U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

19–010

" SENATE ! 107TH CONGRESS

2d Session 

REPORT

2002

107–350

Calendar No. 772

21st CENTURY NANOTECHNOLOGY 

RESEARCH AND DEVELOPMENT ACT

R E P O R T

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

ON

S. 2945

NOVEMBER 20, 2002.—Ordered to be printed 


EE:\Seals\Congress.#13
(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED SEVENTH CONGRESS

SECOND SESSION

ERNEST F. HOLLINGS, South Carolina, Chairman 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

MAX CLELAND, Georgia 

BARBARA BOXER, California 

JOHN EDWARDS, North Carolina 

JEAN CARNAHAN, Missouri 

BILL NELSON, Florida 

JOHN MCCAIN, Arizona 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

KEVIN D. KAYES, Staff Director 

MOSES BOYD, Chief Counsel 

GREGG ELIAS, General Counsel 

JEANNE BUMPUS, Republican Staff Director and General Counsel 

ANN BEGEMAN, Republican Deputy Staff Director 

ROBERT W. CHAMBERLIN, Republican Chief Counsel

00–000

Calendar No. 772

107TH CONGRESS REPORT " SENATE ! 2d Session 107–350

21st CENTURY NANOTECHNOLOGY RESEARCH AND 

DEVELOPMENT ACT

NOVEMBER 20, 2002.—Ordered to be printed 

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

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2945]

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2945) to authorize appropriations for 

nanoscience, nanoengineering, and nanotechnology research, and 

for other purposes, having considered the same, reports favorably 

thereon without amendment and recommends that the bill do pass. 

PURPOSE OF THE BILL

The purpose of the bill, as reported, is to authorize a coordinated 

inter-agency program that will support long-term nanoscale research and development which will lead to potential breakthroughs 

in technologies related to a number of areas, including materials 

and manufacturing, nano-electronics, medicine and healthcare, the 

environment, energy, chemicals, biotechnology, agriculture, information technology, and national and homeland security. 

BACKGROUND AND NEEDS

Nanoscience, often referred to as nanotechnology, is an emerging 

scientific field which aims to create devices, materials, and systems 

at the nanometer scale. A nanometer is one billionth of a meter 

(10-9 m), or roughly 100,000 times smaller than a strand of human 

hair. Nano-technologists are studying and designing materials and 

systems at this sub-microscopic level. 

Nanotechnology is a multi-disciplinary field, combing all aspects 

of the traditional sciences. Nanotechnology requires expertise in 

engineering, chemistry, physics, materials science, biology, and 

computer science. A field like quantum computing, the next stage 

in the information technology revolution, builds on knowledge and 

achievements in quantum mechanics and computer science to deVerDate 0ct 31 2002 01:28 Nov 22, 2002 Jkt 019010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR350.XXX SR350
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velop systems with processing powers that are several orders of 

magnitude greater than currently possible. 

The future of nanotechnology is touted as the next industrial revolution. It will enable scientists to create advanced materials and 

systems. For example, in combining an understanding of a material’s properties and the ability to manipulate atoms, scientists are 

expected to be able to produce a substance that is stronger than 

steel, yet as light as a feather. Nanotechnology is still in its infancy. It has recently passed theoretic feasibility and is entering 

the laboratory. Breakthroughs in nanotechnology promise to fundamentally alter the way we manufacture products. 

According to the NanoBusiness Alliance, the nanotechnology 

market currently generates $45 billion a year in worldwide sales. 

This is projected to grow to $700 billion by 2008. A more conservative prediction by the National Science Foundation (NSF) is that 

the market for nanotechnology will reach $1 trillion by 2015. The 

potential gains are immense. It is key for the United States to 

maintain an intellectual lead and use that knowledge to maintain 

its commercial edge. 

The National Nanotechnology Initiative (NNI) was created in 

2001 with the goal of coordinating the Federal government’s research and development efforts in nanotechnology. Federal support 

is crucial because nanotechnology is so nascent that few companies 

will invest in it because the pay-offs are so far into the future. 

Venture capitalists also shy away from nanotechnology for the 

same reasons. Universities tend not to have sufficient funds to engage in such exploratory work. Only the Federal government can 

bridge the gap for the next few decades before this research can be 

applied widely to commercial products. The Federal government 

has a history of sponsoring research that opens new frontiers 

(atomic physics, space exploration, and development of the Internet). Many believe that nanotechnology is the next such frontier. 

LEGISLATIVE HISTORY

On September 17, 2002, the Subcommittee on Science, Technology, and Space conducted a hearing on the 21st Century 

Nanotechnology Research and Development Act which was introduced by Senators Wyden, Allen, Lieberman, Mikulski, Landrieu, 

and Clinton the same day. This hearing included the following witnesses: The Honorable Richard Russell, Associate Director for 

Technology, Office of Science and Technology Policy; Mr. F. Mark 

Modzelewski, Executive Director of the NanoBusiness Alliance; Dr. 

Samuel I. Stupp, Board of Trustees Professor, Materials Science, 

Chemistry, and Engineering and Director of the Institute for Bioengineering and Nanoscience in Advanced Medicine, Northwestern 

University; Dr. R. Stanley Williams, Fellow and Director of Quantum Science Research, Hewlett Packard; and Mr. Nathan Swami, 

Executive Director of Initiative for Nanotechnology in Virginia, 

University of Virginia. 

On September 19, 2002, the Commerce Committee met in Executive Session and ordered the bill reported without amendment.

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SUMMARY OF MAJOR PROVISIONS

Authorization of appropriations 

S. 2945, as reported, would authorize appropriations for several 

government agencies for nanoscale science and technology research 

and development in the amount of $476 million for fiscal year (FY) 

2003 and $547.3 million in FY 2004, for a total of $1.02 billion over 

the next two years, as follows:

[In millions of dollars] 

Agency FY 2003 FY 2004 Total 

National Science Foundation ...................................................................................... 221.0 254.1 475.15

Department of Energy ................................................................................................. 139.3 160.2 299.495

National Aeronautics and Space Administration (NASA) ........................................... 22.0 25.3 47.3

National Institutes of Health (NIH) ............................................................................ 43.2 49.7 92.88

National Institute of Standards and Technology (NIST) ............................................ 44.0 50.6 94.6

Environmental Protection Agency (EPA) ..................................................................... 5.0 5.7 10.75

Department of Justice ................................................................................................. 1.4 1.6 3.01

Total ............................................................................................................... 475.9 547.3 1,023.185

The funding level for FY 2003 reflects the President’s requested 

level for these programs, and the FY 2004 level is fifteen percent 

higher than the FY 2003 request. 

National Nanotechnology Research Program 

S. 2945, as reported, would authorize the President to establish 

a National Nanotechnology Research Program (NNRP) with the 

goal of coordinating long-term Federal nanotechnology research 

and development. The program would build on the NNI, providing 

Federally funded research through participating government agencies. The NNRP would include: (1) grand challenges that will promote the advancement of the field; (2) regional interdisciplinary research centers that provide access to facilities for academia and industry; (3) the development of an adequate research infrastructure; 

(4) the creation of a Center for Ethical, Societal, Educational, Legal 

and Workforce Issues Related to Nanotechnology, which will support social science research on nanotechnology; and (5) the development of mechanisms to promote prompt technology transfers. 

Additionally, the program would emphasize the interdisciplinary 

nature of the nanotechnology field, and as a result, give preference 

to universities that show a commitment to interdisciplinary curricula and research. 

Program coordination and management 

S. 2945, as reported, would authorize the National Science and 

Technology Council (NSTC) to oversee the planning, management 

and coordination of the NNRP. The NSTC would be required to coordinate the budget requests of, and provide guidance to, participating departments and agencies. The NSTC would submit an annual report to Congress detailing the goals, grand challenges, and 

program funding areas of the NNRP. 

S. 2945 also would authorize the President to establish a 

Nanotechnology Advisory Panel, which would advise the President 

and the NSTC on goals and objectives of the NNRP. The Panel, 

modeled on the President’s Information Technology Advisory Council, would be responsible for providing an annual evaluation of the 

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NNRP, including a review of the program’s management, a review 

of the balance of the research portfolio across agencies and disciplines, and recommendations for new grand challenges, and other 

charges. The President would have the authority to appoint up to 

20 individuals to serve on the panel. 

S. 2945, as reported, also would authorize the President to create 

a National Nanotechnology Coordination Office (NNCO) to serve as 

the primary point of contact for Federal nanotechnology activities. 

The NNCO would provide day-to-day technical and administrative 

support to assure full coordination of nanotechnology research efforts. 

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:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 1, 2002. 

Hon. ERNEST F. HOLLINGS, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2945, the 21st Century 

Nanotechnology Research and Development Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Kathleen Gramp. 

Sincerely, 

BARRY B. ANDERSON

(For Dan L. Crippen, Director). 

Enclosure. 

S. 2945—21st Century Nanotechnology Research and Development 

Act 

Summary: S. 2945 would authorize the appropriation of about $1 

billion over the 2003–2004 period for civilian research and development (R&D) on nanotechnology (these technologies involve manipulating matter at the atomic level). It would allocate this funding 

among seven agencies: the National Science Foundation, Department of Energy, National Aeronautics and Space Administration, 

National Institutes of Health, National Institute of Standards and 

Technology, Environmental Protection Agency, and the Department 

of Justice. Other provisions would establish programmatic and reporting guidelines for agency initiatives and create a scientific advisory board and office. Finally, S. 2945 would direct the Office of 

Science and Technology Policy to coordinate agency initiatives and 

sponsor biennial studies by the National Academy of Sciences 

(NAS) on how R&D efforts in the United States compare with those 

of other countries. 

Assuming appropriation of the authorized amounts, CBO esti- mates that implementing this bill would cost $989 million over the 

2003–2007 period. CBO estimates that enacting S. 2945 would 

have no effect on direct spending or revenues. 

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S. 2945 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Public universities and agencies would benefit from grants to create interdisciplinary centers for research in nanotechnology. These 

entities may incur costs as a result of participating in the grant 

program, but such costs would be voluntary.

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2945 is shown in the following table. The costs 

of this legislation fall within budget functions 250 (general science, 

space, and technology), 300 (natural resources and the environment), 376 (commerce and housing credit), 550 (health), and 750 

(administration of justice).

By fiscal year, in millions of dollars—

2002 2003 2004 2005 2006 2007

SPENDING SUBJECT TO APPROPRIATION

Nanotechnology spending under current law: 

Budget authority 1 ............................................................... 424 0 0 0 0 0

Estimated outlays ................................................................ 344 231 54 15 7 2

Proposed changes: 

Estimated authorization level ............................................. 0 476 547 0 1 0

Estimated outlays ................................................................ 0 186 425 292 67 19

Nanotechnology spending under S. 2945: 

Estimated authorization level 1 ........................................... 424 476 548 0 1 0

Estimated outlays ................................................................ 344 417 479 307 74 21

1 The 2002 level reflects agencies’ estimates of the amount appropriated for that year for R&D on nanotechnology, a full-year appropriation 

for 2003 for these agencies has not yet been enacted. 

Basis of estimate: For this estimate, CBO assumes that the 

amounts authorized will be appropriated near the start of each fiscal year and that outlays will occur at rates similar to those for 

other R&D programs at each agency. The amounts shown in the 

table reflect the amounts specified in S. 2945 for agency R&D and 

the cost of the NAS studies comparing the U.S. program to those 

of other countries. Based on information from the NAS, CBO estimates that each biennial study on international trends would cost 

about $1 million. 

Intergovernmental or private-sector impact: S. 2945 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would impose no costs on State, local, or tribal governments. 

Public universities and agencies would benefit from grants to create interdisciplinary centers for research in nanotechnology. These 

entities may incur costs as a result of participating in the grant 

program, but such costs would be voluntary. 

Estimate prepared by: Federal costs: Kathleen Gramp; impact on 

State, local, and tribal governments: Susan Sieg Tompkins; impact 

on the private sector: Jean Talarico. 

Estimate approved by: Peter H. Fontaine, 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: 

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Number of persons covered 

The Committee believes that the bill will not subject any individuals or businesses affected by the legislation to any additional regulation. 

Economic impact 

This legislation authorizes significant funding for research and 

development in nanoscale science and technology. However, it is 

not expected to have an adverse economic impact on the Nation. 

Privacy 

This legislation will not have a negative impact on the personal 

privacy of individuals. 

Paperwork 

This legislation will not increase paperwork requirements for private individuals or businesses. It would require the following reports: (1) an annual report by the Advisory Panel reviewing the 

program’s success according to metrics established by the Panel; (2) 

a budget request by each Federal agency or department participating in the program submitted to the Office of Management and 

Budget (OMB); (3) an annual report to Congress produced by the 

NSTC detailing the funding levels for each agency and department 

participating in the program; and (4) a triennial review conducted 

by the National Research Council evaluating the program’s technical success, management and coordination, and funding levels. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 would set forth the short title of the bill as ‘‘The 21st 

Century Nanotechnology and Research Development Act.’’

Section 2. Findings 

Section 2 would provide findings concerning the potential benefits of nanotechnology, including potential breakthroughs in materials and manufacturing, electronics, medicine and healthcare, the 

environment, energy, chemicals, biotechnology, agriculture, information technology, and national security. 

Section 3. Purpose 

This section would provide for the coordination of an inter-agency 

program to support long-term nanoscale research and development 

in certain key areas. 

Section 4. National nanotechnology research program 

Subsection (a) would require the President to establish a program to fund and coordinate basic nanoscience and engineering research among Federal agencies, academic laboratories, and the private sector. 

Subsection (b) would identify the program’s goals as to assure 

the United States remain a world leader in nanotechnology, which 

will help meet national goals for advances in health, manufacturing, technology, education, science, energy, the environment, 

and national security. The program also would consider philoVerDate 0ct 31 2002 01:28 Nov 22, 2002 Jkt 019010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\SR350.XXX SR350
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sophical, ethical, and other societal concerns in conjunction with 

the development of nanotechnology. 

Subsection (c) would identify major research and development 

areas. Funding would be authorized to provide awards of less than 

$1 million each to single investigators and small groups conducting 

long-term fundamental, innovative research, and to fund the development of university-industry-laboratory and interagency partnerships. The program also would support ‘‘Grand Challenges’’, including multidisciplinary nanotechnology research centers to achieve 

long-term objectives, such as stronger and lighter nano-materials, 

nanoelectronics, healthcare applications, energy and environmental 

advances, and national security. 

The appropriate agencies would fund 10 new ‘‘Interdisciplinary 

Nanotechnology Research Centers’’ in the range of $3 million to $5 

million each year for 5 years. Grants could be renewed for another 

5-year term following a positive performance review. The Centers 

would assist in reaching other priorities, including fundamental research, grand challenges, education, development and utilization of 

specific research tools, and promoting partnerships with industry. 

To the greatest extent possible, agencies participating in the program would establish geographically diverse centers, including at 

least one center participating in the NSF Experimental Program to 

Stimulate Competitive Research. The program would be authorized 

to use underutilized manufacturing facilities in areas of high unemployment for production engineering and research testbeds for 

micron-scale technologies. 

The Director of the NSF would be required to establish a new 

Center for Ethical, Societal, Educational, Legal, and Workforce 

Issues Related to Nanotechnology at a funding level of $5 million 

per year. The center would be required to track and research the 

societal, ethical, educational, legal, and workforce issues related to 

nanotechnology. The program, through its participating agencies, 

would ensure cooperation and collaboration with United States industries in all relevant research efforts and develop mechanisms to 

ensure prompt technology transfer. 

Section 5. Program coordination and management 

Subsection (a) would direct the NSTC to oversee the planning, 

management, and coordination of the Federal nanotechnology research and development program. The NSTC would be required to: 

establish a set of broad applications for nanotechnology; submit an 

annual report to the Senate Committee on Commerce, Science, and 

Transportation and the House of Representatives Committee on 

Science; coordinate with Federal agencies, including the Department of Defense; consult with academic, industry, State and local 

governments and other appropriate groups in conducting 

nanotechnology research; establish an Information Services and 

Applications Council to promote access to and early application of 

new nanotechnologies; and measure the program’s performance 

against its goals. 

Subsection (b) would require the President to establish a National Nanotechnology Advisory Panel (NNAP) composed of up to 

20 nanotechnology experts who are not Federal employees. The 

panel must represent a cross-section of views and expertise, including those related to the societal, ethical, educational, legal, and 

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workforce issues in nanotechnology. The panel would meet not less 

than twice annually, issue an annual report measuring performance goals, and advise the President and inform Congress on matters relating to the NNRP. 

Subsection (c) would require the President also to create a NNCO 

in which a full-time staff will provide day-to-day technical and administrative support to the Council and Advisory Panel, and be the 

point of contact for Federal nanotechnology activities for government organizations, academia, industry, professional societies, and 

others to exchange technical and programmatic information.

Subsection (d) would establish criteria for the report by the National Nanotechnology Advisory Panel. The annual report would review the program’s technical success according to the program’s 

stated goals; review the program’s management, coordination, and 

funding levels; assess the degree of participation by minority-serving institutions; review policy issues arising from advances in 

nanotechnology; recommend new goals, grand challenges, and investments; and evaluate the application of new nanotechnologies to 

commercial and military products. 

In addition, subsection (d) would require each Federal agency 

participating in the nanotechnology program, as part of its annual 

request for appropriations, to submit a report to OMB that identifies each element of its nanotechnology research that contributes 

directly to the nanotechnology program. In the President’s annual 

budget request to Congress, OMB would be required to state the 

amount of funding for each agency related to nanotechnology research. 

The NSTC would be required to submit an annual report to Congress regarding the nanotechnology research development program, 

including its goals, progress, and funding. No later than 6 months 

after enactment, the Director of the NSF would be required to 

enter into an agreement with the National Research Council of the 

National Academy of Sciences to conduct a triennial evaluation of 

the Federal nanotechnology research and development program, 

and submit that study to the Senate Committee on Commerce, 

Science, and Transportation and House of Representatives Committee on Science. The first such evaluation shall be transmitted 

no later than 12 months after the date of enactment, with subsequent evaluations transmitted every 3 years thereafter. 

Section 6. Authorization 

NSF would be authorized to spend $221 million in FY 2003 and 

$254.15 million in FY 2004 to carry out the Act. Of the authorized 

funds, $40 million in FY 2003 and $50 million in FY 2004 would 

be allocated specifically for grants of up to $5 million each for multidisciplinary nanotechnology research centers. Of the authorized 

funds, $5 million would be authorized for a university-based Center 

for Societal, Ethical, Educational, Legal and Workforce Issues Related to Nanotechnology. Of the authorized funds, $5 million for 

each fiscal year would be provided to the NNCO and $5 million 

would be provided to the Science and Technology Policy Institute 

for use in competitive grants to address research areas which are 

not being adequately addressed by the agencies’ current research 

programs. 

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To carry out the Act, other agencies would be authorized appropriations in the following amounts: Department of Energy: $139.3 

for FY 2003 and $160.195 million for FY 2004; NASA: $22 million 

for FY 2003 and $25.3 million for FY 2004; National Institutes of 

Health: $43.2 million for FY 2003 and $49.68 million for FY 2004; 

National Institute of Standards and Technology: $44 million for FY 

2003 and $50.6 million for FY 2004; Environmental Protection 

Agency: $5 million for FY 2003 and $5.75 million for FY 2004; Department of Justice: $1.4 million for FY 2003 and $1.61 million for 

FY 2004. 

Section 7. Additional reports, studies, and plans 

Subsection (a) would require the President, through NSTC, to 

enter into an agreement with the National Research Council of the 

National Academy of Sciences to conduct a biennial study of the 

relative position of the United States compared to other nations 

with respect to nanotechnology research and development. The 

study would address the following issues: the current and likely future position of United States private, academic, and government 

sector research in nanotechnology relative to other nations; niche 

technology research areas where the United States is trailing other 

nations; and institutions, funding, and human resource factors that 

are critical to maintaining leadership status in this field. Not less 

than 6 months after receipt of each study, the NSTC would develop 

a plan for addressing issues raised in the study, including strategies for investment, strategies for promoting international research 

cooperation, and institutional and human-resource changes to be 

made to achieve or maintain leadership status in this field. NSTC 

will submit the National Research Council study and the NSTC 

plan to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Science, 

not later than 18 months after the date of the enactment and every 

2 years thereafter. 

As authorized by subsection (b), the NSF Director would be directed to encourage, conduct, coordinate, commission, collect, and 

disseminate studies on the societal, educational, and workforce implications of nanotechnology through the Center for Societal, Ethical, Educational, and Workforce Issues established under section 

4 (c). The NSF Director would collect data to assess the anticipated 

nanotechnology workforce needs based on detailed occupation, industry, and firm characteristics, and determine the adequacy of the 

trained talent pool in the United States. The Director also would 

be required to submit reports on these issues to the President, the 

NSTC, the Senate Committee on Commerce, Science, and Transportation, and the House of Representatives Committee on Science 

not later than 18 months after the date of enactment of this Act. 

Section 8. Definitions 

This section defines key terms in the Act, including ‘‘Advisory 

Panel’’, ‘‘fundamental research’’, ‘‘grand challenges’’, 

‘‘interdisciplinary nanotechnology research center’’, 

‘‘nanotechnology’’, ‘‘program’’, and ‘‘research infrastructure’’. 

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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.

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