[Senate Report 112-15]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 38
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-15

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



 
            ECONOMIC DEVELOPMENT REVITALIZATION ACT OF 2011

                                _______
                                

                  May 2, 2011.--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. 782]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, which 
considered the bill (S. 782) 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 amendment and recommends that the bill, 
as amended, do pass.

                       Purpose of the Legislation

    The Economic Development Revitalization Act of 2011 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

    Established under the Public Works and Economic Development 
Act of 1965, the Economic Development Administration (EDA) has 
long worked to promote job creation and to accelerate 
industrial and commercial growth in communities suffering from 
limited job opportunities, low per capita income levels, or 
similar economic distress.
    Over the past four decades, EDA has established a history 
of helping economically distressed communities foster the jobs 
and businesses necessary to maintain strong, healthy 
communities. Working in partnership with state and local 
governments, regional economic development organizations, 
public and private nonprofit organizations, universities, and 
Indian tribes, EDA provides grants to help communities 
establish foundations for sustained economic development.
    EDA's work is particularly important today and 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, EDA investments are targeted to spur large 
amounts of private sector investment. Between 2005 and 2010, 
EDA awarded $1.2 billion in construction-related and revolving 
loan fund projects through its regular appropriations. The 
approximately 925 investments are expected to create more than 
314,000 jobs, and to leverage large amounts of private sector 
investment. Based on past research, each dollar of EDA funding 
is expected to attract nearly seven dollars in private sector 
investment.
    Reauthorization of the EDA 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 2011 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 2011'.

Section 2. Findings and declarations

    Section 2 updates the findings of the Public Works and 
Economic Development Act of 1965 (the Act) 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 15301(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 (the Secretary), and 
adds promoting innovation, entrepreneurship and beneficial 
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. Encouragement of certain coordination

    Subsection (1) amends the Act to emphasize that EDA should 
consult and cooperate with its Federal, State, and local 
governmental partners.
    Subsection (2) specifies that EDA should cooperate with the 
Department of Labor on economic and workforce development 
strategies and the promotion of regional innovation clusters.

Section 6. Additional support for enterprise development organizations 
        within the public works program

    This section broadens the activities for which EDA can 
provide grants through Section 201 of the Act to include 
planning, technical assistance, business development assistance 
and other forms of assistance the Secretary determines are 
necessary or useful to support the establishment and operation 
of public works, public service or development facilities.
    Although this section provides EDA with additional 
flexibility in the awarding of grants, the Committee believes 
EDA should maintain the construction focus of this program for 
the great majority of its investments.

Section 7. Grants for planning and grants for administrative expenses

    Subsection (1) includes fostering innovation and 
entrepreneurship, fostering regional collaboration, and 
facilitating a stakeholder process that takes into account 
local and regional assets and global economic change on the 
list of items to be achieved through the EDA planning process.
    Subsection (2) specifies that a state's economic 
development planning should consider the ability of public 
works to support development practices that enhance energy and 
water efficiency, reduce the dependence of the United States on 
foreign oil, and encourage efficient coordination and 
leveraging of public and private investments.
    Subsection (2) also 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.
    Subsection (3) adds a new subsection (e) to Section 203 of 
the Act that authorizes the Secretary to provide additional 
assistance to highly distressed regions that are eligible for a 
grant rate of 80 percent or higher, and a new subsection (f) 
that authorizes the Secretary to provide additional assistance 
or a larger federal share to organizations who are planning on 
a regional scale.

Section 8. 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 a 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.
    Subsection (b) 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. It 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 9. Grants for training, research, and technical assistance

    Section 9 clarifies that the Secretary may make grants that 
would be useful in alleviating or preventing unemployment, 
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 10. Enhancement of recipient flexibility to deal with project 
        assets

    Section 10(a) provides explicit authority for EDA to help 
communities respond to economic adjustment problems caused by 
the expansion of defense facilities, not just defense-related 
closures and realignments.
    Section 10(a) also 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 10(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 10(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 improve the 
management of the revolving loan fund program.

Section 11. Renewable energy program

    Section 11 authorizes EDA to provide grants of up to $5 
million for each of fiscal years 2011 through 2015 for the 
redevelopment of brownfield sites through the use of one or 
more renewable energy technologies including, but not limited 
to, solar, wind, and geothermal technologies.

Section 12. Energy efficiency and economic development

    Section 12 adds a new section to the Act which specifies 
that EDA shall support economic development practices that 
enhance energy and water efficiency, and reduce the dependence 
of the United States on foreign oil.

Section 13. Comprehensive economic development strategies improvements

    Section 13 makes minor technical changes to clarify that 
comprehensive economic development strategies must address 
economic development opportunities, as well as the economic 
development problems communities' face, and that such 
strategies must efficiently increase the effective use and 
functionality of resources.

Section 14. Designation of economic development districts

    Section 14 specifies that each EDD shall engage in a full 
range of economic activities including: coordinating and 
implementing economic development; carrying out economic 
development research, planning, implementation and advisory 
functions; and coordinating the development and implementation 
of the comprehensive economic development strategy with other 
Federal, State, local, 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 15. Consultation with other persons and agencies

    Section 15 adds area and regional outmigration to the list 
of items for which the Secretary may consult with other persons 
and agencies who may be of assistance.

Section 16. Notification of reorganization

    Section 16 moves the State of Montana from the purview of 
the Denver Regional Office to the Seattle Regional Office.

Section 17. Administrative expenses

    Section 17 amends Section 604 of the Act, which authorizes 
EDA to delegate functions to other Federal agencies, and to 
transfer to and receive funds from other Federal agencies. The 
amendment allows EDA to use 3 percent of the transferred funds, 
in the case of projects not involving construction, and 5 
percent of the transferred funds, in the case of projects 
involving construction, for administrative expenses incident to 
projects associated with the transfers.

Section 18. Maintenance of effort

    Section 18 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 19. Extension of authorization of appropriations

    Section 19 authorizes EDA for an additional five years 
(fiscal year 2011 through fiscal year 2015) at $500 million per 
year.

Section 20. Funding for grants for planning and grants for 
        administrative expenses

    Section 20 provides that not less than the lesser of 12 
percent and $31 million shall be provided each year for grants 
for planning and administrative expenses. The amount made 
available each year for grants for planning and administrative 
expenses will increase to an amount equal to: the greater of 
$32 million and 11 percent if $291 million or more is 
appropriated for economic development assistance programs; the 
greater of $33 million and 10 percent if $330 million or more 
is appropriated for economic development assistance programs; 
the greater of $34 million and 10 percent if $340 million or 
more is appropriated for economic development assistance 
programs; and, the greater of $35 million and 10 percent if 
$350 million or more is appropriated for economic development 
assistance programs.

Section 21. Report on duplicative programs

    Section 21 requires the Government Accountability Office to 
report to the Environment and Public Works Committee of the 
Senate within 90 days after enactment with a list of programs 
or portions of programs from other federal agencies, including 
the Department of Housing and Urban Development, Department of 
Agriculture, and the Small Business Administration, that are 
duplicative of programs administered by EDA.

                          Legislative History

    The most recent EDA authorization, the Economic Development 
Administration Reauthorization Act of 2004, expired on 
September 30, 2008. The Committee met on April 14, 2011, to 
consider S. 782, the Economic Development Revitalization Act of 
2011. Inhofe Amendment #1, directing the Government 
Accountability Office to compile a list of programs from other 
federal agencies that are duplicative of programs administered 
by EDA, was adopted by unanimous consent. The bill was then 
ordered to be reported favorably by voice vote.

                                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. 3551), 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.
    On November 18, 2009, the Committee met to consider S. 
2778, the Economic Development Revitalization Act of 2009, 
which is very similar to this year's legislation. 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.
    On May 18, 2010, the Committee held a hearing entitled, 
`Federal Response to the Recent Oil Spill in the Gulf of 
Mexico.' Assistant Secretary John Fernandez testified at that 
hearing regarding EDA's response to the Oil Spill in the Gulf.

                            Roll Call Votes

    The Committee on Environment and Public Works met to 
consider S. 782, the Economic Development Revitalization Act on 
April 14, 2011. A quorum of the Committee being present, S. 782 
was reported favorably with amendment by voice vote.

                      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. 
782 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. 782 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.

                                                    April 26, 2011.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 782, the Economic 
Development Revitalization Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 782--Economic Development Revitalization Act of 2011

    Summary: S. 782 would reauthorize funding for existing 
programs of the Economic Development Administration (EDA) 
through 2015. Assuming appropriation of the specified amounts, 
CBO estimates that implementing this bill would cost about $1.5 
billion through 2016 and an additional $760 million after that 
year. Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    S. 782 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. 782 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   2016   2011-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Levela......................................    254    500    500    500    500      0       2,254
Estimated Outlays.........................................      0     38    190    300    456    510      1,494
----------------------------------------------------------------------------------------------------------------
aThe Congress provided $246 million to the EDA for fiscal year 2011 (see Public Law 112-10). CBO assumes that a
  supplemental appropriation would be provided to increase the overall funding level for the agency to the
  amount authorized by the bill.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted before the end of fiscal year 2011 
and that amounts specified in the bill will be appropriated for 
each year (including amounts authorized for the current fiscal 
year).
    S. 782 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 2011, the Congress has thus far 
provided a total of $246 million to EDA (see Public Law 112-
10), leaving $254 million remaining from the authorization 
level in the bill for 2011 of $500 million.
    Of amounts authorized by the bill for each year, at least 
$31 million would be spent on a grant program for planning and 
administrative expenses (the amount authorized for this 
activity would vary based on actual appropriations). This 
amount is roughly equivalent to the amount allocated for this 
activity in 2011, CBO estimates. The bill also would allocate 
$5 million per year for grants to redevelop abandoned or 
underdeveloped property through the use of renewable energy 
technologies.
    Based on historical spending patterns, CBO estimates that 
assistance provided by EDA would cost about $1.5 billion over 
the 2011-2016 period, and $760 million after 2016.
    S. 782 also would make several changes to the amount of 
assistance that may be provided to each grantee. Under current 
law, the federal government covers 50 percent of the cost for 
most 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). The 
legislation would lower the threshold at which that additional 
federal assistance would be provided. In addition, the minimum 
federal share for grants made to Indian tribes would increase 
from 50 percent to 75 percent, and the maximum federal share of 
all projects located in a Presidentially declared disaster area 
would increase to 100 percent. Such changes would not 
significantly alter the pace of expenditures for EDA programs 
and would have no effect on the federal budget, CBO estimates.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 782 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments would 
benefit from grants and technical assistance authorized in the 
bill for economic development projects. Any costs to those 
governments, including matching funds, would be incurred 
voluntarily as a condition of receiving 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

           *       *       *       *       *       *       *



SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Public Works 
and Economic Development Act of 1965''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and declarations.
Sec. 3. Definitions.

 TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

Sec. 101. Establishment of economic development partnerships.
Sec. 102. Cooperation of Federal agencies.
Sec. 103. Coordination.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

Sec. 201. Grants for public works and economic development.
Sec. 202. Base closings and realignments.
Sec. 203. Grants for planning and grants for administrative expenses.
Sec. 204. Cost sharing.
Sec. 205. Supplementary grants.
Sec. 206. Regulations on relative needs and allocations.
Sec. 207. Grants for training, research, and technical assistance.
[Sec. 208. Repealed]
Sec. 209. Grants for economic adjustment.
Sec. 210. Changed project circumstances.
Sec. 211. Use of funds in projects constructed under projected cost.
Sec. 212. Reports by recipients.
Sec. 213. Prohibition on use of funds for attorney's and consultant's 
          fees.
Sec. 214. Special impact areas.
Sec. 215. Performance awards.
Sec. 216. Planning performance awards.
Sec. 217. Direct expenditure or redistribution by recipient.
Sec. 218. Brightfields demonstration program.
Sec. 219. Energy efficiency and economic development.
     * * * * * * *

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, 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; and
          (4) assistance under this Act should be made 
        available to promote the productive reuse of abandoned 
        industrial facilities and the redevelopment of 
        brownfields.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Comprehensive economic development strategy.--The 
        term ``comprehensive economic development strategy'' 
        means a comprehensive economic development strategy 
        approved by the Secretary under section 302.
          (2) Department.--The term ``Department'' means the 
        Department of Commerce.
          (3) Economic development district.--
                  (A) In general.--The term ``economic 
                development district'' means any area in the 
                United States that--
                          (i) is composed of areas described in 
                        section 301(a) and, to the extent 
                        appropriate, neighboring counties or 
                        communities; and
                          (ii) has been designated by the 
                        Secretary as an economic development 
                        district under section 401.
                  (B) Inclusion.--The term ``economic 
                development district'' includes any economic 
                development district designated by the 
                Secretary under section 403 (as in effect on 
                the day before the effective date of the 
                Economic Development Administration Reform Act 
                of 1998).
          (4) Eligible recipient.--
                  (A) In general.--The term ``eligible 
                recipient'' means--
                          (i) an economic development district;
                          (ii) an Indian tribe;
                          (iii) a State;
                          (iv) a city or other political 
                        subdivision of a State, including a 
                        special purpose unit of a State or 
                        local government engaged in economic or 
                        infrastructure development activities, 
                        or a consortium of political 
                        subdivisions;
                          (v) an institution of higher 
                        education or a consortium of 
                        institutions of higher education; or
                          (vi) a public or private nonprofit 
                        organization or association acting in 
                        cooperation with officials of a 
                        political subdivision of a State.
                  (B) Training, research, and technical 
                assistance grants.--In the case of grants under 
                section 207, the term ``eligible recipient'' 
                also includes private individuals and for-
                profit organizations.
          (5) Federal agency.--The term ``Federal agency'' 
        means a department, agency, or instrumentality of the 
        United States.
          (6) Grant.--The term ``grant'' includes a cooperative 
        agreement (within the meaning of chapter 63 of title 
        31, United States Code).
          (7) Indian tribe.--The term ``Indian tribe'' means 
        any Indian tribe, band, nation, pueblo, or other 
        organized group or community, including any Alaska 
        Native village or Regional Corporation (as defined in 
        or established under the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.)), that is 
        recognized as eligible for the special programs and 
        services provided by the United States to Indians 
        because of their status as Indians.
          (8) Regional commissions.--The term ``Regional 
        Commissions'' 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. 2009aa 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 established by section 15301(a)(1) 
                of title 40, United States Code;
                  (F) the Northern Border Regional Commission 
                established by section 15301(a)(3) of title 40, 
                United States Code; and
                  (G) the Southwest Border Regional Commission 
                established by section 15301(a)(2) of title 40, 
                United States Code.

           *       *       *       *       *       *       *


SEC. 101. 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 organizations, economic 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]
          (2) encourage and support public-private partnerships 
        for the formation and improvement of regional economic 
        development strategies that sustain and promote 
        innovation and entrepreneurship that is critical to 
        economic competitiveness across the United States; and
          (3) promote investment in infrastructure, innovation, 
        entrepreneurship, beneficial 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.

           *       *       *       *       *       *       *


SEC. 102. COOPERATION OF FEDERAL AGENCIES.

  [In accordance with]
  (a) In General.--In accordance with applicable laws and 
subject to the availability of appropriations, each Federal 
agency shall exercise its powers, duties and functions, and 
shall cooperate with the Secretary, in such manner as will 
assist the Secretary in carrying out this title.
  (b) Governmental Cooperation.--
          (1) In general.--The Secretary is authorized and 
        encouraged to consult and cooperate with other 
        agencies, including representatives of the Federal 
        Government, State and local governments, and consortia 
        of governmental organizations, that can assist in 
        addressing challenges and capitalize on opportunities 
        that require intergovernmental coordination.
          (2) Labor.--In carrying out paragraph (1), the 
        Secretary shall cooperate with the Secretary of Labor 
        to support economic and workforce development 
        strategies and the promotion of regional innovation 
        clusters.

           *       *       *       *       *       *       *


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; [and]
          (2) acquisition, design and engineering, 
        construction, rehabilitation, alteration, expansion, or 
        improvement of such a facility, including related 
        machinery and equipment[.]; and
          (3) other activities the conduct of which the 
        Secretary determines would be necessary or useful to 
        support the establishment and operation of those 
        facilities on an ongoing basis, including--
                  (A) related planning, technical assistance, 
                and business development assistance to enable 
                the recipient to bring together regional assets 
                and encourage entrepreneurial development; and
                  (B) to the extent needed to support 
                entrepreneurial development, revolving loan 
                funds pursuant to section 209.

           *       *       *       *       *       *       *


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 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.]
          (4) formulating and implementing an economic 
        development program that includes systematic efforts to 
        reduce unemployment and increase incomes by fostering 
        innovation and entrepreneurship;
          (5) fostering regional collaboration among local 
        jurisdictions and organizations; and
          (6) facilitating a stakeholder process that assists 
        the community or region in creating an economic 
        development vision that takes into account local and 
        regional assets (including natural, social, community, 
        and geographical resources) and global economic change.
  (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, to 
        the maximum extent practicable, 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) Coordination.--Before providing assistance for a 
        State plan under this section, the Secretary shall 
        consider the extent to which the State will consider 
        local and economic development district plans.
          (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;
                  (D) assist in carrying out the workforce 
                investment strategy of a State;
                  (E) promote the use 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 development practices that--
                          (i) enhance energy and water 
                        efficiency;
                          (ii) reduce the dependence of the 
                        United States on foreign oil; and
                          (iii) encourage efficient 
                        coordination and leveraging of public 
                        and private investments.
          (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.
  (e) Additional Amounts To Address Severe Need.--In 
determining the amount of funds to provide a recipient for 
planning assistance under this section, the Secretary shall 
take into account those recipients located in regions that 
are--
          (1) eligible for an investment rate of 80 percent or 
        higher; or
          (2) experiencing severe need due to long-term 
        economic deterioration or sudden and severe economic 
        distress.
  (f) Encouraging Planning Assistance on a Broader Regional 
Scale.--In order to encourage district organizations to develop 
regional economic competitiveness strategies on a broader basis 
in collaboration with other district organizations and entities 
outside the confines of a single economic development district, 
the Secretary may increase--
          (1) the Federal share otherwise applicable to the 
        recipients; or
          (2) the amount of Federal assistance to the 
        recipients.

           *       *       *       *       *       *       *


SEC. 204. COST SHARING.

  (a) Federal Share.--Except as provided in subsection (c), the 
Federal share of the cost of any project carried out under this 
title [shall not exceed--
          [(1) 50 percent; plus
          [(2) an additional percent that--
                  [(A) shall not exceed 30 percent; and
                  [(B) is based on the relative needs of the 
                area in which the project will be located, as 
                determined in accordance with regulations 
                promulgated by the Secretary.]shall not exceed 
                50 percent, except as otherwise expressly 
                provided in this Act.

           *       *       *       *       *       *       *

  (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 outmigration, 
                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.  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. 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]impacted 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;]
          (1) military base closures, realignments, or mission 
        growth, defense contractor reductions in force, or 
        Department of Energy defense-related funding 
        reductions, for help in--
                  (A) diversifying the economies of the 
                communities; or
                  (B) otherwise 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;
          (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.
                  (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.
          (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 
                request to convert assistance that 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.

           *       *       *       *       *       *       *


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.]
  (a) Definition of Renewable Energy Site.--In this section, 
the term `renewable energy site' means a brownfield site that 
is redeveloped through the incorporation of 1 or more renewable 
energy technologies, including, but not limited to, solar, 
wind, and geothermal 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]renewable energy site if the 
Secretary determines that the project will--
          (1) use 1 or more [solar energy 
        technologies]renewable energy technologies, including, 
        but not limited to, solar, wind, and geothermal 
        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]2011 through 2015, to remain 
available until expended.

SEC. 219. ENERGY EFFICIENCY AND ECONOMIC DEVELOPMENT.

  In administering programs under this Act, the Secretary shall 
support activities that employ economic development practices 
that--
          (1) enhance energy and water efficiency; and
          (2) reduce the dependence of the United States on 
        foreign oil.

           *       *       *       *       *       *       *


TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

           *       *       *       *       *       *       *


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], private, and nonprofit participants and 
        sources of funding for the investments; and
          (3)(A) a comprehensive economic development strategy 
        for addressing the economic 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 use]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.
  (b) Approval of Comprehensive Economic Development 
Strategy.--The Secretary shall approve a comprehensive economic 
development strategy that meets the requirements of subsection 
(a) to the satisfaction of the Secretary.
  (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, 
        State, or locally supported program.
          (2) Existing strategy.--To the maximum extent 
        practicable, a plan submitted under this paragraph 
        shall be consistent and coordinated with any existing 
        comprehensive economic development strategy for the 
        area.

           *       *       *       *       *       *       *


SEC. 401. 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. 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. 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.

           *       *       *       *       *       *       *


SEC. 604. DELEGATION OF FUNCTIONS AND TRANSFER OF FUNDS AMONG FEDERAL 
                    AGENCIES.

  (a) Delegation of Functions to Other Federal Agencies.--The 
Secretary may--
          (1) delegate to the heads of other Federal agencies 
        such functions, powers, and duties of the Secretary 
        under this Act as the Secretary determines to be 
        appropriate; and
          (2) authorize the redelegation of the functions, 
        powers, and duties by the heads of the agencies.
  (b) Transfer of Funds to Other Federal Agencies.--Funds 
authorized to be appropriated to carry out this Act may be 
transferred between Federal agencies, if the funds are used for 
the purposes for which the funds are specifically authorized 
and appropriated.
  (c) Transfer of Funds From Other Federal Agencies.--
          (1) In general.--Subject to paragraph (2), for the 
        purposes of this Act, the Secretary may accept 
        transfers of funds from other Federal agencies if the 
        funds are used for the purposes for which (and in 
        accordance with the terms under which) the funds are 
        specifically authorized and appropriated.
          (2) Use of funds.--The transferred funds--
                  (A) shall remain available until expended; 
                [and]
                  (B) may be used for administrative expenses 
                incident to the projects associated with the 
                transfers to the extent that the expenses do 
                not exceed--
                          (i) 3 percent, in the case of 
                        projects not involving construction; 
                        and
                          (ii) 5 percent, in the case of 
                        projects involving construction; and
                  [(B)](C) may, to the extent necessary to 
                carry out this Act, be transferred to and 
                merged by the Secretary with the appropriations 
                for salaries and expenses.

           *       *       *       *       *       *       *


SEC. 612. SAVINGS CLAUSE.

  To the extent that any portion of grants made under this Act 
are used for an economic development project that involves 
remediation, the remediation shall be conducted in compliance 
with all applicable Federal, State, and local laws and 
standards.

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.

           *       *       *       *       *       *       *


                           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.'']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.

           *       *       *       *       *       *       *


[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 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, there 
shall be made available to provide grants under section 203 an 
amount equal to not less than the lesser of--
          (1) 12 percent; and
          (2) $31,000,000.
  (b) Subject to Total Appropriations.--For any fiscal year, 
the amount made available pursuant to subsection (a) shall be 
increased to--
          (1) if the total amount made available under section 
        701(a) for the fiscal year is equal to or greater than 
        $291,000,000, an amount equal to the greater of--
                  (A) $32,000,000; and
                  (B) 11 percent of the total amount made 
                available under section 701(a) for the fiscal 
                year;
          (2) if the total amount made available under section 
        701(a) for the fiscal year is equal to or greater than 
        $330,000,000, an amount equal to the greater of--
                  (A) $33,000,000; and
                  (B) 10 percent of the total amount made 
                available under section 701(a) for the fiscal 
                year;
          (3) if the total amount made available under section 
        701(a) for the fiscal year is equal to or greater than 
        $340,000,000, an amount equal to the greater of--
                  (A) $34,000,000; and
                  (B) 10 percent of the total amount made 
                available under section 701(a) for the fiscal 
                year; or
          (4) if the total amount made available under section 
        701(a) for the fiscal year is equal to or greater than 
        $350,000,000, an amount equal to the greater of--
                  (A) $35,000,000; and
                  (B) 10 percent of the total amount made 
                available under section 701(a) for the fiscal 
                year.

           *       *       *       *       *       *       *


                                  
