years from 2005 through 
     2008, to remain available until expended.''.]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Economic 
     Development Administration Reauthorization Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      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. Direct expenditure or redistribution by recipient.
Sec. 213. Brownfields redevelopment.

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

Sec. 301. Eligibility of areas.
Sec. 302. 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. Annual report to Congress.
Sec. 602. Relationship to assistance under other law.
Sec. 603. Sense of Congress regarding Economic Development 
              Representatives.

                           TITLE VII--FUNDING

Sec. 701. Authorization of appropriations.
Sec. 702. Funding for grants for planning and grants for administrative 
              expenses.

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. FINDINGS AND DECLARATIONS.

       Section 2 of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3121) is amended to read as follows:

     ``SEC. 2. FINDINGS AND DECLARATIONS.

       ``(a) Findings.--Congress finds that--
       ``(1) there continue to be areas of the United States 
     experiencing chronic high unemployment, underemployment, 
     outmigration, and low per capita incomes, as well as areas 
     facing sudden and severe economic dislocations because of 
     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 the States, cities, and rural 
     areas of the United States 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

[[Page S10507]]

       ``(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 State, regional, tribal, and local 
     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; and
       ``(6) Federal economic development efforts will be more 
     effective if the efforts 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 that--
       ``(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 the capacity of the local 
     communities to develop and implement comprehensive economic 
     development strategies to alleviate economic distress and 
     enhance competitiveness in the global economy; and
       ``(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) of the Public 
     Works and Economic Development Act of 1965 (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 redesignated by paragraph (1)) 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; University Center.--Section 3 of 
     the Public Works and Economic Development Act of 1965 (42 
     U.S.C. 3122) is amended--
       (1) by redesignating paragraphs (8), (9), and (10) as 
     paragraphs (9), (10), and (11), respectively;
       (2) by inserting after paragraph (7) the following:
       ``(8) Regional commissions.--The term `Regional 
     Commissions' means--
       ``(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. 3121 note; 112 Stat. 2681-
     637 et seq.); and
       ``(D) the Northern Great Plains Regional Authority 
     established under subtitle G of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2009bb et seq.).''; and
       (3) 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 of the Public Works and Economic Development 
     Act of 1965 (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 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3132) is amended--
       (1) by inserting ``(a) In General.--'' before ``The 
     Secretary'';
       (2) in subsection (a) (as designated by paragraph (1)), by 
     inserting ``Indian tribes,'' after ``districts,''; and
       (3) by adding at the end the following:
       ``(b) Meetings.--To carry out subsection (a), or for any 
     other purpose relating 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) of the Public Works and Economic Development 
     Act of 1965 (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 (F); 
     and
       (C) by adding after subparagraph (C) the following:
       ``(D) assist in carrying out the workforce investment 
     strategy of a State;
       ``(E) promote the use of technology in economic 
     development, including access to high-speed 
     telecommunications; and''.

     SEC. 202. COST SHARING.

       (a) Federal Share.--Section 204 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3144) is amended 
     by striking subsection (a) and inserting the following:
       ``(a) Federal Share.--Except as provided in subsection (c), 
     the Federal share of the cost of any project carried out 
     under this title shall not exceed--
       ``(1) 50 percent; plus
       ``(2) an additional percent that--
       ``(A) shall not exceed 30 percent; and
       ``(B) is based on the relative needs of the area in which 
     the project will be located, as determined in accordance with 
     regulations promulgated by the Secretary.''.
       (b) Non-Federal Share.--Section 204(b) of the Public Works 
     and Economic Development Act of 1965 (42 U.S.C. 3144(b)) is 
     amended by inserting ``assumptions of debt,'' after 
     ``equipment,''.
       (c) Increase in Federal Share.--Section 204 of the Public 
     Works and Economic Development Act of 1965 (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 the effective taxing and borrowing 
     capacity of the State or political subdivision, or in the 
     case of a grant to a nonprofit organization that the 
     Secretary determines has exhausted the effective borrowing 
     capacity of the nonprofit organization, the Secretary may 
     increase the Federal share above the percentage specified in 
     subsection (a) up to 100 percent of the cost of the project.
       ``(3) Training, research, and technical assistance.--In the 
     case of a grant provided under section 207, the Secretary may 
     increase the Federal share above the percentage specified in 
     subsection (a) up to 100 percent of the cost of the project 
     if the Secretary determines that the project funded by the 
     grant merits, and is not feasible without, such an 
     increase.''.

     SEC. 203. SUPPLEMENTARY GRANTS.

       (a) In General.--Section 205 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3145) is amended 
     by striking subsection (b) and inserting the following:
       ``(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 economic situation of the 
     recipient.''.
       (b) Requirements Applicable to Supplementary Grants.--
     Section 205(c) of the Public Works and Economic Development 
     Act of 1965 (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 provision 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 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3146) is amended--
       (1) in paragraph (1)(C), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(3)(A) rural and urban economically distressed areas are 
     not harmed by the establishment or implementation by the 
     Secretary of a private sector leveraging goal for a project 
     under this title;
       ``(B) any private sector leveraging goal established by the 
     Secretary does not prohibit or discourage grant applicants 
     under this title from public works in, or economic 
     development of, rural or urban economically distressed areas; 
     and
       ``(C) the relevant Committees of Congress are notified 
     prior to making any changes to any private sector leveraging 
     goal; and
       ``(4) grants made under this title promote job creation and 
     will have a high probability of assisting the recipient in 
     meeting or exceeding applicable performance requirements 
     established in connection with the grants.''.

[[Page S10508]]

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

       (a) In General.--Section 207(a)(2) of the Public Works and 
     Economic Development Act of 1965 (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 (I); 
     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;
       ``(H) assessment, marketing, and establishment of business 
     clusters; and''.
       (b) Cooperation Requirement.--Section 207(a) of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 
     3147(a)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) 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.

       (a) In General.--Section 208 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3148) is 
     repealed.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the Public Works and Economic Development Act of 1965 
     (42 U.S.C. 3121 note) is amended by striking the item 
     relating to section 208.

     SEC. 207. GRANTS FOR ECONOMIC ADJUSTMENT.

       (a) Assistance to Manufacturing Communities.--Section 
     209(c) of the Public Works and Economic Development Act of 
     1965 (42 U.S.C. 3149(c)) is amended--
       (1) in paragraph (3), by striking ``or'';
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(5) the loss of manufacturing jobs, for reinvesting in 
     and diversifying the economies of the communities.''.
       (b) Direct Expenditure or Redistribution by Recipient; 
     Special Provisions Relating to Revolving Loan Fund Grants.--
     Section 209 of the Public Works and Economic Development Act 
     of 1965 (42 U.S.C. 3149) is amended by striking subsection 
     (d) and inserting the following:
       ``(d) Special Provisions Relating to Revolving Loan Fund 
     Grants.--
       ``(1) In general.--The Secretary shall promulgate 
     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 
     third party for the purpose of liquidation, and the 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 (15 U.S.C. 77a et seq.) or the Securities Exchange Act 
     of 1934 (15 U.S.C. 78a et seq.), 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 
     promulgated by the Secretary under this subsection supersedes 
     or otherwise affects the application of the securities laws 
     (as the term is defined in section 3(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a))) or the rules, 
     regulations, or orders of the Securities and Exchange 
     Commission or a self-regulatory organization under that 
     Commission.''.

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

       Section 211 of the Public Works and Economic Development 
     Act of 1965 (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 appropriation, the use of the excess 
     funds (or a portion of the excess funds) by the recipient--
       ``(1) to increase the Federal share of the cost of a 
     project under this title to the maximum percentage allowable 
     under section 204; or
       ``(2) 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 using funds 
     transferred from other Federal agencies pursuant to section 
     604, the Secretary shall--
       ``(1) use the funds in accordance with subsection (a), with 
     the approval of the originating agency; or
       ``(2) return the funds to the originating agency.
       ``(d) Review by Comptroller General.--
       ``(1) Review.--The Comptroller General of the United States 
     shall review the implementation of this section for each 
     fiscal year.
       ``(2) Annual report.--Not later than 1 year after the date 
     of enactment of this section, and annually thereafter, the 
     Comptroller General shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report on the findings of the 
     Comptroller General under this subsection.''.

     SEC. 209. SPECIAL IMPACT AREAS.

       (a) In General.--Title II of the Public Works and Economic 
     Development Act of 1965 (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 that is determined by the Secretary to be unable to 
     comply with the requirements of section 302, the Secretary 
     may waive, in whole or in part, the requirements of section 
     302 and designate the area represented by the recipient as a 
     special impact area.
       ``(b) Conditions.--The Secretary may make a designation 
     under subsection (a) only after determining that--
       ``(1) the project will fulfill a pressing need of the area; 
     and
       ``(2) the project will--
       ``(A) be useful in alleviating or preventing conditions of 
     excessive unemployment or underemployment; or
       ``(B) assist in providing useful employment opportunities 
     for the unemployed or underemployed residents in the area.
       ``(c) Notification.--At the time of the designation under 
     subsection (a), the Secretary shall submit to the Committee 
     on Environment and Public Works of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a written notice of the designation, 
     including a justification for the designation.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) 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 of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 209) is 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 promulgate 
     regulations to establish performance measures for making 
     performance awards under subsection (a).
       ``(2) Considerations.--In promulgating regulations under 
     paragraph (1), the Secretary shall consider the inclusion of 
     performance measures that assess--
       ``(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; and
       ``(D) such other factors as the Secretary determines to be 
     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 promulgate.
       ``(e) Federal Share.--Notwithstanding section 204, the 
     funds of a performance award may be used to pay 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 under this, or any other, Act the funds 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 to be 
     appropriate.
       ``(h) Funding.--The Secretary shall use any amounts made 
     available for economic development assistance programs to 
     carry out this section.
       ``(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 for each fiscal year.

[[Page S10509]]

       ``(2) Annual report.--Not later than 1 year after the date 
     of enactment of this section, and annually thereafter, the 
     Comptroller General shall submit to the Committee on 
     Environment and Public Works of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report on the findings of the Comptroller 
     under this subsection.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) 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 of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 210) is 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 
     funds of a planning performance award may be used to pay up 
     to 100 percent of the cost of a project under this title.
       ``(f) Funding.--The Secretary shall use any amounts made 
     available for economic development assistance programs to 
     carry out this section.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) is amended by inserting 
     after the item relating to section 215 the following:

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

     SEC. 212. DIRECT EXPENDITURE OR REDISTRIBUTION BY RECIPIENT.

       (a) In General.--Title II of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 211) is amended by adding at the end the 
     following:

     ``SEC. 217. DIRECT EXPENDITURE OR REDISTRIBUTION BY 
                   RECIPIENT.

       ``(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.
       ``(c) Economic Adjustment.--Subject to subsection (d), a 
     recipient of a grant under section 209 may directly expend 
     the grant funds or may redistribute the funds to public and 
     private entities in the form of a grant, loan, loan 
     guarantee, payment to reduce interest on a loan guarantee, or 
     other appropriate assistance.
       ``(d) Limitation.--Under subsection (c), a recipient may 
     not provide any grant to a private for-profit entity.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) is amended by inserting 
     after the item relating to section 216 the following:

``Sec. 217. Direct expenditure or redistribution by recipient.''.

     SEC. 213. BROWNFIELDS REDEVELOPMENT.

       (a) In General.--Title II of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3141 et seq.) (as amended 
     by section 212) is amended by adding at the end the 
     following:

     ``SEC. 218. BROWNFIELDS REDEVELOPMENT.

       ``(a) Definition of Brownfield Site.--In this section, the 
     term `brownfield site' has the meaning given the term in 
     section 101(39) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39)).
       ``(b) Grants.--On the application of eligible recipients, 
     the Secretary may make grants for projects on brownfield 
     sites to alleviate or prevent conditions of inadequate 
     private capital investment, unemployment, underemployment, 
     blight, underutilized or abandoned land, outmigration or 
     population loss, or infrastructure deterioration, including 
     projects consisting of--
       ``(1) acquisition, development, or reuse of land and 
     infrastructure improvements for a public works, service, or 
     facility;
       ``(2) development of public facilities, including design 
     and engineering, construction, rehabilitation, alteration, 
     expansion, or improvement, and related machinery and 
     equipment;
       ``(3) business development (including funding of a 
     revolving loan fund);
       ``(4) planning;
       ``(5) technical assistance; and
       ``(6) any other assistance determined by the Secretary to 
     alleviate the economic impacts of brownfield sites consistent 
     with the objectives of this title.
       ``(c) Prohibition on Remediation.--
       ``(1) Definitions.--In this subsection:
       ``(A) Hazardous substance.--The term `hazardous substance' 
     has the meaning given the term in section 101(14) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(14)).
       ``(B) Release.--The term `release' has the meaning given 
     the term in section 101(22) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601(22)).
       ``(C) Remediation.--The term `remediation' does not include 
     response activities described in section 104(a)(3) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9604(a)(3)).
       ``(2) Prohibition.--Except as provided in paragraph (3), a 
     grant made under this section shall not be used for 
     remediation to prevent or minimize the release of hazardous 
     substances.
       ``(3) Exception for incidental remediation.--
       ``(A) In general.--Paragraph (2) does not apply to 
     remediation that is incidental to the economic redevelopment 
     project.
       ``(B) Limitation.--Except as provided in subparagraph (C), 
     incidental remediation shall not exceed $50,000 at any 
     individual project.
       ``(C) Exceptional circumstances.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     may waive subparagraph (B) in exceptional circumstances that 
     further the mission of the Economic Development 
     Administration.
       ``(ii) Limitation.--If the Secretary waives subparagraph 
     (B) for a project, the cost of the incidental remediation at 
     the project shall not exceed $200,000.
       ``(D) Standards.--A recipient of a grant under this section 
     that is used for incidental remediation shall--
       ``(i) obtain written approval or clearance from the 
     appropriate Federal and State regulatory authority for the 
     hazardous waste remediation; and
       ``(ii) comply with all applicable Federal and State laws.
       ``(4) Effect on federal and state laws.--Nothing in this 
     section affects any liability, obligation, or response 
     authority under Federal or State law.
       ``(d) Additional Limitations.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     grant made under this section shall be subject to section 
     104(k)(4)(B) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 
     9604(k)(4)(B)).
       ``(2) Exceptions.--
       ``(A) Administrative costs.--A recipient of a grant made 
     under this section may use grant funds for the administrative 
     costs of economic development activities.
       ``(B) Compliance costs.--A recipient of a grant made under 
     this section may use grant funds for the compliance costs of 
     economic development activities.
       ``(C) Bona fide prospective purchaser.--For purposes of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.), a recipient 
     of a grant under this section that otherwise satisfies the 
     definition of `bona fide prospective purchaser' under section 
     101(40) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601(40)) 
     shall be considered to be within that definition regardless 
     of the date on which the grant recipient acquires ownership 
     of a facility.
       ``(e) Assistance at Other Sites.--Nothing in this section 
     affects the authority of the Secretary to provide assistance 
     to eligible recipients under this Act for economic 
     development projects at a site other than a brownfield 
     site.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) is amended by inserting 
     after the item relating to section 217 the following:

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

        TITLE III--COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

     SEC. 301. ELIGIBILITY OF AREAS.

       Section 301(c)(1) of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3161(c)(1)) is amended by 
     inserting after ``most recent Federal data available'' the 
     following: ``(including data available from the Bureau of 
     Economic Analysis, the Bureau of Labor Statistics, the Census 
     Bureau, the Bureau of Indian Affairs, or any other Federal 
     source determined by the Secretary to be appropriate)''.

     SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

       (a) In General.--Section 302(a)(3)(A) of the Public Works 
     and Economic Development Act of 1965 (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, 
     promotes the use of technology in economic development 
     (including access to high-speed telecommunications),'' after 
     ``access,''.
       (b) Approval of Other Plan.--Section 302(c) of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 
     3162(c)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (2) by adding at the end the following:

[[Page S10510]]

       ``(2) Existing strategy.--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.

       (a) In General.--Section 403 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3173) is 
     repealed.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the Public Works and Economic Development Act of 1965 
     (42 U.S.C. 3121 note) is amended by striking the item 
     relating to section 403.

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

       (a) In General.--Section 404 of the Public Works and 
     Economic Development Act of 1965 (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 1 or more of the Regional Commissions, 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) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) 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 of the Public Works and Economic Development 
     Act of 1965 (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.

       (a) In General.--Section 505 of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3195) is 
     repealed.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the Public Works and Economic Development Act of 1965 
     (42 U.S.C. 3121 note) is amended by striking the item 
     relating to section 505.

     SEC. 503. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

       (a) In General.--Section 506(c) of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3196(c)) is 
     amended by striking ``after the effective date of the 
     Economic Development Administration Reform Act of 1998''.
       (b) Evaluation Criteria.--Section 506(d)(2) of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 
     3196(d)(2)) is amended by inserting ``program performance,'' 
     after ``applied research,''.

     SEC. 504. CONFORMING AMENDMENTS.

       Section 602 of the Public Works and Economic Development 
     Act of 1965 (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''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. ANNUAL REPORT TO CONGRESS.

       Section 603 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3213) is amended--
       (1) by striking ``Not later'' and inserting the following:
       ``(a) In General.--Not later''; and
       (2) by adding at the end the following:
       ``(b) Inclusions.--Each report required under subsection 
     (a) shall--
       ``(1) include a list of the waivers issued under section 
     218(c)(3)(C);
       ``(2) include a list of all grant recipients by State, 
     including the projected private sector dollar to Federal 
     dollar investment ratio for each grant recipient;
       ``(3) include a discussion of any private sector leveraging 
     goal with respect to grants awarded to--
       ``(A) rural and urban economically distressed areas; and
       ``(B) highly distressed areas; and
       ``(4) after the completion of a project, include the 
     realized private sector dollar to Federal dollar investment 
     ratio for the project.''.

     SEC. 602. RELATIONSHIP TO ASSISTANCE UNDER OTHER LAW.

       Section 609 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3219) is amended--
       (1) by striking subsection (a); and
       (2) by striking ``(b) Assistance Under Other Acts.--''.

     SEC. 603. SENSE OF CONGRESS REGARDING ECONOMIC DEVELOPMENT 
                   REPRESENTATIVES.

       (a) Findings.--Congress finds that--
       (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; and
       (3) in the 5 years preceding the date of enactment of this 
     Act, 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 of the Public Works and Economic Development 
     Act of 1965 (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, to remain 
     available until expended--
       ``(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.''
       ``(b) Salaries and Expenses.--There are authorized to be 
     appropriated for salaries and expenses of administering this 
     Act, to remain available until expended--
       ``(1) $33,377,000 for fiscal year 2004; and
       ``(2) such sums as are necessary for each fiscal year 
     thereafter.''.

     SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
                   ADMINISTRATIVE EXPENSES.

       (a) In General.--Title VII of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3231 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
                   ADMINISTRATIVE EXPENSES.

       ``(a) In General.--Of the amounts made available under 
     section 701 for each fiscal year, not less than $27,000,000 
     shall be made available for grants provided under section 
     203.
       ``(b) Waiver.--Subsection (a) shall not apply in any case 
     in which the total amount made available for a fiscal year 
     for all programs under this Act (excluding programs described 
     in paragraphs (1) and (2) of section 209(c)) is less than 
     $255,000,000.''.
       (b) Conforming Amendment.--The table of contents contained 
     in section 1(b) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3121 note) is amended by inserting 
     after the item relating to section 703 the following:
``Sec. 704. Funding for grants for planning and grants for 
              administrative expenses.''.

  Mr. JEFFORDS. Mr. President, I am pleased that today we are about to 
enact S. 1134, the Economic Development Administration Reauthorization 
Act of 2004. This bipartisan bill, which I helped craft, will 
strengthen the agency's ability to assist economically distressed 
communities in Vermont and across the Nation by providing approximately 
$1.3 billion in economic development grants over the next 5 years.
  Since its establishment in 1965, the Economic Development 
Administration, EDA, has invested more than $18.4 billion in more than 
52,000 projects in all 50 States and in U.S. territories. These EDA 
investments have been supplemented by approximately $8.3 billion in 
matching funds from investment partners and have leveraged 
approximately $90.6 billion in private sector investment. In total, 
these investments have created more than 2.9 million jobs and saved 
more than 830,000 jobs.
  In Vermont, for example, EDA funds have been used to develop a 
business incubator in Randolph and will soon be used to provide high-
speed Internet access to the states most rural region of Caledonia, 
Essex, Orleans, Lamoille, Franklin, and Grand Isle Counties. My goal 
with this legislation has been to increase the investment of EDA 
dollars

[[Page S10511]]

in Vermont, and 5 years from now I believe that will be demonstrated.
  The bill we are considering today is slightly altered from the one 
that we passed out of the Environment and Public Works Committee last 
June. In an effort to speed eventual enactment into law, this 
substitute bill is not only supported by myself, Senator Inhofe, the 
Chairman of the Environment and Public Works Committee, Senators Bond 
and Reid, the Chairman and Ranking Member of the Environment 
Committee's Transportation and Infrastructure Subcommittee, but it is 
also supported by our House counterparts on the Transportation and 
Infrastructure Committee.
  I am pleased we were able to increase funding for planning in this 
bill. EDA has an important role to play in supporting planning at the 
local level. EDA has an important role as well to encourage the 
leveraging of federal funds. However, there is language in this bill 
that ensures that rural and urban economically distressed areas are not 
adversely impacted by internal EDA leveraging goals.
  Turning to brownfields, I am pleased this bill encourages EDA to 
promote the redevelopment of abandoned industrial facilities and 
brownfields. The economic and social benefits of brownfields 
redevelopment are well documented. For example, in June 2003, the U.S. 
Conference of Mayors estimated that brownfields redevelopment could 
generate more than 575,000 additional jobs and up to $1.9 billion 
annually in new tax revenues for cities. In addition, according to EPA, 
every acre of reused brownfields preserves an estimated 4.5 acres of 
unused open space. Estimates of the number of brownfields sites 
nationwide range from 450,000 to as many as a million.
  This bill complements the 2002 Environmental Protection Agency 
brownfields cleanup law by encouraging EDA to make economic 
redevelopment of brownfields a priority. In other words, EPA's focus is 
to facilitate the environmental assessment and cleanup of abandoned 
sites, whereas EDA's role is to encourage the economic reuse of the 
property.
  I agree with EDA Administrator David Sampson, who in response to a 
question from the EPW Committee, wrote, ``cleanup activities are most 
appropriately handled by state and federal environmental regulatory 
agencies with the background and technical expertise to address complex 
remediation issues.'' As such, I expect that EDA would only fund 
redevelopment projects at sites that have been certified as ``clean'' 
by EPA or the State environmental agency. In the rare circumstance that 
an EDA grant recipient discovers minimal contamination as part of a 
redevelopment project, this bill would require any remediation 
activities be conducted in compliance with all Federal, State, and 
local laws and standards. EDA grantees should obtain the prior written 
approval of EPA or the State environmental agency to ensure that the 
remediation is protective of human health and the environment.
  Of course, EDA also must uphold the ``polluter pays'' principle by 
ensuring that Federal dollars are never given to the polluter to clean 
up contamination that they caused in the first place. Likewise, nothing 
in this bill in any way affects the liability of any party under 
Superfund, RCRA or any other federal or state law.
  The final brownfields-related aspect of the bill requires a General 
Auditing Office study of EDA's brownfield grants. This study should 
provide valuable data on the extent to which EDA brownfield 
redevelopment grants involve remediation activities, the environmental 
standards applied and the role of Federal, State and local 
environmental agencies and public participation in the cleanup process. 
It is my hope that such information will enable future Congresses to 
revisit these issues to ensure more explicitly that any remediation 
performed is truly incidental to the larger economic redevelopment 
project and that cleanups performed using federal dollars are 
protective of human health and the environment.
  In closing I praise the bipartisan member and staff effort that went 
into crafting this important bill. In particular, I acknowledge the 
work of Geoffrey Brown and Malcolm Woolf on my staff; Angie Giancarlo 
and Frank Fannon on Senator Inhofe's staff; David Montes on Senator 
Reid's staff; and Nick Karellas and Ellen Stein on Senator Bond's 
staff.
  Mrs. BOXER. Mr. President, the Economic Development Administration 
provides critical support to distressed communities. Included in this 
reauthorization bill is assistance for the productive reuse of 
abandoned industrial facilities and the redevelopment of brownfields. I 
support that effort.
  Unfortunately, the bill also includes new language allowing EDA to do 
site assessment and remediation. This is, and should remain, the job of 
the Environmental Protection Agency. As is evident in the manager's 
amendment to the bill, it is Congress's intent that EDA abide by the 
same site assessment and remediation standards and protocols as does 
EPA.
  Furthermore, under this bill, Federal funds provided by EDA for 
assessment or cleanup will only be provided consistent with the 
``Polluter Pays'' principle. That is, funds will not be provided to 
those who are responsible for the pollution.
  Specifically, EDA shall not provide funds for response costs to 
parties potentially responsible for those costs under section 107 of 
CERCLA, or to owners or operators responsible for corrective action 
under the Leaking Underground Storage Tank program pursuant to the 
Solid Waste Disposal Act, or to any other party responsible for the 
pollution.
  Mr. President, EDA agrees with Congress's intent. On April 28, 2004, 
David Sampson, Assistant Secretary of Commerce for Economic 
Development, told the Senate Environment and Public Works Committee, 
``EDA is not seeking to in any way relieve a responsible party from 
liability under CERCLA nor to provide funds to a party to undertake 
clean-ups required under CERCLA, since to do so would undercut the 
`Polluter Pays' principle on which CERCLA was founded.''
  Under any Federal program, when Federal funds are used for cleanup, 
it is very important to ensure that assessment and cleanup costs not be 
shifted away from the polluter and onto taxpayers. To the limited 
extent EDA is involved in funding cleanups, Congress's intent in this 
bill and EDA's policy is that polluters remain responsible for their 
own cleanup costs. Polluters must pay to clean up their own messes.
  Mr. LAUTENBERG. Mr. President, I rise to speak on the bill to 
reauthorize the Economic Development Administration, EDA, which 
provides critical support to needed communities. Since its 
establishment, the Economic Development Administration has invested 
over $18 billion in more than 50,000 projects in all parts of the 
United States. These investments have been supplemented by matching 
funds from investment partners, and have leveraged a great deal of 
investment by the private sector.
  The reauthorization bill before us today includes assistance for the 
productive use of abandoned industrial facilities and the redevelopment 
of brownfields. I support that effort. While the Environmental 
Protection Agency's role under the 2002 law is to facilitate the 
environmental assessment and cleanup of abandoned brownfield sites, 
EDA's role is to encourage the economic reuse of the property.
  Under this bill, Federal funds provided by EDA for assessment or 
cleanup will only be provided consistent with the ``Polluter Pays'' 
principle. That is, funds will not be provided to those who are 
responsible for the pollution. They are responsible for cleaning up the 
mess they made. That is, funds will not be provided to those who are 
responsible for the pollution. They are responsible for cleaning up the 
mess they made.
  Specifically, EDA shall not provide funds for response costs to 
parties potentially responsible for those costs under section 107 of 
CERCLA, or to owners or operators responsible for corrective action 
under the Leaking Underground Storage Tank program pursuant to the 
Solid Waste Disposal Act, or to any other party responsible for the 
pollution.
  It is very important to ensure that assessment and clean-up costs are 
not shifted from the polluter to the taxpayers. To the extent that EDA 
is involved in funding cleanups, Congress'

[[Page S10512]]

intent in this bill and EDA's policy must be the same: polluters are 
responsible for paying to clean up their own messes.
  Mr. INHOFE. Mr. President, I rise to discuss S. 1134, the Economic 
Development Administration reauthorization bill, that was approved by 
the Senate today. This is an important piece of legislation for our 
Nation's economically distressed communities. These areas count on EDA 
to help create favorable environments for long-term economic growth. 
Studies have shown that EDA uses Federal dollars efficiently and 
effectively--creating and retaining long-term jobs at an average cost 
that is among the lowest in government. The bill emphasizes 
coordination, flexibility and performance. These tools will allow the 
Secretary to continue and even improve and increase the good work done 
by the agency.
  In particular, I would like to highlight the performance award 
program and the reforms to the revolving loan fund, RLF, program 
included in the bill. The performance award program will allow the 
Secretary to reward those grant recipients who meet or exceed 
expectations regarding performance measures such as jobs created and 
private sector investment.
  The reforms to the RLF program are needed to ensure the agency can 
continue to capitalize new and recapitalize existing RLFs. The current 
administrative burden of these funds is large. This bill will allow the 
Secretary to reduce that burden, both for the agency and for the local 
RLF managers, while providing appropriate oversight.
  Enactment of this legislation will be good for my home State of 
Oklahoma in several ways as well. First, it will ensure that the 
communities of Elgin and Durant are able to move forward with 
infrastructure improvements that will support the attraction of private 
sector investment and the creation of jobs. Enactment will also result 
in much needed investment in Ottawa County, providing funding for the 
city of Miami--a city that has suffered economic hardship due to its 
proximity to a Superfund site.
  Additionally, the bill preserves the ability of Economic Development 
Districts to use planning funds to provide technical assistance and 
cover administrative costs. This is especially important for the small, 
rural communities of Oklahoma that do not have the resources to 
maintain the professional and technical capacity needed to develop and 
implement comprehensive economic development strategies. Economic 
Development Districts work to fill this hole and should not be 
prevented from doing so.
  I would like to thank my colleagues here in the Senate, in the House 
of Representatives and in the administration for working so diligently 
and cooperatively with me to complete work on this very important 
legislation. I would also like to thank the staff for their hard work--
from my staff: Angie Giancarlo and Frank Fannon; from Senator Jeffords' 
staff: Geoff Brown and Malcolm Woolf; from Senator Bond's staff: Nick 
Karellas and Ellen Stein; from Senator Reid's staff: David Montes; and 
from EDA: Nat Wienecke, Paul Pisano, Ben Erulkar and Dennis Alvord.
  Mr. JEFFORDS. Mr. President, the Economic Development Administration 
Reauthorization Act of 2004, S. 1134, contains important provisions 
relating to the redevelopment of brownfields. As the ranking member of 
the Environment and Public Works Committee, I want to take the 
opportunity to explain these provisions. Before I begin, let me 
acknowledge the contributions of Senator Chafee, chair of the Superfund 
and Waste Management subcommittee, in developing these provisions and 
note that he supports my comments today.
  S. 1134 encourages EDA to promote the redevelopment of abandoned 
industrial facilities and brownfields. The economic and social benefits 
of brownfields redevelopment are well documented. For example, in June 
2003, the U.S. Conference of Mayors estimated that brownfields 
redevelopment could generate more than 575,000 additional jobs and up 
to $1.9 billion annually in new tax revenues for cities. In addition, 
according to EPA, every acre of reused brownfields preserves an 
estimated 4.5 acres of unused open space. Estimates of the number of 
brownfields sites nationwide range from 450,000 to as many as a 
million.
  This bill complements the 2002 Environmental Protection Agency 
brownfields cleanup law by encouraging EDA to make economic 
redevelopment of brownfields a priority. In other words, EPA's focus is 
to facilitate the environmental assessment and cleanup of abandoned 
sites, whereas EDA's role is to encourage the economic reuse of the 
property.
  I agree with EDA Administrator David Sampson, who in response to a 
question from the EPW Committee, wrote, ``cleanup activities are most 
appropriately handled by state and federal environmental regulatory 
agencies with the background and technical expertise to address complex 
remediation issues.'' As such, I expect that EDA would only fund 
redevelopment projects at sites that have been certified as ``clean'' 
by EPA or the State environmental agency. In the rare circumstance that 
an EDA grant recipient discovers minimal contamination as part of a 
redevelopment project, this bill would require any remediation 
activities be conducted in compliance with all Federal, State, and 
local laws and standards. EDA grantees should obtain the prior written 
approval of EPA or the State environmental agency to ensure that the 
remediation is protective of human health the environment.
  Of course, EDA also must uphold the ``polluter pays'' principle by 
ensuring that Federal dollars are never given to the polluter to clean 
up contamination that they caused in the first place. Likewise, nothing 
in this bill in any way affects the liability of any party under 
Superfund, RCRA or any other Federal or State law.
  The final brownfields-related aspect of the bill requires a General 
Auditing Office study of EDA's brownfield grants. This study should 
provide valuable data on the extent to which EDA brownfield 
redevelopment grants involve remediation activities, the environmental 
standards applied and the role of Federal, State and local 
environmental agencies and public participation in the cleanup process. 
It is my hope that such information will enable future Congresses to 
revisit these issues to ensure more explicitly that any remediation 
performed is truly incidental to the larger economic redevelopment 
project and that cleanups performed using Federal dollars are 
protective of human health and the environment.
  In closing I would like to praise the bipartisan Member and staff 
work that went into crafting this important bill and urge swift passage 
by the other body.
  Ms. COLLINS. Madam President, I ask unanimous consent that the 
substitute amendment that is at the desk be agreed to, the committee-
reported amendment, as amended, be agreed to, the bill, as amended, be 
read a third time and passed, the motions to reconsider be laid upon 
the table, en bloc, and that any statements relating to the bill be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3976) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee amendment, in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 1134), as amended, was read the third time and passed.
  Ms. COLLINS. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BYRD. Mr. President, I ask unanimous consent that the order for 
the quorum call be dispensed with.
  The PRESIDING OFFICER (Mr. Chambliss). Without objection, it is so 
ordered.

                          ____________________