[Congressional Record Volume 154, Number 116 (Tuesday, July 15, 2008)]
[Senate]
[Pages S6724-S6725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 3264. A bill to amend the Public Works and Economic Development 
Act of 1965 to reauthorize that Act, and for other purposes; to the 
Committee on Environment and Public Works.
  Mr. INHOFE. Mr. President, today I am introducing a bill to 
reauthorize the Economic Development Administration, EDA. EDA was 
created in 1965 to provide assistance to economically distressed areas, 
primarily those experiencing substantial and persistent unemployment 
and poverty. EDA works with partners in local communities to create 
wealth and minimize poverty by promoting favorable business 
environments to attract private investment and encourage long-term 
economic growth.
  Studies show 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. Reauthorization gives us an 
opportunity to ensure the continuation of this good work and to provide 
the tools necessary to improve performance even further.
  The reauthorization bill I am introducing today includes many of the 
program administration improvements proposed by the President, while 
reaffirming a commitment to acceptable funding levels. Specifically, 
the bill reauthorizes the agency for 5 years; allows for increases in 
the minimum level of funding for planning districts; provides needed 
resources and reforms to improve administration of the revolving loan 
fund program; and adds flexibility in addressing grant recipients' 
changed economic development needs.
  In my home State of Oklahoma, we have some communities that struggle 
with economic distress, and EDA has worked long and hard with those 
communities to bring in private capital investment and jobs. Durant, 
Clinton, Oklahoma City, Seminole, Miami, and Elgin are just some of the 
Oklahoma communities that have made good use of EDA assistance. In 
fact, over the past 5\1/2\ years, EDA grants awarded in my home State 
have resulted in almost 12,000 jobs being created or saved. With an 
investment of about $22.7 million, we have leveraged another $24 
million in State and local funds and more than $437 million in private 
sector funds. I would call that a wonderful success story.
  The EDA's authorization is set to expire on September 30, 2008. 
Especially in these times of economic uncertainty, it is imperative not 
to create uncertainty for this very successful agency and the 
struggling communities that depend on its assistance by allowing the 
authorization to lapse. I look forward to working with the 
administration, as well as my colleagues here in the Senate and in the 
House of Representatives, to try to reauthorize EDA before that 
happens.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3264

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Economic Development 
     Administration Reauthorization Act of 2008''.

     SEC. 2. ECONOMIC DEVELOPMENT PARTNERSHIPS.

       Section 101 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3131) is amended by adding at the end 
     the following:
       ``(e) Excellence in Economic Development Awards.--
       ``(1) Establishment of program.--To recognize innovative 
     economic development strategies of national significance, the 
     Secretary may establish and carry out a program, to be known 
     as the `Excellence in Economic Development Award Program' 
     (referred to in this subsection as the `program').
       ``(2) Eligible entities.--To be eligible for recognition 
     under the program, an entity shall be an eligible recipient 
     that is not a for-profit organization or institution.
       ``(3) Nominations.--Before making an award under the 
     program, the Secretary shall solicit nominations publicly, in 
     accordance with such selection and evaluation procedures as 
     the Secretary may establish in the solicitation.
       ``(4) Categories.--The categories of awards under the 
     program shall include awards for--
       ``(A) urban or suburban economic development;
       ``(B) rural economic development;
       ``(C) environmental or energy economic development;
       ``(D) economic diversification strategies that respond to 
     economic dislocations, including economic dislocations caused 
     by natural disasters and military base realignment and 
     closure actions;
       ``(E) university-led strategies to enhance economic 
     development;
       ``(F) community- and faith-based social entrepreneurship;
       ``(G) historic preservation-led strategies to enhance 
     economic development; and
       ``(H) such other categories as the Secretary determines to 
     be appropriate.
       ``(5) Provision of awards.--The Secretary may provide to 
     each entity selected to receive an award under this 
     subsection a plaque, bowl, or similar article to commemorate 
     the accomplishments of the entity.
       ``(6) Funding.--Of amounts made available to carry out this 
     Act, the Secretary may use not more than $2,000 for each 
     fiscal year to carry out this subsection.''.

     SEC. 3. ENHANCEMENT OF RECIPIENT FLEXIBILITY TO DEAL WITH 
                   PROJECT ASSETS.

       (a) Revolving Loan Fund Program Flexibility.--Section 
     209(d) of the Public Works and Economic Development Act of 
     1965 (42 U.S.C. 3149(d)) is amended by adding at the end the 
     following:
       ``(5) Conversion of project assets.--
       ``(A) Request.--If a recipient determines that a revolving 
     loan fund established using assistance provided under this 
     section is no longer needed, or that the recipient could make 
     better use of the assistance in light of the current economic 
     development needs of the recipient if the assistance was made 
     available to carry out any other project that meets the 
     requirements of this Act, the recipient may submit to the 
     Secretary a request to approve the conversion of the 
     assistance.
       ``(B) Methods of conversion.--A recipient the request to 
     convert assistance of which is approved under subparagraph 
     (A) may accomplish the conversion by--
       ``(i) selling to a third party any assets of the applicable 
     revolving loan fund; or
       ``(ii) retaining repayments of principal and interest 
     amounts on loans provided through the applicable revolving 
     loan fund.
       ``(C) Requirements.--
       ``(i) Sale.--

       ``(I) In general.--Subject to subclause (II), a recipient 
     shall use the net proceeds from a sale of assets under 
     subparagraph (B)(i) to pay any portion of the costs of 1 or 
     more projects that meet the requirements of this Act.
       ``(II) Treatment.--For purposes of subclause (I), a project 
     described in that subclause shall be considered to be 
     eligible under section 301.

       ``(ii) Retention of repayments.--Retention by a recipient 
     of any repayment under subparagraph (B)(ii) shall be carried 
     out in accordance with a strategic reuse plan approved by the 
     Secretary that provides for the increase of capital over time 
     until sufficient amounts (including interest earned on the 
     amounts) are accumulated to fund other

[[Page S6725]]

     projects that meet the requirements of this Act.
       ``(D) Terms and conditions.--The Secretary may require such 
     terms and conditions regarding a proposed conversion of the 
     use of assistance under this paragraph as the Secretary 
     determines to be appropriate.
       ``(E) Expediency requirement.--The Secretary shall ensure 
     that any assistance intended to be converted for use pursuant 
     to this paragraph is used in an expeditious manner.
       ``(6) Program administration.--The Secretary may allocate 
     not more than 2 percent of the amounts made available for 
     grants under this section for the development and maintenance 
     of an automated tracking and monitoring system to ensure the 
     proper operation and financial integrity of the revolving 
     loan program established under this section.''.
       (b) Maintenance of Effort.--Title VI of the Public Works 
     and Economic Development Act of 1965 (42 U.S.C. 3211 et seq.) 
     is amended by adding at the end the following:

     ``SEC. 613. MAINTENANCE OF EFFORT.

       ``(a) Expected Period of Best Efforts.--
       ``(1) Establishment.--To carry out the purposes of this 
     Act, before providing investment assistance for a 
     construction project under this Act, the Secretary shall 
     establish the expected period during which the recipient of 
     the assistance shall make best efforts to achieve the 
     economic development objectives of the assistance.
       ``(2) Treatment of property.--To obtain the best efforts of 
     a recipient during the period established under paragraph 
     (1), during that period--
       ``(A) any property that is acquired or improved, in whole 
     or in part, using investment assistance under this Act shall 
     be held in trust by the recipient for the benefit of the 
     project; and
       ``(B) the Secretary shall retain an undivided equitable 
     reversionary interest in the property.
       ``(3) Termination of federal interest.--
       ``(A) In general.--Beginning on the date on which the 
     Secretary determines that a recipient has fulfilled the 
     obligations of the recipient for the applicable period under 
     paragraph (1), taking into consideration the economic 
     conditions existing during that period, the Secretary may 
     terminate the reversionary interest of the Secretary in any 
     applicable property under paragraph (2)(B).
       ``(B) Alternative method of termination.--
       ``(i) In general.--On a determination by a recipient that 
     the economic development needs of the recipient have changed 
     during the period beginning on the date on which investment 
     assistance for a construction project is provided under this 
     Act and ending on the expiration of the expected period 
     established for the project under paragraph (1), the 
     recipient may submit to the Secretary a request to terminate 
     the reversionary interest of the Secretary in property of the 
     project under paragraph (2)(B) before the date described in 
     subparagraph (A).
       ``(ii) Approval.--The Secretary may approve a request of a 
     recipient under clause (i) if--

       ``(I) in any case in which the request is submitted during 
     the 10-year period beginning on the date on which assistance 
     is initially provided under this Act for the applicable 
     project, the recipient repays to the Secretary an amount 
     equal to 100 percent of the fair market value of the pro rata 
     Federal share of the project; or
       ``(II) in any case in which the request is submitted after 
     the expiration of the 10-year period described in subclause 
     (I), the recipient repays to the Secretary an amount equal to 
     the fair market value of the pro rata Federal share of the 
     project as if that value had been amortized over the period 
     established under paragraph (1), based on a straight-line 
     depreciation of the project throughout the estimated useful 
     life of the project.

       ``(b) Terms and Conditions.--The Secretary may establish 
     such terms and conditions under this section as the Secretary 
     determines to be appropriate, including by extending the 
     period of a reversionary interest of the Secretary under 
     subsection (a)(2)(B) in any case in which the Secretary 
     determines that the performance of a recipient is 
     unsatisfactory.
       ``(c) Previously Extended Assistance.--
       ``(1) In general.--With respect to any recipient to which 
     the term of provision of assistance was extended under this 
     Act before the date of enactment of this section, the 
     Secretary may approve a request of the recipient under 
     subsection (a) in accordance with the requirements of this 
     section to ensure uniform administration of this Act, 
     notwithstanding any estimated useful life period that 
     otherwise relates to the assistance.
       ``(2) Conversion of use.--If a recipient described in 
     paragraph (1) demonstrates to the Secretary that the intended 
     use of the project for which assistance was provided under 
     this Act no longer represents the best use of the property 
     used for the project, the Secretary may approve a request by 
     the recipient to convert the property to a different use for 
     the remainder of the term of the Federal interest in the 
     property, subject to the condition that the new use shall be 
     consistent with the purposes of this Act.
       ``(d) Status of Authority.--The authority of the Secretary 
     under this section is in addition to any authority of the 
     Secretary pursuant to any law or grant agreement in effect on 
     the date of enactment of this section.''.

     SEC. 4. EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.

       Section 701(a) of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3231(a)) is amended--
       (1) in paragraph (1), by striking ``2004'' and inserting 
     ``2009'';
       (2) in paragraph (2), by striking ``2005'' and inserting 
     ``2010'';
       (3) in paragraph (3), by striking ``2006'' and inserting 
     ``2011'';
       (4) in paragraph (4), by striking ``2007'' and inserting 
     ``2012''; and
       (5) in paragraph (5), by striking ``2008'' and inserting 
     ``2013''.

     SEC. 5. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR 
                   ADMINISTRATIVE EXPENSES.

       Section 704 of the Public Works and Economic Development 
     Act of 1965 (42 U.S.C. 3234) is amended to read as follows:

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

       ``(a) In General.--Subject to subsection (b), of the 
     amounts made available under section 701 for each fiscal 
     year, not less than $27,000,000 shall be made available to 
     provide grants under section 203.
       ``(b) Subject to Total Appropriations.--For any fiscal 
     year, the amount made available pursuant to subsection (a) 
     shall be increased to--
       ``(1) $28,000,000, if the total amount made available under 
     subsection 701(a) for the fiscal year is equal to or greater 
     than $300,000,000;
       ``(2) $29,500,000, if the total amount made available under 
     subsection 701(a) for the fiscal year is equal to or greater 
     than $340,000,000;
       ``(3) $31,000,000, if the total amount made available under 
     subsection 701(a) for the fiscal year is equal to or greater 
     than $380,000,000;
       ``(4) $32,500,000, if the total amount made available under 
     subsection 701(a) for the fiscal year is equal to or greater 
     than $420,000,000; and
       ``(5) $34,500,000, if the total amount made available under 
     subsection 701(a) for the fiscal year is equal to or greater 
     than $460,000,000.''.
                                 ______