Military base reuse studies and community planning assistance
Reuse Studies.—
Whenever the Secretary of Defense or the Secretary of the military department concerned publicly announces that a military installation is a candidate for closure or that a final decision has been made to close a military installation and the Secretary of Defense determines, because of the location, facilities, or other particular characteristics of the installation, that the installation may be suitable for some specific Federal, State, or local use potentially beneficial to the Nation, the Secretary of Defense may conduct such studies, including the preparation of an environmental impact statement in accordance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), in connection with such installation and such potential use as may be necessary to provide information sufficient to make sound conclusions and recommendations regarding the possible use of the installation.
Adjustment and Diversification Assistance.—
The Secretary of Defense may make grants, conclude cooperative agreements, and supplement funds available under Federal programs administered by agencies other than the Department of Defense in order to assist State and local governments in planning community adjustments and economic diversification required (A) by the proposed or actual establishment, realignment, or closure of a military installation, (B) by the cancellation or termination of a Department of Defense contract or the failure to proceed with an approved major weapon system program, (C) by a publicly announced planned major reduction in Department of Defense spending that would directly and adversely affect a community, (D) by the encroachment of a civilian community on a military installation, (E) by threats to military installation resilience, (F) by the closure or the significantly reduced operations of a defense facility as the result of the merger, acquisition, or consolidation of the defense contractor operating the defense facility, or (G) by any action of the Department of Defense that negatively affects a covered depot (as such term is defined in section 2476(f) of this title), if the Secretary determines that an action described in clause (A), (B), (C), (F), or (G) is likely to have a direct and significantly adverse consequence on the affected community or, in the case of an action described in clause (D) or (E), if the Secretary determines that either the encroachment of the civilian community or threats to military installation resilience is likely to impair the continued operational utility of the military installation.
In the case of the establishment or expansion of a military installation, assistance may be made under paragraph (1) only if (A) community impact assistance or special impact assistance is not otherwise available, and (B) the establishment or expansion involves the assignment to the installation of (i) more than 2,000 military, civilian, and contractor Department of Defense personnel, or (ii) more military, civilian, and contractor Department of Defense personnel than the number equal to 10 percent of the number of persons employed in counties or independent municipalities within fifteen miles of the installation, whichever is lesser.
In the case of a publicly announced planned reduction in Department of Defense spending, the closure or realignment of a military installation, the cancellation or termination of a Department of Defense contract, or the failure to proceed with a previously approved major defense acquisition program, assistance may be made under paragraph (1) only if the reduction, closure or realignment, cancellation or termination, or failure will have a direct and significant adverse impact on a community or its residents.
In the case of a State or local government eligible for assistance under paragraph (1), the Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist the State or local government to carry out a community adjustment and economic diversification program (including State industrial extension or modernization efforts to facilitate the economic diversification of defense contractors and subcontractors) in addition to planning such a program.
The Secretary shall establish criteria for the selection of community adjustment and economic diversification programs to receive assistance under subparagraph (A). Such criteria shall include a requirement that the State or local government agree—
to provide not less than 10 percent of the funding for the program from non-Federal sources;
to provide business planning and market exploration services under the program to defense contractors and subcontractors that seek modernization or diversification assistance; and
to provide training, counseling, and placement services for members of the armed forces and dislocated defense workers.
The Secretary shall carry out this paragraph in coordination with the Secretary of Commerce.
The Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist a State or local government in planning community adjustments and economic diversification even though the State or local government is not currently eligible for assistance under paragraph (1) if the Secretary determines that a substantial portion of the economic activity or population of the geographic area to be subject to the advance planning is dependent on defense expenditures.
The Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist a State or local government in enhancing its capacities—
to assist communities, businesses, and workers adversely affected by an action described in paragraph (1);
to support local adjustment and diversification initiatives;
to stimulate cooperation between statewide and local adjustment and diversification efforts; and
to support public infrastructure projects and services (including health care, housing, and defense critical infrastructure projects and services) that enhance the capabilities and resilience of the defense industrial base, defense industrial base workers, and military installations.
The Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds in order to assist a State or local government in enhancing the capabilities of the government to support efforts of the Department of Defense to privatize, contract for, or diversify the performance of military family support services in cases in which the capability of the Department to provide such services is adversely affected by an action described in paragraph (1).
The Secretary of Defense may also make grants, conclude cooperative agreements, and supplement other Federal funds, in order to assist a State or local government in planning, enhancing infrastructure, and implementing measures and projects (to include resilience measures and projects involving the protection, restoration, and maintenance of natural features) that, as determined by the Secretary of Defense, will contribute to maintaining or improving military installation resilience or will prevent or mitigate encroachment that could affect operations of the Department of Defense.
Funds provided to State and local governments and regional organizations under this section may be used as part or all of any required non-Federal contribution to a Federal grant-in-aid program for the purposes stated in paragraph (1).
To the extent practicable, the Secretary of Defense shall inform a State or local government applying for assistance under this subsection of the approval or rejection by the Secretary of the application for such assistance as follows:
Before the end of the 7-day period beginning on the date on which the Secretary receives the application, in the case of an application for a planning grant.
Before the end of the 30-day period beginning on such date, in the case of an application for assistance to carry out a community adjustments and economic diversifications program.
In attempting to complete consideration of applications within the time period specified in paragraph (7), the Secretary of Defense shall give priority to those applications requesting assistance for a community described in subsection (f)(1).
If an application under paragraph (7) is rejected by the Secretary, the Secretary shall promptly inform the State or local government of the reasons for the rejection of the application.
Research and Technical Assistance.—
The Secretary of Defense may make grants to, or conclude cooperative agreements or enter into contracts with, another Federal agency, a State or local government, or any private entity to conduct research and provide technical assistance in support of activities under this section or Executive Order 12788 (57 Fed. Reg. 2213), as amended by section 33 of Executive Order 13286 (68 Fed. Reg. 10625) and Executive Order 13378 (70 Fed. Reg. 28413).
Defense Community Infrastructure Program.—
The Secretary of Defense may make grants, conclude cooperative agreements, and supplement funds available under Federal programs administered by agencies other than the Department of Defense to assist State governments, local governments, and not-for-profit, member-owned utility services to address deficiencies in community infrastructure supportive of a military installation.
The Secretary shall establish criteria for the selection of community infrastructure projects to receive assistance under this subsection for each of the following categories:
Projects that will enhance the readiness of a military department or mission assurance at a military installation.
Projects that will enhance military family quality of life at a military installation, taking into consideration subsection (e)(4)(C).
Projects that will enhance military installation resilience, as defined in section 101 of this title.
Projects that will contribute to the training of cadets enrolled in an independent Reserve Officer Training Corps program at a covered educational institution.
The criteria established for the selection of community infrastructure projects to receive assistance under this subsection shall include a requirement that, except as provided in subparagraph (B), the recipient of such assistance agrees to contribute not less than 30 percent of the funding for the community infrastructure project.
If a proposed community infrastructure project will be carried out in a rural area or the Secretary of Defense determines that a proposed community infrastructure project is advantageous for reasons related to national security, the Secretary—
shall not penalize a State or local government for offering to make a contribution of 30 percent or less of the funding for the community infrastructure project; and
may reduce the requirement for a State or local government contribution to 30 percent or less or waive the cost-sharing requirement entirely.
In selecting community infrastructure projects to receive assistance under this subsection, the Secretary shall consider infrastructure improvements identified in the report on strategic seaports required by section 3515 of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1985).
Amounts appropriated or otherwise made available for assistance under paragraph (1) may remain available until expended.
Definitions.—
In this section:
The terms “military installation” and “realignment” have the meanings given those terms in section 2687 of this title. For purposes of paragraphs (1)(D) and (E) and (5)(D) of subsection (b) and subsection (d), the term “military installation” includes a military facility owned and operated by any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the Virgin Islands, even though the facility is not under the jurisdiction of the Department of Defense, if the Secretary of Defense determines that the military facility is subject to significant use for training by the armed forces.
The term “defense facility” means any private facility producing goods or services pursuant to a defense contract.
The terms “community adjustment” and “economic diversification” include the development of feasibility studies and business plans for market diversification within a community adversely affected by an action described in clause (A), (B), (C), or (E) of subsection (b)(1) by adversely affected businesses and labor organizations located in the community.
The term “community infrastructure” means a project or facility described in subparagraph (B) that—
is located off of a military installation or on property under the jurisdiction of a Secretary of a military department that is subject to a real estate agreement (including a lease or easement); and
is—
owned by a State or local government; or
a not-for-profit, member-owned utility service.
A project or facility described in this subparagraph is any of the following:
Any transportation project.
A school, hospital, police, fire, emergency response, or other community support facility.
A water, waste-water, telecommunications, electric, gas, or other utility infrastructure project.
A demolition project.
For the purposes of determining whether proposed community infrastructure will enhance quality of life, the Secretary of Defense shall consider the impact of the community infrastructure on alleviating installation commuter workforce issues and the benefit of schools or other local infrastructure located off of a military installation that will support members of the armed forces and their dependents residing in the community.
The term “rural area” means a city, town, or unincorporated area that has a population of not more than 100,000 inhabitants.
The term “covered educational institution” means a college or university that is—
a part B institution, as defined in section 322 of the Higher Education Act of 1965 (20 U.S.C. 1061);
an 1890 Institution, as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601);
not affiliated with a consortium; and
located at least 40 miles from a major military installation.
Assistance Subject to Appropriations.—
The authority of the Secretary of Defense to make grants under this section in any fiscal year is subject to the availability of appropriations for that purpose.
Source
(Added Pub. L. 97–86, title IX, § 912(a)(1),Notes
Editorial Notes
References in Text
Amendments
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Effective Date of 1988 Amendment
Effective Date of 1983 Amendment
Temporary Priority and Allocation of Funds Under Program
give priority under the Defense Community Infrastructure Program under section 2391(d) of title 10, United States Code, to projects under subparagraph (B)(ii) of such section (as amended by subsection (a)), for which an application has been previously made for assistance under that program; and
allocate not less than two-thirds of the amounts appropriated or otherwise made available for such program equally among projects under subparagraphs (B)(i) and (B)(ii) of such program (as amended by subsection (a)).”
Restrictions on Use of Funds for Development of Public Infrastructure in Commonwealth of Northern Mariana Islands
Restriction.—
If the Secretary of Defense determines that any grant, cooperative agreement, transfer of funds to another Federal agency, or supplement of funds available under Federal programs administered by agencies other than the Department of Defense will result in the development (including repair, replacement, renovation, conversion, improvement, expansion, acquisition, or construction) of public infrastructure in the Commonwealth of the Northern Mariana Islands (hereafter in this section referred to as the ‘Commonwealth’), the Secretary of Defense may not carry out such grant, transfer, cooperative agreement, or supplemental funding unless such grant, transfer, cooperative agreement, or supplemental funding—
is specifically authorized by law; and
will be used to carry out a public infrastructure project included in the report submitted under subsection (b).
Report of Economic Adjustment Committee.—
Convening of committee.—
Not later than 90 days after the date of the enactment of this Act [
Report.—
Not later than 180 days after convening the Economic Adjustment Committee under paragraph (1), the Secretary shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report—
describing the results of the Economic Adjustment Committee deliberations required by paragraph (1); and
containing a description of any assistance the Committee determines to be necessary to support changes in Department of Defense activities in the Commonwealth, including any public infrastructure projects the Committee determines should be carried out with such assistance.
Public Infrastructure Defined.—
In this section, the term ‘public infrastructure’ means any utility, method of transportation, item of equipment, or facility under the control of a public entity or State or local government that is used by, or constructed for the benefit of, the general public.”
Advance Adjustment Planning
Effect of 1992 Amendments on Efforts of Economic Development Administration
Pilot Project To Improve Economic Adjustment Planning
Donation of Real Property to Nonprofit Entities Providing Support to Children With Life-Threatening Diseases
The Secretary of Defense, during the current fiscal year or at any time thereafter, may make a donation to an entity described in subsection (b) of a parcel of real property (including structures on such property) under the jurisdiction of the Secretary that is not currently required for the needs of the Department and that the Secretary determines is needed and appropriate for the activities of that entity.
A donation under subsection (a) may be made to a nonprofit entity which provides medical, educational, and emotional support in a recreational setting to children with life-threatening diseases and their families.”
Defense Economic Adjustment, Diversification, Conversion, and Stabilization
SHORT TITLE
FINDINGS AND POLICY
Findings.—
Congress makes the following findings:
There are likely to be significant reductions in the programs, projects, and activities of the Department of Defense during the first several fiscal years following fiscal year 1990.
Such reductions will adversely affect the economies of many communities in the United States and small businesses and civilian workers throughout the United States.
Policy.—
In view of the findings expressed in subsection (a), it is the policy of the United States that—
assistance be provided under existing planning assistance programs and economic adjustment assistance programs of the Federal Government to substantially and seriously affected communities, businesses, and workers to the extent necessary to facilitate an orderly transition for such communities, small businesses, and workers from economic reliance on Department of Defense spending to economic reliance on other sources of business, employment, and revenue; and
funding for such programs be increased by amounts necessary to meet the needs of such communities, small businesses, and workers without reducing the funding that would otherwise be available under those programs by reason of causes unrelated to the reductions referred to in subsection (a)(1).
DEFINITIONS
“For purposes of this division:
The term ‘major defense contract or subcontract’ means—
any defense contract in an amount not less than $5,000,000 (without regard to the date on which the contract was awarded); and
any subcontract which—
is entered into in connection with a contract (without regard to the effective date of the subcontract); and
involves not less than $500,000.
The term ‘Economic Adjustment Committee’ or ‘Committee’ means the Economic Adjustment Committee established in Executive Order 12049 (10 U.S.C. 111 note).
The term ‘defense facility’ means any private or government facility producing goods or services pursuant to a defense contract.
The term ‘military installation’ means a base, camp, post, station, yard, center, or homeport facility for any ship in the United States, or any other facility under the jurisdiction of a military department located in the United States.
The term ‘substantially and seriously affected’ means—
when such term is used in conjunction with the term ‘community’, a community—
which has within its administrative and political jurisdiction one or more military installations or defense facilities or which is economically affected by proximity to a military installation or defense facility;
in which the actual or threatened curtailment, completion, elimination, or realignment of a defense contract results in a workforce reduction of—
2,500 or more employee positions, in the case of a Metropolitan Statistical Area or similar area (as defined by the Director of the Office of Management and Budget);
1,000 or more employee positions, in the case of a labor market area outside of a Metropolitan Statistical Area; or
one percent of the total number of civilian jobs in that area; and
which establishes, by evidence, that any workforce reduction referred to in clause (ii) occurred as a direct result of changes in Department of Defense requirements or programs;
when such term is used in conjunction with the term ‘businesses’ any business which—
holds a major defense contract or subcontract (or held such contract or subcontract before a reduction in the defense budget);
experiences a reduction, or the threat of a reduction, of—
25 percent or more in sales or production; or
80 percent or more of the workforce of such business in any division of such business or at any plant or other facility of such business; and
establishes, by evidence, that the reductions referred to in clause (ii) occurred as a direct result of a reduction in the defense budget; and
when such term is used in conjunction with the term ‘group of workers’, any group of 100 or more workers at a defense facility who are (or who are threatened to be), eligible to participate in the defense conversion adjustment program under section 325 of the Job Training Partnership Act [29 U.S.C. 1662d] (as added by section 4202 of this division), as in effect on the day before the date of enactment of the Workforce Investment Act of 1998 [
CONTINUATION OF ECONOMIC ADJUSTMENT COMMITTEE
Termination or Alteration Prohibited.—
The Economic Adjustment Committee established in Executive Order 12049 (10 U.S.C. 111 note) may not be terminated and the duties of the Committee may not be significantly altered unless specifically authorized by a law.
Chairman.—
The Secretary of Defense shall be the chairman of the Committee.
Executive Council.—
Until
Duties of Committee.—
The Economic Adjustment Committee shall—
coordinate and facilitate cooperative efforts among Federal agencies represented on the Committee to implement defense economic adjustment programs; and
serve as an information clearinghouse for and between Federal, State, and local entities regarding their defense economic adjustment efforts.
ECONOMIC ADJUSTMENT PLANNING
ECONOMIC ADJUSTMENT PLANNING ASSISTANCE THROUGH THE DEPARTMENT OF DEFENSE
In General.—
Any substantially and seriously affected community shall be eligible for economic adjustment planning assistance through the Office of Economic Adjustment in the Department of Defense under subsection (b) of section 2391 of title 10, United States Code, subject to subsection (e) of such section. Such assistance shall be provided in accordance with the standards, procedures, and priorities established by the Committee under this division.
[Amended section 2391(b) of this title.]
COMMUNITY ECONOMIC ADJUSTMENT ASSISTANCE THROUGH THE ECONOMIC DEVELOPMENT ADMINISTRATION
In General.—
A community that has been determined by the Economic Development Administration of the Department of Commerce or the Office of Economic Adjustment of the Department of Defense, in accordance with the standards and procedures established by the Economic Adjustment Committee, to be a substantially and seriously affected community shall be eligible for economic adjustment assistance authorized under title IX of the Public Works and Economic Development Act of 1965 [42 U.S.C. 3241 et seq.], subject to the availability of appropriations for such purpose and subject to meeting the eligibility requirements of such title.
Authorization of Appropriations.—
There are authorized to be appropriated to the Secretary of Defense for fiscal year 1991 $50,000,000 for purposes of carrying out subsection (a). Any amount appropriated pursuant to this subsection shall remain available until expended.
ADJUSTMENT ASSISTANCE FOR EMPLOYEES
AUTHORIZATION OF APPROPRIATIONS
Authorization.—
There are authorized to be appropriated to the Secretary of Defense $150,000,000 for fiscal year 1991 to carry out section 4201 and the amendment made by section 4202. Amounts appropriated pursuant to this subsection shall remain available until expended.
Administrative Expenses.—
Of amounts appropriated pursuant to this section, not more than five percent may be retained by the Secretary of Labor for the administration of the activities authorized by the amendment made by section 4202.
EXPANSION OF BUSINESS CAPITAL ASSISTANCE PROGRAMS
EXPANSION OF SMALL BUSINESS LOAN PROGRAM
ECONOMIC PLANNING ASSISTANCE FOR EXCEPTIONAL PROJECTS
Assistance Authorized.—
The Economic Development Administration, in the case of assistance under title IX of the Public Works and Economic Development Act of 1965 [42 U.S.C. 3241 et seq.], and the Office of Economic Adjustment, in the case of planning assistance under section 2391(b) of title 10, United States Code, may award planning assistance under those programs to any substantially and seriously affected community, on behalf of a business, group of businesses, or group of workers, if such planning funds are determined by the agency concerned to be necessary and appropriate as a catalyst for projects which the agency determines, on a case-by-case basis, have exceptional promise for achieving the objectives of this division.
Conditions on Assistance.—
Awards under this section shall be subject to the availability of appropriations for such purpose and shall be made in accordance with any other applicable provisions of law.
EXPANSION OF EXPORT FINANCING FOR GOODS AND SERVICES PRODUCED BY FIRMS AND EMPLOYEES FORMERLY ENGAGED IN DEFENSE PRODUCTION
Export-Import Bank.—
Sense of congress on plan for expansion.—
It is the sense of Congress that the United States businesses undergoing transition from defense production to nondefense production will need assistance in seizing export markets overseas. Therefore, in order to provide financial support for such businesses, as well as meeting other normal demands on its resources, the annual direct lending authority of the Export-Import Bank of the United States should be increased by at least 150 percent from the fiscal year 1990 level over the five-year period beginning
Report of feasibility.—
Before
Transition to nondefense production required to be considered.—
In determining whether to provide financial support for an export transaction, the Export-Import Bank of the United States shall take into account, to the extent feasible and in accordance with applicable standards and procedures established by the bank in consultation with the Committee, the fact that the product or service is produced or provided by any business or group of workers which—
was substantially and seriously affected by defense budget reductions; and
is in transition from defense to nondefense production.
SBA Use of Authority for Export Financing Assistance.—
In determining whether to provide financial or other assistance under the Small Business Act [15 U.S.C. 631 et seq.], title VIII of the Omnibus Trade and Competitiveness Act of 1988 [Pub. L. 100–418, see Short Title of 1988 Amendments note set out under section 631 of Title 15, Commerce and Trade], or any program referred to in section 4301 to any small business involved in, or attempting to become involved in, the export of any product or service, the Administrator of the Small Business Administration shall take into account the fact that such product or service is produced or provided by any business or group of workers which—
has been substantially and seriously affected by defense budget reductions; and
is in transition from defense to nondefense production.
Coordination and Integration of Activities and Assistance with Other Agencies.—
In providing additional financial assistance pursuant to any increase in loan authority under this division—
Federal agencies concerned with international trade shall participate in the process of coordination conducted by the Committee pursuant to section 4004(c)(1); and
such Federal agencies shall attempt, to the maximum extent practicable, to coordinate and integrate the activities and assistance of the agencies in support of exports, including financial assistance in the form of direct loans, loan guarantees, and insurance, general trade promotion, marketing assistance, and marketing and commercial information, in a manner consistent with the purposes of this division (and the amendments made by this division to other provisions of law).
Reporting.—
The annual reports made by the Export-Import Bank of the United States and the Administrator of the Small Business Administration and the annual economic stabilization and adjustment report under section 4004(c)(3) of this division shall include a description of the extent to which the bank and the Administrator are—
providing financing described in subsections (a)(2) and (b), respectively, to businesses or groups of workers which were substantially and seriously affected by defense budget reductions; and
coordinating and integrating export support and financing activities with other Federal agencies.
BENEFIT INFORMATION FOR BUSINESSES
Information Required To Be Provided.—
The Secretary of Commerce and the Administrator of the Small Business Administration shall provide any business affected by defense budget reductions with a complete description of available programs which provide any business, whether on an industrywide or an individual basis, with any planning assistance, financial, technical, or managerial assistance, worker retraining assistance, or other assistance authorized under this division.
Effective Notification System.—
The Secretary of Commerce and the Administrator of the Small Business Administration shall take such action as may be appropriate to ensure, to the maximum extent practicable, that each business affected by defense budget reductions receives the information required to be provided under subsection (a) on a timely basis.”