[Congressional Record (Bound Edition), Volume 157 (2011), Part 6]
[Senate]
[Pages 8759-8763]
[From the U.S. Government Publishing Office, www.gpo.gov]




   ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2011--MOTION TO PROCEED

  The PRESIDING OFFICER. Under the previous order, the Senate will 
resume consideration of the motion to proceed to S. 782, which the 
clerk will report by title.
  The bill clerk read as follows:

       A bill (S. 782) to amend the Public Works and Economic 
     Development Act of 1965 to reauthorize that Act, and for 
     other purposes.

  Mrs. BOXER. Mr. President, as the chairman of the Environment and 
Public Works Committee who watched with pleasure as we voted this bill 
out of our committee with total unanimous support--except for one, we 
almost had everyone--I am delighted that the leader has chosen to go to 
the reauthorization of the Economic Development Administration.
  I will tell you why. There are three reasons: jobs, jobs, jobs. We 
know when President Obama took over, he faced a situation where we were 
losing 700,000 to 800,000 jobs a month. Imagine. We were bleeding those 
jobs. Credit was frozen. We almost lost the auto industry. We had to 
take tremendous steps to turn this around.
  I personally believe, after listening to the experts evaluate what we 
did, that we did some very important work to stabilize this economy. 
But clearly this recession we are trying to get out of is the worst 
since the Great Depression. The job loss has been severe. So it is very 
difficult. When you lose 7, 8 million jobs in that kind of a downturn, 
you need robust job creation to get these jobs back.
  We had a very important bill on the floor dealing with small 
business--to help small business. That bill was loaded with a bunch of 
extraneous amendments and it never got off the floor. Now is our 
chance. I do not mind it if people attach amendments that they think 
are very important, and we have some reasonable time set aside for 
those, we have votes on those. I do not have any problem with that. But 
we have got to get on with the business of job creation.
  Let me tell you a little bit about the EDA. For 50 years, the EDA, 
the Economic Development Administration, has created jobs and spurred 
growth in economically hard-hit communities. This bill, S. 782, will 
ensure that EDA will continue to create employment opportunities, 
maintain existing jobs, and drive local economic growth.
  We know the EDA's authorization expired in 2008. And, by the way, the 
last time it was voted on it was I believe under George Bush, and it 
was done by voice vote. Even in the House it was an overwhelmingly 
bipartisan vote. George Bush signed it. Can't we get back to the days 
of bipartisanship? I say to my colleagues, this is the moment.
  A bill that has been voted out of the committee with near unanimous 
consent, a program that has been in place since 1965, and we know these 
are tough times. All of our communities are going through tough times--
most of our communities are.
  The EDA has worked beautifully with local communities to spur 
economic development. EDA provides a wide range of assistance to these 
areas. They fund water and sewer improvements. They help manufacturers 
and producers become more competitive. And here is the thing about 
these investments: They attract State dollars, local dollars, nonprofit 
dollars, private company dollars, so that every dollar we put into this 
program yields us $7 in private sector investment.
  This is the first point I want to make to my colleagues and to the 
American people. EDA leverages Federal dollars to create jobs. One 
dollar of Economic Development Administration investment is expected to 
attract $7 in private sector investment. This comes from congressional 
testimony in March of 2011. That is why we got such a great vote out of 
our committee.
  You are going to hear from Senator Cardin later, who serves in a very 
senior position on that committee. It is rare that we have these type 
of votes. Since January of 2009, even though the EDA was not 
reauthorized, it still continued to go along under the old program. It 
continued to go along with appropriations.
  Since 2009, public-private projects that grantees have looked at say 
they have created 161,500 jobs. Let's look at that chart. This is good 
news. I have good news today. This is a program that is working for the 
American people. Since January 2009, EDA has funded public-private 
projects that grantees estimate have created 161,500 jobs.
  What we bring to you is a reauthorization of a very popular program 
that has been in place since 1965, that has always had tremendous 
bipartisan support, that is working on the ground, that the local 
people love. Let me tell you who has already endorsed this bill: the 
U.S. Conference of Mayors, the American Public Works Association, the 
National Association of Counties, the American Planning Association,

[[Page 8760]]

the Association of University Research Parks, the Educational 
Association of University Centers, the International Economic 
Development Council, the National Association of Development 
Organizations, the National Business Incubation Association, the State 
Science and Technology Institute, the University Economic Development 
Association, the National Association of Regional Councils. These are 
people on the ground very close to our constituents. Who could be 
closer than the mayors and the counties? I started out as a county 
supervisor in a beautiful county called Marin. I can tell you on the 
ground, when you see these Federal dollars work it is very exciting 
because the cities and counties cannot do it alone. With the infusion 
of Federal funds, that sparks $7 of every $1 from private sector folks, 
and it makes a difference. I believe this is a win-win situation for 
our people.
  In fiscal year 2010 alone, EDA approved investments of $640 million 
for 928 projects nationwide that are expected to create 74,000 jobs, 
save 22,000 jobs, and leverage $10 billion in private investment. So 
$640 million is expected to leverage $10 billion in private investment. 
That is a huge leverage.
  In my home State of California, we are struggling, as so many parts 
of the country are, with unemployment rates. In California, EDA 
approved investments of $24 million in fiscal year 2010 for 27 projects 
expected to create 11,000 jobs, save 400 jobs, and leverage $400 
million in private investment. As I stand here now, because of this 
program, in 2011, we are going to see jobs saved and created. Imagine, 
11,000 new jobs--11,000 families who can breathe easier, pay their 
mortgage, and maybe go out to a restaurant once a week. That money 
trickles into the community and helps the small businesses.
  We now know that in California, the city of Dixon is working on a $3 
million program for water system improvements. That is 1,000 jobs.
  There is a project in the city of Shafter for $2 million for sewer 
and water improvements, which will allow development of an additional 
600 acres, and it will create 1,485 jobs and leverage $253 million in 
private investment. Nationwide, you could look at Boeing. We all know 
about Boeing. To help to mitigate Boeing's decision to reduce 
manufacturing jobs in Renton, WA, EDA invested $2 million in 2006 to 
help build infrastructure to serve the commercial redevelopment of a 
42-acre aircraft manufacturing site. This redevelopment has created a 
mixed-use campus used by businesses focusing on commercial services, 
high-tech, and life sciences, which has helped create 2,500 jobs.
  I say to my friends that right now we are struggling getting to the 
bill. At this point in time, we have a Republican dissenter who doesn't 
want us to move forward, and they want to look at this. I hope they 
look at these numbers. The American people want jobs. This is a bill 
that is directly related to job creation. This is a bill that leverages 
the Federal dollar. Why on Earth should there be any objection? This is 
a bill that passed the Senate unanimously when George W. Bush was 
President. He signed it and it was law. We should not be struggling 
over going to this bill. We ought to get on the bill and then get off 
the bill and send a message to the people that we are serious about job 
creation.
  In Duluth, a $3.5 million grant, matched by $2.3 million from the 
city, helped build the Duluth Aviation Business Incubator at the Duluth 
Airport. This investment helped Cirrus Aircraft grow from a handful of 
employees to 1,012 employees by 2008. The incubator is now leased to 
Cirrus Design Corporation, which has the largest share of the worldwide 
general aviation market.
  Here is another one on the east coast. In 2002, EDA provided $2 
million to help build the Knowledge Works pre-incubator facility as 
part of the development of the Virginia Tech Corporate Research Center 
in Blacksburg, VA. The center and its Knowledge Works pre-incubator 
facility have led to the creation of 2,000 high-wage jobs and the 
inception of 140 high-tech businesses. Repeating, a $2 million infusion 
from the EDA led to the creation of 2,000 high-wage jobs and the 
inception of 140 high-tech businesses. They built this corporate 
research center in Blacksburg, VA.
  EDA helps with disaster relief. In addition to helping communities 
respond to job loss due to the closure of a manufacturing plant or 
defense facility, for example, EDA helps communities respond to sudden 
and severe economic dislocations to the natural disaster.
  In 2008, Congress provided EDA with a total of $500 million in 
natural disaster assistance through two supplemental appropriations. 
With these funds, EDA was able to assume the role of a secondary 
responder working with affected communities to support long-term, 
postdisaster economic recovery in response to hurricanes, floods, and 
other natural disasters. We know how important it is to have a program 
that can respond and help FEMA.
  I can give you example after example of disaster relief. There was 
one case in Cedar Rapids, IA, where EDA provided funding to construct 
and install an upgraded, energy-efficient, natural gas-fired boiler 
system following a 2008 flood that destroyed the boiler that had 
provided steam heat and hot water to St. Luke's Hospital and Coe 
College. When the utility that owned the damaged facility decided not 
to rebuild after the flood, it left the hospital and college without a 
reliable energy supply. We all know what happens when there is a 
disaster and our hospitals cannot function. They came in and made a 
$4.6 million investment, and it was critical in keeping the hospital 
and college open, saving hundreds of jobs.
  I can only say, in closing my opening remarks, let's step back and 
look at the big picture. I think Dick Durbin spoke to it quite 
eloquently. Senator Durbin was very clear when he said we are at a time 
now where we have to create jobs. He gave kind of the overview of what 
has happened.
  When Bill Clinton was President, I was privileged enough to be here, 
sent by the people of California--my first term here. Bill Clinton 
faced a deficit, a debt, and a struggling economy. But with very smart 
plans, we turned it around. What were the smart plans? We reduced the 
deficit to zero, but we did it in a smart way. How did we do it? We 
kept on making investments that made sense at that time in energy, 
high-tech research, biomedical research. We made those investments. We 
cut the fraud and waste. We said to billionaires: You know what, you 
can do more for us, please. They are happy to do it, actually. So the 
millionaires and the billionaires paid their fair share, and we made 
smart investments and cut the waste, fraud, and abuse. We not only 
balanced the budget, but we created a surplus.
  In comes George W. Bush, and our Republican friends decided that the 
thing they wanted to do more than anything was give tax breaks to the 
billionaires and millionaires--to the Warren Buffets, who don't need 
it, and to the Donald Trumps, who don't need it. They don't need it. 
The average of these tax cuts to these millionaires and billionaires 
was hundreds of thousands a year. What that means is, we are short 
funds here.
  What do our Republican friends want to do now? They want to cut 
Medicare--end it--in order to continue to pay for the tax cuts for the 
millionaires. It is not necessary to go down that road.
  That is not before us today. What is before us today is, in the 
battle of how to get that deficit under control, what are we going to 
do about jobs. Today, we are looking at a program that has strong 
bipartisan support, that leverages the Federal dollars, that gets great 
reviews, that got out of our committee with only one dissenting vote; 
that is, the EDA, the Economic Development Administration. They have 
six regions. They have six regional offices, and each region--including 
East, West, Midwest, South--gets a fair share of the appropriations. It 
goes to places that have good ideas on how to attract local and State 
nonprofit and private sector funding. Every $1 of EDA investment is 
expected to attract $7 in private sector investment, thereby saving and 
creating thousands and thousands of good jobs.

[[Page 8761]]

  I understand my Republican friends are going to have a discussion at 
lunchtime as to whether to allow this bill to move forward. I hope, 
from the bottom of my heart, they will do so.
  I yield to Senator Cardin.
  The PRESIDING OFFICER. The Senator from Maryland is recognized.
  Mr. CARDIN. Mr. President, let me compliment Senator Boxer for her 
leadership as chairman of the Environment and Public Works Committee. I 
also compliment Senator Inhofe, the ranking member.
  This is an important bill, dealing with economic development and the 
Economic Development Administration. This is all about creating jobs, 
as Senator Boxer pointed out, particularly in underserved communities. 
That is what EDA does.
  This is a reauthorization bill. It was worked on in the last 
Congress. It came out of the Environment and Public Works Committee in 
the last Congress. It enjoys strong bipartisan support. Historically, 
it has been agreed to. It is important this reauthorization bill move 
through the Senate and the House and that the President has an 
opportunity to sign this bill so we can continue this important 
economic tool for our underserved communities.
  I also compliment the majority leader, Senator Reid. The bills he has 
brought forward in this Congress have been focused on creating jobs. We 
had the FAA reauthorization bill, which was important for the 
modernization and safety of our air traffic system, but it also created 
jobs and provided economic opportunity for more jobs in America.
  We then considered the SBIR bill, which would have helped small 
businesses with innovation, growth, and job growth. I regret that that 
bill could not be completed because of extraneous amendments. But it 
shows our priority on moving legislation forward that will create jobs.
  The EDA bill now before us I hope we can get to and move it quickly 
because it is, to me, a very important part of our strategy for the 
recovery of our economy and to create jobs in particularly underserved 
communities.
  In Maryland, we have many communities that depend upon EDA funding in 
order to save and create jobs. The EDA, through the economic 
development districts, is helping plan to build roads, spread commerce, 
office parks, business centers, and for private sector businesses to 
locate to and expand access to broadband, which is critical to 
communication in today's global economy. These are the types of 
projects EDA sponsors. There are road projects and broadband to connect 
communities together.
  EDA is responsible for promoting job growth and accelerating 
industrial and commercial development in communities suffering from 
limited job opportunities, low per capita income levels, and economic 
distress.
  As the only Federal agency focusing solely on promoting private 
sector job growth in economically underserved communities, EDA pursues 
regional comprehensive strategy development, public works, and business 
loan funds. They put together a strategy for our areas that have high 
unemployment, areas that are difficult to attract new job 
opportunities. They developed a winning strategy to create jobs.
  In Maryland, the EDA and our State university centers and economic 
development districts are responsible for helping administrate public 
works projects in rural communities on the Eastern Shore and in the 
western part of our State. These projects have assisted with the 
regional commercial needs as well as services to meet the needs of 
residents.
  For example, the EDA has been essential in assisting with the 
planning and installation of the broadband communication network in 
western Maryland. Maryland will be a State that will be totally 
connected by the broadband. EDA has helped to bring that into 
underserved areas. We are connecting communities together by having 
jobs in broadband capacity.
  It is also helping us create more small business opportunities, which 
is what we find is the dominant economic growth engine. We know in the 
Nation overall it is small businesses, but when we are dealing with 
underserved communities, small business growth is critical to their 
economic future. These investments go toward revitalizing, expansion, 
and upgrading of physical infrastructure in order to attract new 
industries, encourage business expansion and diversify local economies. 
In so doing, EDA seeks to establish foundations that enable communities 
to develop their own economic development programs for sustained 
development.
  The EDA has an established and proven record of using increasingly 
limited resources to complete projects in a timely manner that 
leverage--leverage--private sector investment. Senator Boxer pointed 
that out. We are leveraging private sector investment with a relatively 
small amount of public funds.
  In my home State of Maryland, EDA has supported more than 33 projects 
in the last 4 years that are credited with creating more than 2500 
jobs, retaining over 100 jobs, and leveraging $218 million in private 
investment from $12 million in EDA investments. That is a much higher 
ratio than the average, as Senator Boxer pointed out. It is important 
we provide EDA with the resources necessary to continue this work. Many 
of these projects are in the more rural or underserved parts of the 
State.
  Most recently, EDA provided seed money for two exciting projects on 
Maryland's Eastern Shore. In Dorchester County, near the town of 
Cambridge, on the Eastern Shore, the EDA is investing more than 
$600,000 in the renovation and repair of an existing vacant industrial 
building to be reused by a new manufacturing company that specializes 
in the production of green products made from recyclable materials.
  This is a win, win, win situation. This is a project that will 
restore a defunct industrial facility--recycling an industrial 
facility--and saving jobs on the Eastern Shore of Maryland. It reduces 
material waste by making new products out of recyclable waste material, 
helping us with our energy and environmental policies, and saving 103 
jobs while creating 20 new jobs. These 103 jobs would have been lost. 
Instead, we now have 123 jobs in an area where it is difficult to 
attract new jobs. It is leveraging more than $600,000 in direct 
investment in a facility that is expected to generate $6.6 million in 
private investment once the facility is operational, once again, 
referring to what Senator Boxer said, the leveraging of public funds 
for private investment in underserved areas and saving and creating 
jobs. This means for every Federal dollar invested, it generates $10 in 
private investment.
  The economies of Wicomico, Worcester, and Somerset Counties have 
historically been linked to the health of the Chesapeake Bay. Years of 
Chesapeake Bay impairment have taken their toll on the bay's fisheries. 
Closely linked to the bay's impairment is the decline in lowland forest 
lands due to development pressures. The effects of these natural 
resource crises have resulted in the decline of jobs in the seafood 
harvesting and forestry industries on the lower shore. It is a priority 
of mine to restore the health of the Chesapeake Bay and the natural 
systems and jobs that support a healthy bay.
  I also support the immediate work the EDA is doing to address the 
decline in jobs in the traditional industries on the lower shore by 
investing over $800,000 in workforce and business development centers 
that serve the lower counties of the Eastern Shore.
  Much of the hard work that goes into selecting and developing 
projects is done by the hardworking men and women on the ground working 
for the local economic development districts and the university 
centers. These are the ones with the best understanding of the economic 
needs in the communities in which they work. That is why I worked hard 
with my colleagues on the Environment and Public Works Committee to 
improve the potential resources available to economic development 
districts to do the necessary planning for economic development 
projects in their districts.
  Planning funds are hard to come by, but planning funds are essential. 
When

[[Page 8762]]

the Environment and Public Works Committee took up the bill last 
Congress, the issue my economic development district urged me to fight 
for was increasing the authorization level for planning grants because 
they were so useful to the work they were doing and represented a sound 
investment of Federal dollars in the communities that needed the help 
the most. Planning grants provide invaluable matching funds for 
economic development districts, tribes, and local communities to pursue 
regional economic development goals and strategies.
  None of the projects the economic development district helps 
administer would be possible without these planning grants. The demands 
on the economic development districts have increased significantly due 
to the current economic downturn as well as the new mandates by the EDA 
and the evolving nature of the global economy. The scope of the 
economic development districts' work goes well beyond EDA's projects 
and spans into planning and coordination of rural transportation 
projects, USDA rural health and water systems projects as well as HUD 
projects.
  Without the annual planning investment EDA provides through the 
economic development districts, most rural areas would not have the 
capacity to apply for or administer economic development resources. The 
planning and administrative work done by the economic development 
districts is the backbone of EDA's public works and facilities 
development projects and would not be possible without the planning 
grants.
  I greatly appreciate the leadership of Senator Boxer and Senator 
Inhofe on our committee, and I am pleased by the bipartisan support of 
our committee that brought out a comprehensive bill, including the 
areas I have mentioned, that will allow EDA to continue its core 
purpose of creating jobs for our community. It is exactly this type of 
legislation we need to help continue our economic growth to bring us 
out of this recession, to create the type of jobs we need, and to 
encourage private sector capital.
  This bill translates into jobs. I urge my colleagues to allow this 
bill to move forward, to limit the amendments, particularly those that 
are not relevant to the underlying legislation, so we can get this bill 
to the House and to the President because it will help our communities 
grow and create jobs.
  With that, Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from New Hampshire.
  Ms. AYOTTE. Mr. President, I ask unanimous consent to speak as in 
morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                  Remembering Governor Walter Peterson

  Ms. AYOTTE. Mr. President, I rise today to honor the memory of 
Governor Walter Peterson--a great New Hampshire citizen who represented 
the very best of the Granite State's independent spirit.
  Governor Peterson came from what is well-known as the ``greatest 
generation,'' and he more than lived up to that label. A veteran of 
World War II, he committed his life to public service and civic 
engagement, leaving behind a legacy of civility, decency, and integrity 
in politics.
  Following his graduation from Dartmouth College, Governor Peterson 
settled in Peterborough, NH, becoming a lifelong figure in the 
Monadnock region. A small businessman, he went on to serve in New 
Hampshire's citizen legislature and rose to the position of speaker of 
the house. In 1968, New Hampshire voters elected him as the State's 
Governor, a position he held for two terms.
  Governor Peterson represented a special breed of politician--someone 
who could disagree without being disagreeable. A strong leader, he had 
the courage of his convictions. He believed it was more important to 
stand firm for what he believed was right for New Hampshire rather than 
worry about being reelected. That principled approach and inherent 
goodness secured his place in New Hampshire history as a deeply 
respected statesman.
  Outside of public life, Governor Peterson was the beloved patriarch 
of his family. Together with his wife Dorothy, to whom he was married 
for over 60 years, they had two children, Meg and Andy. The Peterson 
family is well known in the Monadnock region because of their strong 
commitment and dedication to the community. Andy Peterson followed in 
his father's footsteps and served in our State legislature with 
distinction.
  During my visits to Peterborough--the idyllic New Hampshire town 
Governor Peterson lived in and loved--I always knew he would extend a 
warm welcome to me. A steadfast source of Yankee wisdom, I came to 
cherish Governor Peterson's friendship as much as his keen insight into 
the people of New Hampshire.
  After leaving statewide office, Governor Peterson took his special 
brand of leadership to academia, serving as a college president and as 
a trustee of the university system of New Hampshire. In those roles, he 
worked to build institutions of higher learning that empowered students 
to take full advantage of the opportunities our great country provides, 
believing in the transformative power of education.
  With Governor Peterson's passing, New Hampshire citizens have lost a 
wonderful, true, and loyal friend. At this sad time, we celebrate his 
life, grateful to have known a leader who embodied the very best of 
public service.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER (Mr. Cardin). The Senator from Montana.
  Mr. TESTER. Mr. President, when we are able to move the economic 
development bill, I will have a bipartisan amendment that will address 
the interchange issue in a way I think most Senators can support.
  I wish also to note that I appreciate Senator Durbin's passion on the 
issue--and with any number of issues we have in common--and I look 
forward to working with him again very soon.
  Most of the folks in this body know I am a farmer; that I come from 
the agricultural sector. It is important because, over the many years I 
have been able to be in agriculture, I have watched consolidation in 
agriculture, where fewer and fewer companies control more and more of 
the food supply. We call it consolidation. The same thing has occurred 
in our energy sector, where we have fewer and fewer companies, with 
less competition in the marketplace. And we are paying that price in 
both areas.
  We have seen enough consolidation in the financial area. Why is this 
important? It is important because the amendment I am going to offer--
the bipartisan amendment--will help so that we don't further 
consolidate the financial industry. I also come from rural America. We 
all know, as the Senator from Illinois pointed out, that we are coming 
out of a very difficult economic time. In fact, the Senator pointed out 
he voted for the bailout of the big banks because it was for jobs. I 
want the record to be clear that I did not vote for that TARP bailout, 
but I too am concerned about jobs. I am concerned about jobs across the 
country, but particularly in rural America.
  The amendment we voted on a year ago had a provision in it that 
exempted banks under $10 billion from this debit swipe fee rule. 
Everybody thought it would work--at least those who voted for the 
amendment thought it would work. But the fact is every regulator has 
said, with regard to this $10 billion exemption, we don't know how to 
enforce it. The regulators have said, we do not know how to craft a 
rule to exempt those small community banks and credit unions under $10 
billion.
  The single regulators have said the same thing. In fact, Chairman 
Bernanke admitted the rule could ``result in some of the smaller banks 
being less profitable and even failing.'' That is because the two-
tiered system will not work under the current law. That is not my 
opinion. That is the opinion of the folks whose job it is to regulate 
these banks. And the customers--the hard-working folks--are going to 
get stuck with higher fees, potentially no access to capital or, even 
worse, no

[[Page 8763]]

local banks at all--further consolidation in the banking industry.
  Let me be clear. If any one of the regulators--the Chairman of the 
Federal Reserve, the Chair of the FDIC, the Comptroller of the 
Currency--told me that the interchange rule we passed last year would 
actually protect small banks, I would not be here, we would not even be 
here having this debate, we would be moving on. But that is not what 
happened.
  The Wall Street banks are going to be just fine. My amendment is not 
about the Wall Street banks. They can distribute their costs. They have 
a lot of different irons in the fire. They can distribute their costs. 
The fact is, the small banks, credit unions and community banks cannot 
distribute those costs. That will result in less access to capital in 
rural America and I think across the country. It will result in fewer 
jobs because you have to have capital to grow business and create jobs.
  Oftentimes we make decisions based on incorrect information. It is 
nice when you make decisions based on good information, and that is 
what we are asking to do here: Take a step back, take a look at this 
stuff, and make a good decision, a decision that will work not only for 
rural America but for the whole country.
  This is an important amendment. It is a critically important 
amendment, from my perspective. If we shut down access to capital in 
rural America because community banks and credit unions cannot compete, 
not only will we further consolidate the financial industry but we will 
take away opportunity for small businesses, opportunity that will allow 
them to grow and create jobs at a time when we need growth in our 
economy and we need more job creation.
  With that, I yield the floor.

                          ____________________