I 

114TH CONGRESS 

1ST SESSION H. R. 3266 

To improve the productivity and energy efficiency of the manufacturing sector 

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

Academies and other appropriate Federal agencies, to develop a national 

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

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2015 

Mr. WELCH (for himself and Mr. REED) introduced the following bill; which 

was referred to the Committee on Energy and Commerce, and in addition 

to the Committee on Science, Space, and Technology, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve the productivity and energy efficiency of the 

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

other appropriate Federal agencies, to develop a national 

smart manufacturing plan and to provide assistance to 

small- and medium-sized manufacturers in implementing 

smart manufacturing programs, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

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

3 Leadership Act’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds that— 

6 (1) the industrial sector— 

7 (A) represents approximately 20 percent of 

8 the economy of the United States; 

9 (B) provides approximately 13 percent of 

10 employment in the United States; and 

11 (C) accounts for more than 

12 30,000,000,000,000,000 Btus of energy, a 

quantity that is equal to almost 1 13 ⁄3 of the en14 ergy consumption of the United States; 

15 (2) smart manufacturing is set to transform the 

16 manufacturing sector and the use by the manufac17 turing sector of energy, water, raw materials, and 

18 labor over the 10 years following the date of enact19 ment of this Act; 

20 (3) the transformation described in paragraph 

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

22 transportation fuels, chemical feedstocks, and many 

23 other fuels; 

24 (4) the interconnection of the many components 

25 of manufacturing within a manufacturing plant with 

26 other business functions within a company and 


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1 across companies within a supply chain will enable 

2 new production efficiencies; 

3 (5) the improvements in automation described 

4 in paragraph (4) are estimated to produce between 

5 $5,000,000,000 and $25,000,000,000 in energy sav6 ings per year across the manufacturing sector for 

7 electricity alone by 2035; 

8 (6) smart manufacturing technologies are esti9 mated to add between $10,000,000,000,000 and 

10 $15,000,000,000,000 to the global gross domestic 

11 product over 20 years following the date of enact12 ment of this Act; 

13 (7) market barriers exist to the widespread 

14 adoption of smart manufacturing practices by all 

15 sizes of firms and to the investment in smart manu16 facturing technologies, including lack of— 

17 (A) common communication protocols be18 tween smart manufacturing devices, which pre19 vents interoperability, reduces system effi20 ciencies, and stifles innovation; 

21 (B) common standards for storing and 

22 sharing information relating to energy con23 sumption and energy savings; 

24 (C) an open-access smart manufacturing 

25 platform that enables the networking of busiVerDate Sep 11 2014 03:03 Jul 30, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3266.IH H3266

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1 ness and automation systems of multiple ven2 dors; and 

3 (D) common cybersecurity protocols and 

4 standards; 

5 (8) addressing the barriers described in para6 graph (7) is in the interest of the United States; 

7 (9) in response to the barriers described in 

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

9 with the private sector to reduce the market barriers 

10 through the development of voluntary protocols and 

11 standards; 

12 (10) there exist many technologies of which 

13 many domestic manufacturers are unaware that 

14 could— 

15 (A) improve the competitiveness of the do16 mestic manufacturers; and 

17 (B) reduce the environmental impacts of 

18 the domestic manufacturers; 

19 (11) Federal agency action can facilitate great20 er economic growth through outreach and engage21 ment in the smart manufacturing technology area; 

22 and 

23 (12) the United States would benefit from a 

24 concerted and focused effort to advance the adoption 


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1 of smart manufacturing throughout the manufac2 turing sector of the United States. 

3 SEC. 3. DEFINITIONS. 

4 In this Act: 

5 (1) ENERGY MANAGEMENT SYSTEM.—The term 

6 ‘‘energy management system’’ means a business 

7 management process based on standards of the 

8 American National Standards Institute that enables 

9 an organization to follow a systematic approach in 

10 achieving continual improvement of energy perform11 ance, including energy efficiency, security, use, and 

12 consumption. 

13 (2) INDUSTRIAL ASSESSMENT CENTER.—The 

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

15 located at an institution of higher education that— 

16 (A) receives funding from the Department 

17 of Energy; 

18 (B) provides an in-depth assessment of 

19 small- and medium-sized manufacturer plant 

20 sites to evaluate the facilities, services, and 

21 manufacturing operations of the plant site; and 

22 (C) identifies opportunities for potential 

23 savings for small- and medium-sized manufac24 turer plant sites from energy efficiency improveVerDate Sep 11 2014 03:03 Jul 30, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3266.IH H3266

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1 ments, waste minimization, pollution preven2 tion, and productivity improvement. 

3 (3) INFORMATION AND COMMUNICATION TECH4 NOLOGY.—The term ‘‘information and communica5 tion technology’’ means any electronic system or 

6 equipment (including the content contained in the 

7 system or equipment) used to create, convert, com8 municate, or duplicate data or information, including 

9 computer hardware, firmware, software, communica10 tion protocols, networks, and data interfaces. 

11 (4) INSTITUTION OF HIGHER EDUCATION.—The 

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

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

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

15 (5) NATIONAL LABORATORY.—The term ‘‘Na16 tional Laboratory’’ has the meaning given the term 

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

18 U.S.C. 15801). 

19 (6) NORTH AMERICAN INDUSTRY CLASSIFICA20 TION SYSTEM.—The term ‘‘North American Indus21 try Classification System’’ means the standard used 

22 by Federal statistical agencies in classifying business 

23 establishments for the purpose of collecting, ana24 lyzing, and publishing statistical data relating to the 

25 business economy of the United States. 


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

2 the Secretary of Energy. 

3 (8) SMALL AND MEDIUM MANUFACTURERS.— 

4 The term ‘‘small and medium manufacturers’’ 

5 means manufacturing firms— 

6 (A) classified in the North American In7 dustry Classification System as any of sectors 

8 31 through 33; 

9 (B) with gross annual sales of less than 

10 $100,000,000; 

11 (C) with fewer than 500 employees at the 

12 plant site; and 

13 (D) with annual energy bills totaling more 

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

15 (9) SMART MANUFACTURING.—The term 

16 ‘‘smart manufacturing’’ means a set of advanced 

17 sensing, instrumentation, monitoring, controls, and 

18 process optimization technologies and practices that 

19 merge information and communication technologies 

20 with the manufacturing environment for the real21 time management of energy, productivity, and costs 

22 across factories and companies. 


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1 SEC. 4. DEVELOPMENT OF NATIONAL SMART MANUFAC2 TURING PLAN. 

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

4 date of enactment of this Act, the Secretary, in consulta5 tion with the National Academies, shall develop and com6 plete a national plan for smart manufacturing technology 

7 development and deployment to improve the productivity 

8 and energy efficiency of the manufacturing sector of the 

9 United States. 

10 (b) CONTENT.— 

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

12 subsection (a) shall identify areas in which agency 

13 actions by the Secretary and other heads of relevant 

14 Federal agencies would— 

15 (A) facilitate quicker development, deploy16 ment, and adoption of smart manufacturing 

17 technologies and processes; 

18 (B) result in greater energy efficiency and 

19 lower environmental impacts for all American 

20 manufacturers; and 

21 (C) enhance competitiveness and strength22 en the manufacturing sectors of the United 

23 States. 

24 (2) INCLUSIONS.—Agency actions identified 

25 under paragraph (1) shall include— 


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1 (A) an assessment of previous and current 

2 actions of the Department of Energy relating to 

3 smart manufacturing; 

4 (B) the establishment of voluntary inter5 connection protocols and performance stand6 ards; 

7 (C) deployment of existing research re8 sults; and 

9 (D) the leveraging of existing high-per10 formance computing infrastructure. 

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

12 after the date on which the Secretary completes the plan 

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

14 every 2 years thereafter, the Secretary shall revise the 

15 plan to account for advancements in information and com16 munication technology and manufacturing needs. 

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

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

19 Congress a report on the progress made in developing the 

20 plan. 

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

22 funds of the Department of Energy to carry out this sec23 tion. 


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

3 (a) FINDINGS.—Congress finds that— 

4 (1) the Department of Energy has existing 

5 technical assistance programs that facilitate greater 

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

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

10 awareness of and providing education to small and 

11 medium manufacturers regarding the opportunities 

12 for implementing smart manufacturing; and 

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

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

18 the Department of Energy— 

19 (1) to include smart manufacturing technologies 

20 and practices; and 

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


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

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

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

6 (a) STUDY.— 

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

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

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

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

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

19 and 

20 (B) ensure that— 

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

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


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

2 date of enactment of this Act, the Secretary shall 

3 submit to Congress a report describing the results of 

4 the study. 

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

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

9 fully use the high-performance computing resources of the 

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

12 SEC. 7. STATE LEADERSHIP GRANTS. 

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

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

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

20 through the provision of infrastructure, including— 

21 (A) access to shared supercomputing facili22 ties; 

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


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

3 (b) GRANTS AUTHORIZED.—The Secretary may 

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

8 (c) APPLICATION.— 

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

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

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

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

15 application for a grant under this section on the 

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

18 (A) the breadth of academic and private 

19 sector partners; 

20 (B) alternate sources of funding; 

21 (C) plans for dissemination of results; and 

22 (D) the permanence of the infrastructure 

23 to be put in place by the project. 

24 (d) REQUIREMENTS.— 


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

2 section shall not exceed 3 years. 

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

4 grant under this section shall be not more than 

5 $3,000,000. 

6 (3) MATCHING REQUIREMENT.—Each State 

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

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

10 (e) USE OF FUNDS.— 

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

12 provided under this section— 

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

16 (B) to fund research and development of 

17 transformational manufacturing processes and 

18 materials technology that advance smart manu19 facturing; and 

20 (C) to provide tools and training to small 

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

23 manufacturing technologies in the facilities of 

24 the small and medium manufacturers. 


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

3 (1) to determine the impact and effectiveness of 

4 programs funded with the grant; and 

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

6 better execute the program of the State. 

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

9 $10,000,000 for each of fiscal years 2017 through 2020. 

10 SEC. 8. REPORT. 

11 The Secretary annually shall submit to Congress and 

12 make publicly available a report on the progress made in 

13 advancing smart manufacturing in the United States. 

Æ 


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