[Congressional Record (Bound Edition), Volume 156 (2010), Part 10]
[Extensions of Remarks]
[Pages 14485-14486]
[From the U.S. Government Publishing Office, www.gpo.gov]




 H.R. 5897, THE ``ECONOMIC REVITALIZATION AND INNOVATION ACT OF 2010''

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                        Wednesday, July 28, 2010

  Mr. OBERSTAR. Madam Speaker, I rise today to introduce H.R. 5897, the 
``Economic Revitalization and Innovation Act of 2010'', to authorize 
the programs of the Economic Development Administration, EDA, for 5 
years. This legislation creates new programs and adds additional 
flexibility to EDA's current authorities to ensure that EDA will 
continue to meet the challenges of high unemployment in economically 
distressed communities and the need for innovative job creation 
programs.
  In 1965, I served as a staff member of the Committee on Public Works 
when President Lyndon B. Johnson signed the Public Works and Economic 
Development Act into law, creating EDA. I was a strong supporter of EDA 
then and I continue to support the agency now, 45 years later.
  I know EDA works because I have seen it work first-hand: providing 
infrastructure investment, job training, and planning funds to create 
jobs and economic opportunities in economically distressed communities 
across the Nation--from blighted urban and rural communities to regions 
devastated by natural disasters. In fact, we need look no further than 
in Congress' own back yard where EDA provided critical funding to 
reconstruct the Eastern Market facility, which was destroyed in a fire. 
Eastern Market, with assistance from EDA's flexible and responsive 
programs, was quickly rebuilt, restoring not only bricks and mortar, 
but economic opportunity for small businesses and jobs for the local 
community.
  In the current difficult economic climate, EDA plays a strategic role 
in supporting the efforts of economically distressed communities to 
cope with a diverse range of economic disruptions and move toward 
recovery. Part of EDA's success is due to the fact that it truly 
operates its programs as an investor, seeking to obtain the maximum 
impact for the Federal dollar. EDA investments are also instrumental in 
attracting private capital to communities. In fact, in fiscal year 
2009, EDA invested $466 million in infrastructure that attracted $11.7 
billion in private investment--or $25 for every $1 of Federal 
investment.
  What enables EDA to operate such effective programs is its extensive 
network of more than 800 local economic development partners across the 
country. These partners, with assistance from EDA, perform the rigorous 
regional planning activities necessary to ensure viable, locally-
supported, job-creating projects that EDA then funds on a competitive 
basis. Such projects include:
  Construction of a job training center in Delaware to train former 
auto workers in green building technology and alternative energy 
systems;
  Expansion of port infrastructure in Georgia to allow for increased 
exports of U.S. manufactured products;
  Conversion of an obsolete furniture factory in Mississippi to train 
workers for new advanced manufacturing positions; and
  Expansion of rail infrastructure in Tennessee to service a new 
industrial park where the first Volkswagen automobile plant in the 
United States will locate.
  These projects are just a handful of EDA's efforts to create jobs and 
provide the building blocks for economic development in economically 
distressed communities throughout the nation.
  H.R. 5897, the ``Economic Revitalization and Innovation Act of 
2010'', reauthorizes EDA for 5 years and provides the necessary funding 
and investment tools to enable EDA to help regional and local 
communities raise the standard of living for their citizens, increase 
the overall rate of economic growth by expanding economic 
opportunities, increasing international competitiveness, and fostering 
a climate to create jobs.
  H.R. 5897 provides $500 million for Economic Development 
Administration, EDA, investments for each of fiscal years FY 2011 
though FY 2015, for a total authorization of $2.5 billion. This annual 
investment level is equal to the FY 2008 authorization level, but 
represents a significant increase over current appropriations levels.
  Specifically, the bill authorizes:
  $2.225 billion for economic development investments, including public 
works and economic adjustment grants;
  $180 million for planning grants to Economic Development Districts 
(EDDs);
  $50 million for university centers in States, including DC, without 
such centers; and
  Such sums as necessary for EDA administrative expenses.
  The authorized funding levels in H.R. 5897 will support grants to 
economically distressed

[[Page 14486]]

communities, increased staffing to assist communities, and new and 
expanded programs.
  With more than 8.4 million jobs lost during the recent recession, the 
call from the American people is ``jobs, jobs, jobs.'' H.R. 5897 is a 
considered response to this dire need. Major provisions in H.R. 5897 
that accomplish the goal of increasing jobs and support to distressed 
communities include:
  Providing loan guarantees, up to a total of $500 million, to 
construct business incubators and science and research parks;
  $25 million in annual funding to support green and alternative energy 
investments;
  Direct funding using EDA's existing network of non-profit lenders to 
lend to technology and manufacturing companies;
  Increased funding to EDA's network of local planning organizations;
  Assistance to communities to incentivize manufacturing and technology 
companies to locate or relocate to the United States from overseas, or 
``on-shoring'';
  Funding and direction to EDA and its local planning partner 
organizations to capitalize on economic development opportunities from 
high-speed rail; and
  Greater flexibility in EDA funding to allow communities to adapt to 
new economic circumstances, such as high home foreclosures and reduced 
tax revenues.
  By focusing EDA's efforts on proven programs and projects such as 
business incubators, which tend to generate the greatest number of 
long-term jobs, we can help facilitate and support the economic 
renaissance that so many communities need.
  I cannot overstate the importance of this legislation. I am sure that 
every Member has seen firsthand the devastation of lost jobs and 
distressed communities. As we consider reauthorization of EDA, we must 
recognize the current economic picture is unsettled: investor 
confidence and enthusiasm has given way to uncertainty and wariness of 
future development opportunities. However, EDA, the only Federal agency 
tasked with the mission of supporting economic development in 
distressed areas from the ground up, must be empowered to continue to 
identify opportunities for future economic growth, job creation, and 
global competitiveness using its expertise and model of proven success.
  A complete summary of H.R. 5897, the ``Economic Revitalization and 
Innovation Act of 2010,'' is included with my statement.

    [Committee on Transportation and Infrastructure, July 28, 2010]

 H.R. 5897, the ``Economic Revitalization and Innovation Act of 2010''

 (Introduced by the Honorable James L. Oberstar, the Honorable Eleanor 
           Holmes Norton, and Other Members of the Committee)


            Authorized Funding Levels and Job Creation Goals

     Authorized Funding Levels
       H.R. 5897, the ``Economic Revitalization and Innovation Act 
     of 2010,'' provides $500 million for Economic Development 
     Administration (EDA) investments for each of fiscal years 
     (FY) 2011 through FY 2015, for a total authorization of $2.5 
     billion. This annual investment level is equal to the FY 2008 
     authorization level, but represents a significant increase 
     over current appropriations levels.
       Specifically, the bill authorizes:
       $2.225 billion for economic development investments, 
     including public works and economic adjustment grants;
       $180 million for planning grants to Economic Development 
     Districts (EDDs);
       $50 million for university centers in States (including 
     D.C.) without such centers; and
       such sums as necessary for EDA administrative expenses.
     Job Creation Goals
       Requires that recipients of EDA assistance establish job 
     creation goals as a condition of receipt of EDA assistance, 
     and penalizes recipients for failure to satisfy job creation 
     goals.


EXPANDED SUPPORT FOR BUSINESS INCUBATORS AND SCIENCE AND RESEARCH PARKS

     Loan Guarantee Funding
       Provides a total of $500 million in loan guarantees (i.e., 
     a guarantee of non-Federal financing) to enable EDA to 
     provide loan guarantees for the construction and development 
     of business incubators and science and research parks.
     Construction Funding
       Continues funding for the construction or expansion of 
     business incubators and science and research park facilities 
     under EDA's public works grant program (requiring matching 
     funds).
     Operations Funding
       Clarifies EDA's ability to provide business incubator 
     operating support.


     HIGH-SPEED RAIL ECONOMIC DEVELOPMENT AND SUSTAINABLE ECONOMIC 
                              DEVELOPMENT

     High-speed Rail Economic Development
       Requires EDA to coordinate and evaluate opportunities 
     (including studies and reports) related to high-speed rail 
     projects in conjunction with its local economic development 
     partners and the Department of Transportation. In addition, 
     the bill directs university centers to conduct research and 
     provide technical assistance to communities with respect to 
     the economic development opportunities related to high-speed 
     rail projects. Provides $500,000 per year to EDDs for high-
     speed rail economic development planning.
     Sustainable Economic Development
       Creates a new program for investment ($25 million annually) 
     in projects focused on economic development and job creation 
     connected to alternative energy technologies (photovoltaic, 
     wind, and geothermal), including assistance to communities 
     for business attraction or retention and alternative energy 
     focused job training analyses.


``ON-SHORING'' OF JOBS TO THE UNITED STATES AND INCENTIVES TO ENCOURAGE 
  PRIVATE SECTOR INVESTMENT IN TECHNOLOGY AND MANUFACTURING COMPANIES

     On-Shoring Incentive
       Establishes three separate programs to allow or provide 
     preference for EDA investment assistance to projects that 
     locate or relocate technology and manufacturing companies to 
     the United States, including:
       Incubator Loan Guarantee Program to provide assistance to a 
     facility that will house technology or manufacturing 
     companies locating or relocating to the United States;
       Sustainable Economic Development Program to provide 
     assistance to support the efforts of communities to attract 
     technology and manufacturing businesses locating or 
     relocating to the United States; and
       Equity Financing Program to establish preference for a 
     Revolving Loan Fund (RLF) equity investment for technology 
     and manufacturing companies that locate or relocate to the 
     United States.
     Equity Financing
       Creates a new program that allows EDA's current RLF program 
     to be used to fund investment (up to $250,000 per company) in 
     exchange for equity. This program will leverage the network 
     of existing RLF third-party, non-profit intermediaries to 
     administer the program. Provides preference to incubator 
     companies, companies commercializing technology at science 
     and research parks, and technology or manufacturing companies 
     locating or relocating to the United States.


        FLEXIBILITY IN ECONOMIC DEVELOPMENT FUNDING OF PROJECTS

     Revolving Loan Funds and Construction Projects
       Provides EDA grant recipients with authority (pursuant to 
     EDA approval) to redirect funds for new projects that meet 
     EDA criteria.
     BRAC- and Department of Defense-Impacted Communities
       Authorizes EDA to consider ``mission growth'' of Defense 
     Base Closure and Realignment (BRAC) or Department of Defense-
     impacted communities as a criterion for assistance, and 
     allows EDA to consider economic opportunities and not simply 
     economic injury as a basis for assistance to these 
     communities.
     Declining Tax Revenue Communities
       Authorizes EDA to consider communities' declining tax 
     revenues as the basis for increased Federal share of project 
     costs or an eligibility determination, such as substantial 
     home foreclosure rates creating economic conditions allowing 
     grant assistance to particular communities or regions.


  DEFINED ROLE FOR ECONOMIC DEVELOPMENT DISTRICTS AND INCENTIVES FOR 
                           REGIONAL PLANNING

     Role of EDDs
       Clearly defines the responsibilities of an EDD in statute 
     to ensure that local communities have an established role in 
     developing economic development projects.
     Multi-Regional Planning and Incentives
       Allows EDDs to consolidate without the current penalty of 
     reduced EDD funding.

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