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111th Congress                                            Rept. 111-652
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
           ECONOMIC REVITALIZATION AND INNOVATION ACT OF 2010

                                _______
                                

 September 29, 2010.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Oberstar, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 5897]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5897) to reauthorize and improve 
programs and activities carried out under the Public Works and 
Economic Development Act of 1965, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Economic 
Revitalization and Innovation Act of 2010''.
  (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to Public Works and Economic Development Act of 
1965.
Sec. 3. Findings and declarations.
Sec. 4. Definitions.

TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

Sec. 101. Establishment of economic development partnerships.
Sec. 102. Encouragement of certain coordination.
Sec. 103. Coordination with respect to high-speed rail.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

Sec. 201. Grants for public works and economic development.
Sec. 202. Grants for planning and grants for administrative expenses.
Sec. 203. Cost sharing.
Sec. 204. Grants for training, research, and technical assistance.
Sec. 205. Financial assistance for business incubators and science and 
research parks.
Sec. 206. Grants for economic adjustment.
Sec. 207. Sustainable economic development demonstration program.
Sec. 208. Job creation goals.
Sec. 209. Prohibition with respect to use of assistance.

 TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

Sec. 301. Eligibility of areas.
Sec. 302. Comprehensive economic development strategies.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

Sec. 401. Designation of economic development districts.
Sec. 402. Termination or modification of economic development 
districts.

                        TITLE V--ADMINISTRATION

Sec. 501. Consultation with other persons and agencies.
Sec. 502. Performance evaluations of grant recipients.
Sec. 503. Economic development representatives.
Sec. 504. Limitation on certain positions.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Annual report to Congress.
Sec. 602. Maintenance of effort.

                           TITLE VII--FUNDING

Sec. 701. General authorization of appropriations.
Sec. 702. Funding for grants for planning and grants for administrative 
expenses.
Sec. 703. Funding for financial assistance for business incubators and 
science and research parks.
Sec. 704. Funding for sustainable economic development demonstration 
program.
Sec. 705. Funding for grants for training, research, and technical 
assistance.

SEC. 2. AMENDMENTS TO PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 
                    1965.

  Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Public 
Works and Economic Development Act of 1965 (42 U.S.C. 3121 et seq.).

SEC. 3. FINDINGS AND DECLARATIONS.

  (a) Findings.--Section 2(a) (42 U.S.C. 3121(a)) is amended to read as 
follows:
  ``(a) Findings.--Congress finds that--
          ``(1) sustainable economic growth in the 21st century depends 
        upon economic development strategies that include investment in 
        essential infrastructure that fosters innovation, 
        entrepreneurship, and competition in the global marketplace;
          ``(2) there continue to be areas of the United States 
        experiencing chronic high unemployment, underemployment, 
        outmigration, and low per capita income, as well as areas 
        facing sudden and severe economic dislocations due to 
        structural economic changes, increasing international 
        competition, certain Federal actions (including defense-related 
        facility closures and realignment and actions required to 
        counteract the depletion of natural resources), and natural 
        disasters;
          ``(3) the goal of Federal economic development programs is to 
        raise the standard of living for all citizens and increase the 
        wealth and overall rate of growth of the economy by encouraging 
        regions and communities to develop a more competitive and 
        diversified economic base, including by--
                  ``(A) expanding economic opportunities, increasing 
                international competitiveness, and creating a climate 
                supportive of job creation and business development;
                  ``(B) creating an environment that promotes public 
                infrastructure investments that maximize sustainable 
                development practices;
                  ``(C) promoting private sector job creation through 
                increased innovation, productivity, and 
                entrepreneurship; and
                  ``(D) empowering local and regional communities 
                experiencing chronic high unemployment, 
                underemployment, outmigration, and low per capita 
                income to develop private sector business and attract 
                increased domestic and foreign private sector capital 
                investment, including through the location of 
                information technology, agribusiness, alternative 
                energy, manufacturing, and bioscience jobs in the 
                United States and the relocation of such jobs to the 
                United States;
          ``(4) economic growth in the States, including in both cities 
        and rural areas, can best be promoted by helping communities 
        invest in regional strategies that build upon unique 
        competitive advantages and are designed to foster innovation 
        and entrepreneurship in all segments of the community's 
        economy;
          ``(5) while economic development is an inherently local 
        process, the Federal Government should work in partnership with 
        public and private organizations at the State, regional, 
        tribal, and local levels to maximize the impact of existing 
        resources and enable regions, communities, and citizens to 
        participate more fully in the American dream and national 
        prosperity;
          ``(6) in order to avoid duplication of effort and achieve 
        meaningful, long-lasting results, Federal, State, tribal, and 
        local economic development activities should have a clear 
        focus, improved coordination, a comprehensive approach, and 
        simplified and consistent requirements; and
          ``(7) Federal economic development efforts will be more 
        effective if the efforts are coordinated with, and build upon, 
        the trade, workforce investment, higher education, 
        transportation, energy, environmental protection, and 
        technology programs of the United States.''.
  (b) Declarations.--Section 2(b) (42 U.S.C. 3121(b)) is amended to 
read as follows:
  ``(b) Declarations.--In order to promote a strong and growing economy 
throughout the United States, Congress declares that--
          ``(1) assistance under this Act should be made available to 
        distressed communities in both rural and urban areas;
          ``(2) local communities should work in partnership with 
        neighboring communities, economic development districts, 
        States, Indian tribes, institutions of higher education, 
        national security laboratories, the private sector, and the 
        Federal Government to increase the capacity of those local 
        communities to develop and implement comprehensive economic 
        development strategies to alleviate economic distress and 
        enhance competitiveness in the global economy, including 
        national security laboratories;
          ``(3) whether suffering from long-term distress or a sudden 
        dislocation, distressed communities should be encouraged to 
        take affirmative steps to promote innovation and 
        entrepreneurship, including through the formation of business 
        incubators, to help create higher skill, higher wage jobs and 
        foster the participation of those distressed communities in the 
        global marketplace;
          ``(4) assistance under this Act should be made available to 
        promote sustainable economic development practices, to assist 
        communities with the productive reuse of abandoned industrial 
        facilities and the redevelopment of brownfields, and to 
        leverage significant Federal investments in high-speed rail 
        corridors and other transportation infrastructure; and
          ``(5) research assistance under this Act should help regions 
        across the United States leverage the economic assets of those 
        regions in a comprehensive manner and should enhance the 
        Economic Development Administration's ability to provide an 
        economic development framework to assist distressed communities 
        and regions, with particular emphasis on revitalizing the 
        manufacturing, agribusiness, and bioscience industries and the 
        linkages between urban and rural communities.''.

SEC. 4. DEFINITIONS.

  Section 3(8) (42 U.S.C. 3122(8)) is amended--
          (1) in subparagraph (C) by striking ``and'' at the end;
          (2) in subparagraph (D) by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
                  ``(E) the Southeast Crescent Regional Commission 
                established under section 15301(a) of title 40, United 
                States Code;
                  ``(F) the Northern Border Regional Commission 
                established under section 15301(a) of title 40, United 
                States Code; and
                  ``(G) the Southwest Border Regional Commission 
                established under section 15301(a) of title 40, United 
                States Code.''.

TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

  (a) Technical Assistance.--Section 101(b) (42 U.S.C. 3131(b)) is 
amended--
          (1) in the matter preceding paragraph (1) by inserting after 
        ``nonprofit organizations'' the following: ``, including 
        economic development districts and university centers,''; and
          (2) by striking paragraphs (2) and (3) and inserting the 
        following:
          ``(2) encourage and support public-private partnerships for 
        the formation and improvement of economic development 
        strategies, including regional strategies, that sustain and 
        promote innovation and entrepreneurship that is critical to 
        economic competitiveness throughout the United States; and
          ``(3) promote investment in infrastructure, innovation, 
        entrepreneurship, sustainable development, and technological 
        capacity (including with respect to advanced technologies in 
        all industry sectors) to keep pace with the changing global 
        economy.''.
  (b) Intergovernmental Review.--Section 101(c) (42 U.S.C. 3131(c)) is 
amended by inserting after ``government agencies'' the following: ``and 
appropriate economic development districts''.

SEC. 102. ENCOURAGEMENT OF CERTAIN COORDINATION.

  (a) In General.--Title I (42 U.S.C. 3131 et seq.) is amended by 
adding at the end the following:

``SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION.

  ``In carrying out this Act, the Secretary is authorized and 
encouraged to consult and cooperate with any Federal, State, or local 
government agency or consortium of governmental organizations that can 
assist in addressing challenges and capitalizing on opportunities that 
require coordination, including the Department of Labor with respect to 
supporting economic and workforce development strategies and promoting 
regional innovation clusters.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) is 
amended by inserting after the item relating to section 103 the 
following:

``Sec. 104. Encouragement of certain coordination.''.

SEC. 103. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.

  (a) In General.--Title I (42 U.S.C. 3131 et seq.), as amended by this 
Act, is further amended by adding at the end the following:

``SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.

  ``The Secretary shall coordinate activities carried out under this 
Act, as appropriate, with the Department of Transportation and other 
relevant Federal agencies, State and local governments, economic 
development districts, Indian tribes, and planning and development 
organizations to leverage and maximize the economic development 
potential of Federal investments in high-speed rail projects. In 
carrying out this section, the Secretary shall conduct studies and 
disseminate reports, as appropriate, with respect to high-speed rail 
projects.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 104 the following:

``Sec. 105. Coordination with respect to high-speed rail.''.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.

  Section 201(a)(1) (42 U.S.C. 3141(a)(1)) is amended by inserting 
after ``development facility'' the following: ``(including a facility 
of a business incubator or a science and research park (as such terms 
are defined in section 208(a)))''.

SEC. 202. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.

  (a) In General.--Section 203(a) (42 U.S.C. 3143(a)) is amended by 
inserting after ``administrative expenses'' the following: ``(including 
indirect costs determined eligible in an applicable Office of 
Management and Budget circular)''.
  (b) Planning Process.--Section 203(b) (42 U.S.C. 3143(b)) is 
amended--
          (1) in paragraph (3) by striking ``and'' at the end;
          (2) in paragraph (4) by striking ``and increase incomes.'' 
        and inserting ``and systemic economic distress and increase 
        incomes by fostering entrepreneurship and innovation across all 
        regional industry sectors; and''; and
          (3) by adding at the end the following:
          ``(5) fostering regional collaboration.''.
  (c) State Plans.--Section 203(d)(4) (42 U.S.C. 3143(d)(4)) is 
amended--
          (1) in the matter preceding subparagraph (A) by inserting 
        after ``public works'' the following: ``and other types of 
        assistance'';
          (2) in subparagraph (C) by inserting after ``environment'' 
        the following: ``, including through efficient energy 
        production, utilization, and facility development'';
          (3) in subparagraph (E)--
                  (A) by inserting after ``use'' the following: ``and 
                deployment''; and
                  (B) by striking ``and'' at the end;
          (4) in subparagraph (F) by striking the period at the end and 
        inserting ``; and''; and
          (5) by adding at the end the following:
                  ``(G) support sustainable development practices and 
                the efficient coordination and leveraging of public and 
                private investments.''.

SEC. 203. COST SHARING.

  Section 204(c) (42 U.S.C. 3144(c)) is amended--
          (1) in paragraph (2) by inserting after ``State or political 
        subdivision'' the following: ``or that the Secretary determines 
        has been affected by substantial declines in tax revenue''; and
          (2) in paragraph (3)--
                  (A) in the heading by striking ``Training'' and 
                inserting ``Planning, training'';
                  (B) by striking ``section 207'' and inserting 
                ``section 203 or 207''; and
                  (C) by inserting after ``such an increase'' the 
                following: ``or if grant supported activities will 
                include regional planning to build on competitive 
                advantages available regionally''.

SEC. 204. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

  (a) Grants.--Section 207(a)(1) (42 U.S.C. 3147(a)(1)) is amended by 
striking ``or underemployment'' and inserting ``, underemployment, or 
outmigration''.
  (b) Types of Assistance.--Section 207(a)(2) (42 U.S.C. 3147(a)(2)) is 
amended--
          (1) in subparagraph (D) by inserting after ``centers'' the 
        following: ``, with the goal that at least one university 
        center is established in each State''; and
          (2) by striking subparagraphs (H) and (I) and inserting the 
        following:
                  ``(H) studies that evaluate the effectiveness of 
                regional innovation clusters and determine best 
                practices with respect to the support provided by 
                entrepreneurial infrastructure, including business 
                incubators;
                  ``(I) a peer exchange program to promote best 
                practices and innovation with respect to the 
                organizational development, program delivery, and 
                regional initiatives of economic development districts;
                  ``(J) development and promotion of performance 
                measures and best practices with respect to 
                commercialization and entrepreneurship;
                  ``(K) developing or implementing county or municipal 
                government efficiency assessments related to economic 
                development or community viability; and
                  ``(L) other activities determined by the Secretary to 
                be appropriate.''.
  (c) High-speed Rail.--Section 207(a) (42 U.S.C. 3147(a)) is amended 
by adding at the end the following:
          ``(4) High-speed rail.--In making a grant under this 
        subsection for the establishment of a university center, the 
        Secretary shall ensure, if appropriate, that the activities of 
        the center will include conducting research and providing 
        technical assistance to leverage and maximize the economic 
        development potential of Federal investments in high-speed rail 
        projects.''.

SEC. 205. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE AND 
                    RESEARCH PARKS.

  (a) In General.--Title II (42 U.S.C. 3141 et seq.) is amended by 
inserting after section 207 the following:

``SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE 
                    AND RESEARCH PARKS.

  ``(a) Definitions.--In this section, the following definitions apply:
          ``(1) Business incubator.--The term `business incubator' 
        means a program established to foster the creation of new 
        businesses and accelerate the growth of early-stage businesses 
        by providing entrepreneurs and early-stage businesses with the 
        resources and services to produce viable businesses that can 
        help create jobs in and restore vitality to communities.
          ``(2) Business incubator development project.--The term 
        `business incubator development project' means a project to 
        construct or alter facilities for a business incubator, 
        including the acquisition of real property necessary to carry 
        out the construction or alteration.
          ``(3) Science and research park.--The term `science and 
        research park' means a program that--
                  ``(A) includes property and buildings designed 
                primarily for--
                          ``(i) research and development activities 
                        conducted by public-private partners;
                          ``(ii) technology- and science-based 
                        businesses; or
                          ``(iii) research and development support 
                        services;
                  ``(B) includes a contractual relationship with one or 
                more institutions of higher education or government or 
                nonprofit research laboratories, including national 
                security laboratories;
                  ``(C) has a primary mission of--
                          ``(i) promoting research and development 
                        through industry partnerships, assisting the 
                        growth of new ventures, and promoting 
                        innovation-driven economic development;
                          ``(ii) facilitating the transfer of 
                        technology and business skills between 
                        researchers and industry teams; and
                          ``(iii) promoting technology-led economic 
                        development for the community or region in 
                        which the program is located; and
                  ``(D) is owned by a government or nonprofit entity 
                (although the government or nonprofit entity may enter 
                into partnerships or joint ventures with for-profit 
                entities to develop or manage specific components of 
                the program).
          ``(4) Science and research park development project.--The 
        term `science and research park development project' means a 
        project to construct or alter facilities for a science and 
        research park, including the acquisition of real property 
        necessary to carry out the construction or alteration.
  ``(b) Financial Assistance.--On the application of an eligible 
recipient, the Secretary may provide financial assistance in accordance 
with this section to assist the development of business incubators and 
science and research parks.
  ``(c) Grants for Plans for Science and Research Parks.--
          ``(1) Grant authority.--In accordance with this subsection, 
        the Secretary may award a grant to an eligible recipient for 
        the development of a feasibility study or development plan, or 
        both, with respect to a science and research park development 
        project.
          ``(2) Amount of a grant.--A grant awarded under paragraph (1) 
        may not be in an amount that exceeds $750,000.
          ``(3) Selection process.--
                  ``(A) Selection criteria.--Not later than 180 days 
                after the date of enactment of the Economic 
                Revitalization and Innovation Act of 2010, the 
                Secretary shall publish the criteria to be utilized for 
                the selection of grant recipients under paragraph (1).
                  ``(B) Competition required.--The Secretary shall 
                award grants under paragraph (1) pursuant to a full and 
                open competition.
                  ``(C) Geographic diversity.--In awarding grants under 
                paragraph (1), the Secretary shall ensure, to the 
                extent practicable, that grant recipients represent 
                diverse geographic areas of the United States, 
                including rural and urban areas.
          ``(4) Program limit.--The Secretary may not award, in the 
        aggregate, more than $7,500,000 in grants under paragraph (1).
  ``(d) Loan Guarantees for Business Incubators and Science and 
Research Parks.--
          ``(1) Guarantee authority.--In accordance with this 
        subsection, the Secretary may guarantee a loan of an eligible 
        recipient to assist the carrying out of a business incubator 
        development project or a science and research park development 
        project.
          ``(2) Guarantee percentage.--In guaranteeing a loan under 
        paragraph (1), the Secretary may guarantee up to 80 percent of 
        the principal amount of the loan.
          ``(3) Selection of guarantee recipients.--
                  ``(A) Creditworthiness.--The Secretary may not 
                guarantee a loan under paragraph (1) unless the 
                Secretary has determined that there is a reasonable 
                assurance of repayment with respect to the loan.
                  ``(B) Grant recipients.--A recipient of a grant under 
                subsection (c) for the development of a feasability 
                study or development plan, or both, is not eligible for 
                a loan guarantee under paragraph (1) until the 
                recipient has completed the study or plan, or both, for 
                which the grant was provided (as determined by the 
                Secretary).
          ``(4) Term of loan.--The term of a loan guaranteed under 
        paragraph (1) may not exceed the lesser of--
                  ``(A) 30 years; or
                  ``(B) 90 percent of the useful life of any physical 
                asset to be financed by such loan.
          ``(5) Subordination.--An obligation relating to a loan 
        guarantee under paragraph (1) may not be subordinated to 
        another debt contracted by the borrower or to any other claims 
        against the borrower in the case of default.
          ``(6) Other terms and conditions.--Except as otherwise 
        specified in this subsection, a loan guarantee under paragraph 
        (1) shall be subject to such terms and conditions as the 
        Secretary may prescribe.
          ``(7) Review.--
                  ``(A) In general.--The Secretary shall periodically 
                assess the risks associated with loans guaranteed under 
                paragraph (1).
                  ``(B) Comptroller general report.--Not later than 2 
                years after the date of enactment of the Economic 
                Revitalization and Innovation Act of 2010, the 
                Comptroller General shall--
                          ``(i) conduct a comprehensive review of the 
                        program under this subsection; and
                          ``(ii) submit to Congress a report on the 
                        results of the review.
          ``(8) Program levels.--In carrying out paragraph (1) during 
        fiscal years 2011 through 2015, the Secretary may not guarantee 
        loans in an amount that exceeds--
                  ``(A) $50,000,000 for a single project;
                  ``(B) $235,000,000 in a single fiscal year; and
                  ``(C) $500,000,000 in the aggregate.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 207 the following:

``Sec. 208. Financial assistance for business incubators and science 
and research parks.''.

SEC. 206. GRANTS FOR ECONOMIC ADJUSTMENT.

  (a) In General.--Section 209(a) (42 U.S.C. 3149(a)) is amended--
          (1) by inserting after ``public facilities,'' the following: 
        ``science and research park development projects (as defined in 
        section 208(a)),''; and
          (2) by inserting after ``revolving loan fund'' the following: 
        ``, a challenge grant, and operating support for business 
        incubators (as defined in section 208(a))''.
  (b) Particular Community Assistance.--Section 209(c) (42 U.S.C. 
3149(c)) is amended--
          (1) in the matter preceding paragraph (1) by striking 
        ``injured'' and inserting ``affected'';
          (2) in paragraph (1)--
                  (A) by striking ``or realignments,'' and inserting 
                ``, realignments, or mission growth,''; and
                  (B) by inserting after ``their economies'' the 
                following: ``or supporting the economic adjustment 
                activities of the Secretary of Defense'';
          (3) in paragraph (4) by striking ``or'' at the end;
          (4) in paragraph (5)--
                  (A) by striking ``manufacturing jobs'' and inserting 
                ``manufacturing, information technology, natural 
                resource, agricultural, or service sector jobs''; and
                  (B) by striking the period at the end and inserting 
                ``;''; and
          (5) by adding at the end the following:
          ``(6) a lack of technology infrastructure, including 
        inadequate access to broadband capacity sufficient to support 
        economic development objectives;
          ``(7) an inability to utilize alternative means of energy 
        production and distribution; or
          ``(8) insufficient access to capital and credit necessary for 
        business retention and expansion, entrepreneurship, and 
        innovation.''.
  (c) Special Provisions Relating to Revolving Loan Fund Grants.--
Section 209(d) (42 U.S.C. 3149(d)) is amended--
          (1) in paragraph (2)--
                  (A) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively; and
                  (B) by inserting after subparagraph (A) the 
                following:
                  ``(B) at the request of a grantee, approve the 
                transfer of all or a portion of the assets of a 
                revolving loan fund of the grantee to another eligible 
                recipient to assist in establishing or maintaining a 
                multiregion or national revolving loan fund;''; and
          (2) by adding at the end the following:
          ``(5) Conversion of revolving loan fund assets.--
                  ``(A) Authority.--At the request of a grant 
                recipient, the Secretary may approve the use of the 
                assets of a revolving loan fund established by the 
                grant recipient with assistance under this section for 
                another project, if--
                          ``(i) the project is eligible for assistance 
                        under this Act; and
                          ``(ii) the Secretary determines that the 
                        revolving loan fund is no longer necessary and 
                        the grant recipient, as a result of changed 
                        economic development needs, will make better 
                        use of the assets by carrying out the project.
                  ``(B) Methods of conversion.--If conversion of a 
                revolving loan fund is approved under subparagraph (A), 
                the applicable grant recipient may convert the assets 
                of the revolving loan fund by--
                          ``(i) selling to a third party any assets of 
                        the revolving loan fund; or
                          ``(ii) retaining repayments of principal and 
                        interest amounts made on loans provided through 
                        the revolving loan fund.
                  ``(C) Terms and conditions.--Except as otherwise 
                provided under this paragraph, the Secretary may 
                establish such terms and conditions with respect to the 
                conversion of a revolving loan fund under this 
                paragraph as the Secretary determines appropriate.
                  ``(D) Expediency requirement.--The Secretary shall 
                ensure that any assets of a revolving loan fund 
                converted under this paragraph are used in an 
                expeditious manner.
          ``(6) Release.--The Secretary may release, subject to terms 
        and conditions the Secretary determines appropriate, the 
        Federal Government's interest in a revolving loan fund 
        established by a grant recipient with assistance under this 
        section on or after the date that is 7 years after the date on 
        which the applicable grant was fully disbursed, if the 
        Secretary determines that--
                  ``(A) the grant recipient has carried out the terms 
                of the grant in a satisfactory manner;
                  ``(B) any proceeds realized after the release of the 
                Federal Government's interest will be used for one or 
                more activities that carry out the economic development 
                purposes of this Act; and
                  ``(C) the grant recipient will continue to satisfy 
                the requirements of section 602.
          ``(7) Equity investment demonstration program.--
                  ``(A) Authority.--
                          ``(i) In general.--To determine the 
                        feasibility and utility of providing equity 
                        investments through revolving loan funds 
                        established by grant recipients with assistance 
                        under this section, the Secretary may 
                        authorize, at the request of a grant recipient, 
                        the use of the capital base of a revolving loan 
                        fund for equity investments in businesses in 
                        need of capital to start up operations or 
                        expand operations beyond the startup phase.
                          ``(ii) Demonstrated capacity.--Before 
                        authorizing a grant recipient to make equity 
                        investments under clause (i), the Secretary 
                        shall determine that the grant recipient has 
                        the demonstrated capacity for engaging in 
                        equity investments or will contract with 
                        another company or organization with a proven 
                        track record with respect to equity 
                        investments.
                          ``(iii) Preferential consideration.--In 
                        authorizing grant recipients to make equity 
                        investments under clause (i), the Secretary 
                        shall give preferential consideration to 
                        requests from grant recipients that intend to 
                        focus their investment activities in support of 
                        business incubators (as defined in section 
                        208(a)), companies commercializing technologies 
                        in conjunction with institutions of higher 
                        education, science and research parks (as 
                        defined in section 208(a)), or technology or 
                        manufacturing companies relocating to the 
                        United States from outside the United States.
                          ``(iv) Geographic diversity.--In authorizing 
                        grant recipients to make equity investments 
                        under clause (i), the Secretary shall ensure, 
                        to the extent practicable, that grant 
                        recipients authorized represent diverse 
                        geographic areas of the United States, 
                        including rural and urban areas.
                  ``(B) Requirements.--In authorizing a grant recipient 
                to make equity investments under subparagraph (A)(i), 
                the Secretary shall ensure that--
                          ``(i) not more than 25 percent of the capital 
                        base of the revolving loan fund of the grant 
                        recipient will be used for equity investments;
                          ``(ii) the Federal share of the amount used 
                        for an equity investment made by the grant 
                        recipient will not exceed 50 percent; and
                          ``(iii) the total amount of the equity 
                        investments made by the grant recipient in any 
                        one business will not exceed $250,000.
                  ``(C) Other terms and conditions.--Except as 
                otherwise provided in this paragraph, the Secretary may 
                authorize grant recipients to make equity investments 
                under subparagraph (A)(i) subject to terms and 
                conditions the Secretary determines are appropriate.
                  ``(D) Disposition of equity securities.--In the event 
                that the Secretary acquires equity securities as a 
                result of a default by any party under any agreement 
                relating to the terms of the Secretary's extension of 
                assistance under this paragraph, the Secretary shall 
                liquidate the Federal interest in such securities as 
                soon as possible and for such consideration as the 
                Secretary determines appropriate. The Secretary may 
                assign or transfer the securities to a third party for 
                purposes of liquidation and the third party may retain 
                proceeds from the disposition of the securities to 
                defray costs related to the liquidation.
                  ``(E) Definitions.--In this paragraph the following 
                definitions apply:
                          ``(i) Capital base.--The term `capital base' 
                        means the amount of the funding, from a grant 
                        under this section and from non-Federal 
                        sources, initially provided to establish a 
                        revolving loan fund under this section.
                          ``(ii) Equity investment.--The term `equity 
                        investment' means an investment of funds in a 
                        business that results in the acquisition of an 
                        equity security.
                          ``(iii) Equity security.--The term `equity 
                        security' means an instrument that signifies an 
                        ownership interest in a business.''.

SEC. 207. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.

  (a) In General.--Section 218 (42 U.S.C. 3154d) is amended to read as 
follows:

``SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.

  ``(a) In General.--On the application of an eligible recipient, the 
Secretary may provide technical assistance, make grants, enter into 
contracts, or otherwise provide funding for a project--
          ``(1) to promote energy efficiency to enhance the economic 
        competitiveness of an area;
          ``(2) to increase the use of renewable energy technologies, 
        including solar, wind, or geothermal technologies, to support 
        sustainable economic development and job growth, with a 
        priority given to projects that incorporate photovoltaics or 
        relate to agribusiness, including in both urban and rural 
        areas;
          ``(3) to support energy efficiency or alternative energy 
        development plans, studies, or analysis (including with respect 
        to job training, attraction, or retention) to enhance a 
        comprehensive economic development strategy with respect to 
        which funding has been provided under this Act;
          ``(4) to support the efforts of a community to have a 
        technology or manufacturing business located outside the United 
        States relocate to the United States; and
          ``(5) to supplement another project funded by a Federal 
        grant, loan, or loan guarantee provided for a purpose described 
        in paragraphs (1) through (4).
  ``(b) Federal Share.--Notwithstanding section 204, the Federal share 
of the cost of a project funded under this section--
          ``(1) if described in paragraph (1), (2), (3), or (4) of 
        subsection (a), shall not exceed 80 percent; and
          ``(2) if described in subsection (a)(5), shall not exceed 100 
        percent.
  ``(c) Solicitation of Applications.--Not later than 60 days after a 
date on which funds are made available to carry out this section, the 
Secretary shall solicit applications for assistance under this 
section.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by striking the item relating 
to section 218 and inserting the following:

``Sec. 218. Sustainable economic development demonstration program.''.

SEC. 208. JOB CREATION GOALS.

  (a) In General.--Title II (42 U.S.C. 3141 et seq.), as amended by 
this Act, is further amended by adding at the end the following:

``SEC. 219. JOB CREATION GOALS.

  ``(a) In General.--As a condition of the receipt of a grant under 
section 201, 205, or 209 or a loan guarantee under section 208, the 
recipient of the grant or loan guarantee shall enter into an agreement 
with the Secretary that establishes goals for the number of jobs to be 
created as a result of the projects and activities funded by the grant 
or loan guarantee.
  ``(b) Compliance With Goals.--The Secretary may take appropriate 
action to penalize a grant recipient who fails to satisfy job creation 
goals specified in an agreement under subsection (a).''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 218 the following:

``Sec. 219. Job creation goals.''.

SEC. 209. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.

  (a) In General.--Title II (42 U.S.C. 3141 et seq.), as amended by 
this Act, is further amended by adding at the end the following:

``SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.

  ``The Secretary shall ensure that a recipient of assistance under 
this Act does not utilize the assistance for activities to 
intentionally attract, to the location of the recipient, a business or 
other source of employment already established elsewhere in the United 
States, if the relocation would adversely affect the location where the 
business or other source of employment was previously located.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 219 the following:

``Sec. 220. Prohibition with respect to use of assistance.''.

 TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS.

  Section 301 (42 U.S.C. 3161) is amended by adding at the end the 
following:
  ``(e) Special Need.--In determining whether an area has experienced 
or is about to experience a special need for purposes of subsection 
(a)(3), the Secretary may consider whether the area has been affected 
by--
          ``(1) the loss of a substantial employer;
          ``(2) substantial outmigration or population loss;
          ``(3) substantial foreclosure rates;
          ``(4) substantial underemployment;
          ``(5) military base or defense installation closure, 
        realignment, or mission growth;
          ``(6) a natural or other disaster or emergency;
          ``(7) substantial natural resource depletion;
          ``(8) substantial negative effects resulting from changing 
        trade patterns; or
          ``(9) other circumstances that the Secretary determines are 
        indicative of special or extraordinary unemployment or economic 
        adjustment problems.''.

SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

  (a) In General.--Section 302(a) (42 U.S.C. 3162(a)) is amended--
          (1) in paragraph (1) by inserting after ``problems'' the 
        following: ``and opportunities'';
          (2) in paragraph (2) by inserting after ``private'' the 
        following: ``(including nonprofit organization)''; and
          (3) in paragraph (3)--
                  (A) in subparagraph (A)--
                          (i) by striking ``economic problems'' and 
                        inserting ``economic development problems and 
                        opportunities'';
                          (ii) by inserting after ``strategy, promotes 
                        the'' the following: ``effective''; and
                          (iii) by striking ``balances'' and inserting 
                        ``optimizes''; and
                  (B) in subparagraph (B) by inserting after ``the 
                problems'' the following: ``and take advantage of the 
                opportunities''.
  (b) Approval of Other Plan.--Section 302(c) (42 U.S.C. 3162(c)) is 
amended--
          (1) in paragraph (1) by inserting after ``federally supported 
        program'' the following: ``or under a State, regionally, or 
        locally supported program''; and
          (2) in paragraph (2) by striking ``paragraph'' and inserting 
        ``subsection''.
  (c) Notification of Approval or Disapproval of Comprehensive Economic 
Development Strategy or Other Plan.--Section 302 (42 U.S.C. 3162) is 
amended by adding at the end the following:
  ``(d) Notification of Approval or Disapproval of Comprehensive 
Economic Development Strategy or Other Plan.--
          ``(1) Deadline.--The Secretary shall notify an eligible 
        recipient of the approval or disapproval of a comprehensive 
        economic development strategy or other plan submitted under 
        this section not later than 60 days after the date of receiving 
        the strategy or plan.
          ``(2) Basis for disapproval.--A notification of disapproval 
        under this subsection shall include a description of the basis 
        for the disapproval.''.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

  (a) In General.--Section 401(a) (42 U.S.C. 3171(a)) is amended in the 
matter preceding paragraph (1) by striking ``broad geographic'' and 
inserting ``national and regional''.
  (b) Operations.--Section 401 (42 U.S.C. 3171) is amended by adding at 
the end the following:
  ``(c) Operations.--
          ``(1) In general.--As a condition of maintaining designation 
        as an economic development district, each district shall engage 
        in the full range of economic development activities in the 
        comprehensive economic development strategy of the district 
        that has been approved by the Secretary, which may include--
                  ``(A) coordinating and implementing economic 
                development activities in the district;
                  ``(B) carrying out economic development research, 
                planning, implementation, and advisory functions 
                identified in the comprehensive economic development 
                strategy; and
                  ``(C) coordinating the development and implementation 
                of the comprehensive economic development strategy with 
                Federal, State, local, and private organizations.
          ``(2) Contracts.--An economic development district may enter 
        into contracts for services to carry out the activities 
        described in paragraph (1).''.

SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT 
                    DISTRICTS.

  Section 402 (42 U.S.C. 3172) is amended by adding at the end the 
following: ``The standards shall include authority for the Secretary to 
review, at the request of a district, district designations to evaluate 
whether the designations meet economic development and labor force 
needs and, when warranted, to approve the combination of districts and 
adjust applicable assistance levels for the resulting combination.''.

                        TITLE V--ADMINISTRATION

SEC. 501. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

  Section 503(a) (42 U.S.C. 3193(a)) is amended by striking ``or 
underemployment'' and inserting ``, underemployment, or outmigration''.

SEC. 502. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

  (a) Purpose of Evaluations of University Centers.--Section 506(b) (42 
U.S.C. 3196(b)) is amended by striking ``are worthy of'' and all that 
follows through the period at the end and inserting ``maintain the 
capacity to implement the priorities of the Secretary.''.
  (b) Timing of Evaluations.--Section 506(c) (42 U.S.C. 3196(c)) is 
amended to read as follows:
  ``(c) Timing of Evaluations.--Evaluations under subsection (a) shall 
be conducted on a continuing basis so that--
          ``(1) with respect to economic development districts, each 
        grantee is evaluated within 3 years after the first award of 
        assistance to the grantee and at least once every 3 years 
        thereafter, so long as the grantee receives the assistance; and
          ``(2) with respect to university centers, each grantee is 
        evaluated within 5 years after the first award of assistance to 
        the grantee and at least once every 5 years thereafter, so long 
        as the grantee receives the assistance.''.
  (c) Evaluation Criteria for University Centers.--Section 506(d)(2) 
(42 U.S.C. 3196(d)(2)) is amended to read as follows:
          ``(2) Evaluation criteria for university centers.--The 
        criteria for evaluation of a university center shall provide, 
        at a minimum, for an assessment of--
                  ``(A) the center's contribution to providing 
                technical assistance, conducting applied research, and 
                disseminating the results of the activities of the 
                center;
                  ``(B) the center's conformance with the approved 
                program plan of the center and the goals of the 
                Secretary; and
                  ``(C) if appropriate, the center's activities to 
                leverage and maximize the economic development 
                potential of Federal investments in high-speed rail 
                projects, including activities--
                          ``(i) to encourage collaboration across 
                        regions; and
                          ``(ii) to evaluate manufacturing and economic 
                        development opportunities relating to the 
                        projects.''.

SEC. 503. ECONOMIC DEVELOPMENT REPRESENTATIVES.

  (a) In General.--Title V (42 U.S.C. 3191 et seq.) is amended by 
adding at the end the following:

``SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES.

  ``The Secretary shall ensure that the Economic Development 
Administration maintains--
          ``(1) not less than 35 individuals in the position of 
        economic development representative during fiscal year 2012; 
        and
          ``(2) not less than 40 individuals in the position of 
        economic development representative during fiscal year 2013 and 
        each fiscal year thereafter.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 507 the following:

``Sec. 508. Economic development representatives.''.

SEC. 504. LIMITATION ON CERTAIN POSITIONS.

  (a) In General.--Title V (42 U.S.C. 3191 et seq.), as amended by this 
Act, is further amended by adding at the end the following:

``SEC. 509. LIMITATION ON CERTAIN POSITIONS.

  ``Beginning in fiscal year 2012, the number of positions in the 
Economic Development Administration that, for purposes of title 5, 
United States Code, are general positions (as defined by section 
3132(a)(9) of such title) which may be filled only by a noncareer 
appointee (as defined by section 3132(a)(7) of such title) shall be 
limited to 5.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 508 the following:

``Sec. 509. Limitation on certain positions.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. ANNUAL REPORT TO CONGRESS.

  Section 603(b) (42 U.S.C. 3213(b)) is amended--
          (1) in paragraph (2)(B) by striking ``and'' at the end;
          (2) in paragraph (3) by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(4) with respect to each university center assisted with 
        funding under this Act, include--
                  ``(A) a specification of the activities of the 
                university center;
                  ``(B) a specification of the recipients of technical 
                assistance from the university center; and
                  ``(C) a specification of the outcomes resulting from 
                the job creation, research, and technical assistance 
                activities of the university center; and
          ``(5) specify the projects, and the funding provided for the 
        projects, that were funded in conjunction with one or more of 
        the regional commissions.''.

SEC. 602. MAINTENANCE OF EFFORT.

  (a) In General.--Title VI (42 U.S.C. 3211 et seq.) is amended by 
adding at the end the following:

``SEC. 613. MAINTENANCE OF EFFORT.

  ``(a) Expected Period of Best Efforts.--
          ``(1) Establishment.--To carry out the purposes of this Act, 
        before providing investment assistance for a construction 
        project under this Act, the Secretary shall establish the 
        expected period during which the recipient of the assistance 
        shall make best efforts to achieve the economic development 
        objectives of the assistance.
          ``(2) Treatment of property.--To obtain the best efforts of a 
        recipient during the period established under paragraph (1), 
        during that period--
                  ``(A) any property that is acquired or improved, in 
                whole or in part, using investment assistance under 
                this Act shall be held in trust by the recipient for 
                the benefit of the project; and
                  ``(B) the Secretary shall retain an undivided 
                equitable reversionary interest in the property.
          ``(3) Termination of federal interest.--
                  ``(A) In general.--Beginning on the date on which the 
                Secretary determines that a recipient has fulfilled the 
                obligations of the recipient for the applicable period 
                under paragraph (1), taking into consideration the 
                economic conditions existing during that period, the 
                Secretary may terminate the reversionary interest of 
                the Secretary in any applicable property under 
                paragraph (2)(B).
                  ``(B) Alternative method of termination.--
                          ``(i) In general.--On a determination by a 
                        recipient that the economic development needs 
                        of the recipient have changed during the period 
                        beginning on the date on which investment 
                        assistance for a construction project is 
                        provided under this Act and ending on the 
                        expiration of the expected period established 
                        for the project under paragraph (1), the 
                        recipient may submit to the Secretary a request 
                        to terminate the reversionary interest of the 
                        Secretary in property of the project under 
                        paragraph (2)(B) before the date described in 
                        subparagraph (A).
                          ``(ii) Approval.--The Secretary may approve a 
                        request of a recipient under clause (i) if--
                                  ``(I) in any case in which the 
                                request is submitted during the 10-year 
                                period beginning on the date on which 
                                assistance is initially provided under 
                                this Act for the applicable project, 
                                the recipient repays to the Secretary 
                                an amount equal to 100 percent of the 
                                fair market value of the pro rata 
                                Federal share of the project; or
                                  ``(II) in any case in which the 
                                request is submitted after the 
                                expiration of the 10-year period 
                                described in subclause (I), the 
                                recipient repays to the Secretary an 
                                amount equal to the fair market value 
                                of the pro rata Federal share of the 
                                project as if that value had been 
                                amortized over the period established 
                                under paragraph (1), based on a 
                                straight-line depreciation of the 
                                project throughout the estimated useful 
                                life of the project.
  ``(b) Terms and Conditions.--
          ``(1) In general.--The Secretary may establish such terms and 
        conditions under this section as the Secretary determines to be 
        appropriate, including by extending the period of a 
        reversionary interest of the Secretary under subsection 
        (a)(2)(B) in any case in which the Secretary determines that 
        the performance of a recipient is unsatisfactory.
          ``(2) Maintenance of standards.--The Secretary may not 
        terminate a reversionary interest of the Secretary under 
        subsection (a)(2)(B) if the Secretary has not received adequate 
        assurances that the applicable recipient will continue to 
        satisfy the requirements of section 602 after the termination.
  ``(c) Previously Extended Assistance.--With respect to any recipient 
to which the term of provision of assistance was extended under this 
Act before the date of enactment of this section, the Secretary may 
approve a request of the recipient under subsection (a) in accordance 
with the requirements of this section to ensure uniform administration 
of this Act, notwithstanding any estimated useful life period that 
otherwise relates to the assistance.
  ``(d) Conversion of Use.--If a recipient of assistance under this Act 
demonstrates to the Secretary that the intended use of the project for 
which assistance was provided under this Act no longer represents the 
best use of the property used for the project, the Secretary may 
approve a request by the recipient to convert the property to a 
different use for the remainder of the term of the Federal interest in 
the property, subject to the condition that the new use shall be 
consistent with the purposes of this Act.
  ``(e) Status of Authority.--The authority of the Secretary under this 
section is in addition to any authority of the Secretary pursuant to 
any law or grant agreement in effect on the date of enactment of this 
section.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 612 the following:

``Sec. 613. Maintenance of effort.''.

                           TITLE VII--FUNDING

SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

  (a) Economic Development Assistance Programs.--Section 701(a) (42 
U.S.C. 3231(a)) is amended by striking ``until expended'' and all that 
follows through the period at the end and inserting the following: 
``until expended, $500,000,000 for each of fiscal years 2011 through 
2015.''.
  (b) Salaries and Expenses.--Section 701(b) (42 U.S.C. 3231(b)) is 
amended by striking paragraphs (1) and (2) and inserting the following:
          ``(1) $42,000,000 for fiscal year 2011; and
          ``(2) such sums as are necessary for each fiscal year 
        thereafter.''.

SEC. 702. FUNDING FOR GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE 
                    EXPENSES.

  Section 704 (42 U.S.C. 3234) is amended--
          (1) by striking ``$27,000,000'' and inserting 
        ``$36,000,000''; and
          (2) by inserting after ``under section 203'' the following: 
        ``and, of that amount, not less than $500,000 shall be made 
        available for grants under section 203 for planning relating to 
        high-speed rail''.

SEC. 703. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND 
                    SCIENCE AND RESEARCH PARKS.

  (a) In General.--Title VII (42 U.S.C. 3231 et seq.) is amended by 
adding at the end the following:

``SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS 
                    AND SCIENCE AND RESEARCH PARKS.

  ``(a) Grants.--In addition to amounts made available under section 
701, there is authorized to be appropriated $7,500,000 to carry out 
section 208(c).
  ``(b) Loan Guarantees.--In addition to amounts made available under 
section 701, there are authorized to be appropriated such sums as may 
be necessary to carry out section 208(d), including the cost (as 
defined in section 502 of the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a)) of guaranteeing loans under that section.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 704 the following:

``Sec. 705. Funding for financial assistance for business incubators 
and science and research parks.''.

SEC. 704. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION 
                    PROGRAM.

  (a) In General.--Title VII (42 U.S.C. 3231 et seq.), as amended by 
this Act, is further amended by adding at the end the following:

``SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION 
                    PROGRAM.

  ``Of the amounts made available under section 701 for each fiscal 
year, not less than $25,000,000 shall be made available to carry out 
section 218.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 705 the following:

``Sec. 706. Funding for sustainable economic development demonstration 
program.''.

SEC. 705. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                    ASSISTANCE.

  (a) In General.--Title VII (42 U.S.C. 3231 et seq.), as amended by 
this Act, is further amended by adding at the end the following:

``SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                    ASSISTANCE.

  ``Of the amounts made available under section 701 for each fiscal 
year, not less than $10,000,000 shall be made available for grants 
provided under section 207 and, of that amount, not less than 
$1,125,000 shall be made available for grants under section 207 to 
establish university centers in States that do not have a university 
center.''.
  (b) Clerical Amendment.--The table of contents in section 1(b), as 
amended by this Act, is further amended by inserting after the item 
relating to section 706 the following:

``Sec. 707. Funding for grants for training, research, and technical 
assistance.''.

                       Purpose of the Legislation

    H.R. 5897, as amended, the ``Economic Revitalization and 
Innovation Act of 2010'', authorizes programs of the Economic 
Development Administration (EDA) for five fiscal years.

                  Background and Need for Legislation

    Established by the Public Works and Economic Development 
Act of 1965 (P.L. 89-136), EDA was created to alleviate 
conditions of substantial and persistent unemployment in 
economically distressed areas and regions. EDA's mission today 
remains much the same as it was when originally founded: to 
bolster the efforts of communities across the nation to attract 
private sector investment and create new job opportunities. EDA 
fulfills its mission by empowering and equipping communities 
and regions to develop and implement their own economic 
development and revitalization strategies. EDA supports this 
locally-driven economic development by providing grants for 
projects through a variety of programs including: planning; 
technical assistance; public works; economic adjustment; 
research and evaluation; and trade adjustment assistance. 
Projects funded by EDA are generally located in areas 
exhibiting economic distress at the time of application. 
However, projects located outside these areas may be considered 
if they directly benefit an economically distressed area. All 
public works and economic adjustment projects must be 
consistent with an EDA-approved and region-specific 
Comprehensive Economic Development Strategy (CEDS) or approved 
economic development plan.
    Planning grants support the design and implementation of 
effective economic development policies and programs by local 
organizations. Grants made to university centers provide 
technical assistance to public bodies, nonprofit organizations, 
and businesses to plan and implement activities designed to 
generate jobs and income in economically distressed areas. 
Public works grants provide for infrastructure projects that 
foster the establishment or expansion of industrial and 
commercial businesses generating employment in communities 
experiencing high unemployment, underemployment, low per-capita 
income, or out-migration. Economic adjustment investments 
provide a package of assistance tools, including planning, 
technical assistance, revolving loan funds and infrastructure 
development, to help communities counteract either gradual 
erosion or a sudden dislocation of their local economic 
structure as a result of natural disasters, international trade 
competition, or major plant closings. Trade adjustment 
assistance provides technical assistance, through a national 
network of 12 Trade Adjustment Assistance Centers (TAAC), to 
certified U.S. manufacturing firms and industries economically 
injured as the result of international trade competition.
    In 2007, EDA contracted Grant Thornton to study the costs 
and economic impact of EDA's construction investments. The 
study surveyed more than 40 other similar Federal programs and 
concluded that ``EDA investments in rural areas have a 
statistically significant impact on employment levels in the 
communities in which they are made, generating between 2.2 and 
5.0 jobs per $10,000 in incremental EDA funding, at a cost per 
job of between $2,001 and $4,611.''\1\ In addition, five 
ancillary jobs were created as a result of the EDA investment. 
The study further concluded that EDA's investment in business 
incubators was worthwhile and this type of investment generated 
significantly greater impacts in the communities in which they 
are made than do other project types. Lastly, the study 
emphasized that EDA jobs tended to be longer term jobs retained 
by a community for a longer period of time than other types of 
job creation investments.
---------------------------------------------------------------------------
    \1\Grant Thornton, Construction Grants Program Impact Assessment 
Report: Volume I--Report on Investigation and Results September 30, 
2008).
---------------------------------------------------------------------------
    H.R. 5897, as amended, the ``Economic Revitalization and 
Innovation Act of 2010'', builds on this foundation of success 
and program efficiency as well as leverages EDA's programs and 
network of local partners to address economic distress and 
unemployment nationwide. H.R. 5897 authorizes $500 million in 
EDA funding per year for five years; creates a loan guarantee 
program for business incubators and science and research parks 
as well as operating support for business incubators; creates 
flexibility in the Revolving Loan Fund (RLF) to provide equity 
financing for companies using its existing network of non-
profit lenders and allows existing RLFs to convert their funds 
to invest in a different EDA-eligible purpose; allows 
communities to modify the use of an EDA-funded facility to a 
different EDA-approved use; provides funding to support 
sustainable economic development projects; supports funding to 
attract technology and manufacturing companies from overseas to 
locate or relocate to the United States; and strengthens job 
creation incentives for EDA grant recipients across all EDA 
programs.

                       Summary of the Legislation


Section. 1. Short title; table of contents

    Section 1 provides that the short title of the Act is the 
``Economic Revitalization and Innovation Act of 2010'' and 
includes a table of contents.

Sec. 2. Amendments to Public Works and Economic Development Act of 1965

    This section states that any amendments or repeals 
contained in the Act are in reference to the sections or 
provisions of the Public Works and Economic Development Act of 
1965 (PWEDA) unless expressly provided for otherwise.

Sec. 3. Findings and declarations

    This section provides an updated assessment of the economic 
conditions facing economically distressed communities and the 
U.S. economy as a whole. Sustainable growth, innovation, and 
entrepreneurship are heavily emphasized as the determinants of 
economic progress and wealth creation at the local and national 
level. The goal of remedying chronic high-unemployment and 
economic dislocation through State, local, regional, and 
Federal partnerships is also addressed.

Sec. 4. Definitions

    This section adds the Southeast Crescent Regional 
Commission, Northern Border Regional Commission, and Southwest 
Border Regional Commission established by section 15301(a) of 
title 40, United States Code (U.S.C.) to the definition of 
Regional Commissions.

TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION


Sec. 101. Establishment of economic development partnerships

    Subsection (a) identifies economic development districts 
(EDDs) and university centers as nonprofit organizations that 
can provide technical assistance to States and other inter- and 
intra-state entities for the purpose of advancing various 
economic development activities, such as supporting public-
private partnerships, investments in infrastructure, and 
sustainable development.
    Subsection (b) specifically adds EDDs as entities to be 
provided an opportunity to review and comment on proposed EDA 
projects. The Committee on Transportation and Infrastructure 
recognizes the importance of EDDs and their role in developing 
projects for investment consideration in partnership with State 
and local governmental agencies. EDA should develop its 
regulations and procedures using processes that provide EDDs a 
reasonable level of input. However, consideration of EDDs' 
comments should in no manner impede EDA projects or investments 
in a community or supersede or be weighted above other 
appropriate review and comment.

Sec. 102. Encouragement of certain coordination

    This section adds to existing law the specific 
identification of the Department of Labor and its workforce 
development strategies as an area of consultation and 
cooperation for the Secretary of Commerce (Secretary) and, by 
extension, EDA.

Sec. 103. Coordination with respect to high-speed rail

    This section directs the Secretary to coordinate, as 
appropriate, with the U.S. Department of Transportation and 
other relevant Federal agencies, State and local governments, 
EDDs, Indian tribes, and planning and development organizations 
in leveraging Federal investments in high-speed rail projects. 
This section also directs EDA to conduct studies and 
disseminate reports with respect to high-speed rail projects. 
The Committee expects EDA to use its platform as the only 
Federal agency charged with evaluating and implementing 
economic development programs to inform, coordinate, and 
leverage its programs, in collaboration with the appropriate 
Federal agencies, such as the Federal Railroad Administration, 
regarding economic development activities related to high-speed 
rail. Furthermore, the Committee expects that opportunities for 
improved coordination and leveraging of programs may exist and 
would like to be informed of these opportunities on a periodic 
basis in the form of formal and informal communication with the 
Committee. The Committee recommends that the Secretary also 
coordinate these activities with EDA's extensive network of 
EDDs and university centers, many of which are involved with 
transportation planning activities.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT


Sec. 201. Grants for public works and economic development

    Subsection (a) amends existing law by expanding the 
definition of ``development facility'' to include a facility of 
a business incubator or a science and research park. These 
facilities are defined in section 208(a).

Sec. 202. Grants for planning and grants for administrative expenses

    Subsection (a) clarifies that the eligible uses of EDA 
grants for administrative expenses include allowable indirect 
costs (under the definition of applicable Office of Management 
and Budget circulars).
    Subsection (b) provides that the eligible uses of EDA 
grants for planning include innovation and regional 
collaboration activities.
    Subsection (c) adds sustainable development practices as a 
consideration in the comprehensive planning process.

Sec. 203. Cost sharing

    This section allows the Secretary to consider a decline in 
tax revenues as a factor in waiving the local share requirement 
for receipt of EDA grants. Due to the economic downturn, many 
communities have found it increasingly difficult to provide the 
matching funds normally required to receive EDA grants. With 
the exception of grants to Indian tribes or communities that 
have experienced natural disasters, EDA requires a minimum of 
20 percent matching funds under normal circumstances. This 
provision authorizes the Secretary to provide up to 100 percent 
grant funding to communities that have suffered declines in tax 
revenues.
    This section also authorizes the Secretary to provide up to 
100 percent grant funding for section 203 and section 207 
grants (i.e., planning, training, and research and technical 
assistance grants) to encourage broader regional planning 
activities.

Sec. 204. Grants for training, research, and technical assistance

    Subsection (a) amends section 207 of PWEDA to include the 
alleviation or prevention of ``outmigration'' as an eligible 
grant purpose for training, research, or technical assistance 
grants.
    Subsection (b) addresses EDA's university center program. 
It sets as a goal that at least one university center is 
established in each State and the District of Columbia. There 
are currently several States, including the District of 
Columbia, without a university center. This subsection also 
amends current law by adding innovation, commercialization, and 
entrepreneurship to the list of activities for which the 
Secretary can direct training, research, and technical grant 
assistance.
    Subsection (c) requires university centers to conduct a new 
set of activities related to high-speed rail research and 
technical assistance, where appropriate. Specifically, 
university centers will be required to conduct research and 
provide technical assistance in States with high-speed rail 
corridors and construction projects to support the economic 
development and job creation activities of relevant 
communities.

Sec. 205. Financial assistance for business incubators and science and 
        research parks

    This section establishes a new program to be administered 
by EDA focused on grants to study the feasibility or 
development of science and research parks as well as make loan 
guarantees to construct business incubators and science and 
research parks.
    Subsection (a) provides the definitions for a business 
incubator, business incubator development project, and science 
and research park development.
    Subsections (b), (c), and (d) describe the two newly-
created grant programs. First, the science and research park 
grant program provides up to $750,000 per grant for a 
feasibility study and development plan of a science and 
research park development project. The total program may not 
make grants in excess of $7.5 million. Second, the loan 
guarantee program authorizes EDA to make loan guarantees of up 
to 80 percent of a loan amount for the construction of a 
business incubator or science and research park facility. The 
total amount of loan guarantees that may be issued may not 
exceed $50 million per project and no greater than $500 million 
in total. A recipient of a grant for a feasibility study or 
development plan cannot receive a loan guarantee award to 
construct a facility until the completion of the feasibility 
study or development plan. The Committee's intent is to ensure 
that an insufficiently planned project is not supported with a 
Federal loan guarantee and that program funds are not committed 
to a project prematurely and thereby limit the funds available 
for projects at a further stage of development and completion.

Sec. 206. Grants for economic adjustment

    Subsection (a) of this section amends section 209 of PWEDA 
by specifically identifying science and research park projects, 
challenge grants, and operating support for business incubators 
as eligible activities for section 209 (Economic Adjustment) 
grant assistance. In terms of business incubator operating 
support, the Committee fully supports EDA operating support to 
incubators in the form of incubator-provided training programs 
directed to entrepreneurs, product development resources, 
funding to support collaboration with U.S. Small Business 
Administration (SBA) programs, mentoring programs, and 
financing programs to help incubator clients secure appropriate 
low-cost financing as well as job creation and expansion 
activities.
    Subsection (b) amends existing law by no longer requiring 
communities applying for Economic Adjustment assistance to 
prove that they were ``injured'' economically by events ranging 
from military base closures, disasters, international trade, 
fishery failures, or loss of manufacturing jobs. Communities 
now need only prove that they were ``affected'' by these 
occurrences. This provision removes a significant barrier to 
receiving EDA assistance. This subsection also expands the 
eligibility of section 209 to include communities affected by 
Department of Defense-related ``mission growth''; and job 
losses in information technology, natural resources, 
agricultural, or service sector jobs. Finally, this subsection 
authorizes EDA to provide assistance to communities that suffer 
impediments to economic growth including a lack of technology 
infrastructure, an inability to utilize alternative energy 
production and distribution, and insufficient access to capital 
and credit necessary for business retention and expansion.
    Subsection (c) amends section 209 of PWEDA by allowing for 
RLF grantees to transfer and convert the use of all or a 
portion of their assets to another eligible recipient to 
establish a multi-region or national RLF. The purpose of this 
provision is to allow grantees the ability to take advantage of 
new economic development opportunities to make investments on a 
broader scale or for different purposes than when an RLF was 
originally established. This transfer or conversion must be 
approved by the Secretary. Conversion can take place using one 
of two methods: selling RLF assets to a third party; or 
retaining repayments of principal and interest amounts made on 
loans and using these assets to fund a transfer and conversion.
    A critical administrative provision of this section is the 
release of the Federal Government's interest in an RLF. At the 
earliest, this release will take effect seven years after the 
funds in an RLF have been fully disbursed. To qualify for a 
release of Federal interest, the grant recipient must have 
carried out the terms of the grant satisfactorily, have a plan 
to use any subsequent proceeds consistent with the economic 
development purposes found in PWEDA, and continue to satisfy 
all other requirements of PWEDA. It is the Committee's 
expectation that this provision will free numerous past RLF 
recipients from unnecessary administrative requirements and 
that alleviation of these requirements will allow a greater 
level of RLF investment, including increased investments 
relevant to current economic conditions for many communities.
    Subsection (c) also creates a new Equity Investment 
Demonstration Program (EIDP). The EIDP's objective is to 
provide access to equity or non-debt based loans to businesses 
using EDA's existing network of nonprofit RLF third party 
lenders. By providing these lenders with authority to take 
equity stakes in companies instead of traditional collateral, 
the program will provide investment opportunities to companies 
whose primary assets are based on intellectual property, 
including technology (e.g., information technology, 
biosciences, and cybersecurity), manufacturing, and alternative 
energy companies.
    This section limits the percentage of overall investments 
that can be comprised of equity investments to 25 percent and 
the amount of each investment cannot exceed $250,000. To ensure 
that investments are considered viable and to spur additional 
private sector investment in these companies, the maximum 
Federal investment share cannot exceed 50 percent. In addition, 
preference is to be extended to companies: located in business 
incubators or science and research parks, commercializing 
technologies in conjunction with institutions of higher 
education, engaged in technology or manufacturing, and locating 
or relocating to the United States from outside the United 
States. The Committee strongly supports this preference as a 
means of maximizing the likely success of these investments in 
terms of increasing the opportunities for economic development 
and job creation. The Committee also supports the use of this 
preference as a means of attracting companies to the United 
States that had previously left a domestic location and laid 
off U.S.-based employees. The Committee strongly recommends 
collaboration between EDA, its RLF lender network, and the SBA 
in identifying and supporting the businesses that receive EIDP 
investment assistance.

Sec. 207. Sustainable economic development demonstration program

    This section amends section 218 of PWEDA to establish a 
Sustainable Economic Development Demonstration Program to 
finance economic development projects that promote energy 
efficiency, increase the use of renewable energy technologies, 
and assist communities trying to attract technology or 
manufacturing companies to the United States. The Committee 
believes that opportunities for these types of investments 
exist in both urban and rural locations and would include a 
wide variety of industry investments, ranging from advanced 
manufacturing and agribusiness to collaborative job training 
initiatives to train workers for these industries. Investments 
that will support long-term employment as well as the growth 
and renewal of existing industries should be emphasized.
    Unlike most of EDA's non-emergency grant programs, this 
program supports 100 percent project funding in cases where EDA 
funding will augment other Federal funding. The Committee 
supports this provision due to the dire need of communities 
that are unable to provide matchingfunds because of declines in 
revenue and economic distress nationally. Support from EDA in the form 
of technical assistance and outreach efforts should be directed at 
assisting communities in identifying appropriate Federal funding to 
support and augment investments for this program.
    The Committee expects that EDA will expeditiously implement 
this provision using its network of Economic Development 
Representatives (EDRs) and other outreach mechanisms to develop 
applications from the appropriate profile of applicants. If EDA 
has not made a grant award under this program within one year 
of the date of enactment of this Act, the Committee directs the 
Secretary to notify the Committee and explain the reasons for 
delay in implementing this provision.

Sec. 208. Job creation goals

    This section requires the Secretary to establish job 
creation goals for EDA assistance under the Act's section 201, 
205, 208, and 209 grant programs and to include these goals as 
a part of any grant agreement for these programs. This section 
permits the Secretary to develop appropriate penalties for non-
compliance with agreed-to job creation goals. The Committee 
understands that under current regulation and practice EDA has 
a system in place to incorporate job creation goals as a part 
of grant agreements. The Committee encourages EDA to further 
develop these regulations to encourage grant recipients to 
carefully consider representations made in regards to likely 
job creation outcomes for EDA-funded projects. As a result, the 
Committee expects that applicants will more thoroughly develop 
proposals and achieve EDA's goal: using EDA investments to 
create long-term employment.

Sec. 209. Prohibition with respect to use of assistance

    This section requires that the Secretary ensure non-
competition between communities for the relocation of 
businesses from one community to another using EDA funds.

 TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES


Sec. 301. Eligibility of areas

    This section amends existing law to clarify the ``special 
need'' determination outlined in section 301(a)(3) of PWEDA. 
The Committee clarifies the special need determination because 
EDA's traditional measures of economic distress (section 
301(a)), such as an unemployment rate one percent above the 
national average for the past 24 months and per capita income 
of 80 percent or less than the national average, leave many 
communities that are suffering economic distress ineligible for 
EDA assistance. This section clarifies that communities that 
suffer from substantial outmigration, foreclosure rates, and 
underemployment constitute a ``special need'', and are eligible 
for EDA assistance. The Committee strongly encourages the 
Secretary to use this authority to address the conditions of 
severe economic distress currently being experienced by 
communities, many of which have never before been eligible for 
EDA assistance.

Sec. 302. Comprehensive economic development strategies

    Subsection (a) amends existing law by expanding the scope 
of a CEDS to allow it to address not just economic problems but 
also to identify economic opportunities for a community.
    Subsection (b) identifies the other types of economic 
development plans that are acceptable as a substitute for a 
CEDS. Those plans are generally developed on behalf of a 
community or region by or for another Federal agency, State 
governmental entity, or nonprofit economic development or 
planning organization. Although EDDs are often involved in the 
development of CEDS or other such approved plans, plans 
developed without EDD involvement should also be considered for 
approval by EDA where appropriate. In such cases where an EDD 
is not the author of a CEDS or plan, the roles and 
responsibilities of EDDs (outlined in section 401) should be 
adjusted accordingly.
    This section also requires the Secretary to notify an 
eligible recipient of the approval or disapproval of a CEDS or 
economic development plan within 60 days of submission to EDA. 
Under current practice, an eligible recipient for EDA 
assistance may not receive notice of approval or disapproval of 
a CEDS within 60 days, thereby delaying EDA grant assistance to 
a community. Under this section, if the Secretary disapproves 
of a CEDS or a plan, notification and an explanation to the 
eligible recipient of why a CEDS or a plan was disapproved is 
required. It is the Committee's expectation that EDA will 
implement this provision as expeditiously as possible and 
notify the Committee of any difficulties with the 
implementation of this requirement within 180 days of the date 
of enactment.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS


Sec. 401. Designation of economic development districts

    This section amends existing law by altering the focus of 
EDDs from an emphasis on ``broad geographic'' economic 
development projects to an emphasis on aligning proposed 
projects with national and regional significance. The Committee 
recognizes the importance of local considerations in economic 
development planning, and this section ensures that regional or 
national best practices and project successes are considered in 
such planning.
    This section also outlines a set of specific activities to 
be carried out by EDDs as a condition of maintaining their 
status as districts. The Secretary has discretion to determine 
where and to what extent it is appropriate for these duties to 
be required of an EDD because the contents of a CEDS or plan 
may not have been wholly or partially developed by a district. 
In addition, implementing regulations should outline the role 
of EDDs or other appropriate organizations regarding CEDS 
development, implementation, and coordination.

Sec. 402. Termination or modification of economic development districts

    This section gives the Secretary the authority to review, 
at an EDD's request, whether a district should be combined with 
another district and to adjust applicable assistance levels in 
accordance with such combination. The purpose of this authority 
is to respond to the economic development needs of many 
metropolitan regions where the economic interests of those 
communities' multiple districts are increasingly intertwined 
and interdependent. In such cases, multiple districts may wish 
to combine their districts into a single district and not have 
their collective level of EDA assistance reduced.

                        TITLE V--ADMINISTRATION


Sec. 501. Consultation with other persons and agencies

    This section amends section 503 of PWEDA to authorize the 
Secretary to consult with various representatives of labor, 
management, agriculture, and government regarding outmigration 
issues.

Sec. 502. Performance evaluations of grant recipients

    This section amends existing law by changing the periodic 
performance evaluations of university centers from at least 
once every three years to at least once every five years. The 
Secretary may determine the period for evaluation based on the 
Secretary's priorities and performance of centers. The 
Committee recognizes the value of regular evaluations of 
programs and competition among centers within a State or 
region. In concert with this goal, the Committee wishes to 
maintain an appropriate level of economic development technical 
assistance to communities and industries in long-term 
collaboration with other Federal agencies. An example of this 
is the collaboration that takes place between university 
centers and EDA as well as the Federal Emergency Management 
Agency (FEMA) and SBA in disasters and long-term recovery 
efforts.
    This section also adds an additional requirement to the 
evaluation criteria for university centers. Where appropriate, 
university centers will be required to: assist in providing 
technical assistance and research in support of high-speed rail 
projects and encourage collaboration across regions and 
evaluate manufacturing and economic development opportunities 
related to high-speed rail projects. It is expected that EDA 
will take advantage of its national network of university 
centers not only in furtherance of economic development 
opportunities for high-speed rail projects, but to address 
economic development challenges as they occur across the 
country.

Sec. 503. Economic development representatives

    This section amends title V of PWEDA by requiring that EDA 
maintain at least 35 individuals in the position of EDR by the 
end of fiscal year (FY) 2012 and at least 40 individuals by the 
end of FY 2013 and thereafter. The issue of the availability of 
technical assistance available to communities has been of great 
concern to the Committee over the last decade. Furthermore, 
with the increase in communities requesting EDA assistance and 
the administrative changes to EDA's grant application process, 
the need for additional technical assistance by EDRs will be 
manifold.

Sec. 504. Limitation on certain positions

    This section limits the number of political appointees at 
EDA to five positions.

                        TITLE VI--MISCELLANEOUS


Sec. 601. Annual report to Congress

    This section requires that the Secretary must include 
detailed information on the activities of university centers 
and information on projects funded in conjunction with the 
regional commissions (as defined in section 3(8) of the Act) in 
its annual report.

Sec. 602. Maintenance of effort

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

                           TITLE VII--FUNDING


Sec. 701. General authorization of appropriations

    This section authorizes $500 million for Economic 
Development Assistance Programs (EDAP) for FY 2011 through FY 
2015, and $42 million for Salaries and Expenses for FY 2011 and 
such sums as necessary for each fiscal year thereafter.

Sec. 702. Funding for grants for planning and grants for administrative 
        expenses

    This section requires that $36 million per fiscal year of 
EDAP funds be used for planning and administrative expenses 
grants. The Committee intends that these funds be used in a 
manner that provides funding for existing and new EDDs, without 
diminishing funding for existing EDDs. In addition, of this 
planning funding, $500,000 per fiscal year shall be used for 
the section 203 high-speed rail program. This funding should be 
allocated in a manner that maximizes collaboration with the 
university center program and promotes appropriate regional 
planning and technical assistance for high-speed rail projects.

Sec. 703. Funding for financial assistance for business incubators and 
        science and research parks

    This section authorizes $7.5 million for the science and 
research park grant program. This funding is to be provided 
separately from the section 701 funding. For the loan guarantee 
program created under section 208(d), such sums as necessary 
are authorized for loan guarantees.

Sec. 704. Funding for sustainable economic development demonstration 
        program

    This section requires that $25 million per fiscal year of 
EDAP funds be used to carry out the sustainable economic 
development program.

Sec. 705. Funding for grants for training, research, and technical 
        assistance

    This section requires that $10 million per fiscal year of 
EDAP funds be used for section 207 grants, including funding to 
support existing and new university centers. Of this amount, 
not less than $1.125 million is made available for the 
establishment of university centers in unserved States and the 
District of Columbia. The Committee recommends a greater level 
of collaboration between EDA and its university center grant 
recipients in providing technical assistance to all EDA grant 
applicants and in developing improved remote technical 
assistance capabilities.

            Legislative History and Committee Consideration

    In the 110th Congress, Chairman James L. Oberstar 
introduced H.R. 3246, the ``Regional Economic and 
Infrastructure Development Act of 2007'', on July 31, 2007. 
H.R. 3246 authorized five regional economic development 
commissions--the Delta Regional Authority, the Northern Great 
Plains Regional Authority, the Southeast Crescent Regional 
Commission, the Southwest Border Regional Commission, and the 
Northern Border Regional Commission--under a common framework 
of administration and management, and provided a structure for 
economic development decision-making and planning. These 
commissions are designed to address problems of systemic 
poverty and underdevelopment in their respective regions. On 
August 1, 2007, the Subcommittee on Economic Development, 
Public Buildings, and Emergency Management met in open session 
and recommended H.R. 3246 favorably to the Committee on 
Transportation and Infrastructure. On August 2, 2007, the 
Committee on Transportation and Infrastructure met in open 
session to consider H.R. 3246, and adopted two amendments by 
voice vote. The Committee ordered H.R. 3246, as amended, 
reported favorably to the House by voice vote. On October 4, 
2007, the House passed H.R. 3246, as amended. On May 22, 2008, 
H.R. 3246, as amended, was enacted as title VI, sections 6025 
and 6026, and title XIV, section 14217 of the Food, 
Conservation, and Energy Act of 2008 (P.L. 110-234).
    On July 28, 2010, Chairman James L. Oberstar introduced 
H.R. 5897, the ``Economic Revitalization and Innovation Act of 
2010''. On July 29, 2010, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 5897. 
During consideration, the Committee adopted three amendments to 
the bill. The Committee ordered the bill, as amended, reported 
favorably to the House by voice vote with a quorum present.

                              Record Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no recorded votes taken in connection 
with consideration of H.R. 5897, or ordering the bill reported. 
A motion to order H.R. 5897, as amended, reported favorably to 
the House was agreed to by voice vote with a quorum present.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
section 308(a) of the Congressional Budget Act of 1974, the 
Committee references the report of the Congressional Budget 
Office included in the report.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
authorize programs of the EDA for five fiscal years.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the enclosed cost estimate for H.R. 
5897, as amended, from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 27, 2010.
Hon. James L. Oberstar,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5897, the Economic 
Revitalization and Innovation Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople.
            Sincerely,
                                          Peter H. Fontaine
                              (For Douglas W. Elmendorf, Director).
    Enclosure.

H.R. 5897--Economic Revitalization and Innovation Act of 2010

    Summary: H.R. 5897 would authorize funding for exiting 
programs of the Economic Development Administration (EDA) 
through 2015. The legislation also would authorize 
appropriations for EDA to provide loan guarantees for the 
construction and renovation of business incubators and science 
and research parks. Assuming appropriation of the specified and 
necessary amounts, CBO estimates that implementing this bill 
would cost about $1.3 billion over the 2011-2015 period and 
$1.2 billion after 2015. Enacting H.R. 5897 would not affect 
direct spending or revenues; therefore pay-as-you-go procedures 
do not apply.
    H.R. 5897 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the federal government: The estimated 
budgetary impact of H.R. 5897 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2011      2012      2013      2014      2015    2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

EDA Programs:
    Authorization Level............................       500       500       500       500       500      2,500
    Estimated Outlays..............................        25       135       245       385       485      1,275
Loans Guarantees for Business Incubators and
 Science and Research Parks:
    Estimated Authorization Level..................         2         5         5         7         7         26
    Estimated Outlays..............................         2         4         5         6         7         24
    Total Changes:
        Estimated Authorization Level..............       502       505       505       507       507      2,526
        Estimated Outlays..........................        27       139       250       391       492     1,299
----------------------------------------------------------------------------------------------------------------
Note: EDA = Economic Development Administration.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the beginning of fiscal year 
2011 and that amounts specified and estimated to be necessary 
will be appropriated for each year.

Economic Development Administration programs

    H.R. 5897 would authorize the appropriation of $500 million 
in each of fiscal years 2011 through 2015 for EDA to provide 
various types of assistance to encourage economic development 
in distressed areas. For 2010, the Congress provided a total of 
$304 million to EDA, including $255 million in regular 
appropriations and $49 million for states affected by certain 
disasters (see Public Law 111-117 and Public Law 111-212).
    In addition to authorizing the appropriation of more than 
$400 million a year for public works and economic development 
grants to state and local entities, the bill would specifically 
authorize appropriations of:
           $36 million in each fiscal year for grants 
        covering 50 percent to 100 percent (based on relative 
        need and other special circumstances) of the cost for 
        economic development planning and administration;
           $35 million in each fiscal year for a new 
        sustainable, economic development demonstration 
        program;
           $10 million in each fiscal year for training 
        and research grants and technical assistance to help 
        alleviate or prevent unemployment, underemployment, and 
        outmigration of jobs; and
           About $8 million for planning grants to 
        construct and develop science and research parks.
    Based on historical spending patterns of EDA programs, CBO 
estimates that assistance provided under this legislation would 
cost about $1.3 billion over the next five years and $1.2 
billion after 2015.

Loan guarantees for business incubators and science and research parks

    H.R. 5897 would authorize the appropriation of whatever 
amounts are necessary for EDA to guarantee loans for 
constructing and renovating business incubators (programs that 
foster the creation and growth of new and early-stage 
businesses) and science and research parks. Loan guarantees for 
each project could exceed $50 million or 80 percent of the 
loan, whichever is less. Aggregate loan guarantees could not 
exceed $235 million in a single year or $500 million over the 
2011-2015 period.
    The budgetary accounting for direct loans and loan 
guarantees administered by federal agencies is governed by the 
Federal Credit Reform Act of 1990, which requires an 
appropriation of the subsidy and administrative costs 
associated with such loan operations. The subsidy cost is the 
estimated long-term cost to the government of a loan or loan 
guarantee, calculated on a net-present-value basis, excluding 
administrative costs. Administrative costs, recorded on a cash 
basis, include activities related to making, servicing, and 
liquidating loans as well as overseeing the performance of 
lenders.
    Based on the historical experience of similar projects, CBO 
assumes that over half of the business incubators and science 
and research parks that would obtain a loan guarantee under the 
bill would be operated or affiliated with a anniversary or 
state or local government. The remainder would be developed by 
private entities. The credit ratings of similar projects 
operated by such groups indicate that the subsidy rate for this 
program would be about 4 percent, requiring the appropriation 
of about $20 million over the 2011-2015 period to cover the 
cost of making $500 million in loans. (A portion of that 
subsidy cost would be expended after 2015 as loans are 
disbursed.) Assuming the appropriation of those amounts plus an 
additional $6 million for administrative costs, CBO estimates 
that implementing this provision would cost $24 million over 
the 2011-2015 period.

Other changes

    The legislation would increase the maximum federal cost 
share for certain EDA projects. Under current law, the federal 
government covers 50 percent of the costs for public works and 
economic development projects, plus up to an additional 30 
percent based on the relative needs of the region in which the 
project is located (as measured by unemployment rates and per 
capita income). EDA can increase the federal cost share to 100 
percent for state and local governments that have exhausted 
their effective taxing and borrowing capacity. This legislation 
would allow EDA to provide similar increases for state and 
local governments that have had substantial declines in tax 
revenue and for certain grants covering planning and 
administrative expenses.
    CBO does not expect that those or other changes to existing 
programs included in H.R. 5897 would significantly alter EDA 
expenditures; therefore, we estimate the changes would not 
affect the federal budget over the next five years.
    H.R. 5897 also would authorize the appropriation of $42 
million in 2011 and such sums as may be necessary thereafter 
for the salaries and expenses of EDA employees. The Congress 
provided $38 million for this purpose in 2010 (see Public Law 
111-117) and authorize the appropriation of such sums as may be 
necessary for future fiscal years (see Public Law 108-373). CBO 
does not estimate additional costs for this provision above 
those already authorized in current law.
    Intergovernmental and private-sector impact: H.R. 5897 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments would 
benefit from grants and technical assistance for economic 
development projects included in the bill. Any costs to those 
governments, including matching funds, would be incurred 
voluntarily as conditions of federal assistance.
    Previous CBO estimate: On December 9, 2009, CBO transmitted 
a cost estimate for S. 2778, the Economic Development 
Revitalization Act of 2009, as ordered reported by the Senate 
Committee on Environment and Public Works on November 18, 2009. 
CBO estimated that implementing that bill would cost about $1.3 
billion over the 2010-2014 period and $760 million thereafter.
    H.R. 5897 and S. 2778 would provide funding for existing 
EDA programs at the same level but over different time periods. 
Each piece of legislation also would authorize additional 
amounts for programs not included in the other bill. The CBO 
cost estimates reflect those differences.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Trial Governments: Melissa Merrell; Impact 
on the Private Sector: Marin Randall.
    Estimate approved by: Theresa A. Gullo, Deputy Assistant 
Director for Budget Analysis.

                     Compliance With House Rule XXI

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits, as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. H.R. 
5897, as amended, does not contain any earmarks, limited tax 
benefits, or limited tariff benefits under clause 9(e), 9(f), 
or 9(g) of rule XXI.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, committee reports on a bill or joint 
resolution of a public character shall include a statement 
citing the specific powers granted to the Congress in the 
Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (P.L. 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 5897, as amended, 
does not preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

           PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents of this Act is 
as follows:
     * * * * * * *

 TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

     * * * * * * *
Sec. 104. Encouragement of certain coordination.
Sec. 105. Coordination with respect to high-speed rail.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

     * * * * * * *
Sec. 208. Financial assistance for business incubators and science and 
          research parks.
     * * * * * * *
[Sec. 218. Brightfields demonstration program.]
Sec. 218. Sustainable economic development demonstration program.
Sec. 219. Job creation goals.
Sec. 220. Prohibition with respect to use of assistance.
     * * * * * * *

                         TITLE V--ADMINISTRATION

     * * * * * * *
Sec. 508. Economic development representatives.
Sec. 509. Limitation on certain positions.

                         TITLE VI--MISCELLANEOUS

     * * * * * * *
Sec. 613. Maintenance of effort.

                           TITLE VII--FUNDING

     * * * * * * *
Sec. 705. Funding for financial assistance for business incubators and 
          science and research parks.
Sec. 706. Funding for sustainable economic development demonstration 
          program.
Sec. 707. Funding for grants for training, research, and technical 
          assistance.

SEC. 2. FINDINGS AND DECLARATIONS.

  [(a) Findings.--Congress finds that--
          [(1) there continue to be areas of the United States 
        experiencing chronic high unemployment, 
        underemployment, outmigration, and low per capita 
        incomes, as well as areas facing sudden and severe 
        economic dislocations because of structural economic 
        changes, changing trade patterns, certain Federal 
        actions (including environmental requirements that 
        result in the removal of economic activities from a 
        locality), and natural disasters;
          [(2) economic growth in the States, cities, and rural 
        areas of the United States is produced by expanding 
        economic opportunities, expanding free enterprise 
        through trade, developing and strengthening public 
        infrastructure, and creating a climate for job creation 
        and business development;
          [(3) the goal of Federal economic development 
        programs is to raise the standard of living for all 
        citizens and increase the wealth and overall rate of 
        growth of the economy by encouraging communities to 
        develop a more competitive and diversified economic 
        base by--
                  [(A) creating an environment that promotes 
                economic activity by improving and expanding 
                public infrastructure;
                  [(B) promoting job creation through increased 
                innovation, productivity, and entrepreneurship; 
                and
                  [(C) empowering local and regional 
                communities experiencing chronic high 
                unemployment and low per capita income to 
                develop private sector business and attract 
                increased private sector capital investment;
          [(4) while economic development is an inherently 
        local process, the Federal Government should work in 
        partnership with public and private State, regional, 
        tribal, and local organizations to maximize the impact 
        of existing resources and enable regions, communities, 
        and citizens to participate more fully in the American 
        dream and national prosperity;
          [(5) in order to avoid duplication of effort and 
        achieve meaningful, long-lasting results, Federal, 
        State, tribal, and local economic development 
        activities should have a clear focus, improved 
        coordination, a comprehensive approach, and simplified 
        and consistent requirements; and
          [(6) Federal economic development efforts will be 
        more effective if the efforts are coordinated with, and 
        build upon, the trade, workforce investment, 
        transportation, and technology programs of the United 
        States.
  [(b) Declarations.--In order to promote a strong and growing 
economy throughout the United States, Congress declares that--
          [(1) assistance under this Act should be made 
        available to both rural- and urban-distressed 
        communities;
          [(2) local communities should work in partnership 
        with neighboring communities, the States, Indian 
        tribes, and the Federal Government to increase the 
        capacity of the local communities to develop and 
        implement comprehensive economic development strategies 
        to alleviate economic distress and enhance 
        competitiveness in the global economy;
          [(3) whether suffering from long-term distress or a 
        sudden dislocation, distressed communities should be 
        encouraged to support entrepreneurship to take 
        advantage of the development opportunities afforded by 
        technological innovation and expanding newly opened 
        global markets; and
          [(4) assistance under this Act should be made 
        available to promote the productive reuse of abandoned 
        industrial facilities and the redevelopment of 
        brownfields.]
  (a) Findings.--Congress finds that--
          (1) sustainable economic growth in the 21st century 
        depends upon economic development strategies that 
        include investment in essential infrastructure that 
        fosters innovation, entrepreneurship, and competition 
        in the global marketplace;
          (2) there continue to be areas of the United States 
        experiencing chronic high unemployment, 
        underemployment, outmigration, and low per capita 
        income, as well as areas facing sudden and severe 
        economic dislocations due to structural economic 
        changes, increasing international competition, certain 
        Federal actions (including defense-related facility 
        closures and realignment and actions required to 
        counteract the depletion of natural resources), and 
        natural disasters;
          (3) the goal of Federal economic development programs 
        is to raise the standard of living for all citizens and 
        increase the wealth and overall rate of growth of the 
        economy by encouraging regions and communities to 
        develop a more competitive and diversified economic 
        base, including by--
                  (A) expanding economic opportunities, 
                increasing international competitiveness, and 
                creating a climate supportive of job creation 
                and business development;
                  (B) creating an environment that promotes 
                public infrastructure investments that maximize 
                sustainable development practices;
                  (C) promoting private sector job creation 
                through increased innovation, productivity, and 
                entrepreneurship; and
                  (D) empowering local and regional communities 
                experiencing chronic high unemployment, 
                underemployment, outmigration, and low per 
                capita income to develop private sector 
                business and attract increased domestic and 
                foreign private sector capital investment, 
                including through the location of information 
                technology, agribusiness, alternative energy, 
                manufacturing, and bioscience jobs in the 
                United States and the relocation of such jobs 
                to the United States;
          (4) economic growth in the States, including in both 
        cities and rural areas, can best be promoted by helping 
        communities invest in regional strategies that build 
        upon unique competitive advantages and are designed to 
        foster innovation and entrepreneurship in all segments 
        of the community's economy;
          (5) while economic development is an inherently local 
        process, the Federal Government should work in 
        partnership with public and private organizations at 
        the State, regional, tribal, and local levels to 
        maximize the impact of existing resources and enable 
        regions, communities, and citizens to participate more 
        fully in the American dream and national prosperity;
          (6) in order to avoid duplication of effort and 
        achieve meaningful, long-lasting results, Federal, 
        State, tribal, and local economic development 
        activities should have a clear focus, improved 
        coordination, a comprehensive approach, and simplified 
        and consistent requirements; and
          (7) Federal economic development efforts will be more 
        effective if the efforts are coordinated with, and 
        build upon, the trade, workforce investment, higher 
        education, transportation, energy, environmental 
        protection, and technology programs of the United 
        States.
  (b) Declarations.--In order to promote a strong and growing 
economy throughout the United States, Congress declares that--
          (1) assistance under this Act should be made 
        available to distressed communities in both rural and 
        urban areas;
          (2) local communities should work in partnership with 
        neighboring communities, economic development 
        districts, States, Indian tribes, institutions of 
        higher education, national security laboratories, the 
        private sector, and the Federal Government to increase 
        the capacity of those local communities to develop and 
        implement comprehensive economic development strategies 
        to alleviate economic distress and enhance 
        competitiveness in the global economy, including 
        national security laboratories;
          (3) whether suffering from long-term distress or a 
        sudden dislocation, distressed communities should be 
        encouraged to take affirmative steps to promote 
        innovation and entrepreneurship, including through the 
        formation of business incubators, to help create higher 
        skill, higher wage jobs and foster the participation of 
        those distressed communities in the global marketplace;
          (4) assistance under this Act should be made 
        available to promote sustainable economic development 
        practices, to assist communities with the productive 
        reuse of abandoned industrial facilities and the 
        redevelopment of brownfields, and to leverage 
        significant Federal investments in high-speed rail 
        corridors and other transportation infrastructure; and
          (5) research assistance under this Act should help 
        regions across the United States leverage the economic 
        assets of those regions in a comprehensive manner and 
        should enhance the Economic Development 
        Administration's ability to provide an economic 
        development framework to assist distressed communities 
        and regions, with particular emphasis on revitalizing 
        the manufacturing, agribusiness, and bioscience 
        industries and the linkages between urban and rural 
        communities.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (8) Regional commissions.--The term ``Regional 
        Commissions'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) the Denali Commission established under 
                the Denali Commission Act of 1998 (42 U.S.C. 
                3121 note; 112 Stat. 2681-637 et seq.); [and]
                  (D) the Northern Great Plains Regional 
                Authority established under subtitle G of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2009bb et seq.)[.];
                  (E) the Southeast Crescent Regional 
                Commission established under section 15301(a) 
                of title 40, United States Code;
                  (F) the Northern Border Regional Commission 
                established under section 15301(a) of title 40, 
                United States Code; and
                  (G) the Southwest Border Regional Commission 
                established under section 15301(a) of title 40, 
                United States Code.

           *       *       *       *       *       *       *


TITLE I--ECONOMIC DEVELOPMENT PARTNERSHIPS COOPERATION AND COORDINATION

SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PARTNERSHIPS.

  (a) * * *
  (b) Technical Assistance.--The Secretary may provide such 
technical assistance to States, political subdivisions of 
States, sub-State regional organizations (including 
organizations that cross State boundaries), multi-State 
regional organizations, and nonprofit organizations, including 
economic development districts and university centers, as the 
Secretary determines is appropriate to--
          (1) * * *
          [(2) encourage and support public-private 
        partnerships for the formation and improvement of 
        economic development strategies that sustain and 
        promote economic development across the United States; 
        and
          [(3) promote investment in infrastructure and 
        technological capacity to keep pace with the changing 
        global economy.]
          (2) encourage and support public-private partnerships 
        for the formation and improvement of economic 
        development strategies, including regional strategies, 
        that sustain and promote innovation and 
        entrepreneurship that is critical to economic 
        competitiveness throughout the United States; and
          (3) promote investment in infrastructure, innovation, 
        entrepreneurship, sustainable development, and 
        technological capacity (including with respect to 
        advanced technologies in all industry sectors) to keep 
        pace with the changing global economy.
  (c) Intergovernmental Review.--The Secretary shall promulgate 
regulations to ensure that appropriate State and local 
government agencies and appropriate economic development 
districts have been given a reasonable opportunity to review 
and comment on proposed projects under this title that the 
Secretary determines may have a significant direct impact on 
the economy of the area.

           *       *       *       *       *       *       *


SEC. 104. ENCOURAGEMENT OF CERTAIN COORDINATION.

  In carrying out this Act, the Secretary is authorized and 
encouraged to consult and cooperate with any Federal, State, or 
local government agency or consortium of governmental 
organizations that can assist in addressing challenges and 
capitalizing on opportunities that require coordination, 
including the Department of Labor with respect to supporting 
economic and workforce development strategies and promoting 
regional innovation clusters.

SEC. 105. COORDINATION WITH RESPECT TO HIGH-SPEED RAIL.

  The Secretary shall coordinate activities carried out under 
this Act, as appropriate, with the Department of Transportation 
and other relevant Federal agencies, State and local 
governments, economic development districts, Indian tribes, and 
planning and development organizations to leverage and maximize 
the economic development potential of Federal investments in 
high-speed rail projects. In carrying out this section, the 
Secretary shall conduct studies and disseminate reports, as 
appropriate, with respect to high-speed rail projects.

       TITLE II--GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SEC. 201. GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT.

  (a) In General.--On the application of an eligible recipient, 
the Secretary may make grants for--
          (1) acquisition or development of land and 
        improvements for use for a public works, public 
        service, or development facility (including a facility 
        of a business incubator or a science and research park 
        (as such terms are defined in section 208(a))); and

           *       *       *       *       *       *       *


SEC. 203. GRANTS FOR PLANNING AND GRANTS FOR ADMINISTRATIVE EXPENSES.

  (a) In General.--On the application of an eligible recipient, 
the Secretary may make grants to pay the costs of economic 
development planning and the administrative expenses (including 
indirect costs determined eligible in an applicable Office of 
Management and Budget circular) of organizations that carry out 
the planning.
  (b) Planning Process.--Planning assisted under this title 
shall be a continuous process involving public officials and 
private citizens in--
          (1) * * *

           *       *       *       *       *       *       *

          (3) determining project opportunities; [and]
          (4) formulating and implementing an economic 
        development program that includes systematic efforts to 
        reduce unemployment [and increase incomes.] and 
        systemic economic distress and increase incomes by 
        fostering entrepreneurship and innovation across all 
        regional industry sectors; and
          (5) fostering regional collaboration.

           *       *       *       *       *       *       *

  (d) State Plans.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Comprehensive planning process.--Any overall 
        State economic development planning assisted under this 
        section shall be a part of a comprehensive planning 
        process that shall consider the provision of public 
        works and other types of assistance to--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) enhance and protect the environment, 
                including through efficient energy production, 
                utilization, and facility development;

           *       *       *       *       *       *       *

                  (E) promote the use and deployment of 
                technology in economic development, including 
                access to high-speed telecommunications; [and]
                  (F) balance resources through the sound 
                management of physical development[.]; and
                  (G) support sustainable development practices 
                and the efficient coordination and leveraging 
                of public and private investments.

           *       *       *       *       *       *       *


SEC. 204. COST SHARING.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Increase in Federal Share.--
          (1) * * *
          (2) Certain states, political subdivisions, and 
        nonprofit organizations.--In the case of a grant to a 
        State, or a political subdivision of a State, that the 
        Secretary determines has exhausted the effective taxing 
        and borrowing capacity of the State or political 
        subdivision or that the Secretary determines has been 
        affected by substantial declines in tax revenue, or in 
        the case of a grant to a nonprofit organization that 
        the Secretary determines has exhausted the effective 
        borrowing capacity of the nonprofit organization, the 
        Secretary may increase the Federal share above the 
        percentage specified in subsection (a) up to 100 
        percent of the cost of the project.
          (3) [Training] Planning, training, research, and 
        technical assistance.--In the case of a grant provided 
        under [section 207] section 203 or 207, the Secretary 
        may increase the Federal share above the percentage 
        specified in subsection (a) up to 100 percent of the 
        cost of the project if the Secretary determines that 
        the project funded by the grant merits, and is not 
        feasible without, such an increase or if grant 
        supported activities will include regional planning to 
        build on competitive advantages available regionally.

           *       *       *       *       *       *       *


SEC. 207. GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL ASSISTANCE.

  (a) In General.--
          (1) Grants.--On the application of an eligible 
        recipient, the Secretary may make grants for training, 
        research, and technical assistance, including grants 
        for program evaluation and economic impact analyses, 
        that would be useful in alleviating or preventing 
        conditions of excessive unemployment [or 
        underemployment], underemployment, or outmigration.
          (2) Types of assistance.--Grants under paragraph (1) 
        may be used for--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) establishment of university centers, with 
                the goal that at least one university center is 
                established in each State;

           *       *       *       *       *       *       *

                  [(H) assessment, marketing, and establishment 
                of business clusters; and
                  [(I) other activities determined by the 
                Secretary to be appropriate.]
                  (H) studies that evaluate the effectiveness 
                of regional innovation clusters and determine 
                best practices with respect to the support 
                provided by entrepreneurial infrastructure, 
                including business incubators;
                  (I) a peer exchange program to promote best 
                practices and innovation with respect to the 
                organizational development, program delivery, 
                and regional initiatives of economic 
                development districts;
                  (J) development and promotion of performance 
                measures and best practices with respect to 
                commercialization and entrepreneurship;
                  (K) developing or implementing county or 
                municipal government efficiency assessments 
                related to economic development or community 
                viability; and
                  (L) other activities determined by the 
                Secretary to be appropriate.

           *       *       *       *       *       *       *

          (4) High-speed rail.--In making a grant under this 
        subsection for the establishment of a university 
        center, the Secretary shall ensure, if appropriate, 
        that the activities of the center will include 
        conducting research and providing technical assistance 
        to leverage and maximize the economic development 
        potential of Federal investments in high-speed rail 
        projects.

           *       *       *       *       *       *       *


SEC. 208. FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND SCIENCE AND 
                    RESEARCH PARKS.

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Business incubator.--The term ``business 
        incubator'' means a program established to foster the 
        creation of new businesses and accelerate the growth of 
        early-stage businesses by providing entrepreneurs and 
        early-stage businesses with the resources and services 
        to produce viable businesses that can help create jobs 
        in and restore vitality to communities.
          (2) Business incubator development project.--The term 
        ``business incubator development project'' means a 
        project to construct or alter facilities for a business 
        incubator, including the acquisition of real property 
        necessary to carry out the construction or alteration.
          (3) Science and research park.--The term ``science 
        and research park'' means a program that--
                  (A) includes property and buildings designed 
                primarily for--
                          (i) research and development 
                        activities conducted by public-private 
                        partners;
                          (ii) technology- and science-based 
                        businesses; or
                          (iii) research and development 
                        support services;
                  (B)   includes a contractual relationship 
                with one or more institutions of higher 
                education or government or nonprofit research 
                laboratories, including national security 
                laboratories;
                  (C)   has a primary mission of--
                          (i) promoting research and 
                        development through industry 
                        partnerships, assisting the growth of 
                        new ventures, and promoting innovation-
                        driven economic development;
                          (ii) facilitating the transfer of 
                        technology and business skills between 
                        researchers and industry teams; and
                          (iii) promoting technology-led 
                        economic development for the community 
                        or region in which the program is 
                        located; and
                  (D) is owned by a government or nonprofit 
                entity (although the government or nonprofit 
                entity may enter into partnerships or joint 
                ventures with for-profit entities to develop or 
                manage specific components of the program).
          (4) Science and research park development project.--
        The term ``science and research park development 
        project'' means a project to construct or alter 
        facilities for a science and research park, including 
        the acquisition of real property necessary to carry out 
        the construction or alteration.
  (b) Financial Assistance.--On the application of an eligible 
recipient, the Secretary may provide financial assistance in 
accordance with this section to assist the development of 
business incubators and science and research parks.
  (c) Grants for Plans for Science and Research Parks.--
          (1) Grant authority.--In accordance with this 
        subsection, the Secretary may award a grant to an 
        eligible recipient for the development of a feasibility 
        study or development plan, or both, with respect to a 
        science and research park development project.
          (2) Amount of a grant.--A grant awarded under 
        paragraph (1) may not be in an amount that exceeds 
        $750,000.
          (3) Selection process.--
                  (A) Selection criteria.--Not later than 180 
                days after the date of enactment of the 
                Economic Revitalization and Innovation Act of 
                2010, the Secretary shall publish the criteria 
                to be utilized for the selection of grant 
                recipients under paragraph (1).
                  (B) Competition required.--The Secretary 
                shall award grants under paragraph (1) pursuant 
                to a full and open competition.
                  (C) Geographic diversity.--In awarding grants 
                under paragraph (1), the Secretary shall 
                ensure, to the extent practicable, that grant 
                recipients represent diverse geographic areas 
                of the United States, including rural and urban 
                areas.
          (4) Program limit.--The Secretary may not award, in 
        the aggregate, more than $7,500,000 in grants under 
        paragraph (1).
  (d) Loan Guarantees for Business Incubators and Science and 
Research Parks.--
          (1) Guarantee authority.--In accordance with this 
        subsection, the Secretary may guarantee a loan of an 
        eligible recipient to assist the carrying out of a 
        business incubator development project or a science and 
        research park development project.
          (2) Guarantee percentage.--In guaranteeing a loan 
        under paragraph (1), the Secretary may guarantee up to 
        80 percent of the principal amount of the loan.
          (3) Selection of guarantee recipients.--
                  (A) Creditworthiness.--The Secretary may not 
                guarantee a loan under paragraph (1) unless the 
                Secretary has determined that there is a 
                reasonable assurance of repayment with respect 
                to the loan.
                  (B) Grant recipients.--A recipient of a grant 
                under subsection (c) for the development of a 
                feasability study or development plan, or both, 
                is not eligible for a loan guarantee under 
                paragraph (1) until the recipient has completed 
                the study or plan, or both, for which the grant 
                was provided (as determined by the Secretary).
          (4) Term of loan.--The term of a loan guaranteed 
        under paragraph (1) may not exceed the lesser of--
                  (A) 30 years; or
                  (B) 90 percent of the useful life of any 
                physical asset to be financed by such loan.
          (5) Subordination.--An obligation relating to a loan 
        guarantee under paragraph (1) may not be subordinated 
        to another debt contracted by the borrower or to any 
        other claims against the borrower in the case of 
        default.
          (6) Other terms and conditions.--Except as otherwise 
        specified in this subsection, a loan guarantee under 
        paragraph (1) shall be subject to such terms and 
        conditions as the Secretary may prescribe.
          (7) Review.--
                  (A) In general.--The Secretary shall 
                periodically assess the risks associated with 
                loans guaranteed under paragraph (1).
                  (B) Comptroller general report.--Not later 
                than 2 years after the date of enactment of the 
                Economic Revitalization and Innovation Act of 
                2010, the Comptroller General shall--
                          (i) conduct a comprehensive review of 
                        the program under this subsection; and
                          (ii) submit to Congress a report on 
                        the results of the review.
          (8) Program levels.--In carrying out paragraph (1) 
        during fiscal years 2011 through 2015, the Secretary 
        may not guarantee loans in an amount that exceeds--
                  (A) $50,000,000 for a single project;
                  (B) $235,000,000 in a single fiscal year; and
                  (C) $500,000,000 in the aggregate.

SEC. 209. GRANTS FOR ECONOMIC ADJUSTMENT.

  (a) In General.--On the application of an eligible recipient, 
the Secretary may make grants for development of public 
facilities, science and research park development projects (as 
defined in section 208(a)), public services, business 
development (including funding of a revolving loan fund, a 
challenge grant, and operating support for business incubators 
(as defined in section 208(a))), planning, technical 
assistance, training, and any other assistance to alleviate 
long-term economic deterioration and sudden and severe economic 
dislocation and further the economic adjustment objectives of 
this title.

           *       *       *       *       *       *       *

  (c) Particular Community Assistance.--Assistance under this 
section may include assistance provided for activities 
identified by communities, the economies of which are [injured] 
affected by--
          (1) military base closures [or realignments,], 
        realignments, or mission growth, defense contractor 
        reductions in force, or Department of Energy defense-
        related funding reductions, for help in diversifying 
        their economies or supporting the economic adjustment 
        activities of the Secretary of Defense through projects 
        to be carried out on Federal Government installations 
        or elsewhere in the communities;

           *       *       *       *       *       *       *

          (4) fishery failures, in areas with respect to which 
        a determination that there is a commercial fishery 
        failure has been made under section 312(a) of the 
        Magnuson-Stevens Fishery Conservation and Management 
        Act (16 U.S.C. 1861a(a)); [or]
          (5) the loss of [manufacturing jobs] manufacturing, 
        information technology, natural resource, agricultural, 
        or service sector jobs, for reinvesting in and 
        diversifying the economies of the communities[.];
          (6) a lack of technology infrastructure, including 
        inadequate access to broadband capacity sufficient to 
        support economic development objectives;
          (7) an inability to utilize alternative means of 
        energy production and distribution; or
          (8) insufficient access to capital and credit 
        necessary for business retention and expansion, 
        entrepreneurship, and innovation.
  (d) Special Provisions Relating to Revolving Loan Fund 
Grants.--
          (1) * * *
          (2) Efficient administration.--The Secretary may--
                  (A) * * *
                  (B) at the request of a grantee, approve the 
                transfer of all or a portion of the assets of a 
                revolving loan fund of the grantee to another 
                eligible recipient to assist in establishing or 
                maintaining a multiregion or national revolving 
                loan fund;
                  [(B)] (C) assign or transfer assets of a 
                revolving loan fund to third party for the 
                purpose of liquidation, and the third party may 
                retain assets of the fund to defray costs 
                related to liquidation; and
                  [(C)] (D) take such actions as are 
                appropriate to enable revolving loan fund 
                operators to sell or securitize loans (except 
                that the actions may not include issuance of a 
                Federal guaranty by the Secretary).

           *       *       *       *       *       *       *

          (5) Conversion of revolving loan fund assets.--
                  (A) Authority.--At the request of a grant 
                recipient, the Secretary may approve the use of 
                the assets of a revolving loan fund established 
                by the grant recipient with assistance under 
                this section for another project, if--
                          (i) the project is eligible for 
                        assistance under this Act; and
                          (ii) the Secretary determines that 
                        the revolving loan fund is no longer 
                        necessary and the grant recipient, as a 
                        result of changed economic development 
                        needs, will make better use of the 
                        assets by carrying out the project.
                  (B) Methods of conversion.--If conversion of 
                a revolving loan fund is approved under 
                subparagraph (A), the applicable grant 
                recipient may convert the assets of the 
                revolving loan fund by--
                          (i) selling to a third party any 
                        assets of the revolving loan fund; or
                          (ii) retaining repayments of 
                        principal and interest amounts made on 
                        loans provided through the revolving 
                        loan fund.
                  (C) Terms and conditions.--Except as 
                otherwise provided under this paragraph, the 
                Secretary may establish such terms and 
                conditions with respect to the conversion of a 
                revolving loan fund under this paragraph as the 
                Secretary determines appropriate.
                  (D) Expediency requirement.--The Secretary 
                shall ensure that any assets of a revolving 
                loan fund converted under this paragraph are 
                used in an expeditious manner.
          (6) Release.--The Secretary may release, subject to 
        terms and conditions the Secretary determines 
        appropriate, the Federal Government's interest in a 
        revolving loan fund established by a grant recipient 
        with assistance under this section on or after the date 
        that is 7 years after the date on which the applicable 
        grant was fully disbursed, if the Secretary determines 
        that--
                  (A) the grant recipient has carried out the 
                terms of the grant in a satisfactory manner;
                  (B) any proceeds realized after the release 
                of the Federal Government's interest will be 
                used for one or more activities that carry out 
                the economic development purposes of this Act; 
                and
                  (C) the grant recipient will continue to 
                satisfy the requirements of section 602.
          (7) Equity investment demonstration program.--
                  (A) Authority.--
                          (i) In general.--To determine the 
                        feasibility and utility of providing 
                        equity investments through revolving 
                        loan funds established by grant 
                        recipients with assistance under this 
                        section, the Secretary may authorize, 
                        at the request of a grant recipient, 
                        the use of the capital base of a 
                        revolving loan fund for equity 
                        investments in businesses in need of 
                        capital to start up operations or 
                        expand operations beyond the startup 
                        phase.
                          (ii) Demonstrated capacity.--Before 
                        authorizing a grant recipient to make 
                        equity investments under clause (i), 
                        the Secretary shall determine that the 
                        grant recipient has the demonstrated 
                        capacity for engaging in equity 
                        investments or will contract with 
                        another company or organization with a 
                        proven track record with respect to 
                        equity investments.
                          (iii) Preferential consideration.--In 
                        authorizing grant recipients to make 
                        equity investments under clause (i), 
                        the Secretary shall give preferential 
                        consideration to requests from grant 
                        recipients that intend to focus their 
                        investment activities in support of 
                        business incubators (as defined in 
                        section 208(a)), companies 
                        commercializing technologies in 
                        conjunction with institutions of higher 
                        education, science and research parks 
                        (as defined in section 208(a)), or 
                        technology or manufacturing companies 
                        relocating to the United States from 
                        outside the United States.
                          (iv) Geographic diversity.--In 
                        authorizing grant recipients to make 
                        equity investments under clause (i), 
                        the Secretary shall ensure, to the 
                        extent practicable, that grant 
                        recipients authorized represent diverse 
                        geographic areas of the United States, 
                        including rural and urban areas.
                  (B) Requirements.--In authorizing a grant 
                recipient to make equity investments under 
                subparagraph (A)(i), the Secretary shall ensure 
                that--
                          (i) not more than 25 percent of the 
                        capital base of the revolving loan fund 
                        of the grant recipient will be used for 
                        equity investments;
                          (ii) the Federal share of the amount 
                        used for an equity investment made by 
                        the grant recipient will not exceed 50 
                        percent; and
                          (iii) the total amount of the equity 
                        investments made by the grant recipient 
                        in any one business will not exceed 
                        $250,000.
                  (C) Other terms and conditions.--Except as 
                otherwise provided in this paragraph, the 
                Secretary may authorize grant recipients to 
                make equity investments under subparagraph 
                (A)(i) subject to terms and conditions the 
                Secretary determines are appropriate.
                  (D) Disposition of equity securities.--In the 
                event that the Secretary acquires equity 
                securities as a result of a default by any 
                party under any agreement relating to the terms 
                of the Secretary's extension of assistance 
                under this paragraph, the Secretary shall 
                liquidate the Federal interest in such 
                securities as soon as possible and for such 
                consideration as the Secretary determines 
                appropriate. The Secretary may assign or 
                transfer the securities to a third party for 
                purposes of liquidation and the third party may 
                retain proceeds from the disposition of the 
                securities to defray costs related to the 
                liquidation.
                  (E) Definitions.--In this paragraph the 
                following definitions apply:
                          (i) Capital base.--The term ``capital 
                        base'' means the amount of the funding, 
                        from a grant under this section and 
                        from non-Federal sources, initially 
                        provided to establish a revolving loan 
                        fund under this section.
                          (ii) Equity investment.--The term 
                        ``equity investment'' means an 
                        investment of funds in a business that 
                        results in the acquisition of an equity 
                        security.
                          (iii) Equity security.--The term 
                        ``equity security'' means an instrument 
                        that signifies an ownership interest in 
                        a business.

           *       *       *       *       *       *       *


[SEC. 218. BRIGHTFIELDS DEMONSTRATION PROGRAM.

  [(a) Definition of Brightfield Site.--In this section, the 
term ``brightfield site'' means a brownfield site that is 
redeveloped through the incorporation of 1 or more solar energy 
technologies.
  [(b) Demonstration Program.--On the application of an 
eligible recipient, the Secretary may make a grant for a 
project for the development of a brightfield site if the 
Secretary determines that the project will--
          [(1) use 1 or more solar energy technologies to 
        develop abandoned or contaminated sites for commercial 
        use; and
          [(2) improve the commercial and economic 
        opportunities in the area in which the project is 
        located.
  [(c) Savings Clause.--To the extent that any portion of a 
grant awarded under subsection (b) involves remediation, the 
remediation shall be subject to section 612.
  [(d) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2004 through 2008, to remain available until 
expended.]

SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION PROGRAM.

  (a) In General.--On the application of an eligible recipient, 
the Secretary may provide technical assistance, make grants, 
enter into contracts, or otherwise provide funding for a 
project--
          (1) to promote energy efficiency to enhance the 
        economic competitiveness of an area;
          (2) to increase the use of renewable energy 
        technologies, including solar, wind, or geothermal 
        technologies, to support sustainable economic 
        development and job growth, with a priority given to 
        projects that incorporate photovoltaics or relate to 
        agribusiness, including in both urban and rural areas;
          (3) to support energy efficiency or alternative 
        energy development plans, studies, or analysis 
        (including with respect to job training, attraction, or 
        retention) to enhance a comprehensive economic 
        development strategy with respect to which funding has 
        been provided under this Act;
          (4) to support the efforts of a community to have a 
        technology or manufacturing business located outside 
        the United States relocate to the United States; and
          (5) to supplement another project funded by a Federal 
        grant, loan, or loan guarantee provided for a purpose 
        described in paragraphs (1) through (4).
  (b) Federal Share.--Notwithstanding section 204, the Federal 
share of the cost of a project funded under this section--
          (1) if described in paragraph (1), (2), (3), or (4) 
        of subsection (a), shall not exceed 80 percent; and
          (2) if described in subsection (a)(5), shall not 
        exceed 100 percent.
  (c) Solicitation of Applications.--Not later than 60 days 
after a date on which funds are made available to carry out 
this section, the Secretary shall solicit applications for 
assistance under this section.

SEC. 219. JOB CREATION GOALS.

  (a) In General.--As a condition of the receipt of a grant 
under section 201, 205, or 209 or a loan guarantee under 
section 208, the recipient of the grant or loan guarantee shall 
enter into an agreement with the Secretary that establishes 
goals for the number of jobs to be created as a result of the 
projects and activities funded by the grant or loan guarantee.
  (b) Compliance With Goals.--The Secretary may take 
appropriate action to penalize a grant recipient who fails to 
satisfy job creation goals specified in an agreement under 
subsection (a).

SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSISTANCE.

  The Secretary shall ensure that a recipient of assistance 
under this Act does not utilize the assistance for activities 
to intentionally attract, to the location of the recipient, a 
business or other source of employment already established 
elsewhere in the United States, if the relocation would 
adversely affect the location where the business or other 
source of employment was previously located.

 TITLE III--ELIGIBILITY; COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES

SEC. 301. ELIGIBILITY OF AREAS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Special Need.--In determining whether an area has 
experienced or is about to experience a special need for 
purposes of subsection (a)(3), the Secretary may consider 
whether the area has been affected by--
          (1) the loss of a substantial employer;
          (2) substantial outmigration or population loss;
          (3) substantial foreclosure rates;
          (4) substantial underemployment;
          (5) military base or defense installation closure, 
        realignment, or mission growth;
          (6) a natural or other disaster or emergency;
          (7) substantial natural resource depletion;
          (8) substantial negative effects resulting from 
        changing trade patterns; or
          (9) other circumstances that the Secretary determines 
        are indicative of special or extraordinary unemployment 
        or economic adjustment problems.

SEC. 302. COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES.

  (a) In General.--The Secretary may provide assistance under 
section 201 or 209 (except for planning assistance under 
section 209) to an eligible recipient for a project only if the 
eligible recipient submits to the Secretary, as part of an 
application for the assistance--
          (1) an identification of the economic development 
        problems and opportunities to be addressed using the 
        assistance;
          (2) an identification of the past, present, and 
        projected future economic development investments in 
        the area receiving the assistance and public and 
        private (including nonprofit organization) participants 
        and sources of funding for the investments; and
          (3)(A) a comprehensive economic development strategy 
        for addressing the [economic problems] economic 
        development problems and opportunities identified under 
        paragraph (1) in a manner that promotes economic 
        development and opportunity, fosters effective 
        transportation access, maximizes effective development 
        and use of the workforce consistent with any applicable 
        State or local workforce investment strategy, promotes 
        the effective use of technology in economic development 
        (including access to high-speed telecommunications), 
        enhances and protects the environment, and [balances] 
        optimizes resources through sound management of 
        development; and
          (B) a description of how the strategy will solve the 
        problems and take advantage of the opportunities.

           *       *       *       *       *       *       *

  (c) Approval of Other Plan.--
          (1) In general.--The Secretary may accept as a 
        comprehensive economic development strategy a 
        satisfactory plan developed under another federally 
        supported program or under a State, regionally, or 
        locally supported program.
          (2) Existing strategy.--To the maximum extent 
        practicable, a plan submitted under this [paragraph] 
        subsection shall be consistent and coordinated with any 
        existing comprehensive economic development strategy 
        for the area.
  (d) Notification of Approval or Disapproval of Comprehensive 
Economic Development Strategy or Other Plan.--
          (1) Deadline.--The Secretary shall notify an eligible 
        recipient of the approval or disapproval of a 
        comprehensive economic development strategy or other 
        plan submitted under this section not later than 60 
        days after the date of receiving the strategy or plan.
          (2) Basis for disapproval.--A notification of 
        disapproval under this subsection shall include a 
        description of the basis for the disapproval.

                TITLE IV--ECONOMIC DEVELOPMENT DISTRICTS

SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS.

  (a) In General.--In order that economic development projects 
of [broad geographic] national and regional significance may be 
planned and carried out, the Secretary may designate 
appropriate economic development districts in the United 
States, with the concurrence of the States in which the 
districts will be wholly or partially located, if--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Operations.--
          (1) In general.--As a condition of maintaining 
        designation as an economic development district, each 
        district shall engage in the full range of economic 
        development activities in the comprehensive economic 
        development strategy of the district that has been 
        approved by the Secretary, which may include--
                  (A) coordinating and implementing economic 
                development activities in the district;
                  (B) carrying out economic development 
                research, planning, implementation, and 
                advisory functions identified in the 
                comprehensive economic development strategy; 
                and
                  (C) coordinating the development and 
                implementation of the comprehensive economic 
                development strategy with Federal, State, 
                local, and private organizations.
          (2) Contracts.--An economic development district may 
        enter into contracts for services to carry out the 
        activities described in paragraph (1).

SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC DEVELOPMENT 
                    DISTRICTS.

  The Secretary shall, by regulation, promulgate standards for 
the termination or modification of the designation of economic 
development districts. The standards shall include authority 
for the Secretary to review, at the request of a district, 
district designations to evaluate whether the designations meet 
economic development and labor force needs and, when warranted, 
to approve the combination of districts and adjust applicable 
assistance levels for the resulting combination.

           *       *       *       *       *       *       *


TITLE V--ADMINISTRATION

           *       *       *       *       *       *       *


SEC. 503. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

  (a) Consultation on Problems Relating to Employment.--The 
Secretary may consult with any persons, including 
representatives of labor, management, agriculture, and 
government, who can assist in addressing the problems of area 
and regional unemployment [or underemployment], 
underemployment, or outmigration.

           *       *       *       *       *       *       *


SEC. 506. PERFORMANCE EVALUATIONS OF GRANT RECIPIENTS.

  (a) * * *
  (b) Purpose of Evaluations of University Centers.--The 
purpose of the evaluations of university centers under 
subsection (a) shall be to determine which university centers 
are performing well and [are worthy of continued grant 
assistance under this Act, and which should not receive 
continued assistance, so that university centers that have not 
previously received assistance may receive assistance.] 
maintain the capacity to implement the priorities of the 
Secretary.
  [(c) Timing of Evaluations.--Evaluations under subsection (a) 
shall be conducted on a continuing basis so that each grantee 
is evaluated within 3 years after the first award of assistance 
to the grantee, and at least once every 3 years thereafter, so 
long as the grantee receives the assistance.]
  (c) Timing of Evaluations.--Evaluations under subsection (a) 
shall be conducted on a continuing basis so that--
          (1) with respect to economic development districts, 
        each grantee is evaluated within 3 years after the 
        first award of assistance to the grantee and at least 
        once every 3 years thereafter, so long as the grantee 
        receives the assistance; and
          (2) with respect to university centers, each grantee 
        is evaluated within 5 years after the first award of 
        assistance to the grantee and at least once every 5 
        years thereafter, so long as the grantee receives the 
        assistance.
  (d) Evaluation Criteria.--
          (1) * * *
          [(2) Evaluation criteria for university centers.--The 
        criteria for evaluation of a university center shall, 
        at a minimum, provide for an assessment of the center's 
        contribution to providing technical assistance, 
        conducting applied research, program performance, and 
        disseminating results of the activities of the center.]
          (2) Evaluation criteria for university centers.--The 
        criteria for evaluation of a university center shall 
        provide, at a minimum, for an assessment of--
                  (A) the center's contribution to providing 
                technical assistance, conducting applied 
                research, and disseminating the results of the 
                activities of the center;
                  (B) the center's conformance with the 
                approved program plan of the center and the 
                goals of the Secretary; and
                  (C) if appropriate, the center's activities 
                to leverage and maximize the economic 
                development potential of Federal investments in 
                high-speed rail projects, including 
                activities--
                          (i) to encourage collaboration across 
                        regions; and
                          (ii) to evaluate manufacturing and 
                        economic development opportunities 
                        relating to the projects.

           *       *       *       *       *       *       *


SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES.

  The Secretary shall ensure that the Economic Development 
Administration maintains--
          (1) not less than 35 individuals in the position of 
        economic development representative during fiscal year 
        2012; and
          (2) not less than 40 individuals in the position of 
        economic development representative during fiscal year 
        2013 and each fiscal year thereafter.

SEC. 509. LIMITATION ON CERTAIN POSITIONS.

  Beginning in fiscal year 2012, the number of positions in the 
Economic Development Administration that, for purposes of title 
5, United States Code, are general positions (as defined by 
section 3132(a)(9) of such title) which may be filled only by a 
noncareer appointee (as defined by section 3132(a)(7) of such 
title) shall be limited to 5.

TITLE VI--MISCELLANEOUS

           *       *       *       *       *       *       *


SEC. 603. ANNUAL REPORT TO CONGRESS.

  (a) * * *
  (b) Inclusions.--Each report required under subsection (a) 
shall--
          (1) * * *
          (2) include a discussion of any private sector 
        leveraging goal with respect to grants awarded to--
                  (A) * * *
                  (B) highly distressed areas; [and]
          (3) after the completion of a project, include the 
        realized private sector dollar to Federal dollar 
        investment ratio for the project[.];
          (4) with respect to each university center assisted 
        with funding under this Act, include--
                  (A) a specification of the activities of the 
                university center;
                  (B) a specification of the recipients of 
                technical assistance from the university 
                center; and
                  (C) a specification of the outcomes resulting 
                from the job creation, research, and technical 
                assistance activities of the university center; 
                and
          (5) specify the projects, and the funding provided 
        for the projects, that were funded in conjunction with 
        one or more of the regional commissions.

           *       *       *       *       *       *       *


SEC. 613. MAINTENANCE OF EFFORT.

  (a) Expected Period of Best Efforts.--
          (1) Establishment.--To carry out the purposes of this 
        Act, before providing investment assistance for a 
        construction project under this Act, the Secretary 
        shall establish the expected period during which the 
        recipient of the assistance shall make best efforts to 
        achieve the economic development objectives of the 
        assistance.
          (2) Treatment of property.--To obtain the best 
        efforts of a recipient during the period established 
        under paragraph (1), during that period--
                  (A) any property that is acquired or 
                improved, in whole or in part, using investment 
                assistance under this Act shall be held in 
                trust by the recipient for the benefit of the 
                project; and
                  (B) the Secretary shall retain an undivided 
                equitable reversionary interest in the 
                property.
          (3) Termination of federal interest.--
                  (A) In general.--Beginning on the date on 
                which the Secretary determines that a recipient 
                has fulfilled the obligations of the recipient 
                for the applicable period under paragraph (1), 
                taking into consideration the economic 
                conditions existing during that period, the 
                Secretary may terminate the reversionary 
                interest of the Secretary in any applicable 
                property under paragraph (2)(B).
                  (B) Alternative method of termination.--
                          (i) In general.--On a determination 
                        by a recipient that the economic 
                        development needs of the recipient have 
                        changed during the period beginning on 
                        the date on which investment assistance 
                        for a construction project is provided 
                        under this Act and ending on the 
                        expiration of the expected period 
                        established for the project under 
                        paragraph (1), the recipient may submit 
                        to the Secretary a request to terminate 
                        the reversionary interest of the 
                        Secretary in property of the project 
                        under paragraph (2)(B) before the date 
                        described in subparagraph (A).
                          (ii) Approval.--The Secretary may 
                        approve a request of a recipient under 
                        clause (i) if--
                                  (I) in any case in which the 
                                request is submitted during the 
                                10-year period beginning on the 
                                date on which assistance is 
                                initially provided under this 
                                Act for the applicable project, 
                                the recipient repays to the 
                                Secretary an amount equal to 
                                100 percent of the fair market 
                                value of the pro rata Federal 
                                share of the project; or
                                  (II) in any case in which the 
                                request is submitted after the 
                                expiration of the 10-year 
                                period described in subclause 
                                (I), the recipient repays to 
                                the Secretary an amount equal 
                                to the fair market value of the 
                                pro rata Federal share of the 
                                project as if that value had 
                                been amortized over the period 
                                established under paragraph 
                                (1), based on a straight-line 
                                depreciation of the project 
                                throughout the estimated useful 
                                life of the project.
  (b) Terms and Conditions.--
          (1) In general.--The Secretary may establish such 
        terms and conditions under this section as the 
        Secretary determines to be appropriate, including by 
        extending the period of a reversionary interest of the 
        Secretary under subsection (a)(2)(B) in any case in 
        which the Secretary determines that the performance of 
        a recipient is unsatisfactory.
          (2) Maintenance of standards.--The Secretary may not 
        terminate a reversionary interest of the Secretary 
        under subsection (a)(2)(B) if the Secretary has not 
        received adequate assurances that the applicable 
        recipient will continue to satisfy the requirements of 
        section 602 after the termination.
  (c) Previously Extended Assistance.--With respect to any 
recipient to which the term of provision of assistance was 
extended under this Act before the date of enactment of this 
section, the Secretary may approve a request of the recipient 
under subsection (a) in accordance with the requirements of 
this section to ensure uniform administration of this Act, 
notwithstanding any estimated useful life period that otherwise 
relates to the assistance.
  (d) Conversion of Use.--If a recipient of assistance under 
this Act demonstrates to the Secretary that the intended use of 
the project for which assistance was provided under this Act no 
longer represents the best use of the property used for the 
project, the Secretary may approve a request by the recipient 
to convert the property to a different use for the remainder of 
the term of the Federal interest in the property, subject to 
the condition that the new use shall be consistent with the 
purposes of this Act.
  (e) Status of Authority.--The authority of the Secretary 
under this section is in addition to any authority of the 
Secretary pursuant to any law or grant agreement in effect on 
the date of enactment of this section.

                           TITLE VII--FUNDING

SEC. 701. GENERAL AUTHORIZATION OF APPROPRIATIONS.

  (a) Economic Development Assistance Programs.--There are 
authorized to be appropriated for economic development 
assistance programs to carry out this Act, to remain available 
[until expended--
          [(1) $400,000,000 for fiscal year 2004;
          [(2) $425,000,000 for fiscal year 2005;
          [(3) $450,000,000 for fiscal year 2006;
          [(4) $475,000,000 for fiscal year 2007; and
          [(5) $500,000,000 for fiscal year 2008.] until 
        expended, $500,000,000 for each of fiscal years 2011 
        through 2015.
  (b) Salaries and Expenses.--There are authorized to be 
appropriated for salaries and expenses of administering this 
Act, to remain available until expended--
          [(1) $33,377,000 for fiscal year 2004; and
          [(2) such sums as are necessary for each fiscal year 
        thereafter.]
          (1) $42,000,000 for fiscal year 2011; and
          (2) such sums as are necessary for each fiscal year 
        thereafter.

           *       *       *       *       *       *       *


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

  Of the amounts made available under section 701 for each 
fiscal year, not less than [$27,000,000] $36,000,000 shall be 
made available for grants provided under section 203 and, of 
that amount, not less than $500,000 shall be made available for 
grants under section 203 for planning relating to high-speed 
rail.

SEC. 705. FUNDING FOR FINANCIAL ASSISTANCE FOR BUSINESS INCUBATORS AND 
                    SCIENCE AND RESEARCH PARKS.

  (a) Grants.--In addition to amounts made available under 
section 701, there is authorized to be appropriated $7,500,000 
to carry out section 208(c).
  (b) Loan Guarantees.--In addition to amounts made available 
under section 701, there are authorized to be appropriated such 
sums as may be necessary to carry out section 208(d), including 
the cost (as defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) of guaranteeing loans under 
that section.

SEC. 706. FUNDING FOR SUSTAINABLE ECONOMIC DEVELOPMENT DEMONSTRATION 
                    PROGRAM.

  Of the amounts made available under section 701 for each 
fiscal year, not less than $25,000,000 shall be made available 
to carry out section 218.

SEC. 707. FUNDING FOR GRANTS FOR TRAINING, RESEARCH, AND TECHNICAL 
                    ASSISTANCE.

  Of the amounts made available under section 701 for each 
fiscal year, not less than $10,000,000 shall be made available 
for grants provided under section 207 and, of that amount, not 
less than $1,125,000 shall be made available for grants under 
section 207 to establish university centers in States that do 
not have a university center.

                             MINORITY VIEWS

    The Economic Development Administration (EDA) has done 
tremendous work with relatively little funding since its 
inception in 1965. According to studies that have been done, we 
know that EDA, through its programs effectively leverages 
federal dollars with private and local funds to create jobs and 
spur economic growth. For example, in fiscal year 2007, EDA 
investments that year created or retained American jobs at an 
average cost of $4,000 per job and EDA leveraged over $8 in 
private sector capital investment for every taxpayer dollar 
invested.\1\
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    \1\See U.S. Department of Commerce, Economic Development 
Administration, Construction Grants, Program, Impact Assessment Report, 
Grant Thornton, September 30, 2008.
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    EDA programs create jobs that last. For this reason, we 
support the reauthorization of EDA's programs. However, we do 
have concerns regarding certain provisions contained in H.R. 
5897. More specifically, the bill significantly expands many of 
EDA's programs, creates new ones and extends certain federal 
rules such as the provisions of Davis-Bacon to unprecedented 
lengths. The Subcommittee on Economic Development, Public 
Buildings, and Emergency Management, held one hearing early in 
the 111th Congress specifically on EDA Reauthorization\2\ and 
several others that included some aspects of EDA programs, 
generally.\3\ However, none of the hearings delved into the 
expansive changes proposed in H.R. 5897. While some of the 
changes may be appropriate, we believe the Committee has not 
received sufficient testimony or other information that would 
address the questions and concerns we have.
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    \2\EDA Reauthorization: Rating Past Performances and Setting Goals 
During an Economic Crisis.'' Hearing before the Subcommittee on 
Economic Development, Public Buildings, and Emergency Management, March 
10, 2009.
    \3\``Recovery Tracking Hearing #3: Following the Dollars to the 
Jobs,'' Hearing before the Subcommittee on Economic Development, Public 
Buildings, and Emergency Management, October 27, 2009; ``Priorities for 
Disasters and Economic Disruption: The Proposed Fiscal Year 2011 
Budgets for the Federal Emergency Management Agency and the Economic 
Development Administration,'' Hearing before the Subcommittee on 
Economic Development, Public Buildings, and Emergency Management, May 
6, 2010; ``EDA: Lessons Learned From the Recovery Act and New Plans to 
Strengthen Economic Development,'' Hearing before the Subcommittee on 
Economic Development, Public Buildings, and Emergency Management, 
February 25, 2010.
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    Among the areas of particular concerns that we believe 
warrant additional review, include:
     Creates New Grant Programs: The bill would create 
two new grant programs for (1) Business Incubators and Science 
and Research Parks; and (2) Sustainable Economic Development. 
One benefit of EDA's programs has been the flexibility EDA has 
to determine what type of investments will produce the greatest 
return on investment. The impact of specifying broad new grant 
programs may have the unintended consequence of reducing this 
flexibility.
     Reduces Competition in the University Center 
Grants: The bill significantly expands the existing EDA 
University Center program by increasing the number of 
federally-funded centers and minimizing competition by making 
them more permanent. Promoting competition, not reducing it, 
should be the goal to ensure tax dollars are used effectively 
and to ensure more colleges and universities have real 
opportunities to compete for these grants.
     Creates a Loan Guarantee Program: The bill creates 
a new $500 million loan guarantee program. These types of loan 
guarantees have been problematic in the past and the creation 
of a new program, without careful review, raises serious 
concerns.
     Expansion of Davis-Bacon Provisions Unprecedented: 
The bill creates an unprecedented expansion of Davis-Bacon 
rules by extending them in perpetuity to State or non-
federally-funded projects.
    While we strongly support reauthorization of EDA's 
programs, we remain troubled by a number of key provisions in 
this bill. We hope as the bill is considered, further review 
and revisions can be made accordingly.