U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

79–010 

" ! SENATE 115TH CONGRESS

2d Session 

REPORT

2018

115–204 

Calendar No. 298 

MADE IN AMERICA MANUFACTURING 

COMMUNITIES ACT OF 2017 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 701 

FEBRUARY 5, 2018.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FIFTEENTH CONGRESS

SECOND SESSION

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi BILL NELSON, Florida 

ROY BLUNT, Missouri MARIA CANTWELL, Washington 

TED CRUZ, Texas AMY KLOBUCHAR, Minnesota 

DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut 

JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii 

DAN SULLIVAN, Alaska EDWARD J. MARKEY, Massachusetts 

DEAN HELLER, Nevada TOM UDALL, New Mexico 

JAMES M. INHOFE, Oklahoma GARY C. PETERS, Michigan 

MIKE LEE, Utah TAMMY BALDWIN, Wisconsin 

RON JOHNSON, Wisconsin TAMMY DUCKWORTH, Illinois 

SHELLEY MOORE CAPITO, West Virginia MARGARET WOOD HASSAN, New Hampshire 

CORY GARDNER, Colorado CATHERINE CORTEZ MASTO, Nevada 

TODD C. YOUNG, Indiana JON TESTER, Montana 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

JASON VAN BEEK, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRISTOPHER DAY, Democratic Deputy Staff Director 


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Calendar No. 298 

115TH CONGRESS REPORT " ! SENATE 2d Session 115–204 

MADE IN AMERICA MANUFACTURING COMMUNITIES ACT 

OF 2017 

FEBRUARY 5, 2018.—Ordered to be printed 

Mr. THUNE, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 701] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 701) to improve the competitiveness 

of United States manufacturing by designating and supporting 

manufacturing communities, having considered the same, reports 

favorably thereon with an amendment (in the nature of a substitute) and recommends that the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of S. 701, the Made in America Manufacturing Communities Act of 2017, is to improve the competitiveness of United 

States manufacturing by designating and supporting manufacturing communities. 

BACKGROUND AND NEEDS

The Investing in Manufacturing Communities Partnership 

(IMCP) was established by the Department of Commerce (DOC) at 

the Economic Development Administration (EDA) to incentivize 

and facilitate collaboration among private and public sector stakeholders in U.S. manufacturing communities. The IMCP is designed 

to support growth in the U.S. manufacturing sector, new manufacturing jobs, regional economic growth, and regional economic and 

workforce development objectives. Between 2014 and 2015, 2-year 

IMCP designations were awarded to 24 locally organized, publicprivate consortiums across the United States that successfully 


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demonstrated best practices in advancing innovative regional manufacturing economies. 

In order to qualify for an initial designation, an applicant is required to demonstrate the strength of an existing manufacturing 

industry in its region or community and to describe its proposed 

strategies to target investments and achieve measurable progress 

in six areas. The six areas are as follows: workforce and training; 

research and innovation; infrastructure and site development; supply chain support; trade and international investment; and operational improvement and capital access. Twelve of the 24 IMCP 

designations were renewed in November 2016, while the remaining 

12 IMCP designations continued through 2017. 

The following IMCP participating agencies have identified existing programs that are aligned with manufacturing and have agreed 

to provide preferential consideration to program applications submitted for manufacturing communities: the DOC, the EDA, the National Institute of Standards and Technology, the International 

Trade Administration, the Department of Agriculture, the Department of Defense, the Department of Education, the Department of 

Energy, the Department of Housing and Urban Development, the 

Department of Labor, the Department of Transportation, the Environmental Protection Agency, the Small Business Administration, 

the National Science Foundation, the Appalachian Regional Commission, and the Delta Regional Authority. 

The bill, which would make the IMCP program permanent, is 

supported by the following organizations: the American Small Manufacturers Coalition, the American Sustainable Business Council, 

the Association for Manufacturing Technology, the Information 

Technology & Innovation Foundation, the Manufacturing Alliance 

of Communities, the National Association of Counties, the National 

Association of Development Organizations, the National Skills Coalition, the National Tooling and Machining Association, the North 

American Die Casting Association, the Precision Machined Products Association, the Precision Metalforming Association, and the 

U.S. Conference of Mayors. 

SUMMARY OF PROVISIONS

S. 701 would codify the existing IMCP program at the DOC to 

improve the competitiveness of U.S. manufacturing by designating 

consortiums as manufacturing communities and authorizing Federal agencies to provide them with preferential consideration for 

grant programs and financial and technical assistance. Pursuant to 

the bill, the DOC would designate consortiums as manufacturing 

communities for 2 years using a competitive process, including a 

process for renewal, and specified criteria. Recipients of financial or 

technical assistance from participating agencies would be allowed 

to use the funds to improve the competitiveness of U.S. manufacturing with investments that may include infrastructure, access to 

capital, promotion of exports and foreign direct investment, equipment upgrades, workforce training, energy or process efficiency, 

and other specified purposes. 


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LEGISLATIVE HISTORY

Senator Gillibrand (for herself and Senators Blumenthal, Moran, 

Capito, King, and Collins) introduced S. 701 on March 22, 2017. 

The bill is also cosponsored by Senators Baldwin, Feinstein, and 

Klobuchar. 

A previous version of the bill, S. 2526, was introduced in the 

114th Congress. S. 701 is identical to a first degree amendment offered by Senators Blumenthal and Klobuchar to S. 3084, the American Innovation and Competitiveness Act, which was adopted by 

the Committee by voice vote on June 29, 2016. That provision was 

not ultimately included in the final version of S. 3084 that was enacted into law in January 2017. 

On April 5, 2017, the Committee met in open Executive Session 

and, by voice vote, ordered the bill reported favorably with an 

amendment (in the nature of a substitute). At the markup, the 

Committee adopted an amendment offered by Senator Klobuchar to 

allow the inclusion of information about the participation of women 

and underrepresented minorities in the application of a consortium 

to be a manufacturing community, and to permit the use of financial or technical assistance under the program for workforce recruitment and retention, including that of women and underrepresented minorities. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 

S. 701—Made in America Manufacturing Communities Act of 2017 

S. 701 would expand and codify into law an existing pilot program that designates some consortiums of private and public sector 

entities that aim to improve manufacturing in a particular region 

as ‘‘manufacturing communities’’ and offers them preferential consideration for some federal assistance. Those designations expire in 

2017. 

Under the bill, the Department of Commerce (DOC) also would 

be required to develop a program to which groups of public and private sector entities could apply to be designated as a manufacturing community. Such a designation would last for two years and 

could be renewed for a maximum of four additional years. Manufacturing communities would be eligible for preferential consideration for financial or technical assistance or awards from participating federal agencies or programs. 

Based on an analysis of information from DOC and the Small 

Business Administration, CBO estimates that implementing S. 701 

would cost $5 million over the 2018–2022 period for the Economic 

Development Administration within DOC to operate the program 

and for increased administrative costs to federal agencies that participate in the program; such spending would be subject to the 

availability of appropriated funds. 

Enacting S. 701 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. CBO estimates 

that enacting S. 701 would not increase net direct spending or onVerDate Sep 11 2014 05:08 Feb 06, 2018 Jkt 079010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR204.XXX SR204

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budget deficits in any of the four consecutive 10-year periods beginning in 2028. 

S. 701 contains no intergovernmental or private sector mandates 

as defined in the Unfunded Mandates Reform Act and would not 

affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

The bill would cover consortiums that are already subject to similar eligibility policies and procedures under the existing program at 

the DOC. Each would include at least one institution of higher education, private sector entity, and government entity. Currently, 

there are 24 consortiums that have been granted manufacturing 

community designations by the DOC under 2 rounds of designations. 

ECONOMIC IMPACT

The bill is intended to have a positive economic impact with respect to manufacturing competitiveness for individuals, consumers, 

and businesses affiliated with or located near designated manufacturing communities. Specifically, a member of a consortium designated as a manufacturing community may receive preferential 

consideration for and subsequent award of financial or technical assistance under a program of a participating agency. Such assistance may include investments in infrastructure, access to capital, 

promotion of exports and foreign direct investment, equipment or 

facility upgrades, workforce training, recruitment and retention, 

energy or process efficiencies, business incubators, site preparation, 

advanced research, supply chain development, and small business 

assistance. 

PRIVACY

The bill would not impact the personal privacy of individuals, 

since the bill would affect institutions of higher education, private 

companies, and State and local governments that voluntarily apply 

through consortiums to be designated as manufacturing communities or receive financial or technical assistance from the DOC 

under the IMCP program. 

PAPERWORK

The bill would not increase paperwork requirements for eligible 

consortiums that voluntarily apply to participate beyond what is 

currently required under the existing IMCP program. Under the 

bill, applications to the IMCP program would include the following: 

a description of the regional boundaries of the consortium; a description of the manufacturing concentration of the consortium; an 


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integrated assessment of the local industrial ecosystem of the region of the consortium; an evidence-based plan for developing components of such ecosystem; a description of the investments and the 

implementation strategy the consortium intends to use to address 

gaps in such ecosystem; and a description of the outcome-based 

metrics, benchmarks, and milestones that the consortium will track 

to gauge performance of the strategy of the consortium. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title. 

This section would provide that the Act may be cited as the 

‘‘Made in America Manufacturing Communities Act of 2017.’’ 

Sec. 2. Definitions. 

This section would define the terms ‘‘Manufacturing Community 

Support Program,’’ ‘‘participating agency,’’ ‘‘participating program,’’ 

and ‘‘Secretary.’’ 

Sec. 3. Program to designate and support manufacturing communities. 

This section would require the Secretary of Commerce to establish a program to improve the manufacturing competitiveness of 

U.S. manufacturing by designating consortiums for 2 years and 

supporting them as manufacturing communities. The eligibility requirements for such a consortium would include it do the following: 

represent a region that is large enough to contain critical elements 

of the key technologies or supply chain prioritized by the consortium and small enough to enable close collaboration among the consortium’s members; include at least one institution of higher education, a private sector entity, and a government entity; and have 

a lead applicant that is a district organization, an Indian tribe, a 

State or political subdivision of a State, an institution of higher 

education, or a nonprofit organization or association cooperating 

with a political subdivision of a State. This section also would provide for competitive application and renewal processes. The section 

would allow other Federal agencies to support the manufacturing 

communities by awarding them financial or technical assistance, 

providing preferential consideration when members of a consortium 

apply for Federal or technical assistance, or providing a Federal 

point of contact to help consortiums access Federal funds or technical assistance. 


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CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee states that the bill as reported 

would make no change to existing law. 

Æ 


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