```

[Senate Report 113-247]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-247
_______________________________________________________________________

                                     

                                                       Calendar No. 547

      REVITALIZE AMERICAN MANUFACTURING AND INNOVATION ACT OF 2013

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1468

                             together with

                            ADDITIONAL VIEWS

                August 26, 2014.--Ordered to be printed

     Filed, under authority of the order of the Senate of August 5 
                   (legislative day, August 1), 2014
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                    one hundred thirteenth congress
                             second session

             JOHN D. ROCKEFELLER IV, West Virginia, Chairman
 BARBARA BOXER, California            JOHN THUNE, South Dakota
 BILL NELSON, Florida                 ROGER F. WICKER, Mississippi
 MARIA CANTWELL, Washington           ROY BLUNT, Missouri
 MARK PRYOR, Arkansas                 MARCO RUBIO, Florida
 CLAIRE McCASKILL, Missouri           KELLY AYOTTE, New Hampshire
 AMY KLOBUCHAR, Minnesota             DEAN HELLER, Nevada
 MARK BEGICH, Alaska                  DANIEL COATS, Indiana
 RICHARD BLUMENTHAL, Connecticut      TIM SCOTT, South Carolina
 BRIAN SCHATZ, Hawaii                 TED CRUZ, Texas
 ED MARKEY, Massachusetts             DEB FISCHER, Nebraska
 CORY BOOKER, New Jersey              RON JOHNSON, Wisconsin
 JOHN WALSH, Montana
                     Ellen Doneski, Staff Director
                     John Williams, General Counsel
              David Schwietert, Republican Staff Director
              Nick Rossi, Republican Deputy Staff Director
               Rebecca Seidel, Republican General Counsel

                                                       Calendar No. 547
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-247

======================================================================

 
      REVITALIZE AMERICAN MANUFACTURING AND INNOVATION ACT OF 2013

                                _______
                                

                 August 26, 2014.--Ordered to be printed

     Filed, under authority of the order of the Senate of August 5 
                    (legislative day, August1), 2014

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1468]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1468) to require the Secretary 
of Commerce to establish the Network for Manufacturing 
Innovation and for other purposes, 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. 1468, the Revitalize American 
Manufacturing and Innovation Act of 2014, is to require the 
Secretary of Commerce to establish the Network for 
Manufacturing Innovation, a national program of public-private 
centers to accelerate innovation and investment in industrially 
relevant manufacturing technologies with broad commercial 
applications.

                          Background and Needs

    Manufacturing had long been a cornerstone of the U.S. 
economy until the country's shift toward a services-reliant 
economy in the postwar era. Between 1947 and 2009, 
manufacturing shrank from more than a quarter of the gross 
domestic product (GDP) to just a ninth of it.\1\ In the same 
time, white-collar work grew from accounting for less than a 
fifth of GDP to nearly half of it.\2\ In the first decade of 
the 21st century, the manufacturing sector saw even more 
drastic losses, with nearly one-third of the manufacturing 
workforce and 57,000 factories disappearing.\3\ Broadly 
speaking, industries of all shapes and sizes have moved much of 
their production overseas for cheaper labor, emerging market 
access, and favorable tax regimes.
---------------------------------------------------------------------------
    \1\Brian McGill, ``This Is What America's Manufacturing Story Looks 
Like,'' The Atlantic, December 9, 2010, at www.theatlantic.com/
business/archive/2010/12/this-is-what-americas-manu facturing-story-
looks-like/67765.
    \2\Id.
    \3\Testimony of AFL-CIO Executive Director Robert Baugh, in U.S. 
Congress, House Committee on Oversight and Government Reform, Made in 
the USA: Manufacturing Policy, the Defense Industrial Base and U.S. 
National Security, hearings, 111th Cong., 2nd sess., September 22, 
2010, H. Rept. 111-153 (Washington, DC: GPO, 2010).
---------------------------------------------------------------------------
    The U.S. manufacturing sector has shown some signs of 
improvement in the aftermath of the Great Recession, growing 
about twice as fast as the overall U.S. economy since 2010. Yet 
these gains have not made up the losses of the preceding two 
decades, and questions remain whether these positive trends are 
durable and lasting. Experts mainly point to global 
circumstances--such as the growing cost of overseas labor, 
freight, and supply chain disruptions--for the recent 
improvement in U.S. manufacturing. Others cite declining 
domestic energy costs--as a result of falling prices and/or 
increased energy efficiency--as a key component to a resurgence 
in American manufacturing. However, some analysts believe 
prospects for significant job growth may be limited because of 
what they term a ``hollowing out,'' in which companies move 
more of their high-value work abroad.\4\ For instance, since 
June 2009, the U.S. manufacturing sector has seen a 20 percent 
increase in output but just a 2 percent increase in 
employment.\5\
---------------------------------------------------------------------------
    \4\Marc Levinson, Job Creation in the Manufacturing Revival, 
Congressional Research Service, June 19, 2013.
    \5\Marc Levinson, ``Hollowing Out'' in U.S. Manufacturing: Analysis 
and Issues for Congress, Congressional Research Service, April 15, 
2013.
---------------------------------------------------------------------------
    The consequences of a diminished manufacturing sector, 
scholars say, are significant and many.\6\ First, because 
manufacturing jobs tend to require higher-level skills, they 
are relatively well-paying and difficult to replace once they 
are gone. A recent report found that the pay and benefits in 
manufacturing were 20 percent higher than in non-manufacturing 
sectors.\7\ And with global manufacturing increasingly becoming 
more advanced and productive--requiring proficiency in 
mathematics and science--the United States stands to lose out 
on the relatively high-paying jobs and middle-class 
opportunities that go with them.
---------------------------------------------------------------------------
    \6\Gary Pisano and Willy Shih, ``Restoring American 
Competitiveness,'' Harvard Business Review (2009), at http://
dailyreporter.com/files/ 2012/11/restoring-american-
competitiveness1.pdf.
    \7\Bruce Stokes, ``Act II for American Manufacturing?,'' National 
Journal, December 9, 2010, at http://www.nationaljournal.com/njonline/ 
no_20100508_1960.php/american-manufacturing-s-new-future-is-emerging-
but-it-may-need-help-20101209.
---------------------------------------------------------------------------
    Second, the loss of manufacturing jobs has caused disparate 
impacts on the Nation, with towns and cities long dependent on 
manufacturing facing high unemployment and high obstacles in 
attracting new businesses. The ripple effects of a factory 
closure extend beyond the immediate community, affecting not 
only the factory's supply chain but the numerous businesses 
that once provided--for instance--software, telecommunications 
services, utilities, marketing and sales support, building and 
equipment maintenance, and janitorial services.\8\
---------------------------------------------------------------------------
    \8\Richard McCormack, ``The Plight of American Manufacturing,'' 
American Prospect, December 21, 2009, at http://prospect.org/article/ 
plight-american-manufacturing.
---------------------------------------------------------------------------
    Third, the erosion of the U.S. manufacturing sector has 
arguably hurt national security.\9\ The United States has 
become more dependent on foreign nations to produce technology 
that is critical for its infrastructure and defense. For 
example, the production of semiconductors, printed circuit 
boards, machine tools, propellant chemicals, and space 
qualified electronics--all of which are critical to U.S. 
defense capabilities--have seen a shift overseas.\10\ 
Additionally, national security depends on highly trained 
workers to operate highly complex machinery, but the offshoring 
of production and the migration of industrial talent away from 
the United States may leave the country without the 
manufacturing capacity needed in times of national 
emergency.\11\
---------------------------------------------------------------------------
    \9\See generally Testimony of Economic Policy Institute 
Distinguished Fellow Jeff Faux, in U.S. Congress, House Committee on 
Oversight and Government Reform, Made in the USA: Manufacturing Policy, 
the Defense Industrial Base and U.S. National Security, hearings, 111th 
Cong., 2nd sess., September 22, 2010, H. Rept. 111-153 (Washington, DC: 
GPO, 2010).
    \10\Testimony of AFL-CIO Executive Director Robert Baugh, in U.S. 
Congress, House Committee on Oversight and Government Reform, Made in 
the USA: Manufacturing Policy, the Defense Industrial Base and U.S. 
National Security, hearings, 111th Cong., 2nd sess., September 22, 
2010, H. Rept. 111-153 (Washington, DC: GPO, 2010).
    \11\Testimony of Michael R. Wessel, in U.S. Congress, House 
Committee on Oversight and Government Reform, Made in the USA: 
Manufacturing Policy, the Defense Industrial Base and U.S. National 
Security, hearings, 111th Cong., 2nd sess., September 22, 2010, H. 
Rept. 111-153 (Washington, DC: GPO, 2010).
---------------------------------------------------------------------------
    Fourth, the offshoring of production can weaken the 
country's innovative capacity. While the United States remains 
the global leader in research and development (R&D), a 
diminished manufacturing sector at home may prevent the 
development and commercialization of the fruits of the 
country's R&D capabilities. As a result, innovative companies 
and skilled workers may see increasing incentive to move 
overseas to be closer to cutting-edge work. The offshoring of 
R&D is already starting to take root: R&D expenditures from 
U.S.-based multinational companies in Asian markets increased 
from 5 percent to 14 percent between 1955 and 2006.\12\ And, 
over the last decade, the share of U.S. corporate R&D sites 
located in the United States has fallen from 59 percent to 52 
percent.\13\
---------------------------------------------------------------------------
    \12\Testimony of Dr. Robert D. Atkinson, President of the 
Information Technology and Innovation Foundation, in U.S. Congress, 
Senate Committee on Commerce, Science and Transportation, Innovation in 
America: Opportunities and Obstacles, hearings, 111th Cong., 2nd sess., 
June 22, 2010, S. Rept. 111-1018 (Washington, DC: GPO, 2010).
    \13\Id.
---------------------------------------------------------------------------
    In light of the detrimental effects of a weak U.S. 
manufacturing sector, policymakers, commentators, and industry 
stakeholders have pointed to the need for addressing the 
obstacles between R&D and commercialization, often referred to 
as the ``valley of death.'' Many U.S.-based discoveries never 
make it out of the laboratory or, alternatively, make it out of 
the laboratory only to be produced overseas. As such, 
proponents for action have called for helping domestic 
companies commercialize U.S. innovations by aligning public 
policies with the investment decisions of the manufacturing 
community, maximizing the country's ability to retain 
production and manufacturing jobs here at home.
    Other countries have reached the same conclusion. At 
Chairman Rockefeller's request, the Government Accountability 
Office (GAO) examined innovative manufacturing initiatives in 
foreign countries. In July 2013, GAO issued a report finding 
that, relative to the United States, four countries with 
advanced economies with robust manufacturing sectors--Canada, 
Germany, Japan, and South Korea--place greater emphasis on 
commercialization programs to help their manufacturers bridge 
the gap between innovative ideas and sales.\14\ These include 
programs that support infrastructure as well as provide hands-
on technical and product development services to businesses, in 
addition to programs that foster collaboration between 
manufacturers and researchers.\15\ In contrast, the United 
States relies heavily on competitive funding for R&D 
projects.\16\
---------------------------------------------------------------------------
    \14\U.S. Government Accountability Office, Global Manufacturing: 
Foreign Government Programs Differ in Some Key Respects from Those in 
the United States, GAO-13-365, July 2013, at http://www.gao.gov/assets/
660/656239.pdf.
    \15\Id.
    \16\Id.
---------------------------------------------------------------------------
    To address the aforementioned ``valley of death,'' 
President Obama formally unveiled the National Network for 
Manufacturing Innovation (NNMI) in his fiscal year 2013 budget, 
calling for the establishment of 15 institutes with $1 billion 
in mandatory funding over 9 years.\17\ NNMI, according to the 
Administration, would help accelerate innovation by investing 
in manufacturing technologies that have broad applications for 
industry and would further support their commercialization by 
creating a space for the public and private sectors, including 
university researchers and industry, to collaborate, advancing 
innovations at a much faster rate than any one company could on 
its own.\18\ While Congress has yet to pass legislation on the 
proposal, the Administration has used existing authorities and 
funds to establish a pilot institute focused on additive, or 3-
D, manufacturing in 2012--known as America Makes (or the 
National Additive Manufacturing Innovation Institute) in 
Youngstown, Ohio--and to begin the establishment of three more 
institutes. In January 2014, the Administration announced the 
first of these three institutes: a Department of Energy-funded 
hub in Raleigh, North Carolina, that will focus on advanced 
semi-conductors to reduce energy use. In February 2014, the 
Administration announced the formation of the two other 
institutes to be funded by the Department of Defense and non-
Federal matching funds: one in Detroit, Michigan, focused on 
lightweight, high-performing alloys, and one in Chicago, 
Illinois, focused on digital manufacturing.
---------------------------------------------------------------------------
    \17\White House, Office of the Press Secretary, ``President Obama 
to Announce New Efforts to Support Manufacturing Innovation, Encourage 
Insourcing,'' press release, March 9, 2012, at www.whitehouse.gov/the-
press-office/2012/03/09/president-obama-announce-new-efforts-support-
manufacturing-innovation-en.
    \18\Testimony of Patrick D. Gallagher, in U.S. Congress, House 
Committee on Science, Space, and Technology, Assembling the Facts: 
Examining the Proposed National Network for Manufacturing Innovation, 
hearings, 112th Cong., 2nd sess., May 31, 2012, H. Rept. 112-86 
(Washington, DC: GPO, 2012).
---------------------------------------------------------------------------

                         Summary of Provisions

    S. 1468 would establish public-private institutes that 
would leverage promising R&D for commercial manufacturing 
purposes. By forming manufacturing ``hubs'' involving 
universities, community colleges, industry, and relevant 
government stakeholders, the purpose of these institutes would 
be to bridge the innovation gap, colloquially known as the 
``valley of death,'' whereby R&D with potentially broad 
commercial applications fails to materialize into tangible 
product development. The institutes would be assessed, among 
other things, on their outreach and engagement with small- and 
medium-sized enterprises (SMEs) to improve the capacity of such 
enterprises to commercialize new processes and technologies. 
The bill would also provide students and workers with the 
education and skills necessary to participate in the advanced 
manufacturing workforce through the institutes.

                          Legislative History

    Senators Brown and Blunt introduced S. 1468 on August 1, 
2013. The bill is also cosponsored by Senators Graham, Schumer, 
Stabenow, Kirk, Coons, Collins, King, Levin, Reed, Wicker, 
Boozman, Ayotte, Rockefeller, and Udall of New Mexico. The bill 
has received support from numerous companies, associations, and 
educational institutions.
    On November 13, 2013, the Committee on Commerce, Science, 
and Transportation held a hearing, ``The Role of Manufacturing 
Hubs in a 21st Century Innovation Economy,'' which included 
discussion and consideration of S. 1468. On April 9, 2014, in 
an open Executive Session, the Committee considered the bill 
and ordered reported S. 1468, as amended, favorably by voice 
vote. At the Executive Session, the Chairman and Ranking Member 
expressed their shared understanding that identification of an 
appropriate offset for the cost of the proposed new program 
would be necessary to garner support for Senate passage of the 
legislation. The Committee adopted a substitute amendment from 
Senator Blunt, a first-degree amendment from Senator Klobuchar, 
and a first-degree amendment from Senator Pryor.

                            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, June 6, 2014.
Hon. John D. Rockefeller IV,
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. 1468, the Revitalize 
American Manufacturing and Innovation Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1468--Revitalize American Manufacturing and Innovation Act of 2014

    Summary: S. 1468 would establish the Network for 
Manufacturing Innovation Program (NMIP) within the National 
Institute of Standards and Technology (NIST). Under the 
program, NIST would award grants to establish a network of 
centers of innovation to improve the competitiveness of 
domestic manufacturers. The bill also would require several 
studies by the Government Accountability Office (GAO) and other 
agencies as well as the development of a strategic plan for 
advanced manufacturing.
    CBO estimates that implementing S. 1468 would cost $265 
million over the 2015-2019 period, assuming appropriation of 
the necessary amounts. Enacting S. 1468 could affect direct 
spending; therefore, pay-as-you-go procedures apply. CBO 
estimates, however, that such effects would be insignificant. 
Enacting S. 1468 would not affect revenues.
    S. 1468 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of S. 1468 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2015      2016      2017      2018      2019    2012-2019
----------------------------------------------------------------------------------------------------------------
                                 CHANGES IN SPENDING SUBJECT TO APPROPRIATION\a\
Network for Manufacturing Innovation:
    Authorization Level............................       300         0         0         0         0        300
    Estimated Outlays..............................        30        60        75        60        30        255
Reports:
    Estimated Authorization Level..................         8         0         1         2         *         11
    Estimated Outlays..............................         5         3         0         1         1         10
    Total Changes:
        Estimated Authorization Level..............       308         0         1         2         *        311
        Estimated Outlays..........................        35        63        75        61        31       265
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
\a\CBO estimates that enacting S. 1468 also would have an insignificant effect on direct spending.

    Basis of estimate: For this estimate, CBO assumes that S. 
1468 will be enacted near the end of 2014, that the necessary 
amounts will be appropriated near the beginning of each fiscal 
year, and that spending will follow historical patterns for 
similar activities.

Spending subject to appropriation

    Network for Manufacturing Innovation. S. 1468 would 
authorize the appropriation of $300 million to establish a 
network of centers to support research and development, 
education, training, and other efforts to improve the capacity 
of domestic manufacturers to use advanced technology. Under the 
bill, NIST would be required to develop a strategic plan for 
the program and a system to award and oversee grants to 
eligible applicants, and to report to the Congress annually on 
program performance.
    Based on information from NIST, CBO expects that the agency 
would create four institutes with the funds made available 
under the bill. Those new institutes would join four existing 
institutes that were created with funds from the Departments of 
Defense and Energy and four other institutes currently under 
development. CBO estimates that implementing the NMIP would 
cost $255 million over the 2015-2019 period, assuming 
appropriation of the specified amount.
    Reports. The bill also would require NIST to develop a 
national strategic plan for advanced manufacturing that would 
be updated every four years. Further, S. 1468 would require 
several reports to the Congress by GAO and other agencies 
including an assessment of NMIP operations every two years, an 
evaluation of the competitiveness of the United States in 
international trade, and a survey measuring the economic effect 
of Chinese holdings of rare earth elements (metals that tend to 
be found together in geologic deposits but often not in 
concentrations high enough to be extracted economically).
    Based on information from NIST and the International Trade 
Administration (ITA), CBO estimates that preparing the 
strategic plan and the additional reports would cost about $10 
million over the 2015-2019 period, assuming appropriation of 
the necessary amounts. Of that amount, CBO estimates that NIST 
would spend about $4 million to develop and update the 
strategic plan for advanced manufacturing, and the ITA would 
spend $5 million to complete the survey and the report on 
China's holdings of rare earth elements.

Direct spending

    S. 1468 would authorize NIST to accept funds from private 
entities to carry out the NMIP and would make those amounts 
available to the agency without further appropriation. Based on 
information from NIST, CBO estimates that this provision would 
have an insignificant effect on net direct spending because 
amounts collected would be small, less than $500,000 per year. 
Any additional collections subsequently would be spent by the 
agency.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. CBO estimates that enacting S. 1468 would affect 
direct spending because the bill would authorize NIST to accept 
and spend funds from private entities without further 
appropriation action, but those effects would be insignificant. 
Enacting S. 1468 would not affect revenues.
    Intergovernmental and private-sector impact: S. 1468 
contains no intergovernmental or private-sector mandates as 
defined in UMRA.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Marin Burnett.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                           Regulatory Impact

    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

    S. 1468 would establish public-private institutes that 
would leverage promising R&D for commercial manufacturing 
purposes. The bill would direct the Department of Commerce to 
competitively award funding to applicants that meet key 
criteria. While there are no new regulatory requirements in the 
bill, any institute awarded funding under the bill would be 
subject to any rules and reporting requirements established by 
the bill or by the Department of Commerce.

                            economic impact

    This legislation is not expected to have an adverse 
economic impact on the Nation. The bill would establish public-
private partnerships aimed at strengthening innovation and the 
U.S. manufacturing sector.

                                privacy

    S. 1468 would not have a negative impact on the personal 
privacy of individuals.

                               paperwork

    S. 1468 would create new reporting requirements for the 
Department of Commerce, the recipients of financial assistance 
under the Program, and GAO. The Secretary of Commerce would be 
required to submit at least every two years to the Senate 
Committee on Commerce, Science, and Transportation and the 
House Committee on Science, Space, and Technology a strategic 
plan to guide the Program, and the Secretary of Commerce would 
also be required to submit each year to Congress a report 
describing the performance of the Program. Each recipient of 
financial assistance would be required to submit annually to 
the Secretary of Commerce a report describing the finances and 
performance of the Centers for Manufacturing Innovation. GAO 
would be required to submit at least every two years to 
Congress a report assessing the operations of the Program.

                   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

Section 1. Short title.

    Section 1 would establish the title of the bill as the 
``Revitalize American Manufacturing and Innovation Act of 
2014.''

Section 2. Findings.

    Section 2 would establish the findings of the bill, 
including the benefits of advanced manufacturing and 
comparative global statistics.

Section 3. Establishment of Network for Manufacturing Innovation.

    Section 3 would create a Network for Manufacturing 
Innovation (NMI) Program within the National Institute of 
Standards and Technology (NIST) in the Department of Commerce. 
The section further would establish the purposes of the NMI 
Program: to measurably improve competitiveness in U.S. 
manufacturing; to stimulate innovation; to facilitate the 
transition of innovative and transformative technologies into 
viable commercial applications; to provide manufacturing 
enterprises with access to capital-intensive infrastructure and 
technologies; to measurably accelerate skilled workforce 
development; to facilitate the exchange of best practices; and 
to leverage non-Federal capital to develop a self-sustaining 
business model. The NMI Program would be administered by the 
National Office of the Network for Manufacturing Innovation 
Program (National Program Office) and by a Director, as 
designated by the Secretary of Commerce.
    Section 3 also would define and structure the Centers for 
Manufacturing Innovation (CMIs), which would make up the NMI 
Program. Specifically, CMIs would address challenges in 
advanced manufacturing and focus on a manufacturing process, 
new material or technology, supply-chain integration 
methodology, or another aspect of advanced manufacturing; focus 
on improving U.S. manufacturing competitiveness, accelerate 
investment in advanced manufacturing capacity, and enable 
commercial application of new technologies; foster active 
participation among industry, research universities, community 
colleges, and other relevant entities; engage in research, 
development, and demonstration projects, including proof-of-
concept prototyping, to reduce the cost, time, and risk of 
commercializing new industry-driven technologies and processes 
with economic or national security implications; develop 
education and training programs and conduct outreach and 
engagement with small- and medium-size businesses; and include 
existing centers, such as the National Additive Manufacturing 
Innovation Institute (recently renamed America Makes).
    The National Program Office would provide financial support 
for CMIs by conducting a competitive, merit-based selection 
process upon receiving applications, which would be required to 
specify the sources and amounts of non-Federal financial 
support. Furthermore, the National Program Office would consult 
with agencies whose missions overlap with advanced 
manufacturing. In considering applications, the National 
Program Office would award bids based on the potential economic 
impact of an applicant's innovative focus, the level of non-
Federal financial support, degree of engagement with SMEs, 
plans for workforce development, and regional assets, among 
other factors. Furthermore, the Secretary must consider ability 
of potential CMIs to leverage continuing non-Federal support 
and eventually become self-sustaining. An explanation of the 
merits of a winning application and the bases for the award 
would be made publicly available at the time of the award. The 
Secretary of Commerce would also be required to develop and 
implement performance metrics to assess the effectiveness of 
the activities funded.
    Federal financial support for a CMI would be limited to 
seven years in duration and up to 50 percent of the CMI's total 
funding. The amount of Federal financial support would decrease 
after the second year of funding and each year thereafter, 
unless the CMI has met its goals and metrics, encountered 
unforeseen circumstances, and can identify future non-Federal 
funding sources. The National Program Office would be limited 
to providing financial support for no more than 15 CMIs in a 
single year.
    Under section 3, the National Program Office would also be 
responsible for, among other things, reporting to Congress on 
the NMI plan, disseminating best practices, and establishing a 
clearinghouse of public information about the NMI Program. In 
addition, CMIs would be required to submit annual reports to 
the National Program Office, and GAO would be directed to 
conduct an assessment of the NMI Program every two years.
    Section 3 would authorize a one-time sum of $300,000,000 
for the NMI Program, and rescind an equal amount of unobligated 
discretionary appropriations. The Secretary of Commerce would 
also be permitted to use no more than 10 percent of the funds 
of any economic development, manufacturing, or small business 
assistance program, except for the Hollings Manufacturing 
Extension Program, to carry out the NMI Program. No more than 5 
percent of appropriated funds would be allowed for 
administrative purposes.
    Finally, section 3 would repeal the Technology and 
Innovation Program (15 U.S.C. 278n), merge the Advanced 
Manufacturing Technology Consortia (AMTech) Program with the 
NMI Program, and set a sunset date for the NMI Program for 
December 31, 2024.

Section 4. Report.

    Section 4 of the bill would require the Secretary of 
Commerce to conduct a survey measuring the economic impact of 
China's rare-earth monopoly on the United States and other 
affected nations. Within a year of enactment, the Secretary 
would submit a report detailing the results of the study and 
further include recommendations on initiating direct dialogue 
with affected nations and promoting cooperative resolutions.

Section 5. Report on competitiveness of United States in international 
        trade.

    Section 5 would direct the Secretary of Commerce to submit 
a report to Congress that evaluates the competitiveness of the 
United States in export markets, identifies both domestic and 
foreign barriers to increasing exports, and makes 
recommendations for legislative action.

Section 6. National strategic plan for advanced manufacturing.

    Section 6 would amend the existing reporting requirement in 
section 102 of the America COMPETES Reauthorization Act of 2010 
(42 U.S.C. 6622) by directing the Committee on Technology--
which is under the National Science and Technology Council in 
the Office of Science and Technology Policy--to develop every 
four years with the National Economic Council a strategic plan 
to improve government coordination and long-term guidance for 
Federal programs and activities in support of U.S. 
manufacturing competitiveness.

                   Additional Views of Senator Thune

    I write separately to note my views regarding S. 1468, the 
``Revitalize American Manufacturing and Innovation Act of 
2014,'' which are shared by several of my colleagues. I 
appreciate the willingness of Chairman Rockefeller and the 
bill's lead sponsors, Senators Brown and Blunt, to engage in 
meaningful negotiations regarding the legislation. The 
substitute amendment offered by Senator Blunt and adopted at 
the Committee's Executive Session reflected bipartisan 
negotiations and made several important improvements to the 
bill. Among other things, the substitute lowered the 
authorization level in the bill by half as compared to the 
introduced bill; added a 10-year sunset to the bill's funding 
authority; repealed and consolidated two potentially 
duplicative programs at the Department of Commerce; and 
included additional changes to enhance transparency, improve 
oversight, and ensure the contemplated manufacturing centers 
can stand on their own in a reasonable time period, without 
ongoing federal financial assistance.
    This kind of bipartisan give-and-take on legislation has 
been characteristic of the Committee's work, and permitted the 
bill to be adopted by voice vote during the Executive Session. 
Nevertheless, while I believe the bill has been significantly 
improved, I continue to have reservations about the 
legislation, and I am withholding my final support at this 
writing. That being said, I remain committed to working with 
the Chairman and other colleagues in an effort to improve it 
further before the full Senate votes on the bill as reported 
from this Committee.
    While I strongly support the goal of increasing advanced 
manufacturing in the United States, it is not clear that 
additional federal involvement--and taxpayer funding--is really 
the missing ingredient needed to spur innovation. Among other 
things, it seems probable that the most promising manufacturing 
technologies and processes--the ones most likely to compete 
effectively for financial assistance under the program 
envisioned by the bill--are the same ones that are most likely 
to attract private sector or more localized public sector 
investments without federal intervention.
    I believe as Congress seeks to spur economic growth--
including advanced manufacturing--that meaningful regulatory 
reform, tax reform, and enactment of trade promotion authority 
could benefit an even greater number of manufacturers than 
might benefit under the current bill. As Christina Romer, 
former chairwoman of President Obama's Council of Economic 
Advisers, has written: ``Without compelling evidence of special 
market failures in manufacturing, it might be better to enact 
policies that will make all American businesses and workers 
more productive and successful.''\19\
---------------------------------------------------------------------------
    \19\See Christina D. Romer, ``Do Manufacturers Need Special 
Treatment?'' The New York Times, February 4, 2012 (emphasis added), 
available at: http://www.nytimes.com/2012/02/05/business/do-
manufacturers-need-special-treatment-economic-view.html. As Ms. Romer 
noted, the President raised some of these policies in his 2012 State of 
the Union Address, including: ``expansion and enforcement of free trade 
agreements; public investment in basic science, infrastructure and 
education; and corporate tax reform.''
---------------------------------------------------------------------------
    Additionally, an open amendment process on the Senate floor 
may allow some of these policies that enjoy bipartisan support 
to be considered as part of a final legislative package. Along 
with an appropriate, mutually agreed upon offset for the new 
funding in the bill, such additions would likely increase 
support for Senate passage of the measure.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

           NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT

SEC. 2. ESTABLISHMENT, FUNCTIONS, AND ACTIVITIES.

[15 U.S.C. 272]

           *       *       *       *       *       *       *

  (d) Management Costs.--In carrying out the extramural funding 
programs of the Institute, including the programs established 
under [sections 25, 26, and 28] sections 25 and 26 of this Act, 
the Secretary may retain reasonable amounts of any funds 
appropriated pursuant to authorizations for these programs in 
order to pay for the Institute's management of these programs.

           *       *       *       *       *       *       *

SEC. 10. VISITING COMMITTEE ON ADVANCED TECHNOLOGY.

[15 U.S.C. 278]

           *       *       *       *       *       *       *

  (h) Annual and Other Reports to Secretary and Congress.--
          (1) The Committee shall render an annual report to 
        the Secretary for submission to the Congress not later 
        than 30 days after the submittal to Congress of the 
        President's annual budget request in each year. Such 
        report shall deal essentially, though not necessarily 
        exclusively, with policy issues or matters which affect 
        the Institute[, including the Program established under 
        section 28,] or with which the Committee in its 
        official role as the private sector policy advisor of 
        the Institute is concerned. Each such report shall 
        identify areas of research and research techniques of 
        the Institute of potential importance to the long-term 
        competitiveness of United States industry, in which the 
        Institute possesses special competence, which could be 
        used to assist United States enterprises and United 
        States industrial joint research and development 
        ventures. Such report also shall comment on the 
        programmatic planning document and updates thereto 
        submitted to Congress by the Director under subsections 
        (c) and (d) of section 23.
          (2) The Committee shall render to the Secretary and 
        the Congress such additional reports on specific policy 
        matters as it deems appropriate.

           *       *       *       *       *       *       *

[SEC. 28. TECHNOLOGY INNOVATION PROGRAM.

                            [15 U.S.C. 278n]

  [(a) Establishment.--There is established within the 
Institute a program linked to the purpose and functions of the 
Institute, to be known as the ``Technology Innovation Program'' 
for the purpose of assisting United States businesses and 
institutions of higher education or other organizations, such 
as national laboratories and nonprofit research institutions, 
to support, promote, and accelerate innovation in the United 
States through high-risk, high-reward research in areas of 
critical national need.
  [(b) External Funding.--
          [(1) In general.--The Director shall award 
        competitive, merit-reviewed grants, cooperative 
        agreements, or contracts to--
                  [(A) eligible companies that are small-sized 
                businesses or medium-sized businesses; or
                  [(B) joint ventures.
          [(2) Single company awards.--No award given to a 
        single company shall exceed $3,000,000 over 3 years.
          [(3) Joint venture awards.--No award given to a joint 
        venture shall exceed $9,000,000 over 5 years.
          [(4) Federal cost share.--The Federal share of a 
        project funded by an award under the program shall not 
        be more than 50 percent of total project costs.
          [(5) Prohibitions.--Federal funds awarded under this 
        program may be used only for direct costs and not for 
        indirect costs, profits, or management fees of a 
        contractor. Any business that is not a small-sized or 
        medium-sized business may not receive any funding under 
        this program.
  [(c) Award Criteria.--The Director shall only provide 
assistance under this section to an entity--
          [(1) whose proposal has scientific and technical 
        merit and may result in intellectual property vesting 
        in a United States entity that can commercialize the 
        technology in a timely manner;
          [(2) whose application establishes that the proposed 
        technology has strong potential to address critical 
        national needs through transforming the Nation's 
        capacity to deal with major societal challenges that 
        are not currently being addressed, and generate 
        substantial benefits to the Nation that extend 
        significantly beyond the direct return to the 
        applicant;
          [(3) whose application establishes that the research 
        has strong potential for advancing the state-of-the-art 
        and contributing significantly to the United States 
        science and technology knowledge base;
          [(4) whose proposal explains why Technology 
        Innovation Program support is necessary, including 
        evidence that the research will not be conducted within 
        a reasonable time period in the absence of financial 
        assistance under this section;
          [(5) whose application demonstrates that reasonable 
        efforts have been made to secure funding from 
        alternative funding sources and no other alternative 
        funding sources are reasonably available to support the 
        proposal; and
          [(6) whose application explains the novelty of the 
        technology and demonstrates that other entities have 
        not already developed, commercialized, marketed, 
        distributed, or sold similar technologies.
  [(d) Competitions.--The Director shall solicit proposals at 
least annually to address areas of critical national need for 
high-risk, high-reward projects.
  [(e) Intellectual Property Rights Ownership.--
          [(1) In general.--Title to any intellectual property 
        developed by a joint venture from assistance provided 
        under this section may vest in any participant in the 
        joint venture, as agreed by the members of the joint 
        venture, notwithstanding section 202(a) and (b) of 
        title 35, United States Code. The United States may 
        reserve a nonexclusive, nontransferable, irrevocable 
        paid-up license, to have practice for or on behalf of 
        the United States in connection with any such 
        intellectual property, but shall not in the exercise of 
        such license publicly disclose proprietary information 
        related to the license. Title to any such intellectual 
        property shall not be transferred or passed, except to 
        a participant in the joint venture, until the 
        expiration of the first patent obtained in connection 
        with such intellectual property.
          [(2) Licensing.--Nothing in this subsection shall be 
        construed to prohibit the licensing to any company of 
        intellectual property rights arising from assistance 
        provided under this section.
          [(3) Definition.--For purposes of this subsection, 
        the term ``intellectual property'' means an invention 
        patentable under title 35, United States Code, or any 
        patent on such an invention, or any work for which 
        copyright protection is available under title 17, 
        United States Code.
  [(f) Program Operation.--Not later than 9 months after the 
date of the enactment of this section, the Director shall 
promulgate regulations--
          [(1) establishing criteria for the selection of 
        recipients of assistance under this section;
          [(2) establishing procedures regarding financial 
        reporting and auditing to ensure that awards are used 
        for the purposes specified in this section, are in 
        accordance with sound accounting practices, and are not 
        funding existing or planned research programs that 
        would be conducted within a reasonable time period in 
        the absence of financial assistance under this section; 
        and
          [(3) providing for appropriate dissemination of 
        Technology Innovation Program research results.
  [(g) Annual Report.--The Director shall submit annually to 
the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Science and Technology of the House 
of Representatives a report describing the Technology 
Innovation Program's activities, including a description of the 
metrics upon which award funding decisions were made in the 
previous fiscal year, any proposed changes to those metrics, 
metrics for evaluating the success of ongoing and completed 
awards, and an evaluation of ongoing and completed awards. The 
first annual report shall include best practices for management 
of programs to stimulate high-risk, high-reward research.
  [(h) Continuation of ATP Grants.--The Director shall, through 
the Technology Innovation Program, continue to provide support 
originally awarded under the Advanced Technology Program, in 
accordance with the terms of the original award and consistent 
with the goals of the Technology Innovation Program.
  [(i) Coordination With Other State and Federal Technology 
Programs.--In carrying out this section, the Director shall, as 
appropriate, coordinate with other senior State and Federal 
officials to ensure cooperation and coordination in State and 
Federal technology programs and to avoid unnecessary 
duplication of efforts.
  [(j) Acceptance of Funds From Other Federal Agencies.--In 
addition to amounts appropriated to carry out this section, the 
Secretary and the Director may accept funds from other Federal 
agencies to support awards under the Technology Innovation 
Program. Any award under this section which is supported with 
funds from other Federal agencies shall be selected and carried 
out according to the provisions of this section. Funds accepted 
from other Federal agencies shall be included as part of the 
Federal cost share of any project funded under this section.
  [(k) TIP Advisory Board.--
          [(1) Establishment.--There is established within the 
        Institute a TIP Advisory Board.
          [(2) Membership.--
                  [(A) In general.--The TIP Advisory Board 
                shall consist of 10 members appointed by the 
                Director, at least 7 of whom shall be from 
                United States industry, chosen to reflect the 
                wide diversity of technical disciplines and 
                industrial sectors represented in Technology 
                Innovation Program projects. No member shall be 
                an employee of the Federal Government.
                  [(B) Term.--Except as provided in 
                subparagraph (C) or (D), the term of office of 
                each member of the TIP Advisory Board shall be 
                3 years.
                  [(C) Classes.--The original members of the 
                TIP Advisory Board shall be appointed to 3 
                classes. One class of 3 members shall have an 
                initial term of 1 year, one class of 3 members 
                shall have an initial term of 2 years, and one 
                class of 4 members shall have an initial term 
                of 3 years.
                  [(D) Vacancies.--Any member appointed to fill 
                a vacancy occurring prior to the expiration of 
                the term for which his predecessor was 
                appointed shall be appointed for the remainder 
                of such term.
                  [(E) Serving consecutive terms.--Any person 
                who has completed 2 consecutive full terms of 
                service on the TIP Advisory Board shall 
                thereafter be ineligible for appointment during 
                the 1-year period following the expiration of 
                the second such term.
          [(3) Purpose.--The TIP Advisory Board shall meet not 
        less than 2 times annually, and provide the Director--
                  [(A) advice on programs, plans, and policies 
                of the Technology Innovation Program;
                  [(B) reviews of the Technology Innovation 
                Program's efforts to accelerate the research 
                and development of challenging, high-risk, 
                high-reward technologies in areas of critical 
                national need;
                  [(C) reports on the general health of the 
                program and its effectiveness in achieving its 
                legislatively mandated mission; and
                  [(D) guidance on investment areas that are 
                appropriate for Technology Innovation Program 
                funding;
          [(4) Advisory capacity.--In discharging its duties 
        under this subsection, the TIP Advisory Board shall 
        function solely in an advisory capacity, in accordance 
        with the Federal Advisory Committee Act.
          [(5) Annual report.--The TIP Advisory Board shall 
        transmit an annual report to the Secretary for 
        transmittal to the Congress not later than 30 days 
        after the submission to Congress of the President's 
        annual budget request in each year. Such report shall 
        address the status of the Technology Innovation Program 
        and comment on the relevant sections of the 
        programmatic planning document and updates thereto 
        transmitted to Congress by the Director under 
        subsections (c) and (d) of section 23.
  [(l) Definitions.--In this section--
          [(1) the term ``eligible company'' means a small-
        sized or medium-sized business that is incorporated in 
        the United States and does a majority of its business 
        in the United States, and that either--
                  [(A) is majority owned by citizens of the 
                United States; or
                  [(B) is owned by a parent company 
                incorporated in another country and the 
                Director finds that--
                          [(i) the company's participation in 
                        the Technology Innovation Program would 
                        be in the economic interest of the 
                        United States, as evidenced by--
                                  [(I) investments in the 
                                United States in research and 
                                manufacturing;
                                  [(II) significant 
                                contributions to employment in 
                                the United States; and
                                  [(III) agreement with respect 
                                to any technology arising from 
                                assistance provided under this 
                                section to promote the 
                                manufacture within the United 
                                States of products resulting 
                                from that technology; and
                          [(ii) the company is incorporated in 
                        a country which--
                                  [(I) affords to United 
                                States-owned companies 
                                opportunities, comparable to 
                                those afforded to any other 
                                company, to participate in any 
                                joint venture similar to those 
                                receiving funding under this 
                                section;
                                  [(II) affords to United 
                                States-owned companies local 
                                investment opportunities 
                                comparable to those afforded 
                                any other company; and
                                  [(III) affords adequate and 
                                effective protection for 
                                intellectual property rights of 
                                United States-owned companies;
          [(2) the term ``high-risk, high-reward research'' 
        means research that--
                  [(A) has the potential for yielding 
                transformational results with far-ranging or 
                wide-ranging implications;
                  [(B) addresses critical national needs within 
                the National Institute of Standards and 
                Technology's areas of technical competence; and
                  [(C) is too novel or spans too diverse a 
                range of disciplines to fare well in the 
                traditional peer-review process;
          [(3) the term ``institution of higher education'' has 
        the meaning given that term in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001);
          [(4) the term ``joint venture'' means a joint venture 
        that--
                  [(A) includes either--
                          [(i) at least 2 separately owned for-
                        profit companies that are both 
                        substantially involved in the project 
                        and both of which are contributing to 
                        the cost-sharing required under this 
                        section, with the lead entity of the 
                        joint venture being one of those 
                        companies that is a small-sized or 
                        medium-sized business; or
                          [(ii) at least 1 small-sized or 
                        medium-sized business and 1 institution 
                        of higher education or other 
                        organization, such as a national 
                        laboratory or nonprofit research 
                        institute, that are both substantially 
                        involved in the project and both of 
                        which are contributing to the cost-
                        sharing required under this section, 
                        with the lead entity of the joint 
                        venture being either that small-sized 
                        or medium-sized business or that 
                        institution of higher education; and
                  [(B) may include additional for-profit 
                companies, institutions of higher education, 
                and other organizations, such as national 
                laboratories and nonprofit research institutes, 
                that may or may not contribute non-Federal 
                funds to the project; and
          [(5) the term ``TIP Advisory Board'' means the 
        advisory board established under subsection (k).]\1\
---------------------------------------------------------------------------
    \1\Notwithstanding the repeal of section 28 of the National 
Institute of Standards and Technology Act (15 U.S.C. 278n), the 
Director shall carry out that section as that section was in effect on 
the day before the date of enactment of the Revitalize American 
Manufacturing and Innovation Act of 2014, with respect to applications 
for grants, cooperative agreements, or contracts under that section 
submitted before that date.

           *       *       *       *       *       *       *

---------------------------------------------------------------------------

SEC. 34. NETWORK FOR MANUFACTURING INNOVATION.

  (a) Establishment of Network for Manufacturing Innovation 
Program.--
          (1) In general.--The Secretary of Commerce shall 
        establish within the Institute a program to be known as 
        the ``Network for Manufacturing Innovation Program'' 
        (referred to in this section as the ``Program'').
          (2) Purposes of program.--The purposes of the Program 
        are--
                  (A) to improve measurably the competitiveness 
                of United States manufacturing and to increase 
                domestic production;
                  (B) to stimulate United States leadership in 
                advanced manufacturing research, innovation, 
                and technology that has a strong potential to 
                generate substantial benefits to the Nation 
                that extend significantly beyond the direct 
                return to participants in the Program;
                  (C) to facilitate the transition of 
                innovative and transformative technologies into 
                scalable, cost-effective, and high-performing 
                manufacturing capabilities;
                  (D) to facilitate access by manufacturing 
                enterprises to capital-intensive 
                infrastructure, including high-performance 
                computing, in order to improve the speed with 
                which such enterprises commercialize new 
                processes and technologies;
                  (E) to accelerate measurably the development 
                of an advanced manufacturing workforce;
                  (F) to facilitate peer exchange of and the 
                documentation of best practices in addressing 
                advanced manufacturing challenges; and
                  (G) to leverage non-Federal sources of 
                support to promote a stable and sustainable 
                business model without the need for long-term 
                Federal funding.
          (3) Support.--The Secretary, acting through the 
        Director, shall carry out the purposes set forth in 
        paragraph (2) by supporting--
                  (A) the Network for Manufacturing Innovation 
                established under subsection (b); and
                  (B) the establishment of centers for 
                manufacturing innovation.
          (4) Director.--The Secretary shall carry out the 
        Program through the Director.
  (b) Establishment of Network for Manufacturing Innovation.--
          (1) In general.--As part of the Program, the 
        Secretary of Commerce shall establish a network of 
        centers for manufacturing innovation.
          (2) Designation.--The network established under 
        paragraph (1) shall be known as the ``Network for 
        Manufacturing Innovation'' (referred to in this section 
        as the ``Network'').
  (c) Centers for Manufacturing Innovation.--
          (1) In general.--For purposes of this section, a 
        ``center for manufacturing innovation'' is a center 
        that--
                  (A) has been established by a person or group 
                of persons to address challenges in advanced 
                manufacturing and to assist manufacturers in 
                retaining or expanding industrial production 
                and jobs in the United States;
                  (B) has a predominant focus on a 
                manufacturing process, novel material, enabling 
                technology, supply chain integration 
                methodology, or another relevant aspect of 
                advanced manufacturing, as determined by the 
                Secretary, with the potential--
                          (i) to improve the competitiveness of 
                        United States manufacturing;
                          (ii) to accelerate non-Federal 
                        investment in advanced manufacturing 
                        production capacity in the United 
                        States;
                          (iii) to increase measurably the non-
                        Federal investment in advanced 
                        manufacturing research; and
                          (iv) to enable the commercial 
                        application of new technologies or 
                        industry-wide manufacturing processes; 
                        and
                  (C) includes active participation among 
                representatives from multiple industrial 
                entities, research universities, community 
                colleges, and such other entities as the 
                Secretary considers appropriate, which may 
                include industry-led consortia, career and 
                technical education schools, Federal 
                laboratories, State, local, and tribal 
                governments, businesses, educational 
                institutions, and nonprofit organizations.
          (2) Activities.--Activities of a center for 
        manufacturing innovation may include the following:
                  (A) Research, development, and demonstration 
                projects, including proof-of-concept 
                development and prototyping, to reduce the 
                cost, time, and risk of commercializing new 
                technologies and improvements in existing 
                technologies, processes, products, and research 
                and development of materials to solve pre-
                competitive industrial problems with economic 
                or national security implications.
                  (B) Development and implementation of 
                education and training courses, materials, and 
                programs.
                  (C) Development of workforce recruitment 
                programs and initiatives.
                  (D) Development of innovative methodologies 
                and practices for supply chain integration and 
                introduction of new technologies into supply 
                chains.
                  (E) Development or updating of industry-led, 
                shared-vision technology roadmaps for the 
                development of technologies underpinning next-
                generation or transformational innovations.
                  (F) Outreach and engagement with small- and 
                medium-sized manufacturing enterprises, in 
                addition to large manufacturing enterprises.
                  (G) Such other activities as the Secretary, 
                in consultation with Federal departments and 
                agencies whose missions contribute to or are 
                affected by advanced manufacturing, considers 
                consistent with the purposes described in 
                subsection (a)(2).
          (3) Additional centers for manufacturing 
        innovation.--
                  (A) In general.--The National Additive 
                Manufacturing Innovation Institute and 
                manufacturing centers formally recognized or 
                under pending interagency review on the date of 
                enactment of the Revitalize American 
                Manufacturing and Innovation Act of 2014 shall 
                be considered centers for manufacturing 
                innovation, but such centers shall not receive 
                any preference for financial assistance under 
                subsection (d) solely on the basis of being 
                considered centers for manufacturing innovation 
                under this paragraph.
                  (B) Network participation.--A manufacturing 
                center that is substantially similar to those 
                established under this subsection but that does 
                not receive financial assistance under 
                subsection (d) may, upon request of the center, 
                be recognized as a center by the Secretary for 
                purposes of participation in the Network.
  (d) Financial Assistance To Establish and Support Centers for 
Manufacturing Innovation.--
          (1) In general.--In carrying out the Program, the 
        Secretary of Commerce shall award financial assistance 
        to a person to assist the person in planning, 
        establishing, or supporting a center for manufacturing 
        innovation.
          (2) Application.--A person seeking financial 
        assistance under paragraph (1) shall submit to the 
        Secretary an application therefor at such time, in such 
        manner, and containing such information as the 
        Secretary may require. The application shall, at a 
        minimum, describe the specific sources and amounts of 
        non-Federal financial support for the center on the 
        date financial assistance is sought, as well as the 
        anticipated sources and amounts of non-Federal 
        financial support during the period for which the 
        center could be eligible for continued Federal 
        financial assistance under this section.
          (3) Open process.--In soliciting applications for 
        financial assistance under paragraph (1), the Secretary 
        shall ensure an open process that will allow for the 
        consideration of all applications relevant to advanced 
        manufacturing regardless of technology area.
          (4) Selection.--
                  (A) Competitive, merit review.--In awarding 
                financial assistance under paragraph (1), the 
                Secretary shall use a competitive, merit review 
                process that includes peer review by a diverse 
                group of individuals with relevant expertise.
                  (B) Performance measurement, transparency, 
                and accountability.--For each award of 
                financial assistance under paragraph (1), the 
                Secretary shall--
                          (i) make publicly available at the 
                        time of the award a description of the 
                        bases for the award, including an 
                        explanation of the relative merits of 
                        the winning applicant as compared to 
                        other applications received, if 
                        applicable; and
                          (ii) develop and implement metrics-
                        based performance measures to assess 
                        the effectiveness of the activities 
                        funded.
                  (C) Collaboration.--In awarding financial 
                assistance under paragraph (1), the Secretary 
                shall, acting through the National Program 
                Office established under subsection (e)(1), 
                collaborate with Federal departments and 
                agencies whose missions contribute to or are 
                affected by advanced manufacturing.
                  (D) Considerations.--In selecting a person 
                who submitted an application under paragraph 
                (2) for an award of financial assistance under 
                paragraph (1) the Secretary shall consider, at 
                a minimum, the following:
                          (i) The potential of the center for 
                        manufacturing innovation to advance 
                        domestic manufacturing and the 
                        likelihood of economic impact in the 
                        predominant focus areas of the center 
                        for manufacturing innovation.
                          (ii) The commitment of continued 
                        financial support, advice, 
                        participation, and other contributions 
                        from non-Federal sources, to provide 
                        leverage and resources to promote a 
                        stable and sustainable business model 
                        without the need for long-term Federal 
                        funding.
                          (iii) Whether the financial support 
                        provided to the center from non-Federal 
                        sources significantly outweighs the 
                        requested Federal financial assistance.
                          (iv) How the center for manufacturing 
                        innovation will increase the non-
                        Federal investment in advanced 
                        manufacturing research in the United 
                        States.
                          (v) How the center for manufacturing 
                        innovation will engage with small- and 
                        medium-sized manufacturing enterprises, 
                        to improve the capacity of such 
                        enterprises to commercialize new 
                        processes and technologies.
                          (vi) How the center for manufacturing 
                        innovation will carry out educational 
                        and workforce activities that meet 
                        industrial needs related to the 
                        predominant focus areas of the center 
                        for manufacturing innovation.
                          (vii) How the center for 
                        manufacturing innovation will advance 
                        economic competitiveness both globally 
                        and domestically and generate 
                        substantial benefits to the Nation that 
                        extend beyond the direct return to 
                        participants in the Program.
                          (viii) Whether the predominant focus 
                        of the center for manufacturing 
                        innovation is a manufacturing process, 
                        novel material, enabling technology, 
                        supply chain integration methodology, 
                        or other relevant aspect of advanced 
                        manufacturing that has not already been 
                        commercialized, marketed, distributed, 
                        or sold by another entity.
                          (ix) How the center for manufacturing 
                        innovation will strengthen and leverage 
                        the assets of a region.
          (5) Limitations on awards.--
                  (A) In general.--No award of financial 
                assistance may be made under paragraph (1) to a 
                center of manufacturing innovation after the 7-
                year period beginning on the date on which the 
                Secretary first awards financial assistance to 
                a center under that paragraph.
                  (B) Matching funds and weighted 
                preferences.--The total Federal financial 
                assistance awarded to a center of manufacturing 
                innovation, including the financial assistance 
                under paragraph (1), in a given year shall not 
                exceed 50 percent of the total funding of the 
                center in that year. The Secretary may give a 
                weighted preference to applicants seeking less 
                than the maximum amount of funding allowed 
                under this paragraph.
                  (C) Funding decrease.--The amount of 
                financial assistance provided to a center of 
                manufacturing innovation under paragraph (1) 
                shall decrease after the second year of funding 
                for a center, and shall continue to decrease 
                thereafter in each year in which financial 
                assistance is provided, unless the Secretary 
                determines that--
                          (i) the center is otherwise meeting 
                        its stated goals and metrics under this 
                        Act;
                          (ii) unforeseen circumstances have 
                        altered the center's anticipated 
                        funding; and
                          (iii) the center can identify future 
                        non-Federal funding sources that would 
                        warrant a temporary exemption from the 
                        limitations established in this 
                        subparagraph.
                  (D) Award limit.--No more than 15 centers of 
                manufacturing innovation may receive financial 
                assistance under paragraph (1) in any single 
                year.
  (e) National Program Office.--
          (1) Establishment.--The Secretary of Commerce shall 
        establish, within the Institute, the National Office of 
        the Network for Manufacturing Innovation Program 
        (referred to in this section as the ``National Program 
        Office''), which shall oversee and carry out the 
        Program.
          (2) Functions.--The functions of the National Program 
        Office are--
                  (A) to oversee the planning, management, and 
                coordination of the Program;
                  (B) to enter into memorandums of 
                understanding with Federal departments and 
                agencies, whose missions contribute to or are 
                affected by advanced manufacturing, to carry 
                out the purposes described in subsection 
                (a)(2);
                  (C) to develop, not later than 1 year after 
                the date of the enactment of the Revitalize 
                American Manufacturing and Innovation Act of 
                2014, and update not less frequently than once 
                every 2 years thereafter, a strategic plan to 
                guide the Program;
                  (D) to establish such procedures, processes, 
                and criteria as may be necessary and 
                appropriate to maximize cooperation and 
                coordinate the activities of the Program with 
                programs and activities of other Federal 
                departments and agencies whose missions 
                contribute to or are affected by advanced 
                manufacturing;
                  (E) to establish a clearinghouse of public 
                information related to the activities of the 
                Program; and
                  (F) to act as a convener of the Network.
          (3) Recommendations.--In developing and updating the 
        strategic plan under paragraph (2)(C), the Secretary 
        shall solicit recommendations and advice from a wide 
        range of stakeholders, including industry, small- and 
        medium-sized manufacturing enterprises, research 
        universities, community colleges, and other relevant 
        organizations and institutions on an ongoing basis.
          (4) Report to congress.--Upon completion, the 
        Secretary shall transmit the strategic plan required 
        under paragraph (2)(C) to the Committee on Commerce, 
        Science, and Transportation of the Senate and the 
        Committee on Science, Space, and Technology of the 
        House of Representatives.
          (5) Hollings manufacturing extension partnership.--
        The Secretary shall ensure that the National Program 
        Office incorporates the Hollings Manufacturing 
        Extension Partnership into Program planning to ensure 
        that the results of the Program reach small- and 
        medium-sized entities.
          (6) Detailees.--Any Federal Government employee may 
        be detailed to the National Program Office without 
        reimbursement. Such detail shall be without 
        interruption or loss of civil service status or 
        privilege.
  (f) Reporting and Auditing.--
          (1) Annual reports to the secretary.--
                  (A) In general.--The Secretary of Commerce 
                shall require each recipient of financial 
                assistance under subsection (d)(1) to annually 
                submit a report to the Secretary that describes 
                the finances and performance of the center for 
                manufacturing innovation for which such 
                assistance was awarded.
                  (B) Elements.--Each report submitted under 
                subparagraph (A) shall include--
                          (i) an accounting of expenditures of 
                        amounts awarded to the recipient under 
                        subsection (d)(1); and
                          (ii) consistent with the metrics-
                        based performance measures developed 
                        and implemented by the Secretary under 
                        this section, a description of the 
                        performance of the center for 
                        manufacturing innovation with respect 
                        to--
                                  (I) its goals, plans, 
                                financial support, and 
                                accomplishments; and
                                  (II) how the center for 
                                manufacturing innovation has 
                                furthered or failed to meet the 
                                purposes described in 
                                subsection (a)(2).
          (2) Annual reports to congress.--
                  (A) In general.--Not less frequently than 
                once each year, the Secretary shall submit a 
                report to Congress that describes the 
                performance of the Program during the most 
                recent 1-year period.
                  (B) Elements.--Each report submitted under 
                subparagraph (A) shall include, for the period 
                covered by the report--
                          (i) a summary and assessment of the 
                        reports received by the Secretary under 
                        paragraph (1);
                          (ii) an accounting of the funds 
                        expended by the Secretary under the 
                        Program, including any temporary 
                        exemptions granted from the 
                        requirements of subsection (d)(5)(C);
                          (iii) an assessment of the 
                        participation in, and contributions to, 
                        the Network by any centers for 
                        manufacturing innovation not receiving 
                        financial assistance under subsection 
                        (d)(1); and
                          (iv) an assessment of the Program 
                        with respect to meeting the purposes 
                        described in subsection (a)(2).
          (3) Biennial assessment by gao.--
                  (A) In general.--Not less frequently than 
                once every 2 years, the Comptroller General of 
                the United States shall submit to Congress an 
                assessment of the operation of the Program 
                during the most recent 2-year period, including 
                a final report regarding the overall success of 
                the Program.
                  (B) Elements.--Each assessment submitted 
                under subparagraph (A) shall include, for the 
                period covered by the report--
                          (i) a review of the management, 
                        coordination, and industry utility of 
                        the Program;
                          (ii) an assessment of the extent to 
                        which the Program has furthered the 
                        purposes described in subsection 
                        (a)(2);
                          (iii) such recommendations for 
                        legislative and administrative action 
                        as the Comptroller General considers 
                        appropriate to improve the Program; and
                          (iv) an assessment as to whether any 
                        prior recommendations for improvement 
                        made by the Comptroller General have 
                        been implemented or adopted.
  (g) Additional Authorities.--
          (1) Appointment of personnel and contracts.--The 
        Secretary of Commerce may appoint such personnel and 
        enter into such contracts, financial assistance 
        agreements, and other agreements as the Secretary 
        considers necessary or appropriate to carry out the 
        Program, including support for research and development 
        activities involving a center for manufacturing 
        innovation.
          (2) Transfer of funds.--The Secretary may transfer to 
        other Federal agencies such sums as the Secretary 
        considers necessary or appropriate to carry out the 
        Program. No funds so transferred may be used to 
        reimburse or otherwise pay for the costs of financial 
        assistance incurred or commitments of financial 
        assistance made prior to the date of enactment of the 
        Revitalize American Manufacturing and Innovation Act of 
        2014.
          (3) Authority of other agencies.--In the event that 
        the Secretary exercises the authority to transfer funds 
        to another agency under paragraph (2), such agency may 
        award and administer, under the same conditions and 
        constraints applicable to the Secretary, all aspects of 
        financial assistance awards under this section.
          (4) Use of resources.--In furtherance of the purposes 
        of the Program, the Secretary may use, with the consent 
        of a covered entity and with or without reimbursement, 
        the land, services, equipment, personnel, and 
        facilities of such covered entity.
          (5) Acceptance of resources.--In addition to amounts 
        appropriated to carry out the Program, the Secretary 
        may accept funds, services, equipment, personnel, and 
        facilities from any covered entity to carry out the 
        Program, subject to the same conditions and constraints 
        otherwise applicable to the Secretary under this 
        section.
          (6) Covered entity.--For purposes of this subsection, 
        a covered entity is any Federal department, Federal 
        agency, instrumentality of the United States, State, 
        local government, tribal government, Territory or 
        possession of the United States, or of any political 
        subdivision thereof, or international organization, or 
        any public or private entity or individual.
  (h) Patents.--Chapter 18 of title 35, United States Code, 
shall apply to any funding agreement (as defined in section 201 
of that title) awarded to new or existing centers for 
manufacturing innovation.
  (i) Funding.--
          (1) Network for manufacturing innovation fund.--
                  (A) Establishment.--There is established in 
                the Treasury of the United States a fund to be 
                known as the ``Network for Manufacturing 
                Innovation Fund'' (referred to in this 
                subsection as the ``Fund'').
                  (B) Elements.--There shall be deposited in 
                the Fund, which shall constitute the assets of 
                the Fund, amounts appropriated or otherwise 
                made available to carry out the Program.
                  (C) Availability.--Amounts deposited in the 
                Fund shall be available to the Secretary of 
                Commerce, at the discretion of the Secretary, 
                or the Secretary's designee, to carry out the 
                Program without further appropriation and 
                without fiscal year limitation.
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated $300,000,000 to the 
        Secretary of Commerce to be deposited in the Fund 
        established under paragraph (1) to carry out this 
        section.
          (3) Administrative expenses.--The Secretary of 
        Commerce may use not more than 5 percent of the amounts 
        appropriated pursuant to paragraph (2) to pay the 
        salaries and expenses of those Federal employees in the 
        National Program Office.
          (4) Additional funding sources.--Notwithstanding any 
        other provision of law, in addition to any funds 
        appropriated under paragraph (2), the Secretary of 
        Commerce may use not more than 10 percent of the funds 
        of any economic development, manufacturing, or small 
        business assistance program, except for the Hollings 
        Manufacturing Extension Program, to carry out the 
        Program established in this section.
          (5) Rescission.--There is hereby rescinded, from 
        appropriated discretionary funds that remain available 
        for obligation as of the date of the enactment of the 
        Revitalize American Manufacturing and Innovation Act of 
        2014, $300,000,000.
  (j) Consolidation of Advanced Manufacturing Technology 
Consortia (AMTech) Program.--The Secretary is directed to merge 
the Advanced Manufacturing Technology Consortia (AMTech) 
Program, which has not been previously authorized but has been 
funded in both fiscal year 2013 and 2014, into the Program 
established in this section.
  (k) Sunset.--The authority to provide financial assistance to 
establish or support a center for manufacturing innovation 
under subsection (i) terminates effective December 31, 2024, 
but the Program and the Network established under this section 
may continue to operate, subject to the availability of 
appropriations, if the Secretary determines that the purposes 
in subsection (a)(2) are being met.

SEC. [34]35.

                          [15 U.S.C. 271 note]

This Act may be cited as the National Institute of Standards 
and Technology Act.

              AMERICA COMPETES REAUTHORIZATION ACT OF 2010

SEC. 102. COORDINATION OF ADVANCED MANUFACTURING RESEARCH AND 
                    DEVELOPMENT.

                            [42 U.S.C. 6622]

  (a) Interagency Committee.--The Director shall establish or 
designate a Committee on Technology under the National Science 
and Technology Council. The Committee shall be responsible for 
planning and coordinating Federal programs and activities in 
advanced manufacturing research and development. In furtherance 
of the Committee's work, the Committee shall consult with the 
National Economic Council.
  (b) Responsibilities of Committee.--The Committee shall--
          (1) coordinate the advanced manufacturing research 
        and development programs and activities of the Federal 
        agencies;
          (2) establish goals and priorities for advanced 
        manufacturing research and development that will 
        strengthen United States manufacturing;
          (3) work with industry organizations, Federal 
        agencies, and Federally Funded Research and Development 
        Centers not represented on the Committee, to identify 
        and reduce regulatory, logistical, and fiscal barriers 
        within the Federal government and State governments 
        that inhibit United States manufacturing;
          (4) facilitate the transfer of intellectual property 
        and technology based on federally supported university 
        research into commercialization and manufacturing;
          (5) identify technological, market, or business 
        challenges that may best be addressed by public-private 
        partnerships, and are likely to attract both 
        participation and primary funding from industry;
          (6) encourage the formation of public-private 
        partnerships to respond to those challenges for 
        transition to United States manufacturing; and
          [(7) develop, and update every 5 years, a strategic 
        plan to guide Federal programs and activities in 
        support of advanced manufacturing research and 
        development, which shall--
                  [(A) specify and prioritize near-term and 
                long-term research and development objectives, 
                the anticipated time frame for achieving the 
                objectives, and the metrics for use in 
                assessing progress toward the objectives;
                  [(B) specify the role of each Federal agency 
                in carrying out or sponsoring research and 
                development to meet the objectives of the 
                strategic plan;
                  [(C) describe how the Federal agencies and 
                Federally Funded Research and Development 
                Centers supporting advanced manufacturing 
                research and development will foster the 
                transfer of research and development results 
                into new manufacturing technologies and United 
                States based manufacturing of new products and 
                processes for the benefit of society to ensure 
                national, energy, and economic security;
                  [(D) describe how Federal agencies and 
                Federally Funded Research and Development 
                Centers supporting advanced manufacturing 
                research and development will strengthen all 
                levels of manufacturing education and training 
                programs to ensure an adequate, well-trained 
                workforce;
                  [(E) describe how the Federal agencies and 
                Federally Funded Research and Development 
                Centers supporting advanced manufacturing 
                research and development will assist small- and 
                medium-sized manufacturers in developing and 
                implementing new products and processes; and
                  [(F) take into consideration the 
                recommendations of a wide range of 
                stakeholders, including representatives from 
                diverse manufacturing companies, academia, and 
                other relevant organizations and institutions.]
          (7) develop and update a national strategic plan for 
        advanced manufacturing in accordance with subsection 
        (c).
  [(c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Director shall transmit the 
strategic plan developed under subsection (b)(7) to the Senate 
Committee on Commerce, Science, and Transportation, and the 
House of Representatives Committee on Science and Technology, 
and shall transmit subsequent updates to those committees as 
appropriate.]
  (c) National Strategic Plan for Advanced Manufacturing.--
          (1) In general.--The President shall submit to 
        Congress, and publish on an Internet website that is 
        accessible to the public, the strategic plan developed 
        under paragraph (2).
          (2) Development.--The Committee shall develop and 
        update as required under paragraph (4), in coordination 
        with the National Economic Council, a strategic plan to 
        improve Government coordination and provide long-term 
        guidance for Federal programs and activities in support 
        of United States manufacturing competitiveness, 
        including advanced manufacturing research and 
        development.
          (3) Contents.--The strategic plan described in 
        paragraph (2) shall--
                  (A) specify and prioritize near-term and 
                long-term objectives, including research and 
                development objectives, the anticipated time 
                frame for achieving the objectives, and the 
                metrics for use in assessing progress toward 
                the objectives;
                  (B) describe the progress made in achieving 
                the objectives from prior strategic plans, 
                including a discussion of why specific 
                objectives were not met;
                  (C) specify the role, including the programs 
                and activities, of each relevant Federal agency 
                in meeting the objectives of the strategic 
                plan;
                  (D) describe how the Federal agencies and 
                Federally funded research and development 
                centers supporting advanced manufacturing 
                research and development will foster the 
                transfer of research and development results 
                into new manufacturing technologies and United 
                States based manufacturing of new products and 
                processes for the benefit of society to ensure 
                national, energy, and economic security;
                  (E) describe how such Federal agencies and 
                centers will strengthen all levels of 
                manufacturing education and training programs 
                to ensure an adequate, well-trained workforce;
                  (F) describe how such Federal agencies and 
                centers will assist small- and medium-sized 
                manufacturers in developing and implementing 
                new products and processes;
                  (G) analyze factors that impact innovation 
                and competitiveness for United States advanced 
                manufacturing, including--
                          (i) technology transfer and 
                        commercialization activities;
                          (ii) the adequacy of the national 
                        security industrial base;
                          (iii) the capabilities of the 
                        domestic manufacturing workforce;
                          (iv) export opportunities and trade 
                        policies;
                          (v) financing, investment, and 
                        taxation policies and practices;
                          (vi) emerging technologies and 
                        markets; and
                          (vii) advanced manufacturing research 
                        and development undertaken by competing 
                        nations; and
                  (H) elicit and consider the recommendations 
                of a wide range of stakeholders, including 
                representatives from diverse manufacturing 
                companies, academia, and other relevant 
                organizations and institutions.
          (4) Updates.--Not later than May 1, 2018, and not 
        less frequently than once every 4 years thereafter, the 
        President shall submit to Congress, and publish on an 
        Internet website that is accessible to the public, an 
        update of the strategic plan submitted under paragraph 
        (1). Such updates shall be developed in accordance with 
        the procedures set forth under this subsection.
          (5) Requirement to consider strategy in the budget.--
        In preparing the budget for a fiscal year under section 
        1105(a) of title 31, United States Code, the President 
        shall include information regarding the consistency of 
        the budget with the goals and recommendations included 
        in the strategic plan developed under this subsection 
        applying to that fiscal year.
          (6) AMP steering committee input.--The Advanced 
        Manufacturing Partnership Steering Committee of the 
        President's Council of Advisors on Science and 
        Technology shall provide input, perspective, and 
        recommendations to assist in the development and 
        updates of the strategic plan under this subsection.

                                  
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