To amend the Consolidated Farm and Rural Development Act to provide grants for special environmental assistance for the regulation of communities and habitat (`SEARCH grants') to small communities.

To amend the Consolidated Farm and Rural Development Act to provide grants for special environmental assistance for the regulation of communities and habitat (`SEARCH grants') to small communities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Project SEARCH Act of 2001'.

SEC. 2. FINDINGS.

Congress finds that--

(1) small communities often struggle to meet environmental goals because of difficulty in securing funding;

(2) often, sources of funding for environmental projects require expensive, complex studies or other application materials;

(3) a small community that secures funding for an environmental project from a traditional source often is unable to provide matching funds required by the traditional source; and

(4) small communities would benefit from a grant program designed to provide funding for environmental projects--

(A) through a simplified application process; and

(B) without the requirement of matching funds.

SEC. 3. SEARCH GRANTS FOR SMALL COMMUNITIES.

The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is amended by adding at the end the following:

`SEC. 391. DEFINITIONS.

`In this subtitle:

`(1) COUNCIL- The term `council' means an independent citizens' council established by section 392(b).

`(2) ENVIRONMENTAL PROJECT-

`(A) IN GENERAL- The term `environmental project' means a project that--

`(i) benefits human health or the environment; and

`(ii) is necessary to comply with an environmental law (including a regulation).

`(B) INCLUSION- The term `environmental project' includes an initial feasibility study of a project.

`(3) REGION- The term `region' means a geographic area of a State, as determined by the Governor of the State.

`(4) SEARCH GRANT- The term `SEARCH grant' means a grant for special environmental assistance for the regulation of communities and habitat awarded under section 392(c)(3).

`(5) SMALL COMMUNITY- The term `small community' means an incorporated or unincorporated rural community having a population of not more than 2,500 individuals.

`(6) STATE- The term `State' has the meaning given the term in section 381A.

`SEC. 392. SEARCH GRANT PROGRAM.

`(a) IN GENERAL-

`(1) ESTABLISHMENT- There is established the SEARCH Grant Program.

`(2) STATE REQUIREMENTS-

`(A) IN GENERAL- Not later than October 1 of each fiscal year, a State may submit to the Secretary an application to receive a grant under paragraph (3) for the fiscal year.

`(B) APPLICATION REQUIREMENTS- An application under subparagraph (A) shall contain--

`(i) a certification by the State that the State has appointed members to the council of the State under subsection (b)(2)(C); and

`(ii) such information as the Secretary may reasonably require.

`(3) GRANT TO STATE- Not later than 60 days after the date on which the Office of Management and Budget apportions any amounts made available under this subtitle, for each fiscal year after the date of enactment of this subtitle, the Secretary shall, on request by a State--

`(A) determine whether any application submitted by the State under paragraph (2) meets the requirements of that paragraph; and

`(B) subject to section 394(b) and subsection (c)(4)(B), if the Secretary determines that the application meets the requirements of paragraph (2)(B), award a grant of not to exceed $1,000,000 to the State, to be used by the council of the State to award SEARCH grants under subsection (b)(3).

`(b) INDEPENDENT CITIZENS' COUNCIL-

`(1) ESTABLISHMENT- There is established in each State an independent citizens' council to carry out the duties described in this section.

`(2) COMPOSITION-

`(A) IN GENERAL- Each council shall be composed of 9 members, appointed by the Governor of the State.

`(B) REPRESENTATION; RESIDENCE- Each member of a council shall--

`(i) represent an individual region of the State, as determined by the Governor

`(ii) reside in a small community of the State.

`(C) APPOINTMENT- Before a State receives funds under this subtitle, the State shall appoint members to the council for the fiscal year, except that not more than 1 member shall be an agent, employee, or official of the State government.

`(D) CHAIRPERSON- Each council shall select a chairperson from among the members of the council, except that a member who is an agent, employee, or official of the State government shall not serve as chairperson.

`(E) FEDERAL REPRESENTATION- An agent, employee, or official of the Federal Government may participate in the activities of the council--

`(i) in an advisory capacity; and

`(ii) at the invitation of the council.

`(3) SEARCH GRANTS-

`(A) IN GENERAL- Each council shall review applications for, and recommend awards of, SEARCH grants to small communities that meet the eligibility criteria under subsection (c).

`(B) RECOMMENDATIONS- In awarding a SEARCH grant, a State--

`(i) shall follow the recommendations of the council of the State;

`(ii) shall award the funds for any recommended environmental project in a timely and expeditious manner; and

`(iii) shall not award a SEARCH grant to a grantee or project in violation of any law of the State (including a regulation).

`(C) NO MATCHING REQUIREMENT- A small community that receives a SEARCH grant under this section shall not be required to provide matching funds.

`(c) SEARCH GRANTS FOR SMALL COMMUNITIES-

`(1) ELIGIBILITY- A SEARCH grant shall be awarded under this section only to a small community for 1 or more environmental projects for which the small community--

`(A) needs funds to carry out initial feasibility or environmental studies before applying to traditional funding sources; or

`(B) demonstrates, to the satisfaction of the council, that the small community has been unable to obtain sufficient funding from traditional funding sources.

`(2) APPLICATION-

`(A) DATE- The council shall establish such deadline by which small communities shall submit applications for grants under this section as will permit the council adequate time to review and make recommendations relating to the applications.

`(B) LOCATION OF APPLICATION- A small community shall submit an application described in subparagraph (A) to the council in the State in which the small community is located.

`(C) CONTENT OF APPLICATION- An application described in subparagraph (A) shall include--

`(i) a description of the proposed environmental project (including an explanation of how the project would assist the small community in complying with an environmental law (including a regulation));

`(ii) an explanation of why the project is important to the small community;

`(iii) a description of all actions taken with respect to the project, including a description of any attempt to secure funding and a description of demonstrated need for funding for the project, as of the date of the application; and

`(iv) a SEARCH grant application form provided by the council, completed and with all required supporting documentation.

`(3) REVIEW AND RECOMMENDATION-

`(A) IN GENERAL- Except as provided in subparagraph (B), not later than March 5 of each fiscal year, each council shall--

`(i) review all applications received under paragraph (2); and

`(ii) recommend for award SEARCH grants to small communities based on--

`(I) an evaluation of the eligibility criteria under paragraph (1); and

`(II) the content of the application.

`(B) EXTENSION OF DEADLINE- The State may extend the deadline described in subparagraph (A) by not more than 10 days in a case in which the receipt of recommendations from a council under subparagraph (A)(ii) is delayed because of circumstances beyond the control of the council, as determined by the State.

`(4) UNEXPENDED FUNDS-

`(A) IN GENERAL- If, for any fiscal year, any unexpended funds remain after SEARCH grants are awarded under subsection (b)(3)(B), the council may repeat the application and review process so that any remaining funds may be recommended for award, and awarded, not later than July 30 of the fiscal year.

`(B) RETENTION OF FUNDS-

`(i) IN GENERAL- Any unexpended funds that are not awarded under subsection (b)(3)(B) or subparagraph (A) shall be retained by the State for award during the following fiscal year.

`(ii) LIMITATION- A State that accumulates a balance of unexpended funds described in clause (i) of more than $3,000,000 shall be ineligible to apply for additional funds for SEARCH grants until such time as the State expends the portion of the balance that exceeds $3,000,000.

`SEC. 393. REPORT.

`Not later than September 1 of the first fiscal year for which a SEARCH grant is awarded by a council, and annually thereafter, the council shall submit to the Secretary a report that--

`(1) describes the number of SEARCH grants awarded during the fiscal year;

`(2) identifies each small community that received a SEARCH grant during the fiscal year;

`(3) describes the project or purpose for which each SEARCH grant was awarded, including a statement of the benefit to public health or the environment of the environmental project receiving the grant funds; and

`(4) describes the status of each project or portion of a project for which a SEARCH grant was awarded, including a project or portion of a project for which a SEARCH grant was awarded for any fiscal year before the fiscal year in which the report is submitted.

`SEC. 394. FUNDING.

`(a) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out section 392(a)(3) $50,000,000.

`(b) ACTUAL APPROPRIATION- If funds to carry out section 392(a)(3) are made available for a fiscal year in an amount that is less than the amount authorized under subsection (a) for the fiscal year, the appropriated funds shall be divided equally among the 50 States.

`(c) UNUSED FUNDS- If, for any fiscal year, a State does not apply, or does not qualify, to receive funds under section 392(a)(2), the funds that would have been made available to the State under section 392(a)(3) on submission by the State of a successful application under section 392(a)(2) shall be redistributed for award under this subtitle among States, the councils of which awarded 1 or more SEARCH grants during the preceding fiscal year.

`(d) OTHER EXPENSES- There are authorized to be appropriated such sums as are necessary to carry out the provisions of this subtitle (other than section 392(a)(3)).'.