II 

Calendar No. 183 

116TH CONGRESS 

1ST SESSION S. 715 

[Report No. 116–80] 

To improve the productivity and energy efficiency of the manufacturing sector 

by directing the Secretary of Energy, in coordination with the National 

Academies and other appropriate Federal agencies, to develop a national 

smart manufacturing plan and to provide assistance to small- and medium-sized manufacturers in implementing smart manufacturing programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 7, 2019 

Mrs. SHAHEEN (for herself, Mr. ALEXANDER, and Ms. HASSAN) introduced 

the following bill; which was read twice and referred to the Committee 

on Energy and Natural Resources 

SEPTEMBER 10, 2019 

Reported by Ms. MURKOWSKI, without amendment 

A BILL 

To improve the productivity and energy efficiency of the 

manufacturing sector by directing the Secretary of Energy, in coordination with the National Academies and 

other appropriate Federal agencies, to develop a national 

smart manufacturing plan and to provide assistance to 

small- and medium-sized manufacturers in implementing 

smart manufacturing programs, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Smart Manufacturing 

5 Leadership Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) the industrial sector— 

9 (A) represents approximately 20 percent of 

10 the economy of the United States; 

11 (B) provides approximately 13 percent of 

12 employment in the United States; and 

13 (C) accounts for more than 

14 30,000,000,000,000,000 Btus of energy, a 

quantity that is equal to almost 1 15 ⁄3 of the en16 ergy consumption of the United States; 

17 (2) smart manufacturing is set to transform the 

18 manufacturing sector and the use by the manufac19 turing sector of energy, water, raw materials, and 

20 labor over the 10 years following the date of enact21 ment of this Act; 

22 (3) the transformation described in paragraph 

23 (2) will result in savings in electricity, natural gas, 

24 transportation fuels, chemical feedstocks, and many 

25 other fuels; 


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1 (4) the interconnection of the many components 

2 of manufacturing within a manufacturing plant with 

3 other business functions within a company and 

4 across companies within a supply chain will enable 

5 new production efficiencies; 

6 (5) the improvements in automation described 

7 in paragraph (4) are estimated to produce between 

8 $5,000,000,000 and $25,000,000,000 in energy sav9 ings per year across the manufacturing sector for 

10 electricity alone by 2035; 

11 (6) smart manufacturing technologies are esti12 mated to add between $10,000,000,000,000 and 

13 $15,000,000,000,000 to the global gross domestic 

14 product over 20 years following the date of enact15 ment of this Act; 

16 (7) market barriers exist to the widespread 

17 adoption of smart manufacturing practices by all 

18 sizes of firms and to the investment in smart manu19 facturing technologies, including lack of— 

20 (A) common communication protocols be21 tween smart manufacturing devices, which pre22 vents interoperability, reduces system effi23 ciencies, and stifles innovation; 


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1 (B) common standards for storing and 

2 sharing information relating to energy con3 sumption and energy savings; 

4 (C) an open-access smart manufacturing 

5 platform that enables the networking of busi6 ness and automation systems of multiple ven7 dors; and 

8 (D) common cybersecurity protocols and 

9 standards; 

10 (8) addressing the barriers described in para11 graph (7) is in the interest of the United States; 

12 (9) in response to the barriers described in 

13 paragraph (7), the Secretary of Energy is working 

14 with the private sector to reduce the market barriers 

15 through the development of voluntary protocols and 

16 standards; 

17 (10) there exist many technologies of which 

18 many domestic manufacturers are unaware that 

19 could— 

20 (A) improve the competitiveness of the do21 mestic manufacturers; and 

22 (B) reduce the environmental impacts of 

23 the domestic manufacturers; 

24 (11) Federal agency action can facilitate great25 er economic growth through outreach and engageVerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715

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1 ment in the smart manufacturing technology area; 

2 and 

3 (12) the United States would benefit from a 

4 concerted and focused effort to advance the adoption 

5 of smart manufacturing throughout the manufac6 turing sector of the United States. 

7 SEC. 3. DEFINITIONS. 

8 In this Act: 

9 (1) ENERGY MANAGEMENT SYSTEM.—The term 

10 ‘‘energy management system’’ means a business 

11 management process based on standards of the 

12 American National Standards Institute that enables 

13 an organization to follow a systematic approach in 

14 achieving continual improvement of energy perform15 ance, including energy efficiency, security, use, and 

16 consumption. 

17 (2) INDUSTRIAL ASSESSMENT CENTER.—The 

18 term ‘‘industrial assessment center’’ means a center 

19 located at an institution of higher education that— 

20 (A) receives funding from the Department 

21 of Energy; 

22 (B) provides an in-depth assessment of 

23 small- and medium-size manufacturer plant 

24 sites to evaluate the facilities, services, and 

25 manufacturing operations of the plant site; and 


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1 (C) identifies opportunities for potential 

2 savings for small- and medium-size manufac3 turer plant sites from energy efficiency improve4 ments, waste minimization, pollution preven5 tion, and productivity improvement. 

6 (3) INFORMATION AND COMMUNICATION TECH7 NOLOGY.—The term ‘‘information and communica8 tion technology’’ means any electronic system or 

9 equipment (including the content contained in the 

10 system or equipment) used to create, convert, com11 municate, or duplicate data or information, including 

12 computer hardware, firmware, software, communica13 tion protocols, networks, and data interfaces. 

14 (4) INSTITUTION OF HIGHER EDUCATION.—The 

15 term ‘‘institution of higher education’’ has the 

16 meaning given the term in section 101(a) of the 

17 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 

18 (5) NATIONAL LABORATORY.—The term ‘‘Na19 tional Laboratory’’ has the meaning given the term 

20 in section 2 of the Energy Policy Act of 2005 (42 

21 U.S.C. 15801). 

22 (6) NORTH AMERICAN INDUSTRY CLASSIFICA23 TION SYSTEM.—The term ‘‘North American Indus24 try Classification System’’ means the standard used 

25 by Federal statistical agencies in classifying business 


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1 establishments for the purpose of collecting, ana2 lyzing, and publishing statistical data relating to the 

3 business economy of the United States. 

4 (7) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Energy. 

6 (8) SMALL AND MEDIUM MANUFACTURERS.— 

7 The term ‘‘small and medium manufacturers’’ 

8 means manufacturing firms— 

9 (A) classified in the North American In10 dustry Classification System as any of sectors 

11 31 through 33; 

12 (B) with gross annual sales of less than 

13 $100,000,000; 

14 (C) with fewer than 500 employees at the 

15 plant site; and 

16 (D) with annual energy bills totaling more 

17 than $100,000 and less than $2,500,000. 

18 (9) SMART MANUFACTURING.—The term 

19 ‘‘smart manufacturing’’ means advanced tech20 nologies in information, automation, monitoring, 

21 computation, sensing, modeling, and networking 

22 that— 

23 (A) digitally— 

24 (i) simulate manufacturing production 

25 lines; 


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1 (ii) operate computer-controlled man2 ufacturing equipment; 

3 (iii) monitor and communicate pro4 duction line status; and 

5 (iv) manage and optimize energy pro6 ductivity and cost throughout production; 

7 (B) model, simulate, and optimize the en8 ergy efficiency of a factory building; 

9 (C) monitor and optimize building energy 

10 performance; 

11 (D) model, simulate, and optimize the de12 sign of energy efficient and sustainable prod13 ucts, including the use of digital prototyping 

14 and additive manufacturing to enhance product 

15 design; 

16 (E) connect manufactured products in net17 works to monitor and optimize the performance 

18 of the networks, including automated network 

19 operations; and 

20 (F) digitally connect the supply chain net21 work. 

22 SEC. 4. DEVELOPMENT OF NATIONAL SMART MANUFAC23 TURING PLAN. 

24 (a) IN GENERAL.—Not later than 3 years after the 

25 date of enactment of this Act, the Secretary, in consultaVerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715

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1 tion with the National Academies, shall develop and com2 plete a national plan for smart manufacturing technology 

3 development and deployment to improve the productivity 

4 and energy efficiency of the manufacturing sector of the 

5 United States. 

6 (b) CONTENT.— 

7 (1) IN GENERAL.—The plan developed under 

8 subsection (a) shall identify areas in which agency 

9 actions by the Secretary and other heads of relevant 

10 Federal agencies would— 

11 (A) facilitate quicker development, deploy12 ment, and adoption of smart manufacturing 

13 technologies and processes; 

14 (B) result in greater energy efficiency and 

15 lower environmental impacts for all American 

16 manufacturers; and 

17 (C) enhance competitiveness and strength18 en the manufacturing sectors of the United 

19 States. 

20 (2) INCLUSIONS.—Agency actions identified 

21 under paragraph (1) shall include— 

22 (A) an assessment of previous and current 

23 actions of the Department of Energy relating to 

24 smart manufacturing; 


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1 (B) the establishment of voluntary inter2 connection protocols and performance stand3 ards; 

4 (C) the use of smart manufacturing to im5 prove energy efficiency and reduce emissions in 

6 supply chains across multiple companies; 

7 (D) actions to increase cybersecurity in 

8 smart manufacturing infrastructure; 

9 (E) deployment of existing research re10 sults; and 

11 (F) the leveraging of existing high-per12 formance computing infrastructure. 

13 (c) BIENNIAL REVISIONS.—Not later than 2 years 

14 after the date on which the Secretary completes the plan 

15 under subsection (a), and not less frequently than once 

16 every 2 years thereafter, the Secretary shall revise the 

17 plan to account for advancements in information and com18 munication technology and manufacturing needs. 

19 (d) REPORT.—Annually until the completion of the 

20 plan under subsection (a), the Secretary shall submit to 

21 Congress a report on the progress made in developing the 

22 plan. 

23 (e) FUNDING.—The Secretary shall use unobligated 

24 funds of the Department of Energy to carry out this sec25 tion. 


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1 SEC. 5. LEVERAGING EXISTING AGENCY PROGRAMS TO AS2 SIST SMALL AND MEDIUM MANUFACTURERS. 

3 (a) FINDINGS.—Congress finds that— 

4 (1) the Department of Energy has existing 

5 technical assistance programs that facilitate greater 

6 economic growth through outreach to and engage7 ment with small and medium manufacturers; 

8 (2) those technical assistance programs rep9 resent an important conduit for increasing the 

10 awareness of and providing education to small and 

11 medium manufacturers regarding the opportunities 

12 for implementing smart manufacturing; and 

13 (3) those technical assistance programs help fa14 cilitate the implementation of best practices. 

15 (b) EXPANSION OF TECHNICAL ASSISTANCE PRO16 GRAMS.—The Secretary shall expand the scope of tech17 nologies covered by the Industrial Assessment Centers of 

18 the Department of Energy— 

19 (1) to include smart manufacturing technologies 

20 and practices; and 

21 (2) to equip the directors of the Industrial As22 sessment Centers with the training and tools nec23 essary to provide technical assistance in smart man24 ufacturing technologies and practices, including en25 ergy management systems, to manufacturers. 


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1 (c) FUNDING.—The Secretary shall use unobligated 

2 funds of the Department of Energy to carry out this sec3 tion. 

4 SEC. 6. LEVERAGING SMART MANUFACTURING INFRA5 STRUCTURE AT NATIONAL LABORATORIES. 

6 (a) STUDY.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this Act, the Sec9 retary shall conduct a study on how the Department 

10 of Energy can increase access to existing high-per11 formance computing resources in the National Lab12 oratories, particularly for small and medium manu13 facturers. 

14 (2) INCLUSIONS.—In identifying ways to in15 crease access to National Laboratories under para16 graph (1), the Secretary shall— 

17 (A) focus on increasing access to the com18 puting facilities of the National Laboratories; 

19 and 

20 (B) ensure that— 

21 (i) the information from the manufac22 turer is protected; and 

23 (ii) the security of the National Lab24 oratory facility is maintained. 


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1 (3) REPORT.—Not later than 1 year after the 

2 date of enactment of this Act, the Secretary shall 

3 submit to Congress a report describing the results of 

4 the study. 

5 (b) ACTIONS FOR INCREASED ACCESS.—The Sec6 retary shall facilitate access to the National Laboratories 

7 studied under subsection (a) for small and medium manu8 facturers so that small and medium manufacturers can 

9 fully use the high-performance computing resources of the 

10 National Laboratories to enhance the manufacturing com11 petitiveness of the United States. 

12 SEC. 7. STATE LEADERSHIP GRANTS. 

13 (a) FINDING.—Congress finds that the States— 

14 (1) are committed to promoting domestic manu15 facturing and supporting robust economic develop16 ment activities; and 

17 (2) are uniquely positioned to assist manufac18 turers, particularly small and medium manufactur19 ers, with deployment of smart manufacturing 

20 through the provision of infrastructure, including— 

21 (A) access to shared supercomputing facili22 ties; 

23 (B) assistance in developing process sim24 ulations; and 


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1 (C) conducting demonstrations of the bene2 fits of smart manufacturing. 

3 (b) GRANTS AUTHORIZED.—The Secretary may 

4 make grants on a competitive basis to States for estab5 lishing State programs to be used as models for sup6 porting the implementation of smart manufacturing tech7 nologies. 

8 (c) APPLICATION.— 

9 (1) IN GENERAL.—To be eligible to receive a 

10 grant under this section, a State shall submit to the 

11 Secretary an application at such time, in such man12 ner, and containing such information as the Sec13 retary may require. 

14 (2) CRITERIA.—The Secretary shall evaluate an 

15 application for a grant under this section on the 

16 basis of merit using criteria identified by the Sec17 retary, including— 

18 (A) the breadth of academic and private 

19 sector partners; 

20 (B) alternate sources of funding; 

21 (C) plans for dissemination of results; and 

22 (D) the permanence of the infrastructure 

23 to be put in place by the project. 

24 (d) REQUIREMENTS.— 


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1 (1) TERM.—The term of a grant under this 

2 section shall not exceed 3 years. 

3 (2) MAXIMUM AMOUNT.—The amount of a 

4 grant under this section shall be not more than 

5 $3,000,000. 

6 (3) MATCHING REQUIREMENT.—Each State 

7 that receives a grant under this section shall con8 tribute matching funds in an amount equal to not 

9 less than 30 percent of the amount of the grant. 

10 (e) USE OF FUNDS.— 

11 (1) IN GENERAL.—A State shall use a grant 

12 provided under this section— 

13 (A) to provide access to shared supercom14 puting facilities to small and medium manufac15 turers; 

16 (B) to fund research and development of 

17 transformational manufacturing processes and 

18 materials technology that advance smart manu19 facturing; and 

20 (C) to provide tools and training to small 

21 and medium manufacturers on how to adopt en22 ergy management systems and implement smart 

23 manufacturing technologies in the facilities of 

24 the small and medium manufacturers. 


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1 (f) EVALUATION.—The Secretary shall conduct bian2 nual evaluations of each grant made under this section— 

3 (1) to determine the impact and effectiveness of 

4 programs funded with the grant; and 

5 (2) to provide guidance to States on ways to 

6 better execute the program of the State. 

7 (g) FUNDING.—There is authorized to be appro8 priated to the Secretary to carry out this section 

9 $10,000,000 for each of fiscal years 2020 through 2023. 

10 SEC. 8. REPORT. 

11 The Secretary annually shall submit to Congress and 

12 make publicly available a report on the progress made in 

13 advancing smart manufacturing in the United States. 


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Calendar No. 183 

116TH CONGRESS 

1ST SESSION S. 715 

[Report No. 116–80] 

A BILL 

To improve the productivity and energy efficiency 

other purposes. menting smart manufacturing programs, and for and medium-sized manufacturers in impleturing plan and to provide assistance to smallagencies, to develop a national smart manufactional Academies and other appropriate Federal retary of Energy, in coordination with the Naof the manufacturing sector by directing the SecSEPTEMBER 10, 2019 

Reported without amendment 


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