(c) The Director shall take such steps as may be necessary and appropriate, in coordination and cooperation with the heads of other Federal departments and agencies, so that contracts, subcontracts, and deposits made by the Federal Government or in connection with programs aided with Federal funds are placed in such a way as to further the purposes of this part.

EVALUATION

SEC. 154. Each program for which payments are made under section 151 shall provide for a thorough evaluation of the effectiveness of the program in achieving the goals of this part. This evaluation shall be conducted by such public or private organizations as the Director may designate, and up to 100 per centum of the costs of evaluation may be paid from funds appropriated to carry out this part. The results of such evaluations or a summary of them, together with the Director's findings and recommendations concerning the program, shall be included in the report required by section 608.

FEDERAL SHARE OF PROGRAM COSTS

SEC. 155. Federal grants to any program carried out pursuant to this part shall not exceed 90 per centum of the cost of such program, including costs of administration, unless the Director determines, pursuant to regulations adopted and promulgated by him establishing objective criteria for such determinations, that assistance in excess of such percentage is required in furtherance of the purposes of this part. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services: Provided, That where capital investment is required under a contract with a private organization (other than a nonprofit organization), the Federal share thereof shall not exceed 90 per centum of such capital investment and the non-Federal share shall be as defined above.

B-Section-by-Section Analysis

SECTION-BY-SECTION ANALYSIS OF THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965, AS AMENDED

STATEMENT OF PURPOSE

Section 2 declares that it is the purpose of the Act, in order to maintain the national economy at a high level and to avoid wasting invaluable human resources, to provide Federal financial assistance, including grants for public works and development facilities, to areas and regions of substantial and persistent unemployment and underemployment to enable them to take effective steps in planning and financing their economic development.

TITLE I-GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

Section 101.-Grants and supplementary grants: Authorizes the Secretary of Commerce to make direct grants up to 50 percent of total project cost for needed public works, public service, or development facilities, including related machinery and equipment, which will (1) tend to improve opportunities for the successful establishment or expansion of industrial or commercial facilities; (2) otherwise assist in the creation of additional long-term employment opportunities in the area; or (3) primarily benefit the long-term unemployed and members of low-income families or otherwise substantially further the objectives of the Economic Opportunity Act.

These grants are available to States or their political subdivisions, Indian tribes, or private or public nonprofit organizations representing any redevelopment area or part thereof, for the purpose of acquiring and developing land and improvements for public service or development facility usage within redevelopment areas, as defined by section 401, or within areas eligible under section 102.

The section also authorizes supplementary grants to enable the States and other entities within redevelopment areas to take advantage of other Federal grant-in-aid programs, direct grants-in-aid authorized under this section, and certain small Federal watershed projects for which they are eligible but for which, because of their condition of high unemployment or low income, they cannot supply the required matching share. The amount of the supplementary grant will be determined on the basis of the relative needs of the area and the nature of the project, but in no case may the combined direct and supplementary grant under any program exceed 80 percent of the project cost, except that in the case of grants to Indian tribes, the Secretary may reduce or entirely waive the required non-Federal share. Supplementary grant assistance may be reduced by the aggregate amount of fair user charges or other revenues of the project which could be used to repay a loan.

No financial assistance may be extended under this section for a project which would compete with an existing privately owned utility, except for projects specifically authorized by Congress. Appropriate local governmental authorities must be given a reasonable opportunity to review and comment upon projects proposed under this section.

Section 102.-Substantial unemployment areas: Authorizes grants for areas which the Secretary of Labor finds were areas of substantial unemployment during the preceding calendar year. Such areas are subject to all the rules, regulations, and procedures applicable to redevelopment areas, unless the Secretary provides otherwise by regulation.

Section 103.-Grant limit: Not more than 15 percent of the money appropriated under title I may be expended in any one State.

Section 104.-Duplication with Appalachia: Prohibits the duplication of assistance for projects which have been approved under the Appalachian Regional Development Act.

Section 105.-Authorization: Authorizes the appropriation of $500 million annually until June 30, 1970, for direct and supplementary grants.

Section 106.-Financial assistance for sewer facilities: Prohibits financial assistance for waste disposal facilities unless the Secretary of Health, Education, and Welfare certifies that any waste material carried by such facilities will be adequately treated.

TITLE II-OTHER FINANCIAL ASSISTANCE

Section 201-Public works and development facility loans.-(a) Authorizes loans up to 100 percent of project cost. Projects must be located in redevelopment areas designated under section 401, and must assist in the creation of long-term employment opportunities or substantially further the objectives of the Economic Opportunity Act. Assistance may be provided only where funds are not otherwise available. There must be a reasonable expectation of repayment, and projects must be consistent with overall plans for the economic development of the area.

(b) Establishes a 40-year limit on loan maturity and requires that interest rates vary according to Federal borrowing costs, less one-half of 1 percent.

(c) Authorizes not more than $170 million annually for assistance under sections 201 (development facility loans) and 202 (business loans).

(d) Prohibits loans for any project which would compete with an existing privately owned public utility, except for projects specifically authorized by Congress.

(e) Provides for review of projects and comment by local govern

mental authorities.

Section 202-Industrial and commercial loans and guarantees.(a) Authorizes the Secretary (1) to make loans up to 65 percent for the purchase or development of and and facilities (including machinery and equipment) for industrial or commercial usage within redevelopment areas, and (2) to guarantee up to 90 percent of the outstanding balance of loans for working capital made to private borrowers by private lending institutions in connection with direct loan projects.

(b) Assistance must tend to provide long-term employment opportunities within redevelopment areas without causing job relocations. Applicants must be approved by appropriate State or local authorities. Financial assistance may be given only where funds are not otherwise available and where there is a reasonable assurance of repayment. Loans must be repaid within 25 years with interest at a rate corresponding to Federal borrowing costs. Fifteen percent of the cost of any project must be subordinate to the Federal loan, of which onethird, or 5 percent, must be supplied by the State or a public or quasipublic organization, unless the Secretary waives the latter requirement because the 5-percent funds are otherwise not reasonably available. Projects must be consistent with overall economic development programs, which the Secretary may require to be revised periodically.

Section 203-Economic development revolving funds.-Establishes an economic development revolving fund in the Treasury of the United States for the deposit of loan funds appropriated to the Secretary or obtained through collections and repayments of outstanding obligations. The fund must pay interest to the Treasury on the amount of the total loans outstanding under the act, based on current Federal borrowing costs.

TITLE III-TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION Section 301.-(a) Technical assistance: Authorizes the Secretary to provide technical assistance, including operational assistance for individual projects and planning assistance for both projects and areas. Repayment of assistance under this section may be required at the discretion of the Secretary.

(b) Planning grants.-Authorizes grants-in-aid up to 75 percent of planning and administrative expenses to appropriate public or private nonprofit State, area, district, or local organizations.

(c) Research.-Provides for the establishment and continuance of a program of study, training, and research to (A) assist in determining causes of distress in areas and regions, (B) assist in the formulation and implementation of programs to relieve such distress, and (C) assist in providing personnel to conduct such programs. Findings and recommendations resulting from research are to be included in the Secretary's annual report to the Congress.

(d) Information.-Authorizes the Secretary to provide redevelopment and other areas with information or advice which would be useful in alleviating or preventing conditions of excessive unemployment or underemployment.

(e) Independent study board: Provides for the establishment of an independent study board to report to the Congress within 2 years on the effects of Government procurement, scientific, technical, and other related policies upon regional economic development.

(f) Demonstration projects.-Authorizes the Secretary to make grants, enter into contracts, or otherwise provide funds for demonstration projects in redevelopment areas if such projects will foster regional productivity, prevent outmigration, and otherwise carry out the purposes of the Act.

Section 302.-Authorizations: Provides an authorization for this title of $25 million annually until June 30, 1969 and of $50 million for the fiscal year ending June 30, 1970.