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[Senate Report 108-147]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 280

108th Congress                                                   Report
 1st Session                     SENATE                         108-147
_______________________________________________________________________

        21st CENTURY NANOTECHNOLOGY RESEARCH AND DEVELOPMENT ACT

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 189

                                     

               September 15, 2003.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred eighth congress
                             first session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
      Kevin D. Kayes, Democratic Staff Director and Chief Counsel
                Gregg Elias, Democratic General Counsel

                                  (ii)

                                                       Calendar No. 280

108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-147

======================================================================
 
        21ST CENTURY NANOTECHNOLOGY RESEARCH AND DEVELOPMENT ACT

                                _______
                                

               September 15, 2003.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 189]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 189) to authorize 
appropriations for nanoscience, nanoengineering, and 
nanotechnology research, 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 this legislation is to authorize 
appropriations for Federal nanotechnology programs for fiscal 
year (FY) 2004 through FY 2008, and to establish a National 
Nanotechnology Program (the Program) to provide guidance, 
investment, and coordination to Federal nanotechnology 
research.

                          Background and Needs

  Nanotechnology is a newly emerging field of science where 
scientists and engineers are beginning to manipulate matter at 
the molecular and atomic level in order to develop materials 
and systems with revolutionary properties. A nanometer is one-
billionth of a meter, or roughly 100,000 times smaller than a 
strand of human hair.
  Nanotechnology is an inter-disciplinary field, combining all 
aspects of the traditional sciences. Nanotechnology requires 
expertise in engineering, chemistry, physics, materials 
science, biology, and computer science. Nanotechnology had been 
touted as the next Industrial Revolution, ushering in advanced 
materials and systems. Advances in nanotechnology are expected 
to lead to groundbreaking benefits throughout industries. While 
much of the work done in nanotechnology involves basic 
research, some commercial products are already available to 
customers. For example, new plastic imbued with nanoparticles 
of clay is as hard as glass, less likely to shatter, and better 
at sealing in carbonation to keep drinks fresh. The textile 
industry has developed fabric that uses nano-hooks to attach 
small fibers to cotton, allowing it to effectively repel 
stains. Self-cleaning windows are coated with nanoparticles to 
prevent dirt from sticking to glass. Research is being done in 
nano-containers to improve drug delivery.
  There are also numerous national and homeland security 
applications for nanotechnology. The military is developing 
uniforms that can monitor soldiers' vital statistics and relay 
this information to command and control stations. In the war in 
Iraq, nano-coatings were applied on lines that feed boilers on 
steam-powered ships and the propulsion shafts of minesweepers.

National Nanotechnology Initiative

  The National Nanotechnology Initiative (NNI) was created in 
2000 with the goal of coordinating the Federal government's 
research and development efforts in nanotechnology. Federal 
support is crucial because given nanotechnology's infancy, few 
companies are willing to fully invest their resources since the 
pay-offs are so far into the future. Venture capitalists also 
shy away from nanotechnology for the same reasons. Universities 
tend not to have sufficient funds to engage in exploratory 
work. Only the Federal government can bridge the gap for the 
next decade before this research can be widely applied to 
commercial products. The Federal government has a history of 
sponsoring research that opens new frontiers that have led to a 
multitude of national security and commercial applications 
(atomic physics, space exploration and the development of the 
Internet). Many believe that nanotechnology is the next such 
frontier.
  Funding for the NNI, through participating agencies, has 
increased from a total of $255 million in FY 1999 to $774 
million in FY 2003. The Administration has requested $849 
million for the NNI for FY 2004, an increase of 9.8 percent 
over the FY 2003 appropriated level. If Congress approves this 
requested increase, the funding for the NNI will have doubled 
since FY 2001.
  The Administration recently appointed Dr. Clayton Teague as 
the first full-time director of the National Nanotechnology 
Coordination Office (NNCO). The NNCO provides day-to-day 
technical and administrative support to the NNI. The NNCO also 
supports the preparation of multi-agency planning, budget, and 
assessment documents. The NNCO serves as the point of contact 
on Federal nanotechnology activities for government 
organizations, academia, industry, professional societies, 
foreign organizations, and others to exchange technical and 
programmatic information.

``Small Wonder, Endless Frontiers''

  In June 2002, the National Academy of Science (NAS) completed 
its review of the NNI. In its report entitled, Small Wonders, 
Endless Frontiers, the NAS found that the leadership and 
investment strategy established by the Nanoscale Science, 
Engineering, and Technology (NSET) subcommittee of the National 
Science and Technology Council (NSTC) has set a positive tone 
for the NNI. The NNI's initial success also can be measured by 
the number offoreign governments that have established similar 
research programs. Nevertheless, the NAS review committee made a number 
of recommendations concerning the program, including:
           The Office of Science and Technology Policy 
        (OSTP) should establish an independent standing 
        nanoscience and nanotechnology advisory board to 
        provide advice to NSET members on research investment 
        policy, strategy, program goals, and management 
        processes.
           NSET should develop a crisp, compelling, 
        overarching, strategic plan.
           NNI should support long-term funding in 
        nanoscale science and technology so it can achieve its 
        potential and promise.
           NSET should increase multi-agency 
        investments in research at the intersection between 
        nanoscale technology and biology.
           NSET should create programs for the 
        invention and development of new instruments for 
        nanoscience.
           A special fund for Presidential grants, 
        under OSTP management, should be created to support 
        interagency research programs relevant to nanoscale 
        science and technology.
           NSET should provide strong support for the 
        development of an interdisciplinary culture for 
        nanoscale science and technology within NNI.
           Industrial partnerships should be stimulated 
        and nurtured, both domestically and internationally, to 
        help accelerate the commercialization of NNI 
        developments. NSET should create support mechanisms for 
        coordinating and leveraging State initiatives to 
        organize regional competitive clusters for the 
        development of nanoscale science and technology.
           NSET should develop a new funding strategy 
        to ensure that societal implications of nanoscale 
        science and technology become an integral and vital 
        component of NNI.
           NSET should develop performance metrics to 
        assess the effectiveness of the NNI in meeting its 
        objectives and goals.
          (The entire NAS report can be found at http://
        www.nap.edu/catalog/10395.html)
 Ethical and Health Concerns. Recently, commentators, including 
Michael Crichton, author of the book, Prey; HRH Prince Charles, 
the Prince of Wales; and Bill Joy, chief scientist of Sun 
Microsystems, have all raised concerns about nanotechnology. 
They all raise the specter of a ``gray goo'' catastrophe in 
which self-replicating microscopic robots the size of bacteria 
fill the world and wipe out humanity. Less sensational concerns 
also have been raised about the health and environmental 
effects of nanotechnology. A research group led by researchers 
at the National Aeronautics and Space Administration's (NASA) 
Johnson Space Center found in preliminary studies that inhaling 
vast amounts of nanotubes is dangerous. In another study, Dr. 
Vyvyan Howard, pathology specialist at the University of 
Liverpool, found that nanoscale materials are toxic, and can be 
easily ingested, inhaled, or absorbed.
 International Competition. Despite these concerns, both the 
United States and its European and Asian economic competitors 
have begun the race to be the leader in nanotechnology. The EU 
has budgeted $1.2 billion for nanotechnology in 2003 and 2004. 
Japan is expected to invest approximately $810 million in FY 
2003. South Korea and Taiwan also have established national 
nanoscience and nanotechnology research programs based on the 
NNI. The NSF found that nearly 25,000 graduates in Asian 
countries received doctoral degrees in engineering fields 
related to nanotechnology in 2000, compared with fewer than 
5,000 in the United States. Also, of the 18,000 scientific 
articles mentioning nanotechnology in 2000, just one-third came 
from America.

                         Summary of Provisions

Authorization of appropriations

 S. 189, as reported, would authorize appropriations for 
nanoscale science and technology research and development 
programs at the NSF, Department of Energy, NASA, National 
Institutes of Health, National Institute of Standards and 
Technology (NIST), Environmental Protection Agency, Department 
of Justice, Department of Homeland Security, and Department of 
Agriculture. S. 189 would authorize $796 million for these 
programs for FY 2004 and a total of $4.7 billion for the period 
of FY 2004 through FY 2008.

National Nanotechnology Program

 S. 189, as reported, would authorize the President to 
implement a National Nanotechnology Program (NNP). The program 
would build on the work of the NNI to provide federally funded 
research through the participating government agencies. The NNP 
would establish the goals, priorities, grand challenges, and 
metrics for evaluation of Federal nanotechnology research 
programs; invest in Federal research and development programs 
in nanotechnology and related sciences; and provide for the 
interagency coordination of Federal nanotechnology research, 
development, and other activities undertaken as part of the 
Program. The legislation would authorize the establishment of 
interdisciplinary nanotechnology research centers; the 
establishment of an American Nanotechnology Preparedness 
Center; and the establishment of a Center for Nanomaterials 
Manufacturing. The legislation also would authorize the 
Director of NIST to establish a center within NIST's 
Manufacturing Engineering Laboratory for issues relating to the 
commercialization of nanoscience and nanotechnology research, 
and act as a clearinghouse for information related to 
nanoscience and nanotechnology research.

Program Coordination and Management

 S. 189, as reported, also would authorize the NSTC to oversee 
the planning, management, and coordination of the NNP. The NSTC 
would coordinate the budget requests of, and provide guidance 
to, participating departments and agencies. The legislation 
also would authorize the President to establish the National 
Nanotechnology Advisory Panel (NNAP) to advise the President 
and NSTC on the management, coordination, and implementation of 
the NNP portfolio, the components of the NNP, trends and 
developments in nanotechnology, maintenance of United States 
leadership in this area, and the need to revise the NNP. S. 189 
also retroactively would authorize the President to establish 
an NNCO to serve as the primary point of contact on Federal 
nanotechnology activities.

                          Legislative History

 On January 16, 2003, Senator Wyden introduced S. 189, the 21st 
Century Nanotechnology Research and Development Act. This 
legislation was co-sponsored by Senators Allen, Lieberman, 
Warner, Mikulski, Hollings, Landrieu, Clinton, Levin, Bayh, 
Hutchison, Alexander, Rockefeller, Corzine, Kerry, Lautenberg, 
and Cantwell.
 On May 1, 2003, the full Committee conducted a hearing on S. 
189. At the hearing, the witnesses included: Dr. James Murday, 
Chief Scientist, Acting, Office of Naval Research; Dr. James 
Roberto, Associate Laboratory Director for Physical Sciences, 
Oak Ridge National Laboratory; Dr. Clayton Teague, Director, 
National Nanotechnology Coordination Office; Dr. Davis Baird, 
Professor and Chair, Department of Philosophy, University of 
South Carolina; Dr. Jun Jiao, Co-Director, Center for 
Nanoscience and Nanotechnology; Dr. Kent A. Murphy, Founder and 
Chief Executive Officer, Luna Innovations; and Mr. James R. Von 
Ehr II, Chief Executive Officer, Zyvex Corporation.
 On June 19, 2003, the Committee met in open executive session 
and, by a voice vote, ordered S. 189 to be reported with a 
substitute amendment offered by Senators Wyden, Allen, McCain, 
and Hollings.

                            Estimated Costs

 In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 189--21st Century Nanotechnology Research and Development

    Summary: S. 189 would authorize appropriations for fiscal 
years 2004 through 2008 for the National Nanotechnology 
Program, comprised of various nanotechnology initiatives at 
nine agencies: the National Science Foundation (NSF), 
Department of Energy, National Aeronautics and Space 
Administration, National Institutes of Heath, National 
Institute of Standards and Technology, Environmental Protection 
Agency, Department of Justice, Department of Homeland Security, 
and the Department of Agriculture. These programs, which 
involve technologies that manipulate matter at the atomic 
level, would be overseen by both external and intergovernmental 
committees. The bill also would direct the Office of Science 
and Technology Policy (OSTP) to coordinate and manage the 
National Nanotechnology Program.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing this bill would cost $226 million 
in 2004 and a total of $3.4 billion over the 2004-2008 period. 
CBO estimates that enacting this bill would have no effect on 
direct spending or revenues.
    S. 189 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 189 is shown in the following table. The 
costs of this legislation fall within budget functions 250 
(general science, space, and technology), 300 (natural 
resources and the environment), 350 (agriculture), 376 
(commerce and housing credit), 550 (health), and 750 
(administration of justice).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 Spending under current law:
    Estimated authorization level \1\.....................      566      350        0        0        0        0
    Estimated outlays.....................................      438      353      234       91       27        7
Proposed changes:
    Estimated authorization level.........................        0      446      876      965    1,022    1,082
    Estimated outlays.....................................        0      226      520      771      915    1,000
Spending under S. 189:
    Estimated authorization level.........................      566      796      876      965    1,022    1,082
    Estimated outlays.....................................      438      579      754      862      942    1,007
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level reflects agencies' estimates of the amount appropriated for nanotechnology programs that
  year. The 2004 level is the amount authorized to be appropriated for NSF's nanotechnology program under
  current law.

    Basis of estimate: For this estimate, CBO assumes that the 
amounts authorized will be appropriated each year and that 
outlays will occur at rates similar to those of existing 
research and development programs. S. 189 would specify funding 
levels for each of the agencies for a total of $796 million in 
2004 and a total of $4.7 billion for the 2004-2008 period. (The 
$350 million specified for NSF's program for 2004 is not 
included in the table as a proposed change because that amount 
has already been authorized under current law.) The amounts 
specified in the bill would not cover costs associated with the 
external advisory functions and studies, but such costs would 
not be significant.
    Intergovernmental and private-sector impact: S. 189 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On May 5, 2003, CBO transmitted a 
cost estimate for H.R. 766, the Nanotechnology Research and 
Development Act of 2003, as ordered reported by the House 
Committee on Science on May 1, 2003. The estimated cost of 
implementing S. 189 is higher than for H.R. 766 because the 
Senate bill would authorize appropriations for more agencies 
(nine instead of five) and for a longer period of time (through 
2008 instead of 2006).
    Estimate prepared by: Federal Costs: Kathleen Gramp and 
Jenny Lin. Impact on State, Local, and Tribal Governments: Greg 
Waring. Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Paul R. Cullinan, Chief for Human 
Resources Cost Estimate Unit, Budget Analysis Division.
  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

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

                            ECONOMIC IMPACT

  This legislation authorizes significant funding for research 
and development in nanoscale science and technology. However, 
it is not expected to have an adverse impact on the nation.

                                PRIVACY

  This legislation would not have a negative impact on the 
personal privacy of individuals.

                               PAPERWORK

  This legislation would not increase the paperwork requirement 
for private individuals or businesses.
  This legislation would require the following reports--
          (1) an annual report by the NSTC to the House of 
        Representatives Committee on Science and the Senate 
        Committee on Commerce, Science, and Transportation on 
        the program budget for the current fiscal year for each 
        participating agency by December 31 of such year;
          (2) an annual report due at the time of the 
        President's budget request by the NSTC to the House of 
        Representatives Committee on Science and the Senate 
        Committee on Commerce, Science, and Transportation on 
        the proposed program budget for each participating 
        agency for the next fiscal year, the progress made 
        toward achieving the goals and priorities established 
        for the program, an analysis of the extent to which the 
        program has incorporated the recommendations of the 
        Advisory Panel and American Nanotechnology Preparedness 
        Center, and an assessment of how the agencies are using 
        Small Business Innovative Research and Small Business 
        Technology Transfer Research;
          (3) a report, not less frequently than once every two 
        years, by the Advisory Panel to the President, the 
        House of Representatives Committee on Science, and the 
        Senate Committee on Commerce, Science, and 
        Transportation on its assessments and recommendations 
        for ways to improve the program;
          (4) a triennial review conducted by the National 
        Research Council evaluating the program's technical 
        success, management and coordination, and funding 
        levels; and
          (5) an annual report by the Director of the NSF 
        describing the activities of the American 
        Nanotechnology Preparedness Center.

                      Section-by-Section Analysis

Section 1. Short Title

  Section 1 would cite the title as the ``21st Century 
Nanotechnology Research and Development Act''.

Section 2. National Nanotechnology Program

  Subsection (a) would authorize the President to implement a 
National Nanotechnology Program. The Program would use the 
appropriate agencies, councils, and NNCO to establish goals, 
priorities, grand challenges, and metrics for evaluation for 
Federal nanotechnology research, development, and other 
activities. It also would fund and coordinate basic nanoscience 
and nanoengineering research among Federal agencies, academic 
laboratories, and the private sector.
  Subsection (b) states that the Program's goals would include: 
the development of a fundamental understanding of matter that 
enables control and manipulation at the nanoscale; the 
assurance of continued United States global leadership in 
nanotechnology; the advancement of United States productivity 
and industrial competitiveness through stable, consistent, and 
coordinated investments in long-term nanotechnology research; 
the development of a network of shared facilities and centers 
among nanotechnology researchers; the acceleration of the 
deployment and application of nanotechnology to the private 
sector; the establishment of a program to provide education and 
training; and the assurance that legal, ethical, environmental 
and other concerns will be considered.
  Subsection (c) would authorize the NSTC, or an appropriate 
subgroup that it designates or establishes, to oversee the 
planning, management, and coordination of the Program. 
Specifically, the NSTC, or its designated subgroup, would 
establish a set of broad applications of nanotechnology and 
development, or grand challenges, to be met by the results and 
activities of the program and provide for interagency 
coordination of the Program, including with the activities of 
the Department of Defense's Defense Nanotechnology Research and 
Development Program.
  Subsection (c) also would authorize the NSTC or its 
designated subgroup, to develop, within 12 months after the 
date of enactment of this Act and to update every 4 years 
thereafter, a strategic plan to meet the goals and priorities 
of the Program and guide the activities and anticipated 
outcomes of the participating agencies. The strategic plan 
would include a description of how the Program will move 
results out of the laboratory and into application for the 
benefit of society, support for long-term funding for 
multidisciplinary research and development in technology, and 
dedication of funding for interagency nanotechnology projects.
  Additionally, this subsection would authorize the NSTC to 
coordinate the budget requests of each of the agencies involved 
in the Program with the Office of Management and Budget to 
ensure a balanced nanotechnology research portfolio; exchange 
information with academic, industry, State and local 
governments (including State and regional nanotechnology 
programs), and other appropriate groups conducting 
nanotechnology research; develop a plan to utilize Federal 
programs, such as the Small Business Innovation Research 
Program and the Small Business Technology Transfer Research 
Program; identify research areas that are not being adequately 
addressed by the agencies' research programs; and encourage 
progress on Program goals through the utilization of existing 
manufacturing facilities and industrial infrastructures, such 
as, but not limited to, the employment of underutilized 
manufacturing facilities in areas of high unemployment as 
production engineering and research test beds.
  The NSTC also would be authorized to provide for the 
establishment of interdisciplinary nanotechnology research 
centers on a merit-reviewed, competitive basis. These centers 
would be established in geographically diverse centers 
including at least one center in a State participating in the 
NSF's Experimental Program to Stimulate Competitive Research 
(EPSCoR). The Committee encourages the participation of 
minority serving institutions at these centers. In addition, 
the Committee recognizes that societal and ethical issues 
related to nanotechnology research need to be considered 
throughout the research cycle. The Committee would encourage 
the interdisciplinary nanotechnology centers and the American 
Nanotechnology Preparedness Center to collaborate on basic 
research to study the societal and ethical effects of their 
scientific research. This research may be conducted with the 
participation of other centers, universities, companies, and 
organizations.
  Subsection (d) would authorize the President to establish a 
NNCO with full-time staff. The NNCO would provide technical and 
administrative support to the NSTC and the NNAP; serve as 
thepoint of contact on Federal nanotechnology activities for government 
organizations, academia, industry, professional societies, State 
nanotechnology programs, interested citizen groups, and others; conduct 
public outreach, including dissemination of findings and 
recommendations of the Advisory Panel; and establish an office to 
promote access to and early application of the technologies, 
innovations, and expertise derived from Program activities to Federal 
agencies and United States industries, including start-up companies. In 
conducting public outreach, the Committee encourages the NNCO to 
consider the use of citizen panels and other forums to improve the 
interaction and information dissemination between experts and the 
general public.
  Subsection (e) would require an annual report by the NSTC to 
the House of Representatives Committee on Science and the 
Senate Committee on Commerce, Science, and Transportation on 
the Program budget for the current fiscal year for each 
participating agency by December 31 of such year. In addition, 
it would require an annual report due at the time of the 
President's budget request by the NSTC to the House of 
Representatives Committee on Science and the Senate Committee 
on Commerce, Science, and Transportation on the proposed 
program budget for each participating agency for the next 
fiscal year, the progress made toward achieving the goals and 
priorities established for the program, an analysis of the 
extent to which the program has incorporated the 
recommendations of the NNAP and the American Nanotechnology 
Preparedness Center, and an assessment of how the agencies are 
using Small Business Innovative Research and Small Business 
Technology Transfer Research.

Section 3. Advisory Panel

  Subsection (a) would direct the President to establish or 
designate a National Nanotechnology Advisory Panel.
  Subsection (b) would set criteria for the members of the 
NNAP. The NNAP would consist primarily of individuals who are 
non-Federal members and shall include representatives of 
academia and industry that are qualified to provide advice and 
information on nanotechnology research, development, 
demonstrations, education, technology transfer, commercial 
application, or societal and ethical concerns. The President 
would be authorized to seek and give consideration to 
recommendations from Congress, industry, the scientific 
community (including the NAS), scientific professional 
societies, academia, the defense community, State and local 
governments, regional nanotechnology programs, and other 
appropriate organizations.
  Subsection (c) would direct the NNAP to advise the President 
and NSTC on matters relating to the Program, including trends 
and developments in nanotechnology science and engineering; 
progress in implementing and the need to revise the Program; 
the balance among the components of the Program; whether the 
Program component areas, priorities, and technical goals 
developed by the NSTC are maintaining United States leadership 
in nanotechnology; the management, coordination, implementation 
and activities of the Program; and whether societal, ethical, 
environmental, and workforce concerns are adequately addressed 
by the Program. The Committee recommends that, to the extent 
possible, the Panel engage relevant associations, institutes, 
and organizations in order to fulfill its duties as described.
  Subsection (d) would require the NNAP to report, not less 
frequently than once every 2 fiscal years, to the President, 
the Senate Committee on Commerce, Science, and Transportation, 
and the House of Representatives Committee on Science on its 
assessments and recommendations for ways to improve the 
program. The first report would be submitted within 1 year 
after the date of enactment of this Act.
  Subsection (e) would allow travel expenses for non-Federal 
members of the NNAP that are attending meetings or otherwise 
serving at the request of the head of the Panel away from their 
homes or regular places of business to be reimbursed.

Section 4. Triennial External Review of Nanotechnology Research and 
        Development Program

  Subsection (a) would authorize the Director of the NSF to 
enter into an arrangement with the National Research Council 
(NRC) of the NAS to conduct a triennial evaluation of the 
Program and report on its findings. This evaluation would 
include a review of the technical successes and management of 
the program and agency funding levels; recommendations for new 
goals, research areas, investment levels, policy, budget and 
program changes, and metrics; a review of the NNCO's efforts to 
promote access to and application of technologies; and an 
analysis of the United States international competitive 
position.
  Subsection (b) would require the Director of the NSF to 
transmit upon receipt the NRC report to the Panel, the Senate 
Committee on Commerce, Science, and Transportation, and the 
House of Representatives Committee on Science. The first NRC 
report would be transmitted no later than June 10, 2005, with 
subsequent evaluations transmitted every 3 years thereafter.

Section 5. Authorization of Appropriations

  The NSF would be authorized to carry out the Act at the 
following levels: $350,000,000 for FY 2004; $385,000,000 for FY 
2005; $424,000,000 for FY 2006; $449,000,000 for FY 2007; and 
$476,000,000 for FY 2008. Of the authorized amounts, 
$50,000,000 would be authorized for each fiscal year for grants 
of up to $5,000,000 each for interdisciplinary nanotechnology 
research centers. This legislation also would authorize 
$5,000,000 from the authorized amounts for each fiscal year for 
the university-based American Nanotechnology Preparedness 
Center. The legislation also would authorize $5,000,000 from 
the authorized amounts for each fiscal year for the National 
Nanotechnology Coordination Office, and an additional 
$5,000,000 from the authorized amounts for each fiscal year for 
the Center for Nanomaterials Manufacturing.
  The bill also would authorize nanotechnology programs at the 
DOE at the following levels: $265,000,000 for FY 2004; 
$292,000,000 for FY 2005; $321,000,000 for FY 2006; 
$340,000,000 for FY 2007; and $360,000,000 for FY 2008. Of 
these amounts, $25,000,000 would be authorized for use for 
merit-reviewed and competitively based grants to support 
consortia that integrate newly developed nanotechnology and 
microfluidic tools with systems biology, immunology, and 
molecular imaging. The Committeerecommends that at least one 
such consortium shall be provided with at least $10,000,000 for each 
fiscal year.
  The legislation also would authorize funding for the 
following agencies at the following levels:

         ANTICIPATED FUNDING AUTHORIZED BY THE 21ST CENTURY NANOTECHNOLOGY RESEARCH AND DEVELOPMENT ACT
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                               Agency                                  2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
NASA...............................................................       31     34.1     37.5       40     42.3
NIH................................................................       70       77       85       90       95
NIST...............................................................       62     68.2       75       80       84
EPA................................................................        5      5.5     6.05    6.413      6.8
Department of Justice..............................................        1      1.1     1.21    1.283     1.36
Department of Homeland Security....................................        2      2.2     2.42     2.57     2.72
Department of Agriculture..........................................       10       11     12.1    12.83     13.6
----------------------------------------------------------------------------------------------------------------

Section 6. American Nanotechnology Preparedness Center

  Subsection (a) would authorize the Director of the NSF to 
establish, using a merit-reviewed, competitively-based process, 
an American Nanotechnology Preparedness Center to encourage, 
conduct, coordinate, commission, collect, and disseminate 
research on the educational, legal, workforce, societal, and 
ethical issues related to nanotechnology. The American 
Nanotechnology Preparedness Center directly addresses the 
ethical and health concerns discussed in the background and 
needs section of this report.
  Subsection (b) would authorize the Director of the NSF to 
work through the Center to conduct, coordinate, commission, 
collect, and disseminate studies on the educational, legal, 
workforce, societal, and ethical implications of 
nanotechnology, including anticipated issues and problems.
  Subsection (c) would require the Director of the NSF to 
collect data on the anticipated size of the nanotechnology 
workforce need by detailed occupation, industry, and firm 
characteristics. The Director also would assess the adequacy of 
the trained talent pool in the United States to fill such 
workforce needs.
  Subsection (d) would require the Director of the NSF to 
incorporate the workforce data into a report on the Center's 
activities to be submitted to the President, the NSTC, the 
Senate Committee on Commerce, Science, and Transportation, and 
the House of Representatives Committee on Science. The Director 
would be required to submit the report no later than 18 months 
after the enactment of this bill.

Section 7. Commercialization Issues Related to Nanoscience and 
        Nanotechnology

  Subsection (a) would authorize the Director of NIST to 
establish a center within NIST's Manufacturing Engineering 
Laboratory for issues relating to the commercialization of 
nanoscience and nanotechnology. The program Director would 
conduct basic research on issues relating to the development 
and manufacture of nanotechnology, including metrology, 
reliability and quality assurance, processes control, and 
manufacturing best practices. In addition, the Director would 
consult with the National Technical Information Service and the 
NNCO to act as a clearinghouse for information related to 
commercialization of nanoscience and nanotechnology research, 
including information regarding activities by regional, State, 
and local commercial nanotechnology initiatives; transition of 
research, concepts, and technologies from Federal 
nanotechnology research into commercial and military projects; 
best practices by government, university, and private sector 
laboratories transitioning technology to commercial use; 
examples of ways to overcome barriers and challenges to 
technology deployment; and use of existing manufacturing 
infrastructure and workforce.
  Subsection (b) would require the Director of NIST to utilize 
the Manufacturing Extension Partnership Program, to the extent 
possible, to reach small- and medium-sized manufacturing 
companies.
  Subsection (c) would authorize the Director of the NSF to 
establish, on a merit-reviewed, competitive basis, a new Center 
for Nanomaterials Manufacturing to encourage the development 
and transfer of technologies for the manufacture of 
nanomaterials. The activities of the Center for Nanomaterials 
Manufacturing shall include, but not be limited to, the 
development of manufacturing processes for nanostructured 
materials such as: nanocomposites; response-driven coatings; 
thin films; biomedical materials; and nanostructured materials, 
with emphasis on such materials in aqueous environments.

Section 8. Definitions

  This section would define key terms in the Act, including 
``Advisory Panel'', ``Fundamental Research'', 
``Nanotechnology'', ``Program'', ``Council'', and ``Grand 
Challenge''.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, the Committee states that the bill as 
reported would make no change to existing law.

                                
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