To provide for the establishment of the Nanomanufacturing Investment Partnership, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nanomanufacturing Investment Act of 
2004''.

SEC. 2. NANOMANUFACTURING INVESTMENT PARTNERSHIP.

    (a) Establishment.--If $250,000,000 is made available for such 
purposes from the private sector within 2 years after the date of 
enactment of this Act, the Secretary of Commerce shall establish the 
Nanomanufacturing Investment Partnership, in partnership with such 
private sector investors.
    (b) Purpose.--The Nanomanufacturing Investment Partnership shall 
provide funding for precommercial nanomanufacturing research and 
development projects, but not for basic research projects, through 
funding mechanisms described in subsection (c) in a manner so as to 
advance the commercialization of nanomanufacturing technologies to 
address critical scientific and engineering needs of national 
importance, especially with respect to projects that would not be 
adequately funded or pursued by the private sector or pursuant to the 
21st Century Nanotechnology Research and Development Act or other law, 
and to increase the commercial application of federally supported 
research results. To the extent that a sufficient number of viable 
applications have been submitted, at least 85 percent of the funding 
provided by the Nanomanufacturing Investment Partnership under this 
section shall be provided to startup companies.
    (c) Funding Mechanisms.--The Nanomanufacturing Investment 
Partnership may provide funding through direct investment in 
nanomanufacturing firms, contracts, loans or loan guarantees, unsecured 
subordinated debt, or any other mechanism designed to advance 
nanomanufacturing technologies.
    (d) Return on Investment.--
            (1) Requirement.--Each transaction through which the 
        Nanomanufacturing Investment Partnership provides funding under 
        subsection (c) shall provide for the return to the 
        Nanomanufacturing Investment Partnership of fair and reasonable 
        amounts resulting from the commercialization of technologies 
        developed with the funding provided by the Nanomanufacturing 
        Investment Partnership.
            (2) Distribution.--Amounts received by the 
        Nanomanufacturing Investment Partnership pursuant to paragraph 
        (1) shall be distributed as follows:
                    (A) Except as provided in subparagraph (B), amounts 
                shall be distributed to all investors in the 
                Nanomanufacturing Investment Partnership, including the 
                Federal Government, in proportion to their monetary 
                contribution to the Nanomanufacturing Investment 
                Partnership.
                    (B) After the total monetary investment of the 
                Federal Government has been recovered under 
                subparagraph (A), the Federal share of distributions 
                under this paragraph shall be reduced to 7 percent of 
                the proportional distribution under subparagraph (A), 
                and the remaining amounts shall be distributed 
                proportionately to all non-Federal investors.
    (e) Cost Sharing.--Each applicant for funding assistance from the 
Nanomanufacturing Investment Partnership for a project shall be 
required to provide a portion of the cost of the project.
    (f) Peer Review.--Each application for funding assistance for a 
project from the Nanomanufacturing Investment Partnership shall be peer 
reviewed.
    (g) Administration.--The Secretary of Commerce, based on guidance 
from the Advisory Board established under section 3 and on the results 
of peer review under subsection (f), shall make awards of funding under 
this Act.
    (h) Progress Reports.--The Nanomanufacturing Investment Partnership 
shall require periodic project progress reports from recipients of 
funding under this Act.

SEC. 3. ADVISORY BOARD.

    (a) Establishment.--The Secretary of Commerce shall establish an 
Advisory Board to assist the Secretary in carrying out this Act, 
including by establishing requirements for progress reports under 
section 2(h). The Advisory Board shall consist of--
            (1) representatives of each investor providing more than 
        $10,000,000 to the Nanomanufacturing Investment Partnership, 
        whose votes shall--
                    (A) be distributed proportional to the size of 
                their investment in the Nanomanufacturing Investment 
                Partnership; and
                    (B) collectively amount to 40 percent of the votes 
                on the Advisory Board; and
            (2) independent experts on nanomanufacturing and finance 
        appointed by the President from among representatives of 
        government, industry, and academia, whose votes shall 
        collectively amount to 60 percent of the votes on the Advisory 
        Board.
    (b) Terms.--Members of the Advisory Board appointed under 
subsection (a)(2) shall be appointed for 3 year terms, except that the 
President shall make some initial appointments for terms of 1 year and 
some for terms of 2 years, in order to ensure continuity of membership 
on the Advisory Board.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of 
Commerce for the Nanomanufacturing Investment Partnership $750,000,000, 
to remain available until expended.

Summary: Nanomanufacturing Investment Act of 2004 - Directs the Secretary of Commerce to establish: (1) the Nanomanufacturing Investment Partnership, in partnership with private sector investors, if $250 million is made available for such purposes from the private sector within two years after this Act's enactment. And (2) an advisory board. Directs that: (1) the Partnership provide funding for precommercial nanomanufacturing research and development projects, through specified funding mechanisms in a manner that advances the commercialization of nanomanufacturing technologies to address critical scientific and engineering needs of national importance, especially regarding projects that would not be adequately funded or pursued by the private sector or pursuant to other law, and to increase the commercial application of federally supported research results. And (2) to the extent that a sufficient number of viable applications have been submitted, at least 85 percent of the funding provided by the Partnership be provided to startup companies. Authorizes the Partnership to provide funding through direct investment in nanomanufacturing firms, contracts, loans or loan guarantees, unsecured subordinated debt, or any other mechanism designed to advance nanomanufacuring technologies. Requires that each transaction through which the Partnership provides such funding provide for the return of fair and reasonable amounts resulting from the commercialization of technologies developed with the funding provided by the Partnership, and be distributed as specified. Directs that: (1) each applicant for funding assistance be required to provide a portion of the cost, and (2) each application be peer reviewed.