S. Rept. 107-244 - 107th Congress (2001-2002)
August 28, 2002, As Reported by the Environment and Public Works Committee

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Senate Report 107-244 - BROWNFIELD SITE REDEVELOPMENT ASSISTANCE ACT OF 2002




[Senate Report 107-244]
[From the U.S. Government Printing Office]



                                                       Calendar No. 554
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-244
======================================================================
 
          BROWNFIELD SITE REDEVELOPMENT ASSISTANCE ACT OF 2002

                                _______
                                

                August 28, 2002.--Ordered to be printed

  Filed, under authority of the order of the Senate of July 29, 2002.

                                _______
                                

   Mr. Jeffords, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 1079]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred a bill (S. 1079) to amend the Public Works and 
Economic Development Act of 1965, to provide assistance to 
communities for the redevelopment of brownfield sites, having 
considered the same reports favorably thereon with an amendment 
and recommends that the bill, as amended, do pass.

                    General Statement and Background

    The Brownfield Site Redevelopment Assistance Act, S. 1079, 
will provide the Department of Commerce's Economic Development 
Administration (EDA) with the legislative authority to engage 
in brownfields redevelopment activities. Currently, EDA funding 
can be used for brownfields redevelopment only when a public 
works or economic adjustment project receiving funding is 
located on a brownfield site. For example, if a city receives a 
grant to upgrade water and sewer facilities and the facilities 
are located on a brownfield, only then can the agency use 
funding for redevelopment. This legislation changes current law 
by allowing EDA to undertake individual brownfields 
redevelopment projects. S. 1079 also provides EDA with a 
dedicated source of funding ($60 million a year for 5 years) to 
help States, local communities, Indian tribes and nonprofit 
organizations restore brownfield sites to productive use. This 
legislation complements the resources and liability 
clarifications provided in the Brownfields Revitalization and 
Environmental Restoration Act, S. 350, by focusing on the step 
after assessment and cleanup: actual redevelopment.
    The economic and social need for redeveloping brownfields 
sites has been well-documented. While predominantly affecting 
urban areas, brownfields also impact rural areas and Native 
American communities. The committee notes the following:

    1. The U.S. Conference of Mayors (USCM) estimates that 
brownfields redevelopment could generate more than 550,000 
additional jobs and up to $2.4 billion in new tax revenues for 
cities. The cities surveyed by the USCM reported that lack of 
funding for redevelopment is a major obstacle to reuse 
(Recycling America's Land: A National Report on Brownfields 
Redevelopment, February 24, 2000, US Conference of Mayors 
survey results from 231 cities).
    2. The General Accounting Office has estimated that there 
are up to 450,000 brownfields sites. Independent researchers 
have estimated that there may be as many as 600,000 brownfields 
sites (Simons, Turning Brownfields into Greenbacks, 1998); and 
the Bush Administration has publicly stated that there may be 
as many as 1 million brownfields.
    3. In rural areas, abundant open space often is preferred 
over brownfield sites. The National Association of Development 
Organizations (NADO) in a report on reclaiming rural America's 
brownfields found that Federal agencies are not reaching rural 
areas through existing brownfields programs, and rural 
communities need financial and technical assistance to include 
brownfields in economic development strategies.
    4. Tribal lands face a legacy of former agricultural, 
industrial and commercial facilities that have real or 
perceived contamination. EPA estimates that nationwide there 
are 1,645 facilities located on tribal lands and 6,982 
facilities located within three miles of tribal lands. 
Currently, 18 tribes have received grants from EPA for 
brownfields redevelopment.

    Public investment combined with private financing can 
provide incentives for redeveloping these former industrial and 
commercial properties and level the economic playing field 
between greenfields and brownfields.
    The EDA has provided grants for Eco-Industrial Development 
(EID) projects including a EID center at Cornell University 
which promoted these approaches nationwide. EID involves 
businesses voluntarily coming together to conserve resources, 
increase efficiencies and reduce wastes.

                     Objectives of the Legislation

    The Brownfield Site Redevelopment Assistance Act, S. 1079, 
will expand the Department of Commerce's Economic Development 
Administration (EDA) efforts to assist communities with 
economic development by authorizing a program to provide 
targeted assistance for projects that redevelop brownfield 
sites and authorizing EDA to offer assistance to projects that 
promote Eco-Industry Development. The bill will provide EDA 
with increased funding flexibility to help States, local 
communities, Indian tribes and nonprofit organizations restore 
these sites to productive use. The bill authorizes $60 million 
each year for 5 years for brownfields redevelopment, and gives 
EDA the authority to provide grants for brownfields 
redevelopment projects, including:

    
  Development of public facilities
    
  Business development (including revolving loan 
funds)
    
  Technical assistance and Training
    
  Activities to help communities diversify their 
economies and encourage infill development
    
  Collaborative economic development planning

    While EDA assistance has helped communities redevelop 
brownfields, the agency lacks a specific authority and a 
dedicated source of funding for brownfields. This bill would 
provide EDA with the authority to facilitate effective economic 
development planning for reuse; develop infrastructure 
necessary to prepare sites for re-entry into the market; and, 
provide the capital necessary to support new business 
development. This bill would make reuse of brownfield sites a 
priority for EDA.

                      Section-by-Section Analysis

Section 1. Short Title
    Brownfield Site Redevelopment Assistance Act of 2001.
Sec. 2. Purposes
    To provide targeted assistance through the Department of 
Commerce's Economic Development Administration for projects 
that promote the redevelopment and economic recovery of 
brownfield sites and the use of eco-industrial development 
approaches in order to bring new income and private investment 
to distressed communities.
Sec. 3. Definitions
    This legislation defines ``brownfields'' as real property 
upon which the Secretary of Commerce, in consultation with the 
Administrator of the Environmental Protection Agency, 
determines there is a presence or potential presence of a 
hazardous substance (as defined in section 101 of the 
Comprehensive Environmental Response, Compensation and 
Liability Act) or any other pollutant or contaminant. The 
committee intends that the Secretary, through EDA, continue to 
fund economic redevelopment of brownfields sites contaminated 
by pollutants such as asbestos, lead, and petroleum products. 
However, the committee recognizes the EPA's primary role within 
the Federal Government in protection of the environment, as 
well as remediation, and does not intend that the EDA will make 
remediation decisions. When an eligible applicant seeks funding 
for assessment or cleanup of a brownfields site under section 
3(1)(C), the committee expects that the Secretary will obtain 
approval for funding for the site from the EPA. This is also 
true for sites covered under section 3(1)(D)(II).
    This legislation defines ``Eco-Industrial Development 
(EID)'' as development conducted in a manner in which 
businesses cooperate with each other and local community to 
efficiently share resources (such as information, materials, 
water, energy infrastructure and natural habitat) with the 
goals of economic gains, improved environmental quality and 
equitable enhancement of human resources in businesses and 
local communities.
Sec. 4. Coordination
    Recommends that the Secretary of Commerce coordinate 
brownfields redevelopment activities with other Federal 
agencies, States, local governments, consortia of local 
governments, Indian tribes, nonprofit organizations and public-
private partnerships.
Sec. 5. Grants for Brownfield Site Redevelopment
    Makes grants available through EDA for brownfields projects 
that alleviate excessive unemployment, underemployment, blight 
and infrastructure deterioration. Projects include: development 
of public facilities, development of public services, business 
development, planning, technical assistance and training. 
Grants may also be made available for activities identified by 
a community negatively impacted by brownfields. These 
activities include: diversifying the economy; carrying out 
industrial or commercial redevelopment projects and eco-
industrial projects; promoting smart growth through infill 
development that conserves environmental and agricultural 
resources; and carrying out collaborative economic development 
planning.
Sec. 6. Authorization of Appropriations
    Authorizes $60 million for each fiscal years 2002 through 
2006.

                          Legislative History

    S. 1079 was introduced by Senator Carl Levin on June 21, 
2001. A legislative hearing was held on March 6, 2002. On April 
25, 2002, the Committee on Environment and Public Works met to 
consider S. 1079. An amendment in the nature of a substitute, 
offered by Senators Jeffords and Smith, was agreed by voice 
vote; and the bill, as amended, was ordered reported by voice 
vote.

                                Hearings

    On March 6, 2002, the full committee held a legislative 
hearing on S. 1079. Testimony was provided by Senator Carl 
Levin of Michigan; Hon. David A. Sampson, Assistant Secretary 
of Commerce for Economic Development; Ms. Elizabeth Humstone, 
Vermont Forum on Sprawl, Burlington, on behalf of the American 
Planning Association; Ms. Deborah Anderson, Wood Partners, 
Durham, NC, on behalf of the National Multi-Housing Council/
National Apartment Association; Mr. Don Chen, Smart Growth 
America, Washington, DC; Mr. F. Gary Garczynski, Woodbridge, 
VA, on behalf of the National Association of Home Builders; and 
Ms. Mary Lou Bentley, Western Nevada Development District, 
Carson City, on behalf National Association of Development 
Organizations.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes evaluation of 
the regulatory impact of the reported bill.
    S. 1079 does not create any additional regulatory burdens, 
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 that S. 1079 would not 
impose any Federal intergovernmental unfunded mandates on 
State, local, or tribal governments.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 13, 2002.

Hon. James M. Jeffords, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1079, the 
Brownfields Site Redevelopment Assistance Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for Federal costs), who can be reached at 226-2860, and 
Leo Lex (for State and local impact), who can be reached at 
225-3220.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              

S. 1079, Brownfields Site Redevelopment Assistance Act of 2002, As 
        ordered reported by the Senate Committee on Environment and 
        Public Works on April 25, 2002
Summary
    S. 1079 would authorize the Economic Development 
Administration (EDA) to make grants to communities or tribes 
for projects that promote the development of brownfield sites. 
(Brownfields are properties where the presence, or potential 
presence, of a hazardous substance complicates the development 
of the property.) The new grants would be used to develop 
public facilities and business or for planning, technical 
assistance and training. For these purposes, the bill would 
authorize the appropriation of $60 million annually for fiscal 
years 2003 through 2007.
    CBO estimates that implementing S. 1079 would cost $130 
million through fiscal year 2007, assuming the appropriation of 
the authorized amounts. We estimate that the remaining $170 
million authorized by the bill would be spent after 2007. S. 
1079 would not affect direct spending or receipts; therefore, 
pay-as-you-go procedures would not apply.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would benefit local governments by authorizing $60 
million annually in grants to alleviate blight and 
deterioration associated with brownfield sites. Communities 
receiving assistance would have to provide at least 25 percent 
in matching funds for any grants they receive.
Estimated Cost to the Federal Government
    The estimated budgetary impact of S. 1079 is shown in the 
following table. The costs of this legislation fall within 
budget function 450 (community and regional development). For 
this estimate, CBO assumes that the bill will be enacted before 
the start of fiscal year 2003, and that authorized amounts will 
be appropriated for each fiscal year. Outlays have been 
estimated based on historical spending patterns of similar 
programs.

                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                   2003    2004    2005    2006    2007
------------------------------------------------------------------------
       SPENDING SUBJECT TO
          APPROPRIATION
  EDA Brownfields Grants\1\:
    Authorization Level.........      60      60      60      60      60
    Estimated Outlays...........       2      10      25      40      53
------------------------------------------------------------------------
\1\For 2002, $335 million was appropriated for the various developmental
  assistance programs administered by EDA. Brownfields grants would be a
  new EDA program.

Pay-As-You-Go Considerations: None.
Intergovernmental and Private-Sector Impact
    S. 1079 contains no intergovernmental mandates as defined 
in UMRA and would benefit local governments by authorizing $60 
million annually in grants to alleviate blight and 
deterioration associated with brownfield sites. Communities 
receiving assistance would have to provide at least 25 percent 
in matching funds for any grants they receive.
Estimate Prepared By: Federal Costs: Deborah Reis; Impact on 
State, Local, and Tribal Governments: Leo Lex; Impact on the 
Private Sector: Lauren Marks.

Estimate Approved By: Peter H. Fontaine, 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

            [As Amended Through P.L. 106-580, Dec. 29, 2000]

 AN ACT To provide grants for public works and development facilities, 
 other financial assistance and the planning and coordiation needed to 
  alleviate conditions of substantial and persistent unemployment and 
underemployment in economically distressed areas and regions.

           *       *       *       *       *       *       *


[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. 210. Grants for brownfield site redevelopment.
Sec. 211. Changed project circumstances.
Sec. 212. Use of funds in projects constructed under projected cost.
Sec. 213. Reports by recipients.
Sec. 214. Prohibition on use of funds for attorney's and consultant's 
          fees.
      * * * * * * *
Sec. 704. Authorization of appropriations for brownfield site 
          redevelopment.

           *       *       *       *       *       *       *


SEC. 3. DEFINITIONS.

    In this Act:
            (1) Brownfield site.--
                    (A) In general.--The term ``brownfield 
                site'' means real property, the expansion, 
                redevelopment, or reuse of which may be 
                complicated by the presence or potential 
                presence of--
                            (i) a hazardous substance (as 
                        defined in section 101 of the 
                        Comprehensive Environmental Response, 
                        Compensation, and Liability Act of 1980 
                        (42 U.S.C. 9601)); or
                            (ii) any other pollutant or 
                        contaminant, as determined by the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental 
                        Protection Agency.
                    (B) Exclusions.--Except as provided in 
                subparagraph (C), the term ``brownfield site'' 
                does not include--
                            (i) a facility that is the subject 
                        of a planned or ongoing removal action 
                        under the Comprehensive Environmental 
                        Response, Compensation, and Liability 
                        Act of 1980 (42 U.S.C. 9601 et seq.);
                            (ii) a facility that is listed on 
                        the National Priorities List, or is 
                        proposed for listing on that list, 
                        under that Act;
                            (iii) a facility that is the 
                        subject of a unilateral administrative 
                        order, a court order, an administrative 
                        order on consent, or a judicial consent 
                        decree that has been issued to or 
                        entered into by the parties under that 
                        Act;
                            (iv) a facility that is the subject 
                        of a unilateral administrative order, a 
                        court order, an administrative order on 
                        consent, or a judicial consent decree 
                        that has been issued to or entered into 
                        by the parties, or a facility to which 
                        a permit has been issued by the United 
                        States or an authorized State, under--
                                    (I) the Solid Waste 
                                Disposal Act (42 U.S.C. 6901 et 
                                seq.);
                                    (II) the Federal Water 
                                Pollution Control Act (33 
                                U.S.C. 1251 et seq.);
                                    (III) the Toxic Substances 
                                Control Act (15 U.S.C. 2601 et 
                                seq.); or
                                    (IV) the Safe Drinking 
                                Water Act (42 U.S.C. 300f et 
                                seq.);
                            (v) a facility--
                                    (I) that is subject to 
                                corrective action under section 
                                3004(u) or 3008(h) of the Solid 
                                Waste Disposal Act (42 U.S.C. 
                                6924(u), 6928(h)); and
                                    (II) to which a corrective 
                                action permit or order has been 
                                issued or modified to require 
                                the implementation of 
                                corrective measures;
                            (vi) a land disposal unit with 
                        respect to which--
                                    (I) a closure notification 
                                under subtitle C of the Solid 
                                Waste Disposal Act (42 U.S.C. 
                                6921 et seq.) has been 
                                submitted; and
                                    (II) closure requirements 
                                have been specified in a 
                                closure plan or permit;
                            (vii) a facility that is subject to 
                        the jurisdiction, custody, or control 
                        of a department, agency, or 
                        instrumentality of the United States, 
                        except for land held in trust by the 
                        United States for an Indian tribe;
                            (viii) a portion of a facility--
                                    (I) at which there has been 
                                a release of polychlorinated 
                                biphenyls; and
                                    (II) that is subject to 
                                remediation under the Toxic 
                                Substances Control Act (15 
                                U.S.C. 2601 et seq.); or
                            (ix) a portion of a facility, for 
                        which portion assistance for response 
                        activity has been obtained under 
                        subtitle I of the Solid Waste Disposal 
                        Act (42 U.S.C. 6991 et seq.) from the 
                        Leaking Underground Storage Tank Trust 
                        Fund established by section 9508 of the 
                        Internal Revenue Code of 1986.
                    (C) Site-by-site inclusions.--The term 
                ``brownfield site'' includes a site referred to 
                in clause (i), (iv), (v), (vi), (viii), or (ix) 
                of subparagraph (B), if, on a site-by-site 
                basis, the Secretary, in consultation with the 
                Administrator of the Environmental Protection 
                Agency, determines that use of financial 
                assistance at the site will--
                            (i) protect human health and the 
                        environment; and
                            (ii)(I) promote economic 
                        development;
                            (II) enable the creation of, 
                        preservation of, or addition to parks, 
                        greenways, undeveloped property, other 
                        recreational property, or other 
                        property used for nonprofit purposes; 
                        or
                            (III) promote eco-industrial 
                        development.
                    (D) Additional inclusions.--The term 
                ``brownfield site'' includes a site that meets 
                the definition of ``brownfield site'' under 
                subparagraphs (A) through (C) and that--
                            (i) is contaminated by a controlled 
                        substance (as defined in section 102 of 
                        the Controlled Substances Act (21 
                        U.S.C. 802));
                            (ii)(I) is contaminated by 
                        petroleum or a petroleum product 
                        excluded from the definition of 
                        ``hazardous substance'' under section 
                        101 of the Comprehensive Environmental 
                        Response, Compensation, and Liability 
                        Act of 1980 (42 U.S.C. 9601);
                            (II) is a site determined by the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental 
                        Protection Agency, to be--
                                    (aa) of relatively low 
                                risk, as compared with other 
                                petroleum-only sites in the 
                                State in which the site is 
                                located; and
                                    (bb) a site for which there 
                                is no viable responsible party 
                                and that will be assessed, 
                                investigated, or cleaned up by 
                                a person that is not 
                                potentially liable for cleaning 
                                up the site; and
                            (III) is not subject to any order 
                        issued under section 9003(h) of the 
                        Solid Waste Disposal Act (42 U.S.C. 
                        6991b(h)); or
                            (iii) is mine-scarred land.
            [(1)] (2) Comprehensive economic development 
        strategy.--The term ``comprehensive economic 
        development strategy'' means a comprehensive economic 
        development strategy approved by the Secretary under 
        section 302.
            [(2)] (3) Department.--The term ``Department'' 
        means the Department of Commerce.
            (4) Eco-industrial development.--The term ``eco-
        industrial development'' means development conducted in 
        a manner in which businesses cooperate with each other 
        and the local community to efficiently share resources 
        (such as information, materials, water, energy 
        infrastructure, and natural habitat) with the goals 
        of--
                    (A) economic gains;
                    (B) improved environmental quality; and
                    (C) equitable enhancement of human 
                resources in businesses and local communities.
            [(3)] (5) 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)] (6) Eligible recipient.--
                    (A) In general.--The term ``eligible 
                recipient'' means--
                            (i) an area described in section 
                        301(a);
                            (ii) an economic development 
                        district;
                            (iii) an Indian tribe;
                            (iv) a State;
                            (v) a city or other political 
                        subdivision of a State or a consortium 
                        of political subdivisions;
                            (vi) an institution of higher 
                        education or a consortium of 
                        institutions of higher education; or
                            (vii) 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)] (7) Federal agency.--The term ``Federal 
        agency'' means a department, agency, or instrumentality 
        of the United States.
            [(6)] (8) Grant.--The term ``grant'' includes a 
        cooperative agreement (within the meaning of chapter 63 
        of title 31, United States Code).
            [(7)] (9) 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)] (10) Secretary.--The term ``Secretary'' means 
        the Secretary of Commerce.
            [(9)] (11) State.--The term ``State'' means a 
        State, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
            [(10)] (12) United states.--The term ``United 
        States'' means all of the States.
            (13) Unused land.--The term ``unused land'' means 
        any publicly-owned or privately-owned unused, 
        underused, or abandoned land that is not contributing 
        to the quality of life or economic well-being of the 
        community in which the land is located.

           *       *       *       *       *       *       *


SEC. 103. COORDINATION.

    (a) Comprehensive Economic Development Strategies.--The 
Secretary shall coordinate activities relating to the 
preparation and implementation of comprehensive economic 
development strategies under this Act with Federal agencies 
carrying out other Federal programs, States, economic 
development districts, and other appropriate planning and 
development organizations.
    (b) Brownfield Site Redevelopment.--The Secretary shall 
coordinate activities relating to the redevelopment of 
brownfield sites and the promotion of eco-industrial 
development under this Act with other Federal agencies, States, 
local governments, consortia of local governments, Indian 
tribes, nonprofit organizations, and public-private 
partnerships.

           *       *       *       *       *       *       *


SEC. 210. GRANTS FOR BROWNFIELD SITE REDEVELOPMENT.

    (a) In General.--On the application of an eligible 
recipient, the Secretary may make grants for projects to 
alleviate or prevent conditions of excessive unemployment, 
underemployment, blight, and infrastructure deterioration 
associated with brownfield sites, including projects consisting 
of--
            (1) development of public facilities;
            (2) development of public services;
            (3) business development (including funding of a 
        revolving loan fund);
            (4) planning;
            (5) technical assistance; and
            (6) training.
    (b) Criteria for Grants.--The Secretary may provide a grant 
for a project under this section only if--
            (1) the Secretary determines that the project will 
        assist the area where the project is or will be located 
        to meet, directly or indirectly, a special need arising 
        from--
                    (A) a high level of unemployment or 
                underemployment, or a high proportion of low-
                income households;
                    (B) the existence of blight and 
                infrastructure deterioration;
                    (C) dislocations resulting from commercial 
                or industrial restructuring;
                    (D) outmigration and population loss, as 
                indicated by--
                            (i)(I) depletion of human capital 
                        (including young, skilled, or educated 
                        populations);
                            (II) depletion of financial capital 
                        (including firms and investment); or
                            (III) a shrinking tax base; and
                            (ii) resulting--
                                    (I) fiscal pressure;
                                    (II) restricted access to 
                                markets; and
                                    (III) constrained local 
                                development potential; or
                    (E) the closure or realignment of--
                            (i) a military or Department of 
                        Energy installation; or
                            (ii) any other Federal facility; 
                        and
            (2) except in the case of a project consisting of 
        planning or technical assistance--
                    (A) the Secretary has approved a 
                comprehensive economic development strategy for 
                the area where the project is or will be 
                located; and
                    (B) the project is consistent with the 
                comprehensive economic development strategy.
    (c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities 
identified by a community, the economy of which is injured by 
the existence of 1 or more brownfield sites, to assist the 
community in--
            (1) revitalizing affected areas by--
                    (A) diversifying the economy of the 
                community; or
                    (B) carrying out industrial or commercial 
                (including mixed use) redevelopment, or eco-
                industrial development, projects on brownfield 
                sites or sites adjacent to brownfield sites;
            (2) carrying out development that conserves 
        environmental and agricultural resources by--
                    (A) reusing existing facilities and 
                infrastructure;
                    (B) reclaiming unused land and abandoned 
                buildings; or
                    (C) promoting eco-industrial development, 
                and environmentally responsible development, of 
                brownfield sites; or
            (3) carrying out a collaborative economic 
        development planning process, developed with broad-
        based and diverse community participation, that 
        addresses the economic repercussions and opportunities 
        posed by the existence of brownfield sites in an area.
    (d) Direct Expenditure or Redistribution by Eligible 
Recipient.--
            (1) In general.--Subject to paragraph (2), an 
        eligible recipient of a grant under this section may 
        directly expend the grant funds or may redistribute the 
        funds to public and private entities in the form of a 
        grant, loan, loan guarantee, payment to reduce interest 
        on a loan guarantee, or other appropriate assistance.
            (2) Limitation.--Under paragraph (1), an eligible 
        recipient may not provide any grant to a private for-
        profit entity.

[SEC. 210.] SEC. 211. CHANGED PROJECT CIRCUMSTANCES.

    In any case in which a grant (including a supplementary 
grant described in section 205) has been made by the Secretary 
under this title (or made under this Act, as in effect on the 
day before the effective date of the Economic Development 
Administration Reform Act of 1998) for a project, and, after 
the grant has been made but before completion of the project, 
the purpose or scope of the project that was the basis of the 
grant is modified, the Secretary may approve, subject (except 
for a grant for which funds were obligated in fiscal year 1995) 
to the availability of appropriations, the use of grant funds 
for the modified project if the Secretary determines that--
            (1) the modified project meets the requirements of 
        this title and is consistent with the comprehensive 
        economic development strategy submitted as part of the 
        application for the grant; and
            (2) the modifications are necessary to enhance 
        economic development in the area for which the project 
        is being carried out.

[SEC. 211.] SEC. 212. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                    PROJECTED COST.

    In any case in which a grant (including a supplementary 
grant described in section 205) has been made by the Secretary 
under this title (or made under this Act, as in effect on the 
day before the effective date of the Economic Development 
Administration Reform Act of 1998) for a construction project, 
and, after the grant has been made but before completion of the 
project, the cost of the project based on the designs and 
specifications that was the basis of the grant has decreased 
because of decreases in costs--
            (1) the Secretary may approve, subject to the 
        availability of appropriations, the use of the excess 
        funds or a portion of the funds to improve the project; 
        and
            (2) any amount of excess funds remaining after 
        application of paragraph (1) shall be deposited in the 
        general fund of the Treasury.

[SEC. 212.] SEC. 213. REPORTS BY RECIPIENTS.

    (a) In General.--Each recipient of assistance under this 
title shall submit reports to the Secretary at such intervals 
and in such manner as the Secretary shall require by 
regulation, except that no report shall be required to be 
submitted more than 10 years after the date of closeout of the 
assistance award.
    (b) Contents.--Each report shall contain an evaluation of 
the effectiveness of the economic assistance provided under 
this title in meeting the need that the assistance was designed 
to address and in meeting the objectives of this Act.

[SEC. 213.] SEC. 214. PROHIBITION ON USE OF FUNDS FOR ATTORNEY'S AND 
                    CONSULTANT'S FEES.

    Assistance made available under this title shall not be 
used directly or indirectly for an attorney's or consultant's 
fee incurred in connection with obtaining grants and contracts 
under this title.

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SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR BROWNFIELD SITE 
                    REDEVELOPMENT.

    (a) In General.--In addition to amounts made available 
under section 701, there is authorized to be appropriated to 
carry out section 210 $60,000,000 for each of fiscal years 2003 
through 2007, to remain available until expended.
    (b) Federal Share.--Notwithstanding section 204, subject to 
section 205, the Federal share of the cost of activities funded 
with amounts made available under subsection (a) shall be not 
more than 75 percent.

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