I

106TH CONGRESS

2D SESSION S. 1756

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 10, 2000

Referred to the Committee on Science, and in addition to the Committee on

Armed Services, 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

AN ACT

To enhance the ability of the National Laboratories to meet

Department of Energy missions, 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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘National Laboratories

5 Partnership Improvement Act of 2000’’.
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1 SEC. 2. DEFINITIONS.

2 For purposes of this Act—

3 (1) the term ‘‘Department’’ means the Depart4 ment of Energy;

5 (2) the term ‘‘departmental mission’’ means

6 any of the functions vested in the Secretary of En7 ergy by the Department of Energy Organization Act

8 (42 U.S.C. 7101 et seq.) or other law;

9 (3) the term ‘‘institution of higher education’’

10 has the meaning given such term in section 1201(a)

11 of the Higher Education Act of 1965 (20 U.S.C.

12 1141(a));

13 (4) the term ‘‘National Laboratory’’ means any

14 of the following institutions owned by the Depart15 ment of Energy—

16 (A) Argonne National Laboratory;

17 (B) Brookhaven National Laboratory;

18 (C) Idaho National Engineering and Envi19 ronmental Laboratory;

20 (D) Lawrence Berkeley National Labora21 tory;

22 (E) Lawrence Livermore National Labora23 tory;

24 (F) Los Alamos National Laboratory;

25 (G) National Renewable Energy Labora26 tory;
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1 (H) Oak Ridge National Laboratory;

2 (I) Pacific Northwest National Laboratory;

3 or

4 (J) Sandia National Laboratory;

5 (5) the term ‘‘facility’’ means any of the fol6 lowing institutions owned by the Department of

7 Energy—

8 (A) Ames Laboratory;

9 (B) East Tennessee Technology Park;

10 (C) Environmental Measurement Labora11 tory;

12 (D) Fermi National Accelerator Labora13 tory;

14 (E) Kansas City Plant;

15 (F) National Energy Technology Labora16 tory;

17 (G) Nevada Test Site;

18 (H) Princeton Plasma Physics Laboratory;

19 (I) Savannah River Technology Center;

20 (J) Stanford Linear Accelerator Center;

21 (K) Thomas Jefferson National Accel22 erator Facility;

23 (L) Waste Isolation Pilot Plant;

24 (M) Y–12 facility at Oak Ridge National

25 Laboratory; or
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1 (N) other similar organization of the De2 partment designated by the Secretary that en3 gages in technology transfer, partnering, or li4 censing activities;

5 (6) the term ‘‘nonprofit institution’’ has the

6 meaning given such term in section 4 of the Steven7 son-Wydler Technology Innovation Act of 1980 (15

8 U.S.C. 3703(5));

9 (7) the term ‘‘Secretary’’ means the Secretary

10 of Energy;

11 (8) the term ‘‘small business concern’’ has the

12 meaning given such term in section 3 of the Small

13 Business Act (15 U.S.C. 632);

14 (9) the term ‘‘technology-related business con15 cern’’ means a for-profit corporation, company, asso16 ciation, firm, partnership, or small business concern

17 that—

18 (A) conducts scientific or engineering re19 search,

20 (B) develops new technologies,

21 (C) manufacturers products based on new

22 technologies, or

23 (D) performs technological services;

24 (10) the term ‘‘technology cluster’’ means a

25 concentration of—
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1 (A) technology-related business concerns;

2 (B) institutions of higher education; or

3 (C) other nonprofit institutions,

4 that reinforce each other’s performance through for5 mal or informal relationships;

6 (11) the term ‘‘socially and economically dis7 advantaged small business concerns’’ has the mean8 ing given such term in section 8(a)(4) of the Small

9 Business Act (15 U.S.C. 637(a)(4)); and

10 (12) the term ‘‘NNSA’’ means the National

11 Nuclear Security Administration established by title

12 XXXII of the National Defense Authorization Act

13 for Fiscal Year 2000 (Public Law 106–65).

14 SEC. 3. TECHNOLOGY INFRASTRUCTURE PILOT PROGRAM.

15 (a) ESTABLISHMENT.—The Secretary, through the

16 appropriate officials of the Department, shall establish a

17 Technology Infrastructure Pilot Program in accordance

18 with this section.

19 (b) PURPOSE.—The purpose of the program shall be

20 to improve the ability of National Laboratories or facilities

21 to support departmental missions by—

22 (1) stimulating the development of technology

23 clusters that can support the missions of the Na24 tional Laboratories or facilities;
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1 (2) improving the ability of National Labora2 tories or facilities to leverage and benefit from com3 mercial research, technology, products, processes,

4 and services; and

5 (3) encouraging the exchange of scientific and

6 technological expertise between National Labora7 tories or facilities and—

8 (A) institutions of higher education,

9 (B) technology-related business concerns,

10 (C) nonprofit institutions, and

11 (D) agencies of State, tribal, or local gov12 ernments,

13 that can support the missions of the National Lab14 oratories and facilities.

15 (c) PILOT PROGRAM.—In each of the first three fiscal

16 years after the date of enactment of this section, the Sec17 retary may provide no more than $10,000,000, divided

18 equally, among no more than ten National Laboratories

19 or facilities selected by the Secretary to conduct Tech20 nology Infrastructure Program Pilot Programs.

21 (d) PROJECTS.—The Secretary shall authorize the

22 Director of each National Laboratory or facility des23 ignated under subsection (c) to implement the Technology

24 Infrastructure Pilot Program at such National Laboratory
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1 or facility through projects that meet the requirements of

2 subsections (e) and (f).

3 (e) PROGRAM REQUIREMENTS.—Each project funded

4 under this section shall meet the following requirements:

5 (1) MINIMUM PARTICIPANTS.—Each project

6 shall at a minimum include—

7 (A) a National Laboratory or facility; and

8 (B) one of the following entities—

9 (i) a business,

10 (ii) an institution of higher education,

11 (iii) a nonprofit institution, or

12 (iv) an agency of a State, local, or

13 tribal government.

14 (2) COST SHARING.—

15 (A) MINIMUM AMOUNT.—Not less than 50

16 percent of the costs of each project funded

17 under this section shall be provided from non18 Federal sources.

19 (B) QUALIFIED FUNDING AND RE20 SOURCES.—

21 (i) The calculation of costs paid by

22 the non-Federal sources to a project shall

23 include cash, personnel, services, equip24 ment, and other resources expended on the

25 project.
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1 (ii) Independent research and develop2 ment expenses of government contractors

3 that qualify for reimbursement under sec4 tion 31–205–18(e) of the Federal Acquisi5 tion Regulations issued pursuant to section

6 25(c)(1) of the Office of Federal Procure7 ment Policy Act (41 U.S.C. 421(c)(1))

8 may be credited towards costs paid by non9 Federal sources to a project, if the ex10 penses meet the other requirements of this

11 section.

12 (iii) No funds or other resources ex13 pended either before the start of a project

14 under this section or outside the project’s

15 scope of work shall be credited toward the

16 costs paid by the non-Federal sources to

17 the project.

18 (3) COMPETITIVE SELECTION.—All projects

19 where a party other than the Department or a Na20 tional Laboratory or facility receives funding under

21 this section shall, to the extent practicable, be com22 petitively selected by the National Laboratory or fa23 cility using procedures determined to be appropriate

24 by the Secretary or his designee.
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1 (4) ACCOUNTING STANDARDS.—Any participant

2 receiving funding under this section, other than a

3 National Laboratory or facility, may use generally

4 accepted accounting principles for maintaining ac5 counts, books, and records relating to the project.

6 (5) LIMITATIONS.—No Federal funds shall be

7 made available under this section for—

8 (A) construction; or

9 (B) any project for more than five years.

10 (f) SELECTION CRITERIA.—

11 (1) THRESHOLD FUNDING CRITERIA.—The Sec12 retary shall authorize the provision of Federal funds

13 for projects under this section only when the Direc14 tor of the National Laboratory or facility managing

15 such a project determines that the project is likely

16 to improve the participating National Laboratory or

17 facility’s ability to achieve technical success in meet18 ing departmental missions.

19 (2) ADDITIONAL CRITERIA.—The Secretary

20 shall also require the Director of the National Lab21 oratory or facility managing a project under this sec22 tion to consider the following criteria in selecting a

23 project to receive Federal funds—

24 (A) the potential of the project to succeed,

25 based on its technical merit, team members,
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1 management approach, resources, and project

2 plan;

3 (B) the potential of the project to promote

4 the development of a commercially sustainable

5 technology cluster, one that will derive most of

6 the demand for its products or services from

7 the private sector, that can support the mis8 sions of the participating National Laboratory

9 or facility;

10 (C) the potential of the project to promote

11 the use of commercial research, technology,

12 products, processes, and services by the partici13 pating National Laboratory or facility to

14 achieve its departmental mission or the com15 mercial development of technological innova16 tions made at the participating National Lab17 oratory or facility;

18 (D) the commitment shown by non-Federal

19 organizations to the project, based primarily on

20 the nature and amount of the financial and

21 other resources they will risk on the project;

22 (E) the extent to which the project involves

23 a wide variety and number of institutions of

24 higher education, nonprofit institutions, and

25 technology-related business concerns that can
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1 support the missions of the participating Na2 tional Laboratory or facility and that will make

3 substantive contributions to achieving the goals

4 of the project;

5 (F) the extent of participation in the

6 project by agencies of State, tribal, or local gov7 ernments that will make substantive contribu8 tions to achieving the goals of the project; and

9 (G) the extent to which the project focuses

10 on promoting the development of technology-re11 lated business concerns that are small business

12 concerns or involves such small business con13 cerns substantively in the project.

14 (3) SAVINGS CLAUSE.—Nothing in this sub15 section shall limit the Secretary from requiring the

16 consideration of other criteria, as appropriate, in de17 termining whether projects should be funded under

18 this section.

19 (g) REPORT TO CONGRESS ON FULL IMPLEMENTA20 TION.—Not later than 120 days after the start of the third

21 fiscal year after the date of enactment of this section, the

22 Secretary shall report to Congress on whether the Tech23 nology Infrastructure Program should be continued be24 yond the pilot stage, and, if so, how the fully implemented

25 program should be managed. This report shall take into
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1 consideration the results of the pilot program to date and

2 the views of the relevant Directors of the National labora3 tories and facilities. The report shall include any proposals

4 for legislation considered necessary by the Secretary to

5 fully implement the program.

6 SEC. 4. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

7 (a) ADVOCACY FUNCTION.—The Secretary shall di8 rect the Director of each National Laboratory, and may

9 direct the Director of each facility the Secretary deter10 mines to be appropriate, to establish a small business ad11 vocacy function that is organizationally independent of the

12 procurement function at the National Laboratory or facil13 ity. The person or office vested with the small business

14 advocacy function shall—

15 (1) work to increase the participation of small

16 business concerns, including socially and economi17 cally disadvantaged small business concerns, in pro18 curements, collaborative research, technology licens19 ing, and technology transfer activities conducted by

20 the National Laboratory or facility;

21 (2) report to the Director of the National Lab22 oratory or facility on the actual participation of

23 small business concerns in procurements and col24 laborative research along with recommendations, if

25 appropriate, on how to improve participation;
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1 (3) make available to small business concerns

2 training, mentoring, and clear, up-to-date informa3 tion on how to participate in the procurements and

4 collaborative research, including how to submit effec5 tive proposals;

6 (4) increase the awareness inside the National

7 Laboratory or facility of the capabilities and oppor8 tunities presented by small business concerns; and

9 (5) establish guidelines for the program under

10 subsection (b) and report on the effectiveness of

11 such program to the Director of the National Lab12 oratory or facility.

13 (b) ESTABLISHMENT OF SMALL BUSINESS ASSIST14 ANCE PROGRAM.—The Secretary shall direct the Director

15 of each National Laboratory, and may direct the Director

16 of each facility the Secretary determines to be appropriate,

17 to establish a program to provide small business

18 concerns—

19 (1) assistance directed at making them more ef20 fective and efficient subcontractors or suppliers to

21 the National Laboratory or facility; or

22 (2) general technical assistance, the cost of

23 which shall not exceed $10,000 per instance of as24 sistance, to improve the small business concern’s

25 products or services.
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1 (c) USE OF FUNDS.—None of the funds expended

2 under subsection (b) may be used for direct grants to the

3 small business concerns.

4 SEC. 5. TECHNOLOGY PARTNERSHIPS OMBUDSMAN.

5 (a) APPOINTMENT OF OMBUDSMAN.—The Secretary

6 shall direct the Director of each National Laboratory, and

7 may direct the Director of each facility the Secretary de8 termines to be appropriate, to appoint a technology part9 nership ombudsman to hear and help resolve complaints

10 from outside organizations regarding each laboratory’s

11 policies and actions with respect to technology partner12 ships (including cooperative research and development

13 agreements), patents, and technology licensing. Each om14 budsman shall—

15 (1) be a senior official of the National Labora16 tory or facility who is not involved in day-to-day

17 technology partnerships, patents, or technology li18 censing, or, if appointed from outside the laboratory,

19 function as such a senior official; and

20 (2) have direct access to the Director of the

21 National Laboratory or facility.

22 (b) DUTIES.—Each ombudsman shall—

23 (1) serve as the focal point for assisting the

24 public and industry in resolving complaints and dis-
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1 putes with the laboratory regarding technology part2 nerships, patents, and technology licensing;

3 (2) promote the use of collaborative alternative

4 dispute resolution techniques such as mediation to

5 facilitate the speedy and low-cost resolution of com6 plaints and disputes, when appropriate; and

7 (3) report, through the Director of the National

8 Laboratory or facility, to the Department annually

9 on the number and nature of complaints and dis10 putes raised, along with the ombudsman’s assess11 ment of their resolution, consistent with the protec12 tion of confidential and sensitive information.

13 (c) DUAL APPOINTMENT.—A person vested with the

14 small business advocacy function of section 4 may also

15 serve as the technology partnership ombudsman.

16 SEC. 6. STUDIES RELATED TO IMPROVING MISSION EFFEC17 TIVENESS, PARTNERSHIPS, AND TECH18 NOLOGY TRANSFER AT NATIONAL LABORA19 TORIES.

20 (a) STUDIES.—The Secretary shall direct the Lab21 oratory Operations Board to study and report to him, not

22 later than one year after the date of enactment of this

23 section, on the following topics—

24 (1) the possible benefits from and need for poli25 cies and procedures to facilitate the transfer of sci-
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1 entific, technical, and professional personnel among

2 National Laboratories and facilities; and

3 (2) the possible benefits from and need for

4 changes in—

5 (A) the indemnification requirements for

6 patents or other intellectual property licensed

7 from a National Laboratory or facility;

8 (B) the royalty and fee schedules and

9 types of compensation that may be used for

10 patents or other intellectual property licensed to

11 a small business concern from a National Lab12 oratory or facility;

13 (C) the licensing procedures and require14 ments for patents and other intellectual prop15 erty;

16 (D) the rights given to a small business

17 concern that has licensed a patent or other in18 tellectual property from a National Laboratory

19 or facility to bring suit against third parties in20 fringing such intellectual property;

21 (E) the advance funding requirements for

22 a small business concern funding a project at a

23 National Laboratory or facility through a

24 Funds-In-Agreement;
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1 (F) the intellectual property rights allo2 cated to a business when it is funding a project

3 at a National Laboratory or facility through a

4 Funds-In-Agreement; and

5 (G) policies on royalty payments to inven6 tors employed by a contractor-operated Na7 tional Laboratory or facility, including those for

8 inventions made under a Funds-In-Agreement.

9 (b) DEFINITION.—For the purposes of this section,

10 the term ‘‘Funds-In-Agreement’’ means a contract be11 tween the Department and a non-Federal organization

12 where that organization pays the Department to provide

13 a service or material not otherwise available in the domes14 tic private sector.

15 (c) REPORT TO CONGRESS.—Not later than one

16 month after receiving the report under subsection (a), the

17 Secretary shall transmit the report, along with his rec18 ommendations for action and proposals for legislation to

19 implement the recommendations, to Congress.

20 SEC. 7. OTHER TRANSACTIONS AUTHORITY.

21 (a) NEW AUTHORITY.—Section 646 of the Depart22 ment of Energy Organization Act (42 U.S.C. 7256) is

23 amended by adding at the end the following new sub24 section:
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1 ‘‘(g) OTHER TRANSACTIONS AUTHORITY.—(1) In ad2 dition to other authorities granted to the Secretary to

3 enter into procurement contracts, leases, cooperative

4 agreements, grants, and other similar arrangements, the

5 Secretary may enter into other transactions with public

6 agencies, private organizations, or persons on such terms

7 as the Secretary may deem appropriate in furtherance of

8 basic, applied, and advanced research functions now or

9 hereafter vested in the Secretary. Such other transactions

10 shall not be subject to the provisions of section 9 of the

11 Federal Nonnuclear Energy Research and Development

12 Act of 1974 (42 U.S.C. 5908).

13 ‘‘(2)(A) The Secretary of Energy shall ensure that—

14 ‘‘(i) to the maximum extent practicable, no

15 transaction entered into under paragraph (1) pro16 vides for research that duplicates research being

17 conducted under existing programs carried out by

18 the Department of Energy; and

19 ‘‘(ii) to the extent that the Secretary determines

20 practicable, the funds provided by the Government

21 under a transaction authorized by paragraph (1) do

22 not exceed the total amount provided by other par23 ties to the transaction.

24 ‘‘(B) A transaction authorized by paragraph (1) may

25 be used for a research project when the use of a standard
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1 contract, grant, or cooperative agreement for such project

2 is not feasible or appropriate.

3 ‘‘(3)(A) The Secretary shall not disclose any trade

4 secret or commercial or financial information submitted

5 by a non-Federal entity under paragraph (1) that is privi6 leged and confidential.

7 ‘‘(B) The Secretary shall not disclose, for five years

8 after the date the information is received, any other infor9 mation submitted by a non-Federal entity under para10 graph (1), including any proposal, proposal abstract, docu11 ment supporting a proposal, business plan, or technical

12 information that is privileged and confidential.

13 ‘‘(C) The Secretary may protect from disclosure, for

14 up to five years, any information developed pursuant to

15 a transaction under paragraph (1) that would be protected

16 from disclosure under section 552(b)(4) of title 5, United

17 States Code, if obtained from a person other than a Fed18 eral agency.’’.

19 (b) IMPLEMENTATION.—Not later than six months

20 after the date of enactment of this section, the Depart21 ment shall establish guidelines for the use of other trans22 actions. Other transactions shall be made available, if

23 needed, in order to implement projects funded under sec24 tion 3.
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1 SEC. 8. CONFORMANCE WITH NNSA ORGANIZATIONAL

2 STRUCTURE.

3 All actions taken by the Secretary in carrying out this

4 Act with respect to National Laboratories and facilities

5 that are part of the NNSA shall be through the Adminis6 trator for Nuclear Security in accordance with the require7 ments of title XXXII of the National Defense Authoriza8 tion Act for Fiscal Year 2000.

9 SEC. 9. COOPERATIVE RESEARCH AND DEVELOPMENT

10 AGREEMENTS FOR GOVERNMENT-OWNED,

11 CONTRACTOR-OPERATED LABORATORIES.

12 (a) STRATEGIC PLANS.—Subsection (a) of section 12

13 of the Stevenson-Wydler Technology Innovation Act of

14 1980 (15 U.S.C. 3710a) is amended by striking ‘‘joint

15 work statement,’’ and inserting ‘‘joint work statement or,

16 if permitted by the agency, in an agency-approved annual

17 strategic plan,’’.

18 (b) EXPERIMENTAL FEDERAL WAIVERS.—Sub19 section (b) of that section is amended by adding at the

20 end the following new paragraph:

21 ‘‘(6)(A) In the case of a Department of Energy

22 laboratory, a designated official of the Department

23 of Energy may waive any license retained by the

24 Government under paragraph (1)(A), (2), or (3)(D),

25 in whole or in part and according to negotiated

26 terms and conditions, if the designated official finds
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1 that the retention of the license by the Department

2 of Energy would substantially inhibit the commer3 cialization of an invention that would otherwise serve

4 an important Federal mission.

5 ‘‘(B) The authority to grant a waiver under

6 subparagraph (A) shall expire on the date that is 5

7 years after the date of the enactment of the Na8 tional Defense Authorization Act for Fiscal Year

9 2001.

10 ‘‘(C) The expiration under subparagraph (B) of

11 authority to grant a waiver under subparagraph (A)

12 shall not effect any waiver granted under subpara13 graph (A) before the expiration of such authority.’’.

14 (c) TIME REQUIRED FOR APPROVAL.—Subsection

15 (c)(5) of that section is amended—

16 (1) by striking subparagraph (C);

17 (2) by redesignating subparagraph (D) as sub18 paragraph (C); and

19 (3) in subparagraph (C) as so redesignated—

20 (A) in clause (i)—

21 (i) by striking ‘‘with a small business

22 firm’’; and

23 (ii) by inserting ‘‘if’’ after ‘‘state24 ment’’; and
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1 (B) by adding at the end the following new

2 clauses:

3 ‘‘(iv) Any agency that has contracted

4 with a non-Federal entity to operate a lab5 oratory may develop and provide to such

6 laboratory one or more model cooperative

7 research and development agreements, for

8 the purposes of standardizing practices

9 and procedures, resolving common legal

10 issues, and enabling review of cooperative

11 research and development agreements to

12 be carried out in a routine and prompt

13 manner.

14 ‘‘(v) A Federal agency may waive the

15 requirements of clause (i) or (ii) under

16 such circumstances as the agency considers

17 appropriate. However, the agency may not

18 take longer than 30 days to review and ap19 prove, request modifications to, or dis20 approve any proposed agreement or joint

21 work statement that it elects to receive.’’.
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1 SEC. 10. COOPERATIVE RESEARCH AND DEVELOPMENT OF

2 THE NATIONAL NUCLEAR SECURITY ADMIN3 ISTRATION.

4 (a) OBJECTIVE FOR OBLIGATION OF FUNDS.—It

5 shall be an objective of the Administrator of the National

6 Nuclear Security Administration to obligate funds for co7 operative research and development agreements (as that

8 term is defined in section 12(d)(1) of the Stevenson9 Wydler Technology Innovation Act of 1980 (15 U.S.C.

10 3710a(d)(1))), or similar cooperative, cost-shared research

11 partnerships with non-Federal organizations, in a fiscal

12 year covered by subsection (b) in an amount at least equal

13 to the percentage of the total amount appropriated for the

14 Administration for such fiscal year that is specified for

15 such fiscal year under subsection (b).

16 (b) FISCAL YEAR PERCENTAGES.—The percentages

17 of funds appropriated for the National Nuclear Security

18 Administration that are obligated in accordance with the

19 objective under subsection (a) are as follows:

20 (1) In each of fiscal years 2001 and 2002, 0.5

21 percent.

22 (2) In any fiscal year after fiscal year 2002, the

23 percentage recommended by the Administrator for

24 each such fiscal year in the report under subsection

25 (c).
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1 (c) RECOMMENDTIONS FOR PERCENTAGES IN LATER

2 FISCAL YEARS.—Not later than one year after the date

3 of the enactment of this Act, the Administrator shall sub4 mit to the congressional defense committees a report set5 ting forth the Administrator’s recommendations for appro6 priate percentages of funds appropriated for the National

7 Nuclear Security Administration to be obligated for agree8 ments described in subsection (a) during each fiscal year

9 covered by the report.

10 (d) CONSISTENCY OF AGREEMENTS.—Any agree11 ment entered into under this section shall be consistent

12 with and in support of the mission of the National Nuclear

13 Security Administration.

14 (e) REPORTS ON ACHIEVEMENT OF OBJECTIVE.—(1)

15 Not later than March 30, 2002, and each year thereafter,

16 the Administrator shall submit to the congressional de17 fense committees a report on whether funds of the Na18 tional Nuclear Security Administration were obligated in

19 the fiscal year ending in the preceding year in accordance

20 with the objective for such fiscal year under this section.

21 (2) If funds were not obligated in a fiscal year in ac22 cordance with the objective under this section for such fis23 cal year, the report under paragraph (1) shall—

24 (A) describe the actions the Administrator pro25 poses to take to ensure that the objective under this
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1 section for the current fiscal year and future fiscal

2 years will be met; and

3 (B) include any recommendations for legislation

4 required to achieve such actions.

Passed the Senate October 5 (legislative day, September 22), 2000.

Attest: GARY SISCO,

Secretary.