[Senate Report 111-114]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 254
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-114

======================================================================



 
             ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2009

                                _______
                                

                January 20, 2010.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2778]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, which 
considered the bill (S. 2778) to amend the Public Works and 
Economic Development Act of 1965 to reauthorize that Act, and 
for other purposes, having considered the same, reports 
favorably thereon with amendments and recommends that the bill, 
as amended, do pass.

                       Purpose of the Legislation

    The Economic Development Revitalization Act of 2009 amends 
the Public Works and Economic Development Act of 1965 to 
authorize programs of the Economic Development Administration 
(EDA) for an additional five years.

                    General Statement and Background

    With the Public Works and Economic Development Act of 1965, 
Congress and President Lyndon Johnson created the Economic 
Development Administration (EDA) for job promotion and to 
accelerate industrial and commercial growth in communities 
suffering from limited job opportunities, low per capita income 
levels, or similar economic distress.
    As a federal agency whose main focus is on promoting 
private sector job growth in economically underserved 
communities, EDA pursues regional comprehensive strategic 
development. Working in partnership with state and local 
governments, regional economic development organizations, 
public and private nonprofit organizations, universities, and 
Indian tribes, EDA provides grants (``investments'') to help 
communities establish foundations for sustained economic 
development.
    The EDA has a long history of helping economically 
distressed communities foster the jobs and businesses necessary 
to maintain strong, healthy communities, and the work of EDA is 
particularly important today. During this time of economic 
distress a strong EDA can be of significant help to communities 
in retaining existing jobs and attracting new jobs.
    From providing funding for water and sewer improvements to 
helping manufacturers and producers become more competitive in 
a global marketplace, the EDA provides valuable assistance to 
communities across our nation. By design, these investments are 
targeted to spur large amounts of private sector investment. 
EDA awarded nearly $1 billion in construction related and 
revolving loan fund (RLF) projects from 2004 to 2008. These 
investments are expected to create approximately 172,000 jobs 
at an average cost of about $5,700 per job over the next nine 
years. Additionally, these construction and RLF investments are 
expected to leverage large amounts of private sector 
investment. Based on past research, it is expected that each 
dollar of EDA funding attracts at least $10 in private sector 
investment.
    Reauthorization of the Economic Development Administration 
will help ensure that the agency is able to continue investing 
in and creating jobs in distressed communities nationwide.
    The Economic Development Revitalization Act of 2009 makes 
several changes to EDA programs including changing the current 
cost sharing requirements to allow an increased federal share 
for areas in which unemployment is especially high and per 
capita income is especially low; allowing for increases in the 
amount of planning program assistance; modifying the existing 
Revolving Loan Fund program to allow recipients to convert an 
existing, but no longer needed revolving loan fund, to carry 
out another EDA eligible project; and modifying existing 
maintenance of effort rules to allow recipients of grants that 
are more than 10 years old to buy out the Government's interest 
using a depreciated figure based on the project's estimated 
useful life.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 designates the short title of the Act as the 
`Economic Development Revitalization Act of 2009'.

Section 2. Findings and declarations

    Section 2 updates the Public Works and Economic Development 
Act's (the Act) findings to include the location of information 
technology and manufacturing jobs in the United States as one 
of the means by which communities can develop a more 
competitive and diversified economic base.
    This section also modifies the Act's declarations to state 
that distressed communities should be encouraged to promote the 
formation of business incubators, as appropriate, to promote 
innovation and entrepreneurship.

Section 3. Definitions

    Section 3 adds the Southeast Crescent Regional Commission, 
Northern Border Regional Commission, and Southwest Border 
Regional Commission established by section 15401(a) of title 
40, U.S.C. to the definition of Regional Commissions.

Section 4. Economic development partnerships

    Subsection (1) lists economic development districts (EDDs) 
and university centers as eligible to receive technical 
assistance from the Secretary of Commerce, and highlights 
promoting innovation, entrepreneurship, and sustainable 
development as eligible purposes for which the Secretary can 
provide technical assistance.
    Subsection (2) adds EDDs to the list of entities to which 
the Secretary must provide reasonable opportunity to review and 
comment on proposed projects that may have a significant impact 
on the economy in the area.

Section 5. Grants for planning and grants for administrative expenses

    Subsection (1) includes ``fostering regional collaboration 
among local jurisdictions and organizations'' in the list of 
items to be achieved through the EDA planning process, which 
involves public officials and private citizens.
    Subsection (2) requires states that receive planning 
assistance from EDA to provide a copy of their annual report on 
the planning process to each EDD within the state.

Section 6. Cost sharing

    Subsection (a) modifies existing cost sharing requirements 
to clarify that the Federal share shall not exceed 50 percent, 
unless otherwise provided for.
    Subsection (b) inserts a new (c)(1) in the Act which allows 
for an increase in Federal share for communities that meet the 
following requirements: the federal share may be increased up 
to 60 percent for communities with a 24-month unemployment rate 
of at least 150 percent of the national average or per capita 
income of not more than 70 percent of the national average; the 
Federal share may be increased up to 70 percent for communities 
with a 24-month unemployment rate of at least 175 percent of 
the national average or a per capita income that is not more 
than 60 percent of the national average; the Federal share may 
be increased up to 80 percent for communities with a 24-month 
unemployment rate of at least 200 percent of the national 
average or a per capita income that is not more than 50 percent 
of the national average.
    This subsection also clarifies that the Secretary may 
establish additional eligibility criteria that would allow for 
increased federal share in areas impacted by severe 
outmigration, sudden and severe economic dislocations, and 
other economic circumstances, as long as the Federal shares 
established under this criteria do not exceed 80 percent.
    Subsection (b) amends subsection (c)(2) of the Act as 
redesignated to strike ``may'' and require the Secretary to 
provide to Indian Tribes a Federal share of 75 percent, which 
may be increased to 100 percent.
    Subsection (b) also adds a new subsection (c)(5) to the Act 
which allows the Secretary to increase the Federal share up to 
100 percent for an area that has had a major disaster or 
emergency declared under the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5121 et seq.) for up to 
18 months following the disaster or emergency designation.

Section 7. Grants for training, research, and technical assistance

    Section 7 clarifies that the Secretary may make grants that 
would be useful in alleviating or preventing outmigration, 
underemployment, or in assisting in the location of information 
technology and manufacturing jobs in the United States. In 
addition, this section states that grants may be used for a 
peer exchange program to promote industry-leading practices and 
innovations relating to the organizational development, program 
delivery, and regional initiatives of EDDs.

Section 8. Enhancement of recipient flexibility to deal with project 
        assets

    Section 8(a) specifies that communities whose economies 
have been injured by the loss of information technology, 
manufacturing, natural resources-based, agricultural, or 
service sector jobs shall be eligible for assistance to 
reinvest in and diversify their economies.
    Section 8(b) requires that the Secretary shall periodically 
solicit input on the revolving loan fund program from fund 
grantees, national experts, and employees of Federal agencies 
with knowledge of international, national, regional, and 
statewide trends, innovations, and noteworthy practices 
relating to business development finance, including public and 
private lending and technical assistance intermediaries.
    Section 8(b) also provides flexibility to the revolving 
loan fund program by allowing the recipient of a revolving loan 
fund that is no longer needed to submit to the Secretary a 
request to approve the conversion of the revolving loan fund 
assistance to other eligible projects. This subsection also 
authorizes the Secretary to use up to 2 percent of the amounts 
made available for grants under section 209 to be used to 
improve the management of the revolving loan fund program.

Section 9. Brightfields demonstration program

    Section 9 extends authorization for the Brightfields 
Demonstration Program through fiscal year 2013.

Section 10. Designation of economic development districts

    Section 10 specifies that each EDD shall engage in a full 
range of economic activities including: coordinating and 
implementing economic development activities; carrying out 
economic development research, planning, implementation and 
advisory funding; and coordinating the development and 
implementation of the comprehensive economic development 
strategy with other local, State, Federal, and private 
organizations. This section also allows EDDs to enter into 
contracts for services to accomplish these activities.
    One function of EDDs is to coordinate with other Federal, 
State, local and private organizations, including with Federal 
agencies that provide grants or loans, or award a substantial 
number of contracts to the communities in the EDD. For example, 
EDDs should coordinate with the Forest Service, or other 
relevant agencies, in the case of timber sale, service, or 
stewardship contracts. Coordination should be executed in a 
manner to help the communities understand the probable levels 
of Federal support or contracts so that the communities can 
adequately and accurately plan for their economic future.

Section 11. Consultation with other persons and agencies

    Section 11 includes area and regional outmigration as an 
issue regarding which the Secretary may consult with other 
persons and agencies who may be of assistance.

Section 12. Notification of reorganization

    Section 12 moves the State of Montana from the purview of 
the Denver Regional Office to the Seattle Regional Office.

Section 13. Maintenance of effort

    Section 13 modifies existing maintenance of effort rules to 
allow recipients of grants that are more than 10 years old to 
buy out the Government's interest using a depreciated figure 
based on the project's estimated useful life.

Section 14. Extension of authorization of appropriations

    Section 14 authorizes EDA for an additional five years 
(fiscal year 2009 through fiscal year 2013) at $500 million per 
year.

Section 15. Funding for grants for planning and grants for 
        administrative expenses

    Section 15 maintains the current requirement that $27 
million shall be available each year for grants for planning 
and administrative expenses and requires an increase to $28 
million if appropriations for the economic development 
assistance programs are equal to or greater than $280 million, 
to $29.5 million if appropriations for the economic development 
assistance programs are equal to or greater than $320 million, 
to $31 million if appropriations for the economic development 
assistance programs are equal to or greater than $350 million, 
to $32.5 million if appropriations for the economic development 
assistance programs are equal to or greater than $380 million, 
and to $34.5 million if appropriations for the economic 
development assistance programs are equal to or greater than 
$420 million.

                          Legislative History

    The most recent EDA authorization, the Economic Development 
Administration Reauthorization Act of 2004, expired on 
September 30, 2008. The Committee met on November 18, 2009, to 
consider S. 2778, the Economic Development Revitalization Act 
of 2009. Boxer Amendment #1, to encourage the location of 
information technology and manufacturing jobs in the United 
States, was adopted by voice vote. The bill was then ordered to 
be reported favorably with amendment by a roll call vote of 18 
yeas and 1 not recorded.

                                Hearings

    In the 110th Congress, the Committee held a hearing on 
September 9, 2008, entitled, ``Economic Development 
Administration Oversight''. The Committee also met on September 
17, 2008, to consider an original bill (S. ____), the Economic 
Development Revitalization Act of 2008, which is very similar 
to this year's legislation. The bill was ordered to be reported 
favorably by voice vote without amendment.
    During the 111th Congress, on May 21, 2009, the Committee 
held a hearing entitled, ``Oversight of the Economic 
Development Administration.'' The purpose of the hearing was to 
examine the Economic Development Administration's use of recent 
disaster and stimulus funding and to explore issues and ideas 
for reauthorization.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider S. 2778, the Economic Development Revitalization Act 
on November 18, 2009. A quorum of the Committee being present, 
S. 2778 was reported favorably with amendment by a roll call 
vote of 18 yeas and 1 not recorded.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee finds, consistent 
with the findings of the Congressional Budget Office, that S. 
2778 does not create any new private sector mandates as defined 
in the Unfunded Mandates Reform Act, nor will it cause any 
adverse impact on the personal privacy of individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds, in accordance with the 
findings of the Congressional Budget Office noted below, that 
S. 2778 would impose no Federal intergovernmental unfunded 
mandates on State, local or tribal governments, and that the 
bill contains no new private-sector mandates as defined in 
UMRA.

S. 2778--Economic Development Revitalization Act of 2009

    Summary: S. 2778 would reauthorize funding for existing 
programs of the Economic Development Administration (EDA) 
through 2013. The legislation also would authorize 
appropriations for EDA to rebuild certain abandoned or 
underutilized property using solar energy technology 
(brightfields). Assuming appropriation of the specified 
amounts, CBO estimates that implementing this bill would cost 
about $1.3 billion over the next five years and an additional 
$760 million after 2014. Enacting S. 2778 would not affect 
direct spending or revenues.
    S. 2778 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 S. 2778 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--
                                                       ---------------------------------------------------------
                                                          2010     2011     2012     2013     2014    2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Economic Development Assistance Programs:
    Authorization Level...............................      500      500      500      500        0        2,000
    Estimated Outlays.................................       25      135      245      385      460        1,250
Brightfields Demonstration Program:
    Authorization Level...............................        5        5        5        5        0           20
    Estimated Outlays.................................        0        1        2        4        5           12
    Total Changes:
        Authorization Level...........................      505      505      505      505        0        2,020
        Estimated Outlays.............................       25      136      247      389      465       1,262
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500.000.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the middle of fiscal year 2010 
and that amounts specified in the bill will be appropriated for 
each year.

Economic development assistance programs

    S. 2778 would authorize the appropriation of $500 million 
in each of fiscal years 2010 through 2013 for EDA to provide 
various types of assistance to encourage economic development 
in distressed areas. For 2009, the Congress provided a total of 
$430 million to EDA, including $150 million that was provided 
by the American Recovery and Reinvestment Act of 2009 and $40 
million for the new Trade Adjustment Assistance for Communities 
program (see Public Laws 111-5, 111-8, and 111-32).
    Of amounts authorized by the bill, $34.5 million would be 
spent on grants for planning and administrative expenses (the 
amount would vary based on actual appropriations). Based on 
historical spending patterns of EDA programs, CBO estimates 
that assistance provided under this legislation would cost 
$1.25 billion over the next five years, with residual spending 
of about $750 million occurring in later years.

Brightfields demonstration program

    S. 2778 would authorize the appropriation of $5 million in 
each of fiscal years 2010 through 2013 for EDA to establish a 
demonstration program to develop brownfield sites (abandoned or 
underutilized property where redevelopment is hampered by 
actual or potential environmental contamination) using solar 
energy technologies. Based on the spending patterns of similar 
EDA projects, CBO estimates that implementing this program 
would cost $12 million over the 2010-2014 period, with residual 
spending occurring in later years.

Other changes

    The legislation would increase the maximum federal cost for 
EDA projects. Under current law, the federal government covers 
50 percent of a project's cost, 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). S. 2778 would lower the threshold at which 
additional federal assistance could be triggered due to 
relative need. The legislation also would increase the minimum 
federal share for projects of Indian tribes from 50 percent to 
75 percent and increase the maximum federal share of all 
projects located in a Presidentially declared disaster area to 
100 percent.
    CBO does not expect that these changes would significantly 
alter the expenditures of EDA programs. As such, we estimate 
that implementing these provisions would have no effect on the 
federal budget over the next five years.
    Intergovernmental and private-sector impact: S. 2778 
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. Any costs to these governments, including 
matching funds, would be incurred voluntarily as a condition of 
federal assistance.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, 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

           *       *       *       *       *       *       *



SEC. 2. 42 U.S.C. 3121 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, including the location of 
                information technology and manufacturing jobs 
                in 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]
          (3) whether suffering from long-term distress or a 
        sudden economic dislocation, distressed communities 
        should be encouraged to promote innovation and 
        entrepreneurship, including, as appropriate, the 
        support of the formation of business incubators in 
        economically distressed areas, so as to help regions to 
        create higher-skill, higher-wage jobs and foster the 
        participation of those regions in the global 
        marketplace;

           *       *       *       *       *       *       *


SEC. 3. 42 U.S.C. 3122 DEFINITIONS.

    In this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (8) Regional commissions.--The term ``Regional 
        Commission'' means--
                  (A) the Appalachian Regional Commission 
                established under chapter 143 of title 40, 
                United States Code;
                  (B) the Delta Regional Authority established 
                under subtitle F of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 2009 et seq.);
                  (C) the Denali Commission established under 
                the Denali Commission Act of 1998 (42 U.S.C. 
                3121 note; 112 Stat. 2681-637 et seq.); [and]
                  (D) the Northern Great Plains Regional 
                Authority established under subtitle G of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2009bb et seq.)[.];and
                  (E) 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.

           *       *       *       *       *       *       *


SEC. 101. 42 U.S.C. 3131 ESTABLISHMENT OF ECONOMIC DEVELOPMENT 
                    PARTNERSHIPS.

    (a) In General.--In providing assistance under this title, 
the Secretary shall cooperate with States and other entities to 
ensure that, consistent with national objectives, Federal 
programs are compatible with and further the objectives of 
State, regional, and local economic development plans and 
comprehensive economic development strategies.
    (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), and multi-State 
regional organizationseconomic development districts, 
university centers, as the Secretary determines is appropriate 
to--
          (1) alleviate economic distress;
          (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,innovation, 
        entrepreneurship, sustainable development, and 
        technological capacity 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(including 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.
    (d) Cooperation Agreements.--
          (1) In general.--The Secretary may enter into a 
        cooperation agreement with any 2 or more adjoining 
        States, or an organization of any 2 or more adjoining 
        States, in support of effective economic development.
          (2) Participation.--Each cooperation agreement shall 
        provide for suitable participation by other 
        governmental and non-governmental entities that are 
        representative of significant interests in and 
        perspectives on economic development in an area.

           *       *       *       *       *       *       *


SEC. 203. 42 U.S.C. 3143 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 
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) analyzing local economies;
          (2) defining economic development goals;
          (3) determining project opportunities; [and]
          (4) formulating and implementing an economic 
        development program that includes systematic efforts to 
        reduce unemployment and increase incomes[.];and
          (5) fostering regional collaboration among local 
        jurisdictions and organizations.
    (c) Use of Planning Assistance.--Planning assistance under 
this title shall be used in conjunction with any other 
available Federal planning assistance to ensure adequate and 
effective planning and economical use of funds.
    (d) State Plans.--
          (1) Development.--Any State plan developed with 
        assistance under this section shall be developed 
        cooperatively by the State, political subdivisions of 
        the State, and the economic development districts 
        located wholly or partially in the State.
          (2) Comprehensive economic development strategy.--As 
        a condition of receipt of assistance for a State plan 
        under this subsection, the State shall have or develop 
        a comprehensive economic development strategy.
          (3) Certification to the Secretary.--On completion of 
        a State plan developed with assistance under this 
        section, the State shall--
                  (A) certify to the Secretary that, in the 
                development of the State plan, local and 
                economic development district plans were 
                considered and, to the maximum extent 
                practicable, the State plan is consistent with 
                the local and economic development district 
                plans; and
                  (B) identify any inconsistencies between the 
                State plan and the local and economic 
                development district plans and provide a 
                justification for each inconsistency.
          (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 to--
                  (A) promote economic development and 
                opportunity;
                  (B) foster effective transportation access;
                  (C) enhance and protect the environment; and
                  (D) balance resources through the sound 
                management of physical development.
          (5) Report to secretary.--Each State that receives 
        assistance for the development of a plan under this 
        [subsection shall submit to the Secretary an annual 
        report on the planning process assisted under this 
        subsection.]subsection shall--
                  (A) submit to the Secretary an annual report 
                on the planning process assisted under this 
                subsection; and
                  (B) provide a copy of each annual report to 
                each economic development district within the 
                State.

           *       *       *       *       *       *       *


SEC. 204. 42 U.S.C. 3144 COST SHARING.

    (a) Federal Share.--Subject to section 205, the amount of a 
grant for a project under this title [shall not exceed 50 
percent of the cost of the project.]shall not exceed 50 
percent, except as otherwise expressly provided in this Act.
    (b) Non-Federal Share.--In determining the amount of the 
non-Federal share of the cost of a project, the Secretary may 
provide credit toward the non-Federal share for all 
contributions both in cash and in-kind, fairly evaluated, 
including contributions of space, equipment, and services.
    (c) Increase in Federal Share.--
          (1) Relative needs of an area.--
                  (A) 150-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 150 
                percent of the national average or the per 
                capita income is not more than 70 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 60 percent of 
                the cost of the project.
                  (B) 175-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 175 
                percent of the national average or the per 
                capita income is not more than 60 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 70 percent of 
                the cost of the project.
                  (C) 200-percent higher unemployment rate.--In 
                the case of a grant made in an area for which 
                the 24-month unemployment rate is at least 200 
                percent of the national average or the per 
                capita income is not more than 50 percent of 
                the national average, the Secretary may 
                increase the Federal share above the percentage 
                specified in subsection (a) up to 80 percent of 
                the cost of the project.
                  (D) Additional criteria.--The Secretary may 
                establish eligibility criteria in addition to 
                the criteria described in this paragraph to 
                address areas impacted by severe out-migration, 
                sudden and severe economic dislocations, and 
                other economic circumstances, on the condition 
                that a Federal share established for such 
                eligibility criteria shall not exceed 80 
                percent.--
          [(1)](2) Indian tribes.--In the case of a grant to an 
        Indian tribe for a project under this title, the 
        Secretary [may]shall increase the Federal share above 
        the percentage specified in subsection (a)to 75 percent 
        of the cost of the project, and may increase up to 100 
        percent of the cost of the project.
          [(2)](3) Certain states, political subdivisions, and 
        nonprofit organizations.--In the case of a grant to a 
        State, or a political subdivision of a State, that the 
        Secretary determines has exhausted the effective taxing 
        and borrowing capacity of the State or political 
        subdivision, or in the case of a grant to a nonprofit 
        organization that the Secretary determines has 
        exhausted the effective borrowing capacity of the 
        nonprofit organization, the Secretary may increase the 
        Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the 
        project.
          [(3)](4) Training, research, and technical 
        assistance.--In the case of a grant provided under 
        section 207, the Secretary may increase the Federal 
        share above the percentage specified in subsection (a) 
        up to 100 percent of the cost of the project if the 
        Secretary determines that the project funded by the 
        grant merits, and is not feasible without, such an 
        increase.
          (5) Federally declared disaster areas.--In the case 
        of a grant for an area with respect to which a major 
        disaster or emergency has been declared under the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5121 et seq.) during the 18-
        month period ending on the date on which the Federal 
        share is determined, the Secretary may increase the 
        Federal share above the percentage specified in 
        subsection (a) up to 100 percent of the cost of the 
        project.

           *       *       *       *       *       *       *


SEC. 207. 42 U.S.C. 3147 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], outmigration, or underemployment, or 
        in assisting in the location of information technology 
        and manufacturing jobs in the United States.
          (2) Types of assistance.--Grants under paragraph (1) 
        may be used for--
                  (A) project planning and feasibility studies;
                  (B) demonstrations of innovative activities 
                or strategic economic development investments;
                  (C) management and operational assistance;
                  (D) establishment of university centers;
                  (E) establishment of business outreach 
                centers;
                  (F) studies evaluating the needs of, and 
                development potential for, economic growth of 
                areas that the Secretary determines have 
                substantial need for the assistance;
                  (G) studies that evaluate the effectiveness 
                of coordinating projects funded under this Act 
                with projects funded under other Acts;
                  (H) assessment, marketing, and establishment 
                of business clusters; [and]
                  (I) a peer exchange program to promote 
                industry-leading practices and innovations 
                relating to the organizational development, 
                program delivery, and regional initiatives of 
                economic development districts; and
                  [(I)](J) other activities determined by the 
                Secretary to be appropriate.
          (3) Cooperation requirement.--In the case of a 
        project assisted under this section that is national or 
        regional in scope, the Secretary may waive the 
        provision in section 3(4)(A)(vi) requiring a nonprofit 
        organization or association to act in cooperation with 
        officials of a political subdivision of a State.
    (b) Methods of Provision of Assistance.--In providing 
research and technical assistance under this section, the 
Secretary, in addition to making grants under subsection (a), 
may--
          (1) provide research and technical assistance through 
        officers or employees of the Department;
          (2) pay funds made available to carry out this 
        section to Federal agencies; or
          (3) employ private individuals, partnerships, 
        businesses, corporations, or appropriate institutions 
        under contracts entered into for that purpose.

           *       *       *       *       *       *       *


SEC. 209. 42 U.S.C. 3149 GRANTS FOR ECONOMIC ADJUSTMENT.

    (a) In General.--On the application of an eligible 
recipient, the Secretary may make grants for development of 
public facilities, public services, business development 
(including funding of a revolving loan fund), 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.
    (b) Criteria for Assistance.--The Secretary may provide 
assistance under this section only if the Secretary determines 
that--
          (1) the project will help the area to meet a special 
        need arising from--
                  (A) actual or threatened severe unemployment; 
                or
                  (B) economic adjustment problems resulting 
                from severe changes in economic conditions; and
          (2) the area for which a project is to be carried out 
        has a comprehensive economic development strategy and 
        the project is consistent with the strategy, except 
        that this paragraph shall not apply to planning 
        projects.
    (c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities 
identified by communities, the economies of which are injured 
by--
          (1) military base closures or realignments, defense 
        contractor reductions in force, or Department of Energy 
        defense-related funding reductions, for help in 
        diversifying their economies through projects to be 
        carried out on Federal Government installations or 
        elsewhere in the communities;
          (2) disasters or emergencies, in areas with respect 
        to which a major disaster or emergency has been 
        declared under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
        for post-disaster economic recovery;
          (3) international trade, for help in economic 
        restructuring of 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, for reinvesting 
        in and diversifying the economies of the communities.]
          (5) the loss of information technology, 
        manufacturing, natural resource-based, agricultural, or 
        service sector jobs, for reinvesting in and 
        diversifying the economies of the communities.
    (d) Special Provisions Relating to Revolving Loan Fund 
Grants.--
          (1) In general.--The Secretary shall promulgate 
        regulations to maintain the proper operation and 
        financial integrity of revolving loan funds established 
        by recipients with assistance under this section.
          (2) Comments.--
                  (A) In general.--The Secretary shall 
                periodically solicit from the individuals and 
                entities described in subparagraph (B)--
                          (i) comments regarding the guidelines 
                        and performance requirements for the 
                        revolving loan fund program; and
                          (ii) recommendations for improving 
                        the performance of the program and 
                        grantees under the program.
                  (B) Description of individuals and 
                entities.--The individuals and entities 
                referred to in subparagraph (A) are--
                          (i) the public; and
                          (ii) in particular, revolving loan 
                        fund grantees, national experts, and 
                        employees of Federal agencies with 
                        knowledge of international, national, 
                        regional, and statewide trends, 
                        innovations, and noteworthy practices 
                        relating to business development 
                        finance, including public and private 
                        lending and technical assistance 
                        intermediaries.
          [(2)](3) Efficient administration.--The Secretary 
        may--
                  (A) at the request of a grantee, amend and 
                consolidate grant agreements governing 
                revolving loan funds to provide flexibility 
                with respect to lending areas and borrower 
                criteria;
                  (B) assign or transfer assets of a revolving 
                loan fund to third party for the purpose of 
                liquidation, and the third party may retain 
                assets of the fund to defray costs related to 
                liquidation; and
                  (C) take such actions as are appropriate to 
                enable revolving loan fund operators to sell or 
                securitize loans (except that the actions may 
                not include issuance of a Federal guaranty by 
                the Secretary).
          [(3)](4) Treatment of actions.--An action taken by 
        the Secretary under this subsection with respect to a 
        revolving loan fund shall not constitute a new 
        obligation if all grant funds associated with the 
        original grant award have been disbursed to the 
        recipient.
          [(4)](5) Preservation of securities laws.--
                  (A) Not treated as exempted securities.--No 
                securities issued pursuant to [paragraph 
                (2)(C)]paragraph (3)(C) shall be treated as 
                exempted securities for purposes of the 
                Securities Act of 1933 (15 U.S.C. 77a et seq.) 
                or the Securities Exchange Act of 1934 (15 
                U.S.C. 78a et seq.), unless exempted by rule or 
                regulation of the Securities and Exchange 
                Commission.
          (6) Conversion of project assets.--
                  (A) Request.--If a recipient determines that 
                a revolving loan fund established using 
                assistance provided under this section is no 
                longer needed, or that the recipient could make 
                better use of the assistance in light of the 
                current economic development needs of the 
                recipient if the assistance was made available 
                to carry out any other project that meets the 
                requirements of this Act, the recipient may 
                submit to the Secretary a request to approve 
                the conversion of the assistance.
                  (B) Methods of conversion.--A recipient the 
                request to convert assistance of which is 
                approved under subparagraph (A) may accomplish 
                the conversion by--
                          (i) selling to a third party any 
                        assets of the applicable revolving loan 
                        fund; or
                          (ii) retaining repayments of 
                        principal and interest amounts on loans 
                        provided through the applicable 
                        revolving loan fund.
                  (C) Requirements.--
                          (i) Sale.--
                                  (I) In general.--Subject to 
                                subclause (II), a recipient 
                                shall use the net proceeds from 
                                a sale of assets under 
                                subparagraph (B)(i) to pay any 
                                portion of the costs of 1 or 
                                more projects that meet the 
                                requirements of this Act.
                                  (II) Treatment.--For purposes 
                                of subclause (I), a project 
                                described in that subclause 
                                shall be considered to be 
                                eligible under section 301.
                          (ii) Retention of repayments.--
                        Retention by a recipient of any 
                        repayment under subparagraph (B)(ii) 
                        shall be carried out in accordance with 
                        a strategic reuse plan approved by the 
                        Secretary that provides for the 
                        increase of capital over time until 
                        sufficient amounts (including interest 
                        earned on the amounts) are accumulated 
                        to fund other projects that meet the 
                        requirements of this Act.
                  (D) Terms and conditions.--The Secretary may 
                require such terms and conditions regarding a 
                proposed conversion of the use of assistance 
                under this paragraph as the Secretary 
                determines to be appropriate.
                  (E) Expediency requirement.--The Secretary 
                shall ensure that any assistance intended to be 
                converted for use pursuant to this paragraph is 
                used in an expeditious manner.
          (7) Program administration.--The Secretary may 
        allocate not more than 2 percent of the amounts made 
        available for grants under this section for the 
        development and maintenance of an automated tracking 
        and monitoring system to ensure the proper operation 
        and financial integrity of the revolving loan program 
        established under this section.
                  (B) Preservation.--Except as provided in 
                subparagraph (A), no provision of this 
                subsection or any regulation promulgated by the 
                Secretary under this subsection supersedes or 
                otherwise affects the application of the 
                securities laws (as the term is defined in 
                section 3(a) of the Securities Exchange Act of 
                1934 (15 U.S.C. 78c(a))) or the rules, 
                regulations, or orders of the Securities and 
                Exchange Commission or a self-regulatory 
                organization under that Commission.

           *       *       *       *       *       *       *


SEC. 218. 42 U.S.C. 3154D 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]2009 through 2013, to 
remain available until expended.

           *       *       *       *       *       *       *


SEC. 401. 42 U.S.C. 3171 DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

    (a) In General.--In order that economic development 
projects of broad geographic 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) the proposed district is of sufficient size or 
        population, and contains sufficient resources, to 
        foster economic development on a scale involving more 
        than a single area described in section 301(a);
          (2) the proposed district contains at least 1 area 
        described in section 301(a); and
          (3) the proposed district has a comprehensive 
        economic development strategy that--
                  (A) contains a specific program for intra-
                district cooperation, self-help, and public 
                investment; and
                  (B) is approved by each affected State and by 
                the Secretary.
    (b) Authorities.--The Secretary may, under regulations 
promulgated by the Secretary--
          (1) invite the States to determine boundaries for 
        proposed economic development districts;
          (2) cooperate with the States--
                  (A) in sponsoring and assisting district 
                economic planning and economic development 
                groups; and
                  (B) in assisting the district groups in 
                formulating comprehensive economic development 
                strategies for districts; and
          (3) encourage participation by appropriate local 
        government entities in the economic development 
        districts.
    (c) Operations.--
          (1) In general.--Each economic development district 
        shall engage in the full range of economic development 
        activities included in the list contained in the 
        comprehensive economic development strategy of the 
        economic development district that has been approved by 
        the Economic Development Administration, including--
                  (A) coordinating and implementing economic 
                development activities in the economic 
                development 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 other Federal, State, 
                local, and private organizations.
          (2) Contracts.--An economic development district may 
        elect to enter into contracts for services to 
        accomplish the activities described in paragraph (1).

           *       *       *       *       *       *       *


SEC. 503. 42 U.S.C. 3193 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, outmigration, or underemployment.
    (b) Consultation on Administration of Act.--The Secretary 
may provide for such consultation with interested Federal 
agencies as the Secretary determines to be appropriate in the 
performance of the duties of the Secretary under this Act.

           *       *       *       *       *       *       *


SEC. 507. 42 U.S.C. 3197 NOTIFICATION OF REORGANIZATION.

    [Not later than]
    (a) Notification.--Not later than 30 days before the date 
of any reorganization of the offices, programs, or activities 
of the Economic Development Administration, the Secretary shall 
provide notification of the reorganization to the Committee on 
Environment and Public Works and the Committee on 
Appropriations of the Senate, and the Committee on 
Transportation and Infrastructure and the Committee on 
Appropriations of the House of Representatives.
    (b) State of Montana.--The State of Montana shall be served 
by the Seattle office of the Economic Development 
Administration.

                        TITLE VI--MISCELLANEOUS

SEC. 601. 42 U.S.C. 3211 POWERS OF SECRETARY.

    (a) In General.--In carrying out the duties of the 
Secretary under this Act, the Secretary may--
          (1) * * *

           *       *       *       *       *       *       *


SEC. 613. MAINTENANCE OF EFFORT.

    (a) Expected Period of Best Efforts.--
          (1) Establishment.--To carry out the purposes of this 
        Act, before providing investment assistance for a 
        construction project under this Act, the Secretary 
        shall establish the expected period during which the 
        recipient of the assistance shall make best efforts to 
        achieve the economic development objectives of the 
        assistance.
          (2) Treatment of property.--To obtain the best 
        efforts of a recipient during the period established 
        under paragraph (1), during that period--
                  (A) any property that is acquired or 
                improved, in whole or in part, using investment 
                assistance under this Act shall be held in 
                trust by the recipient for the benefit of the 
                project; and
                  (B) the Secretary shall retain an undivided 
                equitable reversionary interest in the 
                property.
          (3) Termination of federal interest.--
                  (A) In general.--Beginning on the date on 
                which the Secretary determines that a recipient 
                has fulfilled the obligations of the recipient 
                for the applicable period under paragraph (1), 
                taking into consideration the economic 
                conditions existing during that period, the 
                Secretary may terminate the reversionary 
                interest of the Secretary in any applicable 
                property under paragraph (2)(B).
                  (B) Alternative method of termination.--
                          (i) In general.--On a determination 
                        by a recipient that the economic 
                        development needs of the recipient have 
                        changed during the period beginning on 
                        the date on which investment assistance 
                        for a construction project is provided 
                        under this Act and ending on the 
                        expiration of the expected period 
                        established for the project under 
                        paragraph (1), the recipient may submit 
                        to the Secretary a request to terminate 
                        the reversionary interest of the 
                        Secretary in property of the project 
                        under paragraph (2)(B) before the date 
                        described in subparagraph (A).
                          (ii) Approval.--The Secretary may 
                        approve a request of a recipient under 
                        clause (i) if--
                                  (I) in any case in which the 
                                request is submitted during the 
                                10-year period beginning on the 
                                date on which assistance is 
                                initially provided under this 
                                Act for the applicable project, 
                                the recipient repays to the 
                                Secretary an amount equal to 
                                100 percent of the fair market 
                                value of the pro rata Federal 
                                share of the project; or
                                  (II) in any case in which the 
                                request is submitted after the 
                                expiration of the 10-year 
                                period described in subclause 
                                (I), the recipient repays to 
                                the Secretary an amount equal 
                                to the fair market value of the 
                                pro rata Federal share of the 
                                project as if that value had 
                                been amortized over the period 
                                established under paragraph 
                                (1), based on a straight-line 
                                depreciation of the project 
                                throughout the estimated useful 
                                life of the project.
    (b) Terms and Conditions.--The Secretary may establish such 
terms and conditions under this section as the Secretary 
determines to be appropriate, including by extending the period 
of a reversionary interest of the Secretary under subsection 
(a)(2)(B) in any case in which the Secretary determines that 
the performance of a recipient is unsatisfactory.
    (c) Previously Extended Assistance.--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.

           *       *       *       *       *       *       *


SEC. 701. 42 U.S.C. 3231 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.'' expended, 
        $500,000,000 for each of fiscal years 2009 through 
        2013.

           *       *       *       *       *       *       *


[SEC. 704. 42 U.S.C. 3234 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 shall be made available 
for grants provided under section 203.]

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

    (a) In General--Subject to subsection (b), of the amounts 
made available under section 701 for each fiscal year, not less 
than $27,000,000 shall be made available to provide grants 
under section 203.
    (b) Subject to Total Appropriations.--For any fiscal year, 
the amount made available pursuant to subsection (a) shall be 
increased to--
          (1) $28,000,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $280,000,000;
          (2) $29,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $320,000,000;
          (3) $31,000,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $350,000,000;
          (4) $32,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $380,000,000; and
          (5) $34,500,000, if the total amount made available 
        under subsection 701(a) for the fiscal year is equal to 
        or greater than $420,000,000.

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