PILOT PROJECT TO IMPROVE ECONOMIC ADJUSTMENT PLANNING.

SEC. 4302. PILOT PROJECT TO IMPROVE ECONOMIC ADJUSTMENT PLANNING. (a) Pilot Project.—During fiscal year 1993, the Secretary of Defense shall conduct a pilot project to examine methods to improve the provision of economic adjustment and diversification assistance under section 2391(b)(1) of title 10, United States Code, to State and local governments adversely affected by the closure of military installations, the cancellation or completion of defense contracts, or reductions in defense spending. (b) Planning Grants.—Under the pilot project, the Secretary of Defense shall make planning grants under section 2391(b)(1) of title 10, United States Code, to State and local governments in four study areas selected by the Secretary. The total amount of grants under the pilot program may not exceed $500,000 per study area. (c) Study Areas.—In selecting study areas for inclusion in the pilot program, the Secretary of Defense shall ensure that— (1) one study area covers an area in which the local economy is heavily dependent on a defense contractor that is in the process of terminating a major defense contract or closing a major facility; (2) one study area covers an area in which the local economy would be adversely affected by changes in the use of a national laboratory previously needed for the tea ting of nuclear weapons; (3) one study area covers an area in which the local economy would be adversely affected by the closing of a military installation; and (4) one study area covers an area in which the local economy would be adversely affected by at least two of the changes referred to in the preceding paragraphs. (d) Use of Grants.—Grants made under the pilot program may be used to determine the needs of the communities in a study area as they experience the economic dislocation associated with the closure of military installations, the cancellation or completion of defense contracts, or reductions in defense spending and develop responses tailored to those needs through the use of a wide variety of sources and expertise in the communities. (e) Monitoring of Grant Use.—The Secretary of Defense shall monitor the activities under the pilot project to develop a more complete understanding of the unique needs of each type of study area and the methodologies that may be successful in addressing similar economic dislocation in other communities in the United States. (f) Funding.—Of the amount authorized to be appropriated in section 301(5), $2,000,000 shall be made available for grants under this section.