[House Report 111-652]
[From the U.S. Government Publishing Office]
111th Congress Rept. 111-652
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
ECONOMIC REVITALIZATION AND INNOVATION ACT OF 2010
_______
September 29, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5897]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 5897) to reauthorize and improve
programs and activities carried out under the Public Works and
Economic Development Act of 1965, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Economic
Revitalization and Innovation Act of 2010''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to Public Works and Economic Development Act of
1965.
Sec. 3. Findings and declarations.
Sec. 4. Definitions.
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
Sec. 101. Establishment of economic development partnerships.
Sec. 102. Encouragement of certain coordination.
Sec. 103. Coordination with respect to high-speed rail.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Sec. 201. Grants for public works and economic development.
Sec. 202. Grants for planning and grants for administrative expenses.
Sec. 203. Cost sharing.
Sec. 204. Grants for training, research, and technical assistance.
Sec. 205. Financial assistance for business incubators and science and
research parks.
Sec. 206. Grants for economic adjustment.
Sec. 207. Sustainable economic development demonstration program.
Sec. 208. Job creation goals.
Sec. 209. Prohibition with respect to use of assistance.
TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
Sec. 301. Eligibility of areas.
Sec. 302. Comprehensive economic development strategies.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
Sec. 401. Designation of economic development districts.
Sec. 402. Termination or modification of economic development
districts.
TITLE V--ADMINISTRATION
Sec. 501. Consultation with other persons and agencies.
Sec. 502. Performance evaluations of grant recipients.
Sec. 503. Economic development representatives.
Sec. 504. Limitation on certain positions.
TITLE VI--MISCELLANEOUS
Sec. 601. Annual report to Congress.
Sec. 602. Maintenance of effort.
TITLE VII--FUNDING
Sec. 701. General authorization of appropriations.
Sec. 702. Funding for grants for planning and grants for administrative
expenses.
Sec. 703. Funding for financial assistance for business incubators and
science and research parks.
Sec. 704. Funding for sustainable economic development demonstration
program.
Sec. 705. Funding for grants for training, research, and technical
assistance.
SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF
1965.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or a
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Public
Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.).
SEC. 3. FINDINGS AND DECLARATIONS.
(a) Findings.--Section 2(a) (42 U.S.C. 3121(a)) is amended to read as
follows:
``(a) Findings.--Congress finds that--
``(1) sustainable economic growth in the 21st century depends
upon economic development strategies that include investment in
essential infrastructure that fosters innovation,
entrepreneurship, and competition in the global marketplace;
``(2) there continue to be areas of the United States
experiencing chronic high unemployment, underemployment,
outmigration, and low per capita income, as well as areas
facing sudden and severe economic dislocations due to
structural economic changes, increasing international
competition, certain Federal actions (including defense-related
facility closures and realignment and actions required to
counteract the depletion of natural resources), and natural
disasters;
``(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
regions and communities to develop a more competitive and
diversified economic base, including by--
``(A) expanding economic opportunities, increasing
international competitiveness, and creating a climate
supportive of job creation and business development;
``(B) creating an environment that promotes public
infrastructure investments that maximize sustainable
development practices;
``(C) promoting private sector job creation through
increased innovation, productivity, and
entrepreneurship; and
``(D) empowering local and regional communities
experiencing chronic high unemployment,
underemployment, outmigration, and low per capita
income to develop private sector business and attract
increased domestic and foreign private sector capital
investment, including through the location of
information technology, agribusiness, alternative
energy, manufacturing, and bioscience jobs in the
United States and the relocation of such jobs to the
United States;
``(4) economic growth in the States, including in both cities
and rural areas, can best be promoted by helping communities
invest in regional strategies that build upon unique
competitive advantages and are designed to foster innovation
and entrepreneurship in all segments of the community's
economy;
``(5) while economic development is an inherently local
process, the Federal Government should work in partnership with
public and private organizations at the State, regional,
tribal, and local levels to maximize the impact of existing
resources and enable regions, communities, and citizens to
participate more fully in the American dream and national
prosperity;
``(6) 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
``(7) Federal economic development efforts will be more
effective if the efforts are coordinated with, and build upon,
the trade, workforce investment, higher education,
transportation, energy, environmental protection, and
technology programs of the United States.''.
(b) Declarations.--Section 2(b) (42 U.S.C. 3121(b)) is amended to
read as follows:
``(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
distressed communities in both rural and urban areas;
``(2) local communities should work in partnership with
neighboring communities, economic development districts,
States, Indian tribes, institutions of higher education,
national security laboratories, the private sector, and the
Federal Government to increase the capacity of those local
communities to develop and implement comprehensive economic
development strategies to alleviate economic distress and
enhance competitiveness in the global economy, including
national security laboratories;
``(3) whether suffering from long-term distress or a sudden
dislocation, distressed communities should be encouraged to
take affirmative steps to promote innovation and
entrepreneurship, including through the formation of business
incubators, to help create higher skill, higher wage jobs and
foster the participation of those distressed communities in the
global marketplace;
``(4) assistance under this Act should be made available to
promote sustainable economic development practices, to assist
communities with the productive reuse of abandoned industrial
facilities and the redevelopment of brownfields, and to
leverage significant Federal investments in high-speed rail
corridors and other transportation infrastructure; and
``(5) research assistance under this Act should help regions
across the United States leverage the economic assets of those
regions in a comprehensive manner and should enhance the
Economic Development Administration's ability to provide an
economic development framework to assist distressed communities
and regions, with particular emphasis on revitalizing the
manufacturing, agribusiness, and bioscience industries and the
linkages between urban and rural communities.''.
SEC. 4. DEFINITIONS.
Section 3(8) (42 U.S.C. 3122(8)) is amended--
(1) in subparagraph (C) by striking ``and'' at the end;
(2) in subparagraph (D) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(E) the Southeast Crescent Regional Commission
established under section 15301(a) of title 40, United
States Code;
``(F) the Northern Border Regional Commission
established under section 15301(a) of title 40, United
States Code; and
``(G) the Southwest Border Regional Commission
established under section 15301(a) of title 40, United
States Code.''.
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
(a) Technical Assistance.--Section 101(b) (42 U.S.C. 3131(b)) is
amended--
(1) in the matter preceding paragraph (1) by inserting after
``nonprofit organizations'' the following: ``, including
economic development districts and university centers,''; and
(2) by striking paragraphs (2) and (3) and inserting the
following:
``(2) encourage and support public-private partnerships for
the formation and improvement of economic development
strategies, including regional strategies, that sustain and
promote innovation and entrepreneurship that is critical to
economic competitiveness throughout the United States; and
``(3) promote investment in infrastructure, innovation,
entrepreneurship, sustainable development, and technological
capacity (including with respect to advanced technologies in
all industry sectors) to keep pace with the changing global
economy.''.
(b) Intergovernmental Review.--Section 101(c) (42 U.S.C. 3131(c)) is
amended by inserting after ``government agencies'' the following: ``and
appropriate economic development districts''.
SEC. 102. ENCOURAGEMENT OF CERTAIN COORDINATION.
(a) In General.--Title I (42 U.S.C. 3131 et seq.) is amended by
adding at the end the following:
``SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION.
``In carrying out this Act, the Secretary is authorized and
encouraged to consult and cooperate with any Federal, State, or local
government agency or consortium of governmental organizations that can
assist in addressing challenges and capitalizing on opportunities that
require coordination, including the Department of Labor with respect to
supporting economic and workforce development strategies and promoting
regional innovation clusters.''.
(b) Clerical Amendment.--The table of contents in section 1(b) is
amended by inserting after the item relating to section 103 the
following:
``Sec. 104. Encouragement of certain coordination.''.
SEC. 103. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.
(a) In General.--Title I (42 U.S.C. 3131 et seq.), as amended by this
Act, is further amended by adding at the end the following:
``SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.
``The Secretary shall coordinate activities carried out under this
Act, as appropriate, with the Department of Transportation and other
relevant Federal agencies, State and local governments, economic
development districts, Indian tribes, and planning and development
organizations to leverage and maximize the economic development
potential of Federal investments in high-speed rail projects. In
carrying out this section, the Secretary shall conduct studies and
disseminate reports, as appropriate, with respect to high-speed rail
projects.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 104 the following:
``Sec. 105. Coordination with respect to high-speed rail.''.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.
Section 201(a)(1) (42 U.S.C. 3141(a)(1)) is amended by inserting
after ``development facility'' the following: ``(including a facility
of a business incubator or a science and research park (as such terms
are defined in section 208(a)))''.
SEC. 202. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
(a) In General.--Section 203(a) (42 U.S.C. 3143(a)) is amended by
inserting after ``administrative expenses'' the following: ``(including
indirect costs determined eligible in an applicable Office of
Management and Budget circular)''.
(b) Planning Process.--Section 203(b) (42 U.S.C. 3143(b)) is
amended--
(1) in paragraph (3) by striking ``and'' at the end;
(2) in paragraph (4) by striking ``and increase incomes.''
and inserting ``and systemic economic distress and increase
incomes by fostering entrepreneurship and innovation across all
regional industry sectors; and''; and
(3) by adding at the end the following:
``(5) fostering regional collaboration.''.
(c) State Plans.--Section 203(d)(4) (42 U.S.C. 3143(d)(4)) is
amended--
(1) in the matter preceding subparagraph (A) by inserting
after ``public works'' the following: ``and other types of
assistance'';
(2) in subparagraph (C) by inserting after ``environment''
the following: ``, including through efficient energy
production, utilization, and facility development'';
(3) in subparagraph (E)--
(A) by inserting after ``use'' the following: ``and
deployment''; and
(B) by striking ``and'' at the end;
(4) in subparagraph (F) by striking the period at the end and
inserting ``; and''; and
(5) by adding at the end the following:
``(G) support sustainable development practices and
the efficient coordination and leveraging of public and
private investments.''.
SEC. 203. COST SHARING.
Section 204(c) (42 U.S.C. 3144(c)) is amended--
(1) in paragraph (2) by inserting after ``State or political
subdivision'' the following: ``or that the Secretary determines
has been affected by substantial declines in tax revenue''; and
(2) in paragraph (3)--
(A) in the heading by striking ``Training'' and
inserting ``Planning, training'';
(B) by striking ``section 207'' and inserting
``section 203 or 207''; and
(C) by inserting after ``such an increase'' the
following: ``or if grant supported activities will
include regional planning to build on competitive
advantages available regionally''.
SEC. 204. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) Grants.--Section 207(a)(1) (42 U.S.C. 3147(a)(1)) is amended by
striking ``or underemployment'' and inserting ``, underemployment, or
outmigration''.
(b) Types of Assistance.--Section 207(a)(2) (42 U.S.C. 3147(a)(2)) is
amended--
(1) in subparagraph (D) by inserting after ``centers'' the
following: ``, with the goal that at least one university
center is established in each State''; and
(2) by striking subparagraphs (H) and (I) and inserting the
following:
``(H) studies that evaluate the effectiveness of
regional innovation clusters and determine best
practices with respect to the support provided by
entrepreneurial infrastructure, including business
incubators;
``(I) a peer exchange program to promote best
practices and innovation with respect to the
organizational development, program delivery, and
regional initiatives of economic development districts;
``(J) development and promotion of performance
measures and best practices with respect to
commercialization and entrepreneurship;
``(K) developing or implementing county or municipal
government efficiency assessments related to economic
development or community viability; and
``(L) other activities determined by the Secretary to
be appropriate.''.
(c) High-speed Rail.--Section 207(a) (42 U.S.C. 3147(a)) is amended
by adding at the end the following:
``(4) High-speed rail.--In making a grant under this
subsection for the establishment of a university center, the
Secretary shall ensure, if appropriate, that the activities of
the center will include conducting research and providing
technical assistance to leverage and maximize the economic
development potential of Federal investments in high-speed rail
projects.''.
SEC. 205. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE AND
RESEARCH PARKS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.) is amended by
inserting after section 207 the following:
``SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE
AND RESEARCH PARKS.
``(a) Definitions.--In this section, the following definitions apply:
``(1) Business incubator.--The term `business incubator'
means a program established to foster the creation of new
businesses and accelerate the growth of early-stage businesses
by providing entrepreneurs and early-stage businesses with the
resources and services to produce viable businesses that can
help create jobs in and restore vitality to communities.
``(2) Business incubator development project.--The term
`business incubator development project' means a project to
construct or alter facilities for a business incubator,
including the acquisition of real property necessary to carry
out the construction or alteration.
``(3) Science and research park.--The term `science and
research park' means a program that--
``(A) includes property and buildings designed
primarily for--
``(i) research and development activities
conducted by public-private partners;
``(ii) technology- and science-based
businesses; or
``(iii) research and development support
services;
``(B) includes a contractual relationship with one or
more institutions of higher education or government or
nonprofit research laboratories, including national
security laboratories;
``(C) has a primary mission of--
``(i) promoting research and development
through industry partnerships, assisting the
growth of new ventures, and promoting
innovation-driven economic development;
``(ii) facilitating the transfer of
technology and business skills between
researchers and industry teams; and
``(iii) promoting technology-led economic
development for the community or region in
which the program is located; and
``(D) is owned by a government or nonprofit entity
(although the government or nonprofit entity may enter
into partnerships or joint ventures with for-profit
entities to develop or manage specific components of
the program).
``(4) Science and research park development project.--The
term `science and research park development project' means a
project to construct or alter facilities for a science and
research park, including the acquisition of real property
necessary to carry out the construction or alteration.
``(b) Financial Assistance.--On the application of an eligible
recipient, the Secretary may provide financial assistance in accordance
with this section to assist the development of business incubators and
science and research parks.
``(c) Grants for Plans for Science and Research Parks.--
``(1) Grant authority.--In accordance with this subsection,
the Secretary may award a grant to an eligible recipient for
the development of a feasibility study or development plan, or
both, with respect to a science and research park development
project.
``(2) Amount of a grant.--A grant awarded under paragraph (1)
may not be in an amount that exceeds $750,000.
``(3) Selection process.--
``(A) Selection criteria.--Not later than 180 days
after the date of enactment of the Economic
Revitalization and Innovation Act of 2010, the
Secretary shall publish the criteria to be utilized for
the selection of grant recipients under paragraph (1).
``(B) Competition required.--The Secretary shall
award grants under paragraph (1) pursuant to a full and
open competition.
``(C) Geographic diversity.--In awarding grants under
paragraph (1), the Secretary shall ensure, to the
extent practicable, that grant recipients represent
diverse geographic areas of the United States,
including rural and urban areas.
``(4) Program limit.--The Secretary may not award, in the
aggregate, more than $7,500,000 in grants under paragraph (1).
``(d) Loan Guarantees for Business Incubators and Science and
Research Parks.--
``(1) Guarantee authority.--In accordance with this
subsection, the Secretary may guarantee a loan of an eligible
recipient to assist the carrying out of a business incubator
development project or a science and research park development
project.
``(2) Guarantee percentage.--In guaranteeing a loan under
paragraph (1), the Secretary may guarantee up to 80 percent of
the principal amount of the loan.
``(3) Selection of guarantee recipients.--
``(A) Creditworthiness.--The Secretary may not
guarantee a loan under paragraph (1) unless the
Secretary has determined that there is a reasonable
assurance of repayment with respect to the loan.
``(B) Grant recipients.--A recipient of a grant under
subsection (c) for the development of a feasability
study or development plan, or both, is not eligible for
a loan guarantee under paragraph (1) until the
recipient has completed the study or plan, or both, for
which the grant was provided (as determined by the
Secretary).
``(4) Term of loan.--The term of a loan guaranteed under
paragraph (1) may not exceed the lesser of--
``(A) 30 years; or
``(B) 90 percent of the useful life of any physical
asset to be financed by such loan.
``(5) Subordination.--An obligation relating to a loan
guarantee under paragraph (1) may not be subordinated to
another debt contracted by the borrower or to any other claims
against the borrower in the case of default.
``(6) Other terms and conditions.--Except as otherwise
specified in this subsection, a loan guarantee under paragraph
(1) shall be subject to such terms and conditions as the
Secretary may prescribe.
``(7) Review.--
``(A) In general.--The Secretary shall periodically
assess the risks associated with loans guaranteed under
paragraph (1).
``(B) Comptroller general report.--Not later than 2
years after the date of enactment of the Economic
Revitalization and Innovation Act of 2010, the
Comptroller General shall--
``(i) conduct a comprehensive review of the
program under this subsection; and
``(ii) submit to Congress a report on the
results of the review.
``(8) Program levels.--In carrying out paragraph (1) during
fiscal years 2011 through 2015, the Secretary may not guarantee
loans in an amount that exceeds--
``(A) $50,000,000 for a single project;
``(B) $235,000,000 in a single fiscal year; and
``(C) $500,000,000 in the aggregate.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 207 the following:
``Sec. 208. Financial assistance for business incubators and science
and research parks.''.
SEC. 206. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) In General.--Section 209(a) (42 U.S.C. 3149(a)) is amended--
(1) by inserting after ``public facilities,'' the following:
``science and research park development projects (as defined in
section 208(a)),''; and
(2) by inserting after ``revolving loan fund'' the following:
``, a challenge grant, and operating support for business
incubators (as defined in section 208(a))''.
(b) Particular Community Assistance.--Section 209(c) (42 U.S.C.
3149(c)) is amended--
(1) in the matter preceding paragraph (1) by striking
``injured'' and inserting ``affected'';
(2) in paragraph (1)--
(A) by striking ``or realignments,'' and inserting
``, realignments, or mission growth,''; and
(B) by inserting after ``their economies'' the
following: ``or supporting the economic adjustment
activities of the Secretary of Defense'';
(3) in paragraph (4) by striking ``or'' at the end;
(4) in paragraph (5)--
(A) by striking ``manufacturing jobs'' and inserting
``manufacturing, information technology, natural
resource, agricultural, or service sector jobs''; and
(B) by striking the period at the end and inserting
``;''; and
(5) by adding at the end the following:
``(6) a lack of technology infrastructure, including
inadequate access to broadband capacity sufficient to support
economic development objectives;
``(7) an inability to utilize alternative means of energy
production and distribution; or
``(8) insufficient access to capital and credit necessary for
business retention and expansion, entrepreneurship, and
innovation.''.
(c) Special Provisions Relating to Revolving Loan Fund Grants.--
Section 209(d) (42 U.S.C. 3149(d)) is amended--
(1) in paragraph (2)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively; and
(B) by inserting after subparagraph (A) the
following:
``(B) at the request of a grantee, approve the
transfer of all or a portion of the assets of a
revolving loan fund of the grantee to another eligible
recipient to assist in establishing or maintaining a
multiregion or national revolving loan fund;''; and
(2) by adding at the end the following:
``(5) Conversion of revolving loan fund assets.--
``(A) Authority.--At the request of a grant
recipient, the Secretary may approve the use of the
assets of a revolving loan fund established by the
grant recipient with assistance under this section for
another project, if--
``(i) the project is eligible for assistance
under this Act; and
``(ii) the Secretary determines that the
revolving loan fund is no longer necessary and
the grant recipient, as a result of changed
economic development needs, will make better
use of the assets by carrying out the project.
``(B) Methods of conversion.--If conversion of a
revolving loan fund is approved under subparagraph (A),
the applicable grant recipient may convert the assets
of the revolving loan fund by--
``(i) selling to a third party any assets of
the revolving loan fund; or
``(ii) retaining repayments of principal and
interest amounts made on loans provided through
the revolving loan fund.
``(C) Terms and conditions.--Except as otherwise
provided under this paragraph, the Secretary may
establish such terms and conditions with respect to the
conversion of a revolving loan fund under this
paragraph as the Secretary determines appropriate.
``(D) Expediency requirement.--The Secretary shall
ensure that any assets of a revolving loan fund
converted under this paragraph are used in an
expeditious manner.
``(6) Release.--The Secretary may release, subject to terms
and conditions the Secretary determines appropriate, the
Federal Government's interest in a revolving loan fund
established by a grant recipient with assistance under this
section on or after the date that is 7 years after the date on
which the applicable grant was fully disbursed, if the
Secretary determines that--
``(A) the grant recipient has carried out the terms
of the grant in a satisfactory manner;
``(B) any proceeds realized after the release of the
Federal Government's interest will be used for one or
more activities that carry out the economic development
purposes of this Act; and
``(C) the grant recipient will continue to satisfy
the requirements of section 602.
``(7) Equity investment demonstration program.--
``(A) Authority.--
``(i) In general.--To determine the
feasibility and utility of providing equity
investments through revolving loan funds
established by grant recipients with assistance
under this section, the Secretary may
authorize, at the request of a grant recipient,
the use of the capital base of a revolving loan
fund for equity investments in businesses in
need of capital to start up operations or
expand operations beyond the startup phase.
``(ii) Demonstrated capacity.--Before
authorizing a grant recipient to make equity
investments under clause (i), the Secretary
shall determine that the grant recipient has
the demonstrated capacity for engaging in
equity investments or will contract with
another company or organization with a proven
track record with respect to equity
investments.
``(iii) Preferential consideration.--In
authorizing grant recipients to make equity
investments under clause (i), the Secretary
shall give preferential consideration to
requests from grant recipients that intend to
focus their investment activities in support of
business incubators (as defined in section
208(a)), companies commercializing technologies
in conjunction with institutions of higher
education, science and research parks (as
defined in section 208(a)), or technology or
manufacturing companies relocating to the
United States from outside the United States.
``(iv) Geographic diversity.--In authorizing
grant recipients to make equity investments
under clause (i), the Secretary shall ensure,
to the extent practicable, that grant
recipients authorized represent diverse
geographic areas of the United States,
including rural and urban areas.
``(B) Requirements.--In authorizing a grant recipient
to make equity investments under subparagraph (A)(i),
the Secretary shall ensure that--
``(i) not more than 25 percent of the capital
base of the revolving loan fund of the grant
recipient will be used for equity investments;
``(ii) the Federal share of the amount used
for an equity investment made by the grant
recipient will not exceed 50 percent; and
``(iii) the total amount of the equity
investments made by the grant recipient in any
one business will not exceed $250,000.
``(C) Other terms and conditions.--Except as
otherwise provided in this paragraph, the Secretary may
authorize grant recipients to make equity investments
under subparagraph (A)(i) subject to terms and
conditions the Secretary determines are appropriate.
``(D) Disposition of equity securities.--In the event
that the Secretary acquires equity securities as a
result of a default by any party under any agreement
relating to the terms of the Secretary's extension of
assistance under this paragraph, the Secretary shall
liquidate the Federal interest in such securities as
soon as possible and for such consideration as the
Secretary determines appropriate. The Secretary may
assign or transfer the securities to a third party for
purposes of liquidation and the third party may retain
proceeds from the disposition of the securities to
defray costs related to the liquidation.
``(E) Definitions.--In this paragraph the following
definitions apply:
``(i) Capital base.--The term `capital base'
means the amount of the funding, from a grant
under this section and from non-Federal
sources, initially provided to establish a
revolving loan fund under this section.
``(ii) Equity investment.--The term `equity
investment' means an investment of funds in a
business that results in the acquisition of an
equity security.
``(iii) Equity security.--The term `equity
security' means an instrument that signifies an
ownership interest in a business.''.
SEC. 207. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.
(a) In General.--Section 218 (42 U.S.C. 3154d) is amended to read as
follows:
``SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.
``(a) In General.--On the application of an eligible recipient, the
Secretary may provide technical assistance, make grants, enter into
contracts, or otherwise provide funding for a project--
``(1) to promote energy efficiency to enhance the economic
competitiveness of an area;
``(2) to increase the use of renewable energy technologies,
including solar, wind, or geothermal technologies, to support
sustainable economic development and job growth, with a
priority given to projects that incorporate photovoltaics or
relate to agribusiness, including in both urban and rural
areas;
``(3) to support energy efficiency or alternative energy
development plans, studies, or analysis (including with respect
to job training, attraction, or retention) to enhance a
comprehensive economic development strategy with respect to
which funding has been provided under this Act;
``(4) to support the efforts of a community to have a
technology or manufacturing business located outside the United
States relocate to the United States; and
``(5) to supplement another project funded by a Federal
grant, loan, or loan guarantee provided for a purpose described
in paragraphs (1) through (4).
``(b) Federal Share.--Notwithstanding section 204, the Federal share
of the cost of a project funded under this section--
``(1) if described in paragraph (1), (2), (3), or (4) of
subsection (a), shall not exceed 80 percent; and
``(2) if described in subsection (a)(5), shall not exceed 100
percent.
``(c) Solicitation of Applications.--Not later than 60 days after a
date on which funds are made available to carry out this section, the
Secretary shall solicit applications for assistance under this
section.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by striking the item relating
to section 218 and inserting the following:
``Sec. 218. Sustainable economic development demonstration program.''.
SEC. 208. JOB CREATION GOALS.
(a) In General.--Title II (42 U.S.C. 3141 et seq.), as amended by
this Act, is further amended by adding at the end the following:
``SEC. 219. JOB CREATION GOALS.
``(a) In General.--As a condition of the receipt of a grant under
section 201, 205, or 209 or a loan guarantee under section 208, the
recipient of the grant or loan guarantee shall enter into an agreement
with the Secretary that establishes goals for the number of jobs to be
created as a result of the projects and activities funded by the grant
or loan guarantee.
``(b) Compliance With Goals.--The Secretary may take appropriate
action to penalize a grant recipient who fails to satisfy job creation
goals specified in an agreement under subsection (a).''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 218 the following:
``Sec. 219. Job creation goals.''.
SEC. 209. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.
(a) In General.--Title II (42 U.S.C. 3141 et seq.), as amended by
this Act, is further amended by adding at the end the following:
``SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.
``The Secretary shall ensure that a recipient of assistance under
this Act does not utilize the assistance for activities to
intentionally attract, to the location of the recipient, a business or
other source of employment already established elsewhere in the United
States, if the relocation would adversely affect the location where the
business or other source of employment was previously located.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 219 the following:
``Sec. 220. Prohibition with respect to use of assistance.''.
TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
SEC. 301. ELIGIBILITY OF AREAS.
Section 301 (42 U.S.C. 3161) is amended by adding at the end the
following:
``(e) Special Need.--In determining whether an area has experienced
or is about to experience a special need for purposes of subsection
(a)(3), the Secretary may consider whether the area has been affected
by--
``(1) the loss of a substantial employer;
``(2) substantial outmigration or population loss;
``(3) substantial foreclosure rates;
``(4) substantial underemployment;
``(5) military base or defense installation closure,
realignment, or mission growth;
``(6) a natural or other disaster or emergency;
``(7) substantial natural resource depletion;
``(8) substantial negative effects resulting from changing
trade patterns; or
``(9) other circumstances that the Secretary determines are
indicative of special or extraordinary unemployment or economic
adjustment problems.''.
SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
(a) In General.--Section 302(a) (42 U.S.C. 3162(a)) is amended--
(1) in paragraph (1) by inserting after ``problems'' the
following: ``and opportunities'';
(2) in paragraph (2) by inserting after ``private'' the
following: ``(including nonprofit organization)''; and
(3) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking ``economic problems'' and
inserting ``economic development problems and
opportunities'';
(ii) by inserting after ``strategy, promotes
the'' the following: ``effective''; and
(iii) by striking ``balances'' and inserting
``optimizes''; and
(B) in subparagraph (B) by inserting after ``the
problems'' the following: ``and take advantage of the
opportunities''.
(b) Approval of Other Plan.--Section 302(c) (42 U.S.C. 3162(c)) is
amended--
(1) in paragraph (1) by inserting after ``federally supported
program'' the following: ``or under a State, regionally, or
locally supported program''; and
(2) in paragraph (2) by striking ``paragraph'' and inserting
``subsection''.
(c) Notification of Approval or Disapproval of Comprehensive Economic
Development Strategy or Other Plan.--Section 302 (42 U.S.C. 3162) is
amended by adding at the end the following:
``(d) Notification of Approval or Disapproval of Comprehensive
Economic Development Strategy or Other Plan.--
``(1) Deadline.--The Secretary shall notify an eligible
recipient of the approval or disapproval of a comprehensive
economic development strategy or other plan submitted under
this section not later than 60 days after the date of receiving
the strategy or plan.
``(2) Basis for disapproval.--A notification of disapproval
under this subsection shall include a description of the basis
for the disapproval.''.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
(a) In General.--Section 401(a) (42 U.S.C. 3171(a)) is amended in the
matter preceding paragraph (1) by striking ``broad geographic'' and
inserting ``national and regional''.
(b) Operations.--Section 401 (42 U.S.C. 3171) is amended by adding at
the end the following:
``(c) Operations.--
``(1) In general.--As a condition of maintaining designation
as an economic development district, each district shall engage
in the full range of economic development activities in the
comprehensive economic development strategy of the district
that has been approved by the Secretary, which may include--
``(A) coordinating and implementing economic
development activities in the district;
``(B) carrying out economic development research,
planning, implementation, and advisory functions
identified in the comprehensive economic development
strategy; and
``(C) coordinating the development and implementation
of the comprehensive economic development strategy with
Federal, State, local, and private organizations.
``(2) Contracts.--An economic development district may enter
into contracts for services to carry out the activities
described in paragraph (1).''.
SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT
DISTRICTS.
Section 402 (42 U.S.C. 3172) is amended by adding at the end the
following: ``The standards shall include authority for the Secretary to
review, at the request of a district, district designations to evaluate
whether the designations meet economic development and labor force
needs and, when warranted, to approve the combination of districts and
adjust applicable assistance levels for the resulting combination.''.
TITLE V--ADMINISTRATION
SEC. 501. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
Section 503(a) (42 U.S.C. 3193(a)) is amended by striking ``or
underemployment'' and inserting ``, underemployment, or outmigration''.
SEC. 502. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.
(a) Purpose of Evaluations of University Centers.--Section 506(b) (42
U.S.C. 3196(b)) is amended by striking ``are worthy of'' and all that
follows through the period at the end and inserting ``maintain the
capacity to implement the priorities of the Secretary.''.
(b) Timing of Evaluations.--Section 506(c) (42 U.S.C. 3196(c)) is
amended to read as follows:
``(c) Timing of Evaluations.--Evaluations under subsection (a) shall
be conducted on a continuing basis so that--
``(1) with respect to economic development districts, each
grantee is evaluated within 3 years after the first award of
assistance to the grantee and at least once every 3 years
thereafter, so long as the grantee receives the assistance; and
``(2) with respect to university centers, each grantee is
evaluated within 5 years after the first award of assistance to
the grantee and at least once every 5 years thereafter, so long
as the grantee receives the assistance.''.
(c) Evaluation Criteria for University Centers.--Section 506(d)(2)
(42 U.S.C. 3196(d)(2)) is amended to read as follows:
``(2) Evaluation criteria for university centers.--The
criteria for evaluation of a university center shall provide,
at a minimum, for an assessment of--
``(A) the center's contribution to providing
technical assistance, conducting applied research, and
disseminating the results of the activities of the
center;
``(B) the center's conformance with the approved
program plan of the center and the goals of the
Secretary; and
``(C) if appropriate, the center's activities to
leverage and maximize the economic development
potential of Federal investments in high-speed rail
projects, including activities--
``(i) to encourage collaboration across
regions; and
``(ii) to evaluate manufacturing and economic
development opportunities relating to the
projects.''.
SEC. 503. ECONOMIC DEVELOPMENT REPRESENTATIVES.
(a) In General.--Title V (42 U.S.C. 3191 et seq.) is amended by
adding at the end the following:
``SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES.
``The Secretary shall ensure that the Economic Development
Administration maintains--
``(1) not less than 35 individuals in the position of
economic development representative during fiscal year 2012;
and
``(2) not less than 40 individuals in the position of
economic development representative during fiscal year 2013 and
each fiscal year thereafter.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 507 the following:
``Sec. 508. Economic development representatives.''.
SEC. 504. LIMITATION ON CERTAIN POSITIONS.
(a) In General.--Title V (42 U.S.C. 3191 et seq.), as amended by this
Act, is further amended by adding at the end the following:
``SEC. 509. LIMITATION ON CERTAIN POSITIONS.
``Beginning in fiscal year 2012, the number of positions in the
Economic Development Administration that, for purposes of title 5,
United States Code, are general positions (as defined by section
3132(a)(9) of such title) which may be filled only by a noncareer
appointee (as defined by section 3132(a)(7) of such title) shall be
limited to 5.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 508 the following:
``Sec. 509. Limitation on certain positions.''.
TITLE VI--MISCELLANEOUS
SEC. 601. ANNUAL REPORT TO CONGRESS.
Section 603(b) (42 U.S.C. 3213(b)) is amended--
(1) in paragraph (2)(B) by striking ``and'' at the end;
(2) in paragraph (3) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(4) with respect to each university center assisted with
funding under this Act, include--
``(A) a specification of the activities of the
university center;
``(B) a specification of the recipients of technical
assistance from the university center; and
``(C) a specification of the outcomes resulting from
the job creation, research, and technical assistance
activities of the university center; and
``(5) specify the projects, and the funding provided for the
projects, that were funded in conjunction with one or more of
the regional commissions.''.
SEC. 602. MAINTENANCE OF EFFORT.
(a) In General.--Title VI (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.--
``(1) In general.--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.
``(2) Maintenance of standards.--The Secretary may not
terminate a reversionary interest of the Secretary under
subsection (a)(2)(B) if the Secretary has not received adequate
assurances that the applicable recipient will continue to
satisfy the requirements of section 602 after the termination.
``(c) Previously Extended Assistance.--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.
``(d) Conversion of Use.--If a recipient of assistance under this Act
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.
``(e) 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.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 612 the following:
``Sec. 613. Maintenance of effort.''.
TITLE VII--FUNDING
SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.
(a) Economic Development Assistance Programs.--Section 701(a) (42
U.S.C. 3231(a)) is amended by striking ``until expended'' and all that
follows through the period at the end and inserting the following:
``until expended, $500,000,000 for each of fiscal years 2011 through
2015.''.
(b) Salaries and Expenses.--Section 701(b) (42 U.S.C. 3231(b)) is
amended by striking paragraphs (1) and (2) and inserting the following:
``(1) $42,000,000 for fiscal year 2011; and
``(2) such sums as are necessary for each fiscal year
thereafter.''.
SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE
EXPENSES.
Section 704 (42 U.S.C. 3234) is amended--
(1) by striking ``$27,000,000'' and inserting
``$36,000,000''; and
(2) by inserting after ``under section 203'' the following:
``and, of that amount, not less than $500,000 shall be made
available for grants under section 203 for planning relating to
high-speed rail''.
SEC. 703. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND
SCIENCE AND RESEARCH PARKS.
(a) In General.--Title VII (42 U.S.C. 3231 et seq.) is amended by
adding at the end the following:
``SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS
AND SCIENCE AND RESEARCH PARKS.
``(a) Grants.--In addition to amounts made available under section
701, there is authorized to be appropriated $7,500,000 to carry out
section 208(c).
``(b) Loan Guarantees.--In addition to amounts made available under
section 701, there are authorized to be appropriated such sums as may
be necessary to carry out section 208(d), including the cost (as
defined in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)) of guaranteeing loans under that section.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 704 the following:
``Sec. 705. Funding for financial assistance for business incubators
and science and research parks.''.
SEC. 704. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION
PROGRAM.
(a) In General.--Title VII (42 U.S.C. 3231 et seq.), as amended by
this Act, is further amended by adding at the end the following:
``SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION
PROGRAM.
``Of the amounts made available under section 701 for each fiscal
year, not less than $25,000,000 shall be made available to carry out
section 218.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 705 the following:
``Sec. 706. Funding for sustainable economic development demonstration
program.''.
SEC. 705. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL
ASSISTANCE.
(a) In General.--Title VII (42 U.S.C. 3231 et seq.), as amended by
this Act, is further amended by adding at the end the following:
``SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL
ASSISTANCE.
``Of the amounts made available under section 701 for each fiscal
year, not less than $10,000,000 shall be made available for grants
provided under section 207 and, of that amount, not less than
$1,125,000 shall be made available for grants under section 207 to
establish university centers in States that do not have a university
center.''.
(b) Clerical Amendment.--The table of contents in section 1(b), as
amended by this Act, is further amended by inserting after the item
relating to section 706 the following:
``Sec. 707. Funding for grants for training, research, and technical
assistance.''.
Purpose of the Legislation
H.R. 5897, as amended, the ``Economic Revitalization and
Innovation Act of 2010'', authorizes programs of the Economic
Development Administration (EDA) for five fiscal years.
Background and Need for Legislation
Established by the Public Works and Economic Development
Act of 1965 (P.L. 89-136), EDA was created to alleviate
conditions of substantial and persistent unemployment in
economically distressed areas and regions. EDA's mission today
remains much the same as it was when originally founded: to
bolster the efforts of communities across the nation to attract
private sector investment and create new job opportunities. EDA
fulfills its mission by empowering and equipping communities
and regions to develop and implement their own economic
development and revitalization strategies. EDA supports this
locally-driven economic development by providing grants for
projects through a variety of programs including: planning;
technical assistance; public works; economic adjustment;
research and evaluation; and trade adjustment assistance.
Projects funded by EDA are generally located in areas
exhibiting economic distress at the time of application.
However, projects located outside these areas may be considered
if they directly benefit an economically distressed area. All
public works and economic adjustment projects must be
consistent with an EDA-approved and region-specific
Comprehensive Economic Development Strategy (CEDS) or approved
economic development plan.
Planning grants support the design and implementation of
effective economic development policies and programs by local
organizations. Grants made to university centers provide
technical assistance to public bodies, nonprofit organizations,
and businesses to plan and implement activities designed to
generate jobs and income in economically distressed areas.
Public works grants provide for infrastructure projects that
foster the establishment or expansion of industrial and
commercial businesses generating employment in communities
experiencing high unemployment, underemployment, low per-capita
income, or out-migration. Economic adjustment investments
provide a package of assistance tools, including planning,
technical assistance, revolving loan funds and infrastructure
development, to help communities counteract either gradual
erosion or a sudden dislocation of their local economic
structure as a result of natural disasters, international trade
competition, or major plant closings. Trade adjustment
assistance provides technical assistance, through a national
network of 12 Trade Adjustment Assistance Centers (TAAC), to
certified U.S. manufacturing firms and industries economically
injured as the result of international trade competition.
In 2007, EDA contracted Grant Thornton to study the costs
and economic impact of EDA's construction investments. The
study surveyed more than 40 other similar Federal programs and
concluded that ``EDA investments in rural areas have a
statistically significant impact on employment levels in the
communities in which they are made, generating between 2.2 and
5.0 jobs per $10,000 in incremental EDA funding, at a cost per
job of between $2,001 and $4,611.''\1\ In addition, five
ancillary jobs were created as a result of the EDA investment.
The study further concluded that EDA's investment in business
incubators was worthwhile and this type of investment generated
significantly greater impacts in the communities in which they
are made than do other project types. Lastly, the study
emphasized that EDA jobs tended to be longer term jobs retained
by a community for a longer period of time than other types of
job creation investments.
---------------------------------------------------------------------------
\1\Grant Thornton, Construction Grants Program Impact Assessment
Report: Volume I--Report on Investigation and Results September 30,
2008).
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H.R. 5897, as amended, the ``Economic Revitalization and
Innovation Act of 2010'', builds on this foundation of success
and program efficiency as well as leverages EDA's programs and
network of local partners to address economic distress and
unemployment nationwide. H.R. 5897 authorizes $500 million in
EDA funding per year for five years; creates a loan guarantee
program for business incubators and science and research parks
as well as operating support for business incubators; creates
flexibility in the Revolving Loan Fund (RLF) to provide equity
financing for companies using its existing network of non-
profit lenders and allows existing RLFs to convert their funds
to invest in a different EDA-eligible purpose; allows
communities to modify the use of an EDA-funded facility to a
different EDA-approved use; provides funding to support
sustainable economic development projects; supports funding to
attract technology and manufacturing companies from overseas to
locate or relocate to the United States; and strengthens job
creation incentives for EDA grant recipients across all EDA
programs.
Summary of the Legislation
Section. 1. Short title; table of contents
Section 1 provides that the short title of the Act is the
``Economic Revitalization and Innovation Act of 2010'' and
includes a table of contents.
Sec. 2. Amendments to Public Works and Economic Development Act of 1965
This section states that any amendments or repeals
contained in the Act are in reference to the sections or
provisions of the Public Works and Economic Development Act of
1965 (PWEDA) unless expressly provided for otherwise.
Sec. 3. Findings and declarations
This section provides an updated assessment of the economic
conditions facing economically distressed communities and the
U.S. economy as a whole. Sustainable growth, innovation, and
entrepreneurship are heavily emphasized as the determinants of
economic progress and wealth creation at the local and national
level. The goal of remedying chronic high-unemployment and
economic dislocation through State, local, regional, and
Federal partnerships is also addressed.
Sec. 4. Definitions
This section adds the Southeast Crescent Regional
Commission, Northern Border Regional Commission, and Southwest
Border Regional Commission established by section 15301(a) of
title 40, United States Code (U.S.C.) to the definition of
Regional Commissions.
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
Sec. 101. Establishment of economic development partnerships
Subsection (a) identifies economic development districts
(EDDs) and university centers as nonprofit organizations that
can provide technical assistance to States and other inter- and
intra-state entities for the purpose of advancing various
economic development activities, such as supporting public-
private partnerships, investments in infrastructure, and
sustainable development.
Subsection (b) specifically adds EDDs as entities to be
provided an opportunity to review and comment on proposed EDA
projects. The Committee on Transportation and Infrastructure
recognizes the importance of EDDs and their role in developing
projects for investment consideration in partnership with State
and local governmental agencies. EDA should develop its
regulations and procedures using processes that provide EDDs a
reasonable level of input. However, consideration of EDDs'
comments should in no manner impede EDA projects or investments
in a community or supersede or be weighted above other
appropriate review and comment.
Sec. 102. Encouragement of certain coordination
This section adds to existing law the specific
identification of the Department of Labor and its workforce
development strategies as an area of consultation and
cooperation for the Secretary of Commerce (Secretary) and, by
extension, EDA.
Sec. 103. Coordination with respect to high-speed rail
This section directs the Secretary to coordinate, as
appropriate, with the U.S. Department of Transportation and
other relevant Federal agencies, State and local governments,
EDDs, Indian tribes, and planning and development organizations
in leveraging Federal investments in high-speed rail projects.
This section also directs EDA to conduct studies and
disseminate reports with respect to high-speed rail projects.
The Committee expects EDA to use its platform as the only
Federal agency charged with evaluating and implementing
economic development programs to inform, coordinate, and
leverage its programs, in collaboration with the appropriate
Federal agencies, such as the Federal Railroad Administration,
regarding economic development activities related to high-speed
rail. Furthermore, the Committee expects that opportunities for
improved coordination and leveraging of programs may exist and
would like to be informed of these opportunities on a periodic
basis in the form of formal and informal communication with the
Committee. The Committee recommends that the Secretary also
coordinate these activities with EDA's extensive network of
EDDs and university centers, many of which are involved with
transportation planning activities.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
Sec. 201. Grants for public works and economic development
Subsection (a) amends existing law by expanding the
definition of ``development facility'' to include a facility of
a business incubator or a science and research park. These
facilities are defined in section 208(a).
Sec. 202. Grants for planning and grants for administrative expenses
Subsection (a) clarifies that the eligible uses of EDA
grants for administrative expenses include allowable indirect
costs (under the definition of applicable Office of Management
and Budget circulars).
Subsection (b) provides that the eligible uses of EDA
grants for planning include innovation and regional
collaboration activities.
Subsection (c) adds sustainable development practices as a
consideration in the comprehensive planning process.
Sec. 203. Cost sharing
This section allows the Secretary to consider a decline in
tax revenues as a factor in waiving the local share requirement
for receipt of EDA grants. Due to the economic downturn, many
communities have found it increasingly difficult to provide the
matching funds normally required to receive EDA grants. With
the exception of grants to Indian tribes or communities that
have experienced natural disasters, EDA requires a minimum of
20 percent matching funds under normal circumstances. This
provision authorizes the Secretary to provide up to 100 percent
grant funding to communities that have suffered declines in tax
revenues.
This section also authorizes the Secretary to provide up to
100 percent grant funding for section 203 and section 207
grants (i.e., planning, training, and research and technical
assistance grants) to encourage broader regional planning
activities.
Sec. 204. Grants for training, research, and technical assistance
Subsection (a) amends section 207 of PWEDA to include the
alleviation or prevention of ``outmigration'' as an eligible
grant purpose for training, research, or technical assistance
grants.
Subsection (b) addresses EDA's university center program.
It sets as a goal that at least one university center is
established in each State and the District of Columbia. There
are currently several States, including the District of
Columbia, without a university center. This subsection also
amends current law by adding innovation, commercialization, and
entrepreneurship to the list of activities for which the
Secretary can direct training, research, and technical grant
assistance.
Subsection (c) requires university centers to conduct a new
set of activities related to high-speed rail research and
technical assistance, where appropriate. Specifically,
university centers will be required to conduct research and
provide technical assistance in States with high-speed rail
corridors and construction projects to support the economic
development and job creation activities of relevant
communities.
Sec. 205. Financial assistance for business incubators and science and
research parks
This section establishes a new program to be administered
by EDA focused on grants to study the feasibility or
development of science and research parks as well as make loan
guarantees to construct business incubators and science and
research parks.
Subsection (a) provides the definitions for a business
incubator, business incubator development project, and science
and research park development.
Subsections (b), (c), and (d) describe the two newly-
created grant programs. First, the science and research park
grant program provides up to $750,000 per grant for a
feasibility study and development plan of a science and
research park development project. The total program may not
make grants in excess of $7.5 million. Second, the loan
guarantee program authorizes EDA to make loan guarantees of up
to 80 percent of a loan amount for the construction of a
business incubator or science and research park facility. The
total amount of loan guarantees that may be issued may not
exceed $50 million per project and no greater than $500 million
in total. A recipient of a grant for a feasibility study or
development plan cannot receive a loan guarantee award to
construct a facility until the completion of the feasibility
study or development plan. The Committee's intent is to ensure
that an insufficiently planned project is not supported with a
Federal loan guarantee and that program funds are not committed
to a project prematurely and thereby limit the funds available
for projects at a further stage of development and completion.
Sec. 206. Grants for economic adjustment
Subsection (a) of this section amends section 209 of PWEDA
by specifically identifying science and research park projects,
challenge grants, and operating support for business incubators
as eligible activities for section 209 (Economic Adjustment)
grant assistance. In terms of business incubator operating
support, the Committee fully supports EDA operating support to
incubators in the form of incubator-provided training programs
directed to entrepreneurs, product development resources,
funding to support collaboration with U.S. Small Business
Administration (SBA) programs, mentoring programs, and
financing programs to help incubator clients secure appropriate
low-cost financing as well as job creation and expansion
activities.
Subsection (b) amends existing law by no longer requiring
communities applying for Economic Adjustment assistance to
prove that they were ``injured'' economically by events ranging
from military base closures, disasters, international trade,
fishery failures, or loss of manufacturing jobs. Communities
now need only prove that they were ``affected'' by these
occurrences. This provision removes a significant barrier to
receiving EDA assistance. This subsection also expands the
eligibility of section 209 to include communities affected by
Department of Defense-related ``mission growth''; and job
losses in information technology, natural resources,
agricultural, or service sector jobs. Finally, this subsection
authorizes EDA to provide assistance to communities that suffer
impediments to economic growth including a lack of technology
infrastructure, an inability to utilize alternative energy
production and distribution, and insufficient access to capital
and credit necessary for business retention and expansion.
Subsection (c) amends section 209 of PWEDA by allowing for
RLF grantees to transfer and convert the use of all or a
portion of their assets to another eligible recipient to
establish a multi-region or national RLF. The purpose of this
provision is to allow grantees the ability to take advantage of
new economic development opportunities to make investments on a
broader scale or for different purposes than when an RLF was
originally established. This transfer or conversion must be
approved by the Secretary. Conversion can take place using one
of two methods: selling RLF assets to a third party; or
retaining repayments of principal and interest amounts made on
loans and using these assets to fund a transfer and conversion.
A critical administrative provision of this section is the
release of the Federal Government's interest in an RLF. At the
earliest, this release will take effect seven years after the
funds in an RLF have been fully disbursed. To qualify for a
release of Federal interest, the grant recipient must have
carried out the terms of the grant satisfactorily, have a plan
to use any subsequent proceeds consistent with the economic
development purposes found in PWEDA, and continue to satisfy
all other requirements of PWEDA. It is the Committee's
expectation that this provision will free numerous past RLF
recipients from unnecessary administrative requirements and
that alleviation of these requirements will allow a greater
level of RLF investment, including increased investments
relevant to current economic conditions for many communities.
Subsection (c) also creates a new Equity Investment
Demonstration Program (EIDP). The EIDP's objective is to
provide access to equity or non-debt based loans to businesses
using EDA's existing network of nonprofit RLF third party
lenders. By providing these lenders with authority to take
equity stakes in companies instead of traditional collateral,
the program will provide investment opportunities to companies
whose primary assets are based on intellectual property,
including technology (e.g., information technology,
biosciences, and cybersecurity), manufacturing, and alternative
energy companies.
This section limits the percentage of overall investments
that can be comprised of equity investments to 25 percent and
the amount of each investment cannot exceed $250,000. To ensure
that investments are considered viable and to spur additional
private sector investment in these companies, the maximum
Federal investment share cannot exceed 50 percent. In addition,
preference is to be extended to companies: located in business
incubators or science and research parks, commercializing
technologies in conjunction with institutions of higher
education, engaged in technology or manufacturing, and locating
or relocating to the United States from outside the United
States. The Committee strongly supports this preference as a
means of maximizing the likely success of these investments in
terms of increasing the opportunities for economic development
and job creation. The Committee also supports the use of this
preference as a means of attracting companies to the United
States that had previously left a domestic location and laid
off U.S.-based employees. The Committee strongly recommends
collaboration between EDA, its RLF lender network, and the SBA
in identifying and supporting the businesses that receive EIDP
investment assistance.
Sec. 207. Sustainable economic development demonstration program
This section amends section 218 of PWEDA to establish a
Sustainable Economic Development Demonstration Program to
finance economic development projects that promote energy
efficiency, increase the use of renewable energy technologies,
and assist communities trying to attract technology or
manufacturing companies to the United States. The Committee
believes that opportunities for these types of investments
exist in both urban and rural locations and would include a
wide variety of industry investments, ranging from advanced
manufacturing and agribusiness to collaborative job training
initiatives to train workers for these industries. Investments
that will support long-term employment as well as the growth
and renewal of existing industries should be emphasized.
Unlike most of EDA's non-emergency grant programs, this
program supports 100 percent project funding in cases where EDA
funding will augment other Federal funding. The Committee
supports this provision due to the dire need of communities
that are unable to provide matchingfunds because of declines in
revenue and economic distress nationally. Support from EDA in the form
of technical assistance and outreach efforts should be directed at
assisting communities in identifying appropriate Federal funding to
support and augment investments for this program.
The Committee expects that EDA will expeditiously implement
this provision using its network of Economic Development
Representatives (EDRs) and other outreach mechanisms to develop
applications from the appropriate profile of applicants. If EDA
has not made a grant award under this program within one year
of the date of enactment of this Act, the Committee directs the
Secretary to notify the Committee and explain the reasons for
delay in implementing this provision.
Sec. 208. Job creation goals
This section requires the Secretary to establish job
creation goals for EDA assistance under the Act's section 201,
205, 208, and 209 grant programs and to include these goals as
a part of any grant agreement for these programs. This section
permits the Secretary to develop appropriate penalties for non-
compliance with agreed-to job creation goals. The Committee
understands that under current regulation and practice EDA has
a system in place to incorporate job creation goals as a part
of grant agreements. The Committee encourages EDA to further
develop these regulations to encourage grant recipients to
carefully consider representations made in regards to likely
job creation outcomes for EDA-funded projects. As a result, the
Committee expects that applicants will more thoroughly develop
proposals and achieve EDA's goal: using EDA investments to
create long-term employment.
Sec. 209. Prohibition with respect to use of assistance
This section requires that the Secretary ensure non-
competition between communities for the relocation of
businesses from one community to another using EDA funds.
TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
Sec. 301. Eligibility of areas
This section amends existing law to clarify the ``special
need'' determination outlined in section 301(a)(3) of PWEDA.
The Committee clarifies the special need determination because
EDA's traditional measures of economic distress (section
301(a)), such as an unemployment rate one percent above the
national average for the past 24 months and per capita income
of 80 percent or less than the national average, leave many
communities that are suffering economic distress ineligible for
EDA assistance. This section clarifies that communities that
suffer from substantial outmigration, foreclosure rates, and
underemployment constitute a ``special need'', and are eligible
for EDA assistance. The Committee strongly encourages the
Secretary to use this authority to address the conditions of
severe economic distress currently being experienced by
communities, many of which have never before been eligible for
EDA assistance.
Sec. 302. Comprehensive economic development strategies
Subsection (a) amends existing law by expanding the scope
of a CEDS to allow it to address not just economic problems but
also to identify economic opportunities for a community.
Subsection (b) identifies the other types of economic
development plans that are acceptable as a substitute for a
CEDS. Those plans are generally developed on behalf of a
community or region by or for another Federal agency, State
governmental entity, or nonprofit economic development or
planning organization. Although EDDs are often involved in the
development of CEDS or other such approved plans, plans
developed without EDD involvement should also be considered for
approval by EDA where appropriate. In such cases where an EDD
is not the author of a CEDS or plan, the roles and
responsibilities of EDDs (outlined in section 401) should be
adjusted accordingly.
This section also requires the Secretary to notify an
eligible recipient of the approval or disapproval of a CEDS or
economic development plan within 60 days of submission to EDA.
Under current practice, an eligible recipient for EDA
assistance may not receive notice of approval or disapproval of
a CEDS within 60 days, thereby delaying EDA grant assistance to
a community. Under this section, if the Secretary disapproves
of a CEDS or a plan, notification and an explanation to the
eligible recipient of why a CEDS or a plan was disapproved is
required. It is the Committee's expectation that EDA will
implement this provision as expeditiously as possible and
notify the Committee of any difficulties with the
implementation of this requirement within 180 days of the date
of enactment.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
Sec. 401. Designation of economic development districts
This section amends existing law by altering the focus of
EDDs from an emphasis on ``broad geographic'' economic
development projects to an emphasis on aligning proposed
projects with national and regional significance. The Committee
recognizes the importance of local considerations in economic
development planning, and this section ensures that regional or
national best practices and project successes are considered in
such planning.
This section also outlines a set of specific activities to
be carried out by EDDs as a condition of maintaining their
status as districts. The Secretary has discretion to determine
where and to what extent it is appropriate for these duties to
be required of an EDD because the contents of a CEDS or plan
may not have been wholly or partially developed by a district.
In addition, implementing regulations should outline the role
of EDDs or other appropriate organizations regarding CEDS
development, implementation, and coordination.
Sec. 402. Termination or modification of economic development districts
This section gives the Secretary the authority to review,
at an EDD's request, whether a district should be combined with
another district and to adjust applicable assistance levels in
accordance with such combination. The purpose of this authority
is to respond to the economic development needs of many
metropolitan regions where the economic interests of those
communities' multiple districts are increasingly intertwined
and interdependent. In such cases, multiple districts may wish
to combine their districts into a single district and not have
their collective level of EDA assistance reduced.
TITLE V--ADMINISTRATION
Sec. 501. Consultation with other persons and agencies
This section amends section 503 of PWEDA to authorize the
Secretary to consult with various representatives of labor,
management, agriculture, and government regarding outmigration
issues.
Sec. 502. Performance evaluations of grant recipients
This section amends existing law by changing the periodic
performance evaluations of university centers from at least
once every three years to at least once every five years. The
Secretary may determine the period for evaluation based on the
Secretary's priorities and performance of centers. The
Committee recognizes the value of regular evaluations of
programs and competition among centers within a State or
region. In concert with this goal, the Committee wishes to
maintain an appropriate level of economic development technical
assistance to communities and industries in long-term
collaboration with other Federal agencies. An example of this
is the collaboration that takes place between university
centers and EDA as well as the Federal Emergency Management
Agency (FEMA) and SBA in disasters and long-term recovery
efforts.
This section also adds an additional requirement to the
evaluation criteria for university centers. Where appropriate,
university centers will be required to: assist in providing
technical assistance and research in support of high-speed rail
projects and encourage collaboration across regions and
evaluate manufacturing and economic development opportunities
related to high-speed rail projects. It is expected that EDA
will take advantage of its national network of university
centers not only in furtherance of economic development
opportunities for high-speed rail projects, but to address
economic development challenges as they occur across the
country.
Sec. 503. Economic development representatives
This section amends title V of PWEDA by requiring that EDA
maintain at least 35 individuals in the position of EDR by the
end of fiscal year (FY) 2012 and at least 40 individuals by the
end of FY 2013 and thereafter. The issue of the availability of
technical assistance available to communities has been of great
concern to the Committee over the last decade. Furthermore,
with the increase in communities requesting EDA assistance and
the administrative changes to EDA's grant application process,
the need for additional technical assistance by EDRs will be
manifold.
Sec. 504. Limitation on certain positions
This section limits the number of political appointees at
EDA to five positions.
TITLE VI--MISCELLANEOUS
Sec. 601. Annual report to Congress
This section requires that the Secretary must include
detailed information on the activities of university centers
and information on projects funded in conjunction with the
regional commissions (as defined in section 3(8) of the Act) in
its annual report.
Sec. 602. Maintenance of effort
This section modifies existing maintenance of effort rules
to allow recipients of construction grants that are more than
10 years old to buy out the Government's interest using a
depreciated figure based on the facility's estimated useful
life.
TITLE VII--FUNDING
Sec. 701. General authorization of appropriations
This section authorizes $500 million for Economic
Development Assistance Programs (EDAP) for FY 2011 through FY
2015, and $42 million for Salaries and Expenses for FY 2011 and
such sums as necessary for each fiscal year thereafter.
Sec. 702. Funding for grants for planning and grants for administrative
expenses
This section requires that $36 million per fiscal year of
EDAP funds be used for planning and administrative expenses
grants. The Committee intends that these funds be used in a
manner that provides funding for existing and new EDDs, without
diminishing funding for existing EDDs. In addition, of this
planning funding, $500,000 per fiscal year shall be used for
the section 203 high-speed rail program. This funding should be
allocated in a manner that maximizes collaboration with the
university center program and promotes appropriate regional
planning and technical assistance for high-speed rail projects.
Sec. 703. Funding for financial assistance for business incubators and
science and research parks
This section authorizes $7.5 million for the science and
research park grant program. This funding is to be provided
separately from the section 701 funding. For the loan guarantee
program created under section 208(d), such sums as necessary
are authorized for loan guarantees.
Sec. 704. Funding for sustainable economic development demonstration
program
This section requires that $25 million per fiscal year of
EDAP funds be used to carry out the sustainable economic
development program.
Sec. 705. Funding for grants for training, research, and technical
assistance
This section requires that $10 million per fiscal year of
EDAP funds be used for section 207 grants, including funding to
support existing and new university centers. Of this amount,
not less than $1.125 million is made available for the
establishment of university centers in unserved States and the
District of Columbia. The Committee recommends a greater level
of collaboration between EDA and its university center grant
recipients in providing technical assistance to all EDA grant
applicants and in developing improved remote technical
assistance capabilities.
Legislative History and Committee Consideration
In the 110th Congress, Chairman James L. Oberstar
introduced H.R. 3246, the ``Regional Economic and
Infrastructure Development Act of 2007'', on July 31, 2007.
H.R. 3246 authorized five regional economic development
commissions--the Delta Regional Authority, the Northern Great
Plains Regional Authority, the Southeast Crescent Regional
Commission, the Southwest Border Regional Commission, and the
Northern Border Regional Commission--under a common framework
of administration and management, and provided a structure for
economic development decision-making and planning. These
commissions are designed to address problems of systemic
poverty and underdevelopment in their respective regions. On
August 1, 2007, the Subcommittee on Economic Development,
Public Buildings, and Emergency Management met in open session
and recommended H.R. 3246 favorably to the Committee on
Transportation and Infrastructure. On August 2, 2007, the
Committee on Transportation and Infrastructure met in open
session to consider H.R. 3246, and adopted two amendments by
voice vote. The Committee ordered H.R. 3246, as amended,
reported favorably to the House by voice vote. On October 4,
2007, the House passed H.R. 3246, as amended. On May 22, 2008,
H.R. 3246, as amended, was enacted as title VI, sections 6025
and 6026, and title XIV, section 14217 of the Food,
Conservation, and Energy Act of 2008 (P.L. 110-234).
On July 28, 2010, Chairman James L. Oberstar introduced
H.R. 5897, the ``Economic Revitalization and Innovation Act of
2010''. On July 29, 2010, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 5897.
During consideration, the Committee adopted three amendments to
the bill. The Committee ordered the bill, as amended, reported
favorably to the House by voice vote with a quorum present.
Record Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 5897, or ordering the bill reported.
A motion to order H.R. 5897, as amended, reported favorably to
the House was agreed to by voice vote with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
Cost of Legislation
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Compliance With House Rule XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee references the report of the Congressional Budget
Office included in the report.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
authorize programs of the EDA for five fiscal years.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the enclosed cost estimate for H.R.
5897, as amended, from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 27, 2010.
Hon. James L. Oberstar,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5897, the Economic
Revitalization and Innovation Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Peter H. Fontaine
(For Douglas W. Elmendorf, Director).
Enclosure.
H.R. 5897--Economic Revitalization and Innovation Act of 2010
Summary: H.R. 5897 would authorize funding for exiting
programs of the Economic Development Administration (EDA)
through 2015. The legislation also would authorize
appropriations for EDA to provide loan guarantees for the
construction and renovation of business incubators and science
and research parks. Assuming appropriation of the specified and
necessary amounts, CBO estimates that implementing this bill
would cost about $1.3 billion over the 2011-2015 period and
$1.2 billion after 2015. Enacting H.R. 5897 would not affect
direct spending or revenues; therefore pay-as-you-go procedures
do not apply.
H.R. 5897 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the federal government: The estimated
budgetary impact of H.R. 5897 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
EDA Programs:
Authorization Level............................ 500 500 500 500 500 2,500
Estimated Outlays.............................. 25 135 245 385 485 1,275
Loans Guarantees for Business Incubators and
Science and Research Parks:
Estimated Authorization Level.................. 2 5 5 7 7 26
Estimated Outlays.............................. 2 4 5 6 7 24
Total Changes:
Estimated Authorization Level.............. 502 505 505 507 507 2,526
Estimated Outlays.......................... 27 139 250 391 492 1,299
----------------------------------------------------------------------------------------------------------------
Note: EDA = Economic Development Administration.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the beginning of fiscal year
2011 and that amounts specified and estimated to be necessary
will be appropriated for each year.
Economic Development Administration programs
H.R. 5897 would authorize the appropriation of $500 million
in each of fiscal years 2011 through 2015 for EDA to provide
various types of assistance to encourage economic development
in distressed areas. For 2010, the Congress provided a total of
$304 million to EDA, including $255 million in regular
appropriations and $49 million for states affected by certain
disasters (see Public Law 111-117 and Public Law 111-212).
In addition to authorizing the appropriation of more than
$400 million a year for public works and economic development
grants to state and local entities, the bill would specifically
authorize appropriations of:
$36 million in each fiscal year for grants
covering 50 percent to 100 percent (based on relative
need and other special circumstances) of the cost for
economic development planning and administration;
$35 million in each fiscal year for a new
sustainable, economic development demonstration
program;
$10 million in each fiscal year for training
and research grants and technical assistance to help
alleviate or prevent unemployment, underemployment, and
outmigration of jobs; and
About $8 million for planning grants to
construct and develop science and research parks.
Based on historical spending patterns of EDA programs, CBO
estimates that assistance provided under this legislation would
cost about $1.3 billion over the next five years and $1.2
billion after 2015.
Loan guarantees for business incubators and science and research parks
H.R. 5897 would authorize the appropriation of whatever
amounts are necessary for EDA to guarantee loans for
constructing and renovating business incubators (programs that
foster the creation and growth of new and early-stage
businesses) and science and research parks. Loan guarantees for
each project could exceed $50 million or 80 percent of the
loan, whichever is less. Aggregate loan guarantees could not
exceed $235 million in a single year or $500 million over the
2011-2015 period.
The budgetary accounting for direct loans and loan
guarantees administered by federal agencies is governed by the
Federal Credit Reform Act of 1990, which requires an
appropriation of the subsidy and administrative costs
associated with such loan operations. The subsidy cost is the
estimated long-term cost to the government of a loan or loan
guarantee, calculated on a net-present-value basis, excluding
administrative costs. Administrative costs, recorded on a cash
basis, include activities related to making, servicing, and
liquidating loans as well as overseeing the performance of
lenders.
Based on the historical experience of similar projects, CBO
assumes that over half of the business incubators and science
and research parks that would obtain a loan guarantee under the
bill would be operated or affiliated with a anniversary or
state or local government. The remainder would be developed by
private entities. The credit ratings of similar projects
operated by such groups indicate that the subsidy rate for this
program would be about 4 percent, requiring the appropriation
of about $20 million over the 2011-2015 period to cover the
cost of making $500 million in loans. (A portion of that
subsidy cost would be expended after 2015 as loans are
disbursed.) Assuming the appropriation of those amounts plus an
additional $6 million for administrative costs, CBO estimates
that implementing this provision would cost $24 million over
the 2011-2015 period.
Other changes
The legislation would increase the maximum federal cost
share for certain EDA projects. Under current law, the federal
government covers 50 percent of the costs for public works and
economic development projects, plus up to an additional 30
percent based on the relative needs of the region in which the
project is located (as measured by unemployment rates and per
capita income). EDA can increase the federal cost share to 100
percent for state and local governments that have exhausted
their effective taxing and borrowing capacity. This legislation
would allow EDA to provide similar increases for state and
local governments that have had substantial declines in tax
revenue and for certain grants covering planning and
administrative expenses.
CBO does not expect that those or other changes to existing
programs included in H.R. 5897 would significantly alter EDA
expenditures; therefore, we estimate the changes would not
affect the federal budget over the next five years.
H.R. 5897 also would authorize the appropriation of $42
million in 2011 and such sums as may be necessary thereafter
for the salaries and expenses of EDA employees. The Congress
provided $38 million for this purpose in 2010 (see Public Law
111-117) and authorize the appropriation of such sums as may be
necessary for future fiscal years (see Public Law 108-373). CBO
does not estimate additional costs for this provision above
those already authorized in current law.
Intergovernmental and private-sector impact: H.R. 5897
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from grants and technical assistance for economic
development projects included in the bill. Any costs to those
governments, including matching funds, would be incurred
voluntarily as conditions of federal assistance.
Previous CBO estimate: On December 9, 2009, CBO transmitted
a cost estimate for S. 2778, the Economic Development
Revitalization Act of 2009, as ordered reported by the Senate
Committee on Environment and Public Works on November 18, 2009.
CBO estimated that implementing that bill would cost about $1.3
billion over the 2010-2014 period and $760 million thereafter.
H.R. 5897 and S. 2778 would provide funding for existing
EDA programs at the same level but over different time periods.
Each piece of legislation also would authorize additional
amounts for programs not included in the other bill. The CBO
cost estimates reflect those differences.
Estimate prepared by: Federal Costs: Daniel Hoople; Impact
on State, Local, and Trial Governments: Melissa Merrell; Impact
on the Private Sector: Marin Randall.
Estimate approved by: Theresa A. Gullo, Deputy Assistant
Director for Budget Analysis.
Compliance With House Rule XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits, as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. H.R.
5897, as amended, does not contain any earmarks, limited tax
benefits, or limited tariff benefits under clause 9(e), 9(f),
or 9(g) of rule XXI.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, committee reports on a bill or joint
resolution of a public character shall include a statement
citing the specific powers granted to the Congress in the
Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (P.L. 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 5897, as amended,
does not preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents of this Act is
as follows:
* * * * * * *
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
* * * * * * *
Sec. 104. Encouragement of certain coordination.
Sec. 105. Coordination with respect to high-speed rail.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
* * * * * * *
Sec. 208. Financial assistance for business incubators and science and
research parks.
* * * * * * *
[Sec. 218. Brightfields demonstration program.]
Sec. 218. Sustainable economic development demonstration program.
Sec. 219. Job creation goals.
Sec. 220. Prohibition with respect to use of assistance.
* * * * * * *
TITLE V--ADMINISTRATION
* * * * * * *
Sec. 508. Economic development representatives.
Sec. 509. Limitation on certain positions.
TITLE VI--MISCELLANEOUS
* * * * * * *
Sec. 613. Maintenance of effort.
TITLE VII--FUNDING
* * * * * * *
Sec. 705. Funding for financial assistance for business incubators and
science and research parks.
Sec. 706. Funding for sustainable economic development demonstration
program.
Sec. 707. Funding for grants for training, research, and technical
assistance.
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
[(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;
[(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; and
[(4) assistance under this Act should be made
available to promote the productive reuse of abandoned
industrial facilities and the redevelopment of
brownfields.]
(a) Findings.--Congress finds that--
(1) sustainable economic growth in the 21st century
depends upon economic development strategies that
include investment in essential infrastructure that
fosters innovation, entrepreneurship, and competition
in the global marketplace;
(2) there continue to be areas of the United States
experiencing chronic high unemployment,
underemployment, outmigration, and low per capita
income, as well as areas facing sudden and severe
economic dislocations due to structural economic
changes, increasing international competition, certain
Federal actions (including defense-related facility
closures and realignment and actions required to
counteract the depletion of natural resources), and
natural disasters;
(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 regions and communities to
develop a more competitive and diversified economic
base, including by--
(A) expanding economic opportunities,
increasing international competitiveness, and
creating a climate supportive of job creation
and business development;
(B) creating an environment that promotes
public infrastructure investments that maximize
sustainable development practices;
(C) promoting private sector job creation
through increased innovation, productivity, and
entrepreneurship; and
(D) empowering local and regional communities
experiencing chronic high unemployment,
underemployment, outmigration, and low per
capita income to develop private sector
business and attract increased domestic and
foreign private sector capital investment,
including through the location of information
technology, agribusiness, alternative energy,
manufacturing, and bioscience jobs in the
United States and the relocation of such jobs
to the United States;
(4) economic growth in the States, including in both
cities and rural areas, can best be promoted by helping
communities invest in regional strategies that build
upon unique competitive advantages and are designed to
foster innovation and entrepreneurship in all segments
of the community's economy;
(5) while economic development is an inherently local
process, the Federal Government should work in
partnership with public and private organizations at
the State, regional, tribal, and local levels to
maximize the impact of existing resources and enable
regions, communities, and citizens to participate more
fully in the American dream and national prosperity;
(6) 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
(7) Federal economic development efforts will be more
effective if the efforts are coordinated with, and
build upon, the trade, workforce investment, higher
education, transportation, energy, environmental
protection, 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 distressed communities in both rural and
urban areas;
(2) local communities should work in partnership with
neighboring communities, economic development
districts, States, Indian tribes, institutions of
higher education, national security laboratories, the
private sector, and the Federal Government to increase
the capacity of those local communities to develop and
implement comprehensive economic development strategies
to alleviate economic distress and enhance
competitiveness in the global economy, including
national security laboratories;
(3) whether suffering from long-term distress or a
sudden dislocation, distressed communities should be
encouraged to take affirmative steps to promote
innovation and entrepreneurship, including through the
formation of business incubators, to help create higher
skill, higher wage jobs and foster the participation of
those distressed communities in the global marketplace;
(4) assistance under this Act should be made
available to promote sustainable economic development
practices, to assist communities with the productive
reuse of abandoned industrial facilities and the
redevelopment of brownfields, and to leverage
significant Federal investments in high-speed rail
corridors and other transportation infrastructure; and
(5) research assistance under this Act should help
regions across the United States leverage the economic
assets of those regions in a comprehensive manner and
should enhance the Economic Development
Administration's ability to provide an economic
development framework to assist distressed communities
and regions, with particular emphasis on revitalizing
the manufacturing, agribusiness, and bioscience
industries and the linkages between urban and rural
communities.
SEC. 3. DEFINITIONS.
In this Act:
(1) * * *
* * * * * * *
(8) Regional commissions.--The term ``Regional
Commissions'' means--
(A) * * *
* * * * * * *
(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.)[.];
(E) the Southeast Crescent Regional
Commission established under section 15301(a)
of title 40, United States Code;
(F) the Northern Border Regional Commission
established under section 15301(a) of title 40,
United States Code; and
(G) the Southwest Border Regional Commission
established under section 15301(a) of title 40,
United States Code.
* * * * * * *
TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION
SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.
(a) * * *
(b) Technical Assistance.--The Secretary may provide such
technical assistance to States, political subdivisions of
States, sub-State regional organizations (including
organizations that cross State boundaries), multi-State
regional organizations, and nonprofit organizations, including
economic development districts and university centers, as the
Secretary determines is appropriate to--
(1) * * *
[(2) encourage and support public-private
partnerships for the formation and improvement of
economic development strategies that sustain and
promote economic development across the United States;
and
[(3) promote investment in infrastructure and
technological capacity to keep pace with the changing
global economy.]
(2) encourage and support public-private partnerships
for the formation and improvement of economic
development strategies, including regional strategies,
that sustain and promote innovation and
entrepreneurship that is critical to economic
competitiveness throughout the United States; and
(3) promote investment in infrastructure, innovation,
entrepreneurship, sustainable development, and
technological capacity (including with respect to
advanced technologies in all industry sectors) to keep
pace with the changing global economy.
(c) Intergovernmental Review.--The Secretary shall promulgate
regulations to ensure that appropriate State and local
government agencies and appropriate economic development
districts have been given a reasonable opportunity to review
and comment on proposed projects under this title that the
Secretary determines may have a significant direct impact on
the economy of the area.
* * * * * * *
SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION.
In carrying out this Act, the Secretary is authorized and
encouraged to consult and cooperate with any Federal, State, or
local government agency or consortium of governmental
organizations that can assist in addressing challenges and
capitalizing on opportunities that require coordination,
including the Department of Labor with respect to supporting
economic and workforce development strategies and promoting
regional innovation clusters.
SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.
The Secretary shall coordinate activities carried out under
this Act, as appropriate, with the Department of Transportation
and other relevant Federal agencies, State and local
governments, economic development districts, Indian tribes, and
planning and development organizations to leverage and maximize
the economic development potential of Federal investments in
high-speed rail projects. In carrying out this section, the
Secretary shall conduct studies and disseminate reports, as
appropriate, with respect to high-speed rail projects.
TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT
SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants for--
(1) acquisition or development of land and
improvements for use for a public works, public
service, or development facility (including a facility
of a business incubator or a science and research park
(as such terms are defined in section 208(a))); and
* * * * * * *
SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants to pay the costs of economic
development planning and the administrative expenses (including
indirect costs determined eligible in an applicable Office of
Management and Budget circular) of organizations that carry out
the planning.
(b) Planning Process.--Planning assisted under this title
shall be a continuous process involving public officials and
private citizens in--
(1) * * *
* * * * * * *
(3) determining project opportunities; [and]
(4) formulating and implementing an economic
development program that includes systematic efforts to
reduce unemployment [and increase incomes.] and
systemic economic distress and increase incomes by
fostering entrepreneurship and innovation across all
regional industry sectors; and
(5) fostering regional collaboration.
* * * * * * *
(d) State Plans.--
(1) * * *
* * * * * * *
(4) Comprehensive planning process.--Any overall
State economic development planning assisted under this
section shall be a part of a comprehensive planning
process that shall consider the provision of public
works and other types of assistance to--
(A) * * *
* * * * * * *
(C) enhance and protect the environment,
including through efficient energy production,
utilization, and facility development;
* * * * * * *
(E) promote the use and deployment of
technology in economic development, including
access to high-speed telecommunications; [and]
(F) balance resources through the sound
management of physical development[.]; and
(G) support sustainable development practices
and the efficient coordination and leveraging
of public and private investments.
* * * * * * *
SEC. 204. COST SHARING.
(a) * * *
* * * * * * *
(c) Increase in Federal Share.--
(1) * * *
(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 that the Secretary determines has been
affected by substantial declines in tax revenue, 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] Planning, training, research, and
technical assistance.--In the case of a grant provided
under [section 207] section 203 or 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 or if grant
supported activities will include regional planning to
build on competitive advantages available regionally.
* * * * * * *
SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.
(a) In General.--
(1) Grants.--On the application of an eligible
recipient, the Secretary may make grants for training,
research, and technical assistance, including grants
for program evaluation and economic impact analyses,
that would be useful in alleviating or preventing
conditions of excessive unemployment [or
underemployment], underemployment, or outmigration.
(2) Types of assistance.--Grants under paragraph (1)
may be used for--
(A) * * *
* * * * * * *
(D) establishment of university centers, with
the goal that at least one university center is
established in each State;
* * * * * * *
[(H) assessment, marketing, and establishment
of business clusters; and
[(I) other activities determined by the
Secretary to be appropriate.]
(H) studies that evaluate the effectiveness
of regional innovation clusters and determine
best practices with respect to the support
provided by entrepreneurial infrastructure,
including business incubators;
(I) a peer exchange program to promote best
practices and innovation with respect to the
organizational development, program delivery,
and regional initiatives of economic
development districts;
(J) development and promotion of performance
measures and best practices with respect to
commercialization and entrepreneurship;
(K) developing or implementing county or
municipal government efficiency assessments
related to economic development or community
viability; and
(L) other activities determined by the
Secretary to be appropriate.
* * * * * * *
(4) High-speed rail.--In making a grant under this
subsection for the establishment of a university
center, the Secretary shall ensure, if appropriate,
that the activities of the center will include
conducting research and providing technical assistance
to leverage and maximize the economic development
potential of Federal investments in high-speed rail
projects.
* * * * * * *
SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE AND
RESEARCH PARKS.
(a) Definitions.--In this section, the following definitions
apply:
(1) Business incubator.--The term ``business
incubator'' means a program established to foster the
creation of new businesses and accelerate the growth of
early-stage businesses by providing entrepreneurs and
early-stage businesses with the resources and services
to produce viable businesses that can help create jobs
in and restore vitality to communities.
(2) Business incubator development project.--The term
``business incubator development project'' means a
project to construct or alter facilities for a business
incubator, including the acquisition of real property
necessary to carry out the construction or alteration.
(3) Science and research park.--The term ``science
and research park'' means a program that--
(A) includes property and buildings designed
primarily for--
(i) research and development
activities conducted by public-private
partners;
(ii) technology- and science-based
businesses; or
(iii) research and development
support services;
(B) includes a contractual relationship
with one or more institutions of higher
education or government or nonprofit research
laboratories, including national security
laboratories;
(C) has a primary mission of--
(i) promoting research and
development through industry
partnerships, assisting the growth of
new ventures, and promoting innovation-
driven economic development;
(ii) facilitating the transfer of
technology and business skills between
researchers and industry teams; and
(iii) promoting technology-led
economic development for the community
or region in which the program is
located; and
(D) is owned by a government or nonprofit
entity (although the government or nonprofit
entity may enter into partnerships or joint
ventures with for-profit entities to develop or
manage specific components of the program).
(4) Science and research park development project.--
The term ``science and research park development
project'' means a project to construct or alter
facilities for a science and research park, including
the acquisition of real property necessary to carry out
the construction or alteration.
(b) Financial Assistance.--On the application of an eligible
recipient, the Secretary may provide financial assistance in
accordance with this section to assist the development of
business incubators and science and research parks.
(c) Grants for Plans for Science and Research Parks.--
(1) Grant authority.--In accordance with this
subsection, the Secretary may award a grant to an
eligible recipient for the development of a feasibility
study or development plan, or both, with respect to a
science and research park development project.
(2) Amount of a grant.--A grant awarded under
paragraph (1) may not be in an amount that exceeds
$750,000.
(3) Selection process.--
(A) Selection criteria.--Not later than 180
days after the date of enactment of the
Economic Revitalization and Innovation Act of
2010, the Secretary shall publish the criteria
to be utilized for the selection of grant
recipients under paragraph (1).
(B) Competition required.--The Secretary
shall award grants under paragraph (1) pursuant
to a full and open competition.
(C) Geographic diversity.--In awarding grants
under paragraph (1), the Secretary shall
ensure, to the extent practicable, that grant
recipients represent diverse geographic areas
of the United States, including rural and urban
areas.
(4) Program limit.--The Secretary may not award, in
the aggregate, more than $7,500,000 in grants under
paragraph (1).
(d) Loan Guarantees for Business Incubators and Science and
Research Parks.--
(1) Guarantee authority.--In accordance with this
subsection, the Secretary may guarantee a loan of an
eligible recipient to assist the carrying out of a
business incubator development project or a science and
research park development project.
(2) Guarantee percentage.--In guaranteeing a loan
under paragraph (1), the Secretary may guarantee up to
80 percent of the principal amount of the loan.
(3) Selection of guarantee recipients.--
(A) Creditworthiness.--The Secretary may not
guarantee a loan under paragraph (1) unless the
Secretary has determined that there is a
reasonable assurance of repayment with respect
to the loan.
(B) Grant recipients.--A recipient of a grant
under subsection (c) for the development of a
feasability study or development plan, or both,
is not eligible for a loan guarantee under
paragraph (1) until the recipient has completed
the study or plan, or both, for which the grant
was provided (as determined by the Secretary).
(4) Term of loan.--The term of a loan guaranteed
under paragraph (1) may not exceed the lesser of--
(A) 30 years; or
(B) 90 percent of the useful life of any
physical asset to be financed by such loan.
(5) Subordination.--An obligation relating to a loan
guarantee under paragraph (1) may not be subordinated
to another debt contracted by the borrower or to any
other claims against the borrower in the case of
default.
(6) Other terms and conditions.--Except as otherwise
specified in this subsection, a loan guarantee under
paragraph (1) shall be subject to such terms and
conditions as the Secretary may prescribe.
(7) Review.--
(A) In general.--The Secretary shall
periodically assess the risks associated with
loans guaranteed under paragraph (1).
(B) Comptroller general report.--Not later
than 2 years after the date of enactment of the
Economic Revitalization and Innovation Act of
2010, the Comptroller General shall--
(i) conduct a comprehensive review of
the program under this subsection; and
(ii) submit to Congress a report on
the results of the review.
(8) Program levels.--In carrying out paragraph (1)
during fiscal years 2011 through 2015, the Secretary
may not guarantee loans in an amount that exceeds--
(A) $50,000,000 for a single project;
(B) $235,000,000 in a single fiscal year; and
(C) $500,000,000 in the aggregate.
SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.
(a) In General.--On the application of an eligible recipient,
the Secretary may make grants for development of public
facilities, science and research park development projects (as
defined in section 208(a)), public services, business
development (including funding of a revolving loan fund, a
challenge grant, and operating support for business incubators
(as defined in section 208(a))), planning, technical
assistance, training, and any other assistance to alleviate
long-term economic deterioration and sudden and severe economic
dislocation and further the economic adjustment objectives of
this title.
* * * * * * *
(c) Particular Community Assistance.--Assistance under this
section may include assistance provided for activities
identified by communities, the economies of which are [injured]
affected by--
(1) military base closures [or realignments,],
realignments, or mission growth, defense contractor
reductions in force, or Department of Energy defense-
related funding reductions, for help in diversifying
their economies or supporting the economic adjustment
activities of the Secretary of Defense through projects
to be carried out on Federal Government installations
or elsewhere in the communities;
* * * * * * *
(4) fishery failures, in areas with respect to which
a determination that there is a commercial fishery
failure has been made under section 312(a) of the
Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1861a(a)); [or]
(5) the loss of [manufacturing jobs] manufacturing,
information technology, natural resource, agricultural,
or service sector jobs, for reinvesting in and
diversifying the economies of the communities[.];
(6) a lack of technology infrastructure, including
inadequate access to broadband capacity sufficient to
support economic development objectives;
(7) an inability to utilize alternative means of
energy production and distribution; or
(8) insufficient access to capital and credit
necessary for business retention and expansion,
entrepreneurship, and innovation.
(d) Special Provisions Relating to Revolving Loan Fund
Grants.--
(1) * * *
(2) Efficient administration.--The Secretary may--
(A) * * *
(B) at the request of a grantee, approve the
transfer of all or a portion of the assets of a
revolving loan fund of the grantee to another
eligible recipient to assist in establishing or
maintaining a multiregion or national revolving
loan fund;
[(B)] (C) 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)] (D) 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).
* * * * * * *
(5) Conversion of revolving loan fund assets.--
(A) Authority.--At the request of a grant
recipient, the Secretary may approve the use of
the assets of a revolving loan fund established
by the grant recipient with assistance under
this section for another project, if--
(i) the project is eligible for
assistance under this Act; and
(ii) the Secretary determines that
the revolving loan fund is no longer
necessary and the grant recipient, as a
result of changed economic development
needs, will make better use of the
assets by carrying out the project.
(B) Methods of conversion.--If conversion of
a revolving loan fund is approved under
subparagraph (A), the applicable grant
recipient may convert the assets of the
revolving loan fund by--
(i) selling to a third party any
assets of the revolving loan fund; or
(ii) retaining repayments of
principal and interest amounts made on
loans provided through the revolving
loan fund.
(C) Terms and conditions.--Except as
otherwise provided under this paragraph, the
Secretary may establish such terms and
conditions with respect to the conversion of a
revolving loan fund under this paragraph as the
Secretary determines appropriate.
(D) Expediency requirement.--The Secretary
shall ensure that any assets of a revolving
loan fund converted under this paragraph are
used in an expeditious manner.
(6) Release.--The Secretary may release, subject to
terms and conditions the Secretary determines
appropriate, the Federal Government's interest in a
revolving loan fund established by a grant recipient
with assistance under this section on or after the date
that is 7 years after the date on which the applicable
grant was fully disbursed, if the Secretary determines
that--
(A) the grant recipient has carried out the
terms of the grant in a satisfactory manner;
(B) any proceeds realized after the release
of the Federal Government's interest will be
used for one or more activities that carry out
the economic development purposes of this Act;
and
(C) the grant recipient will continue to
satisfy the requirements of section 602.
(7) Equity investment demonstration program.--
(A) Authority.--
(i) In general.--To determine the
feasibility and utility of providing
equity investments through revolving
loan funds established by grant
recipients with assistance under this
section, the Secretary may authorize,
at the request of a grant recipient,
the use of the capital base of a
revolving loan fund for equity
investments in businesses in need of
capital to start up operations or
expand operations beyond the startup
phase.
(ii) Demonstrated capacity.--Before
authorizing a grant recipient to make
equity investments under clause (i),
the Secretary shall determine that the
grant recipient has the demonstrated
capacity for engaging in equity
investments or will contract with
another company or organization with a
proven track record with respect to
equity investments.
(iii) Preferential consideration.--In
authorizing grant recipients to make
equity investments under clause (i),
the Secretary shall give preferential
consideration to requests from grant
recipients that intend to focus their
investment activities in support of
business incubators (as defined in
section 208(a)), companies
commercializing technologies in
conjunction with institutions of higher
education, science and research parks
(as defined in section 208(a)), or
technology or manufacturing companies
relocating to the United States from
outside the United States.
(iv) Geographic diversity.--In
authorizing grant recipients to make
equity investments under clause (i),
the Secretary shall ensure, to the
extent practicable, that grant
recipients authorized represent diverse
geographic areas of the United States,
including rural and urban areas.
(B) Requirements.--In authorizing a grant
recipient to make equity investments under
subparagraph (A)(i), the Secretary shall ensure
that--
(i) not more than 25 percent of the
capital base of the revolving loan fund
of the grant recipient will be used for
equity investments;
(ii) the Federal share of the amount
used for an equity investment made by
the grant recipient will not exceed 50
percent; and
(iii) the total amount of the equity
investments made by the grant recipient
in any one business will not exceed
$250,000.
(C) Other terms and conditions.--Except as
otherwise provided in this paragraph, the
Secretary may authorize grant recipients to
make equity investments under subparagraph
(A)(i) subject to terms and conditions the
Secretary determines are appropriate.
(D) Disposition of equity securities.--In the
event that the Secretary acquires equity
securities as a result of a default by any
party under any agreement relating to the terms
of the Secretary's extension of assistance
under this paragraph, the Secretary shall
liquidate the Federal interest in such
securities as soon as possible and for such
consideration as the Secretary determines
appropriate. The Secretary may assign or
transfer the securities to a third party for
purposes of liquidation and the third party may
retain proceeds from the disposition of the
securities to defray costs related to the
liquidation.
(E) Definitions.--In this paragraph the
following definitions apply:
(i) Capital base.--The term ``capital
base'' means the amount of the funding,
from a grant under this section and
from non-Federal sources, initially
provided to establish a revolving loan
fund under this section.
(ii) Equity investment.--The term
``equity investment'' means an
investment of funds in a business that
results in the acquisition of an equity
security.
(iii) Equity security.--The term
``equity security'' means an instrument
that signifies an ownership interest in
a business.
* * * * * * *
[SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.
[(a) Definition of Brightfield Site.--In this section, the
term ``brightfield site'' means a brownfield site that is
redeveloped through the incorporation of 1 or more solar energy
technologies.
[(b) Demonstration Program.--On the application of an
eligible recipient, the Secretary may make a grant for a
project for the development of a brightfield site if the
Secretary determines that the project will--
[(1) use 1 or more solar energy technologies to
develop abandoned or contaminated sites for commercial
use; and
[(2) improve the commercial and economic
opportunities in the area in which the project is
located.
[(c) Savings Clause.--To the extent that any portion of a
grant awarded under subsection (b) involves remediation, the
remediation shall be subject to section 612.
[(d) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years 2004 through 2008, to remain available until
expended.]
SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.
(a) In General.--On the application of an eligible recipient,
the Secretary may provide technical assistance, make grants,
enter into contracts, or otherwise provide funding for a
project--
(1) to promote energy efficiency to enhance the
economic competitiveness of an area;
(2) to increase the use of renewable energy
technologies, including solar, wind, or geothermal
technologies, to support sustainable economic
development and job growth, with a priority given to
projects that incorporate photovoltaics or relate to
agribusiness, including in both urban and rural areas;
(3) to support energy efficiency or alternative
energy development plans, studies, or analysis
(including with respect to job training, attraction, or
retention) to enhance a comprehensive economic
development strategy with respect to which funding has
been provided under this Act;
(4) to support the efforts of a community to have a
technology or manufacturing business located outside
the United States relocate to the United States; and
(5) to supplement another project funded by a Federal
grant, loan, or loan guarantee provided for a purpose
described in paragraphs (1) through (4).
(b) Federal Share.--Notwithstanding section 204, the Federal
share of the cost of a project funded under this section--
(1) if described in paragraph (1), (2), (3), or (4)
of subsection (a), shall not exceed 80 percent; and
(2) if described in subsection (a)(5), shall not
exceed 100 percent.
(c) Solicitation of Applications.--Not later than 60 days
after a date on which funds are made available to carry out
this section, the Secretary shall solicit applications for
assistance under this section.
SEC. 219. JOB CREATION GOALS.
(a) In General.--As a condition of the receipt of a grant
under section 201, 205, or 209 or a loan guarantee under
section 208, the recipient of the grant or loan guarantee shall
enter into an agreement with the Secretary that establishes
goals for the number of jobs to be created as a result of the
projects and activities funded by the grant or loan guarantee.
(b) Compliance With Goals.--The Secretary may take
appropriate action to penalize a grant recipient who fails to
satisfy job creation goals specified in an agreement under
subsection (a).
SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.
The Secretary shall ensure that a recipient of assistance
under this Act does not utilize the assistance for activities
to intentionally attract, to the location of the recipient, a
business or other source of employment already established
elsewhere in the United States, if the relocation would
adversely affect the location where the business or other
source of employment was previously located.
TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES
SEC. 301. ELIGIBILITY OF AREAS.
(a) * * *
* * * * * * *
(e) Special Need.--In determining whether an area has
experienced or is about to experience a special need for
purposes of subsection (a)(3), the Secretary may consider
whether the area has been affected by--
(1) the loss of a substantial employer;
(2) substantial outmigration or population loss;
(3) substantial foreclosure rates;
(4) substantial underemployment;
(5) military base or defense installation closure,
realignment, or mission growth;
(6) a natural or other disaster or emergency;
(7) substantial natural resource depletion;
(8) substantial negative effects resulting from
changing trade patterns; or
(9) other circumstances that the Secretary determines
are indicative of special or extraordinary unemployment
or economic adjustment problems.
SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.
(a) In General.--The Secretary may provide assistance under
section 201 or 209 (except for planning assistance under
section 209) to an eligible recipient for a project only if the
eligible recipient submits to the Secretary, as part of an
application for the assistance--
(1) an identification of the economic development
problems and opportunities to be addressed using the
assistance;
(2) an identification of the past, present, and
projected future economic development investments in
the area receiving the assistance and public and
private (including nonprofit organization) participants
and sources of funding for the investments; and
(3)(A) a comprehensive economic development strategy
for addressing the [economic problems] economic
development problems and opportunities identified under
paragraph (1) in a manner that promotes economic
development and opportunity, fosters effective
transportation access, maximizes effective development
and use of the workforce consistent with any applicable
State or local workforce investment strategy, promotes
the effective use of technology in economic development
(including access to high-speed telecommunications),
enhances and protects the environment, and [balances]
optimizes resources through sound management of
development; and
(B) a description of how the strategy will solve the
problems and take advantage of the opportunities.
* * * * * * *
(c) Approval of Other Plan.--
(1) In general.--The Secretary may accept as a
comprehensive economic development strategy a
satisfactory plan developed under another federally
supported program or under a State, regionally, or
locally supported program.
(2) Existing strategy.--To the maximum extent
practicable, a plan submitted under this [paragraph]
subsection shall be consistent and coordinated with any
existing comprehensive economic development strategy
for the area.
(d) Notification of Approval or Disapproval of Comprehensive
Economic Development Strategy or Other Plan.--
(1) Deadline.--The Secretary shall notify an eligible
recipient of the approval or disapproval of a
comprehensive economic development strategy or other
plan submitted under this section not later than 60
days after the date of receiving the strategy or plan.
(2) Basis for disapproval.--A notification of
disapproval under this subsection shall include a
description of the basis for the disapproval.
TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS
SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.
(a) In General.--In order that economic development projects
of [broad geographic] national and regional significance may be
planned and carried out, the Secretary may designate
appropriate economic development districts in the United
States, with the concurrence of the States in which the
districts will be wholly or partially located, if--
(1) * * *
* * * * * * *
(c) Operations.--
(1) In general.--As a condition of maintaining
designation as an economic development district, each
district shall engage in the full range of economic
development activities in the comprehensive economic
development strategy of the district that has been
approved by the Secretary, which may include--
(A) coordinating and implementing economic
development activities in the district;
(B) carrying out economic development
research, planning, implementation, and
advisory functions identified in the
comprehensive economic development strategy;
and
(C) coordinating the development and
implementation of the comprehensive economic
development strategy with Federal, State,
local, and private organizations.
(2) Contracts.--An economic development district may
enter into contracts for services to carry out the
activities described in paragraph (1).
SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT
DISTRICTS.
The Secretary shall, by regulation, promulgate standards for
the termination or modification of the designation of economic
development districts. The standards shall include authority
for the Secretary to review, at the request of a district,
district designations to evaluate whether the designations meet
economic development and labor force needs and, when warranted,
to approve the combination of districts and adjust applicable
assistance levels for the resulting combination.
* * * * * * *
TITLE V--ADMINISTRATION
* * * * * * *
SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.
(a) Consultation on Problems Relating to Employment.--The
Secretary may consult with any persons, including
representatives of labor, management, agriculture, and
government, who can assist in addressing the problems of area
and regional unemployment [or underemployment],
underemployment, or outmigration.
* * * * * * *
SEC. 506. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.
(a) * * *
(b) Purpose of Evaluations of University Centers.--The
purpose of the evaluations of university centers under
subsection (a) shall be to determine which university centers
are performing well and [are worthy of continued grant
assistance under this Act, and which should not receive
continued assistance, so that university centers that have not
previously received assistance may receive assistance.]
maintain the capacity to implement the priorities of the
Secretary.
[(c) Timing of Evaluations.--Evaluations under subsection (a)
shall be conducted on a continuing basis so that each grantee
is evaluated within 3 years after the first award of assistance
to the grantee, and at least once every 3 years thereafter, so
long as the grantee receives the assistance.]
(c) Timing of Evaluations.--Evaluations under subsection (a)
shall be conducted on a continuing basis so that--
(1) with respect to economic development districts,
each grantee is evaluated within 3 years after the
first award of assistance to the grantee and at least
once every 3 years thereafter, so long as the grantee
receives the assistance; and
(2) with respect to university centers, each grantee
is evaluated within 5 years after the first award of
assistance to the grantee and at least once every 5
years thereafter, so long as the grantee receives the
assistance.
(d) Evaluation Criteria.--
(1) * * *
[(2) Evaluation criteria for university centers.--The
criteria for evaluation of a university center shall,
at a minimum, provide for an assessment of the center's
contribution to providing technical assistance,
conducting applied research, program performance, and
disseminating results of the activities of the center.]
(2) Evaluation criteria for university centers.--The
criteria for evaluation of a university center shall
provide, at a minimum, for an assessment of--
(A) the center's contribution to providing
technical assistance, conducting applied
research, and disseminating the results of the
activities of the center;
(B) the center's conformance with the
approved program plan of the center and the
goals of the Secretary; and
(C) if appropriate, the center's activities
to leverage and maximize the economic
development potential of Federal investments in
high-speed rail projects, including
activities--
(i) to encourage collaboration across
regions; and
(ii) to evaluate manufacturing and
economic development opportunities
relating to the projects.
* * * * * * *
SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES.
The Secretary shall ensure that the Economic Development
Administration maintains--
(1) not less than 35 individuals in the position of
economic development representative during fiscal year
2012; and
(2) not less than 40 individuals in the position of
economic development representative during fiscal year
2013 and each fiscal year thereafter.
SEC. 509. LIMITATION ON CERTAIN POSITIONS.
Beginning in fiscal year 2012, the number of positions in the
Economic Development Administration that, for purposes of title
5, United States Code, are general positions (as defined by
section 3132(a)(9) of such title) which may be filled only by a
noncareer appointee (as defined by section 3132(a)(7) of such
title) shall be limited to 5.
TITLE VI--MISCELLANEOUS
* * * * * * *
SEC. 603. ANNUAL REPORT TO CONGRESS.
(a) * * *
(b) Inclusions.--Each report required under subsection (a)
shall--
(1) * * *
(2) include a discussion of any private sector
leveraging goal with respect to grants awarded to--
(A) * * *
(B) highly distressed areas; [and]
(3) after the completion of a project, include the
realized private sector dollar to Federal dollar
investment ratio for the project[.];
(4) with respect to each university center assisted
with funding under this Act, include--
(A) a specification of the activities of the
university center;
(B) a specification of the recipients of
technical assistance from the university
center; and
(C) a specification of the outcomes resulting
from the job creation, research, and technical
assistance activities of the university center;
and
(5) specify the projects, and the funding provided
for the projects, that were funded in conjunction with
one or more of the regional commissions.
* * * * * * *
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.--
(1) In general.--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.
(2) Maintenance of standards.--The Secretary may not
terminate a reversionary interest of the Secretary
under subsection (a)(2)(B) if the Secretary has not
received adequate assurances that the applicable
recipient will continue to satisfy the requirements of
section 602 after the termination.
(c) Previously Extended Assistance.--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.
(d) Conversion of Use.--If a recipient of assistance under
this Act 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.
(e) 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.
TITLE VII--FUNDING
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.] until
expended, $500,000,000 for each of fiscal years 2011
through 2015.
(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.]
(1) $42,000,000 for fiscal year 2011; and
(2) such sums as are necessary for each fiscal year
thereafter.
* * * * * * *
SEC. 704. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE
EXPENSES.
Of the amounts made available under section 701 for each
fiscal year, not less than [$27,000,000] $36,000,000 shall be
made available for grants provided under section 203 and, of
that amount, not less than $500,000 shall be made available for
grants under section 203 for planning relating to high-speed
rail.
SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND
SCIENCE AND RESEARCH PARKS.
(a) Grants.--In addition to amounts made available under
section 701, there is authorized to be appropriated $7,500,000
to carry out section 208(c).
(b) Loan Guarantees.--In addition to amounts made available
under section 701, there are authorized to be appropriated such
sums as may be necessary to carry out section 208(d), including
the cost (as defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of guaranteeing loans under
that section.
SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION
PROGRAM.
Of the amounts made available under section 701 for each
fiscal year, not less than $25,000,000 shall be made available
to carry out section 218.
SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL
ASSISTANCE.
Of the amounts made available under section 701 for each
fiscal year, not less than $10,000,000 shall be made available
for grants provided under section 207 and, of that amount, not
less than $1,125,000 shall be made available for grants under
section 207 to establish university centers in States that do
not have a university center.
MINORITY VIEWS
The Economic Development Administration (EDA) has done
tremendous work with relatively little funding since its
inception in 1965. According to studies that have been done, we
know that EDA, through its programs effectively leverages
federal dollars with private and local funds to create jobs and
spur economic growth. For example, in fiscal year 2007, EDA
investments that year created or retained American jobs at an
average cost of $4,000 per job and EDA leveraged over $8 in
private sector capital investment for every taxpayer dollar
invested.\1\
---------------------------------------------------------------------------
\1\See U.S. Department of Commerce, Economic Development
Administration, Construction Grants, Program, Impact Assessment Report,
Grant Thornton, September 30, 2008.
---------------------------------------------------------------------------
EDA programs create jobs that last. For this reason, we
support the reauthorization of EDA's programs. However, we do
have concerns regarding certain provisions contained in H.R.
5897. More specifically, the bill significantly expands many of
EDA's programs, creates new ones and extends certain federal
rules such as the provisions of Davis-Bacon to unprecedented
lengths. The Subcommittee on Economic Development, Public
Buildings, and Emergency Management, held one hearing early in
the 111th Congress specifically on EDA Reauthorization\2\ and
several others that included some aspects of EDA programs,
generally.\3\ However, none of the hearings delved into the
expansive changes proposed in H.R. 5897. While some of the
changes may be appropriate, we believe the Committee has not
received sufficient testimony or other information that would
address the questions and concerns we have.
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\2\EDA Reauthorization: Rating Past Performances and Setting Goals
During an Economic Crisis.'' Hearing before the Subcommittee on
Economic Development, Public Buildings, and Emergency Management, March
10, 2009.
\3\``Recovery Tracking Hearing #3: Following the Dollars to the
Jobs,'' Hearing before the Subcommittee on Economic Development, Public
Buildings, and Emergency Management, October 27, 2009; ``Priorities for
Disasters and Economic Disruption: The Proposed Fiscal Year 2011
Budgets for the Federal Emergency Management Agency and the Economic
Development Administration,'' Hearing before the Subcommittee on
Economic Development, Public Buildings, and Emergency Management, May
6, 2010; ``EDA: Lessons Learned From the Recovery Act and New Plans to
Strengthen Economic Development,'' Hearing before the Subcommittee on
Economic Development, Public Buildings, and Emergency Management,
February 25, 2010.
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Among the areas of particular concerns that we believe
warrant additional review, include:
Creates New Grant Programs: The bill would create
two new grant programs for (1) Business Incubators and Science
and Research Parks; and (2) Sustainable Economic Development.
One benefit of EDA's programs has been the flexibility EDA has
to determine what type of investments will produce the greatest
return on investment. The impact of specifying broad new grant
programs may have the unintended consequence of reducing this
flexibility.
Reduces Competition in the University Center
Grants: The bill significantly expands the existing EDA
University Center program by increasing the number of
federally-funded centers and minimizing competition by making
them more permanent. Promoting competition, not reducing it,
should be the goal to ensure tax dollars are used effectively
and to ensure more colleges and universities have real
opportunities to compete for these grants.
Creates a Loan Guarantee Program: The bill creates
a new $500 million loan guarantee program. These types of loan
guarantees have been problematic in the past and the creation
of a new program, without careful review, raises serious
concerns.
Expansion of Davis-Bacon Provisions Unprecedented:
The bill creates an unprecedented expansion of Davis-Bacon
rules by extending them in perpetuity to State or non-
federally-funded projects.
While we strongly support reauthorization of EDA's
programs, we remain troubled by a number of key provisions in
this bill. We hope as the bill is considered, further review
and revisions can be made accordingly.