IIB 

113TH CONGRESS 

2D SESSION H. R. 5120 

IN THE SENATE OF THE UNITED STATES 

JULY 23, 2014 

Received; read twice and referred to the Committee on Energy and Natural 

Resources 

AN ACT 

To improve management of the National Laboratories, enhance technology commercialization, facilitate public-private partnerships, 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, 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

HR 5120 RFS

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Department of Energy Laboratory Modernization and 

4 Technology Transfer Act of 2014’’. 

5 (b) TABLE OF CONTENTS.—The table of contents of 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Savings clause. 

TITLE I—INNOVATION MANAGEMENT AT DEPARTMENT OF 

ENERGY 

Sec. 101. Under Secretary for Science and Energy. 

Sec. 102. Technology transfer assessment. 

Sec. 103. Sense of Congress. 

TITLE II—CROSS-SECTOR PARTNERSHIPS AND GRANT 

COMPETITIVENESS 

Sec. 201. Agreements for Commercializing Technology pilot program. 

Sec. 202. Public-private partnerships for commercialization. 

Sec. 203. Inclusion of early-stage technology demonstration in authorized technology transfer activities. 

Sec. 204. Funding competitiveness for institutions of higher education and 

other nonprofit institutions. 

Sec. 205. Participation in the Innovation Corps program. 

TITLE III—ASSESSMENT OF IMPACT 

Sec. 301. Report by Government Accountability Office. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 

9 (1) DEPARTMENT.—The term ‘‘Department’’ 

10 means the Department of Energy. 

11 (2) NATIONAL LABORATORIES.—The term ‘‘Na12 tional Laboratory’’ means a Department of Energy 

13 nonmilitary national laboratory, including— 

14 (A) Ames Laboratory; 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

HR 5120 RFS

1 (B) Argonne National Laboratory; 

2 (C) Brookhaven National Laboratory; 

3 (D) Fermi National Accelerator Labora4 tory; 

5 (E) Idaho National Laboratory; 

6 (F) Lawrence Berkeley National Labora7 tory; 

8 (G) National Energy Technology Labora9 tory; 

10 (H) National Renewable Energy Labora11 tory; 

12 (I) Oak Ridge National Laboratory; 

13 (J) Pacific Northwest National Labora14 tory; 

15 (K) Princeton Plasma Physics Laboratory; 

16 (L) Savannah River National Laboratory; 

17 (M) Stanford Linear Accelerator Center; 

18 (N) Thomas Jefferson National Accel19 erator Facility; and 

20 (O) any laboratory operated by the Na21 tional Nuclear Security Administration, but 

22 only with respect to the civilian energy activities 

23 thereof. 

24 (3) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Energy. 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

HR 5120 RFS

1 SEC. 3. SAVINGS CLAUSE. 

2 Nothing in this Act or an amendment made by this 

3 Act abrogates or otherwise affects the primary responsibil4 ities of any National Laboratory to the Department. 

5 TITLE I—INNOVATION MANAGE6 MENT AT DEPARTMENT OF 

7 ENERGY 

8 SEC. 101. UNDER SECRETARY FOR SCIENCE AND ENERGY. 

9 (a) IN GENERAL.—Section 202(b) of the Department 

10 of Energy Organization Act (42 U.S.C. 7132(b)) is 

11 amended— 

12 (1) by striking ‘‘Under Secretary for Science’’ 

13 each place it appears and inserting ‘‘Under Sec14 retary for Science and Energy’’; and 

15 (2) in paragraph (4)— 

16 (A) in subparagraph (F), by striking 

17 ‘‘and’’ at the end; 

18 (B) in subparagraph (G), by striking the 

19 period at the end and inserting a semicolon; 

20 and 

21 (C) by inserting after subparagraph (G) 

22 the following: 

23 ‘‘(H) establish appropriate linkages be24 tween offices under the jurisdiction of the 

25 Under Secretary; and 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

HR 5120 RFS

1 ‘‘(I) perform such functions and duties as 

2 the Secretary shall prescribe, consistent with 

3 this section.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Section 3164(b)(1) of the Department of 

6 Energy Science Education Enhancement Act (42 

7 U.S.C. 7381a(b)(1)) is amended by striking ‘‘Under 

8 Secretary for Science’’ and inserting ‘‘Under Sec9 retary for Science and Energy’’. 

10 (2) Section 641(h)(2) of the United States En11 ergy Storage Competitiveness Act of 2007 (42 

12 U.S.C. 17231(h)(2)) is amended by striking ‘‘Under 

13 Secretary for Science’’ and inserting ‘‘Under Sec14 retary for Science and Energy’’. 

15 SEC. 102. TECHNOLOGY TRANSFER ASSESSMENT. 

16 Not later than 180 days after the date of enactment 

17 of this Act, the Secretary shall transmit to the Committee 

18 on Science, Space, and Technology of the House of Rep19 resentatives and the Committee on Energy and Natural 

20 Resources of the Senate a report which shall include— 

21 (1) an assessment of the Department’s current 

22 ability to carry out the goals of section 1001 of the 

23 Energy Policy Act of 2005 (42 U.S.C. 16391), in24 cluding an assessment of the role and effectiveness 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

HR 5120 RFS

1 of the Technology Transfer Coordinator position; 

2 and 

3 (2) recommended departmental policy changes 

4 and legislative changes to section 1001 of the En5 ergy Policy Act of 2005 (42 U.S.C. 16391) to im6 prove the Department’s ability to successfully trans7 fer new energy technologies to the private sector. 

8 SEC. 103. SENSE OF CONGRESS. 

9 It is the sense of the Congress that— 

10 (1) the establishment of the independent Com11 mission to Review the Effectiveness of the National 

12 Energy Laboratories under section 319 of title III of 

13 division D of the Consolidated Appropriations Act, 

14 2014, is an important step towards developing a co15 ordinated strategy for the National Laboratories in 

16 the 21st century; 

17 (2) Congress looks forward to— 

18 (A) receiving the findings and conclusions 

19 of the Commission; and 

20 (B) engaging with the Administration— 

21 (i) in strengthening the mission of the 

22 National Laboratories; and 

23 (ii) to reform and modernize the oper24 ations and management of the National 

25 Laboratories; and 


rfrederick on DSK6VPTVN1PROD with BILLS
7 

HR 5120 RFS

1 (3) the Secretary should encourage the National 

2 Laboratories and federally funded research and de3 velopment centers to inform small businesses of the 

4 opportunities and resources that exist pursuant to 

5 this Act. 

6 TITLE II—CROSS-SECTOR PART7 NERSHIPS AND GRANT COM8 PETITIVENESS 

9 SEC. 201. AGREEMENTS FOR COMMERCIALIZING TECH10 NOLOGY PILOT PROGRAM. 

11 (a) IN GENERAL.—The Secretary shall carry out the 

12 Agreements for Commercializing Technology pilot pro13 gram of the Department, as announced by the Secretary 

14 on December 8, 2011, in accordance with this section. 

15 (b) TERMS.—Each agreement entered into pursuant 

16 to the pilot program referred to in subsection (a) shall 

17 provide to the contractor of the applicable National Lab18 oratory, to the maximum extent determined to be appro19 priate by the Secretary, increased authority to negotiate 

20 contract terms, such as intellectual property rights, pay21 ment structures, performance guarantees, and multiparty 

22 collaborations. 

23 (c) ELIGIBILITY.— 


rfrederick on DSK6VPTVN1PROD with BILLS
8 

HR 5120 RFS

1 (1) IN GENERAL.—Any director of a National 

2 Laboratory may enter into an agreement pursuant 

3 to the pilot program referred to in subsection (a). 

4 (2) AGREEMENTS WITH NON-FEDERAL ENTI5 TIES.—To carry out paragraph (1) and subject to 

6 paragraph (3), the Secretary shall permit the direc7 tors of the National Laboratories to execute agree8 ments with a non-Federal entity, including a non9 Federal entity already receiving Federal funding 

10 that will be used to support activities under agree11 ments executed pursuant to paragraph (1), provided 

12 that such funding is solely used to carry out the 

13 purposes of the Federal award. 

14 (3) RESTRICTION.—The requirements of chap15 ter 18 of title 35, United States Code (commonly 

16 known as the ‘‘Bayh-Dole Act’’) shall apply if— 

17 (A) the agreement is a funding agreement 

18 (as that term is defined in section 201 of that 

19 title); and 

20 (B) at least 1 of the parties to the funding 

21 agreement is eligible to receive rights under 

22 that chapter. 

23 (d) SUBMISSION TO SECRETARY.—Each affected di24 rector of a National Laboratory shall submit to the SecVerDate Mar 15 2010 03:45 Jul 24, 2014 Jkt 039060 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5120.RFS H5120

rfrederick on DSK6VPTVN1PROD with BILLS
9 

HR 5120 RFS

1 retary, with respect to each agreement entered into under 

2 this section— 

3 (1) a summary of information relating to the 

4 relevant project; 

5 (2) the total estimated costs of the project; 

6 (3) estimated commencement and completion 

7 dates of the project; and 

8 (4) other documentation determined to be ap9 propriate by the Secretary. 

10 (e) CERTIFICATION.—The Secretary shall require the 

11 contractor of the affected National Laboratory to certify 

12 that each activity carried out under a project for which 

13 an agreement is entered into under this section— 

14 (1) is not in direct competition with the private 

15 sector; and 

16 (2) does not present, or minimizes, any appar17 ent conflict of interest, and avoids or neutralizes any 

18 actual conflict of interest, as a result of the agree19 ment under this section. 

20 (f) EXTENSION.—The pilot program referred to in 

21 subsection (a) shall be extended for a term of 2 years after 

22 the date of enactment of this Act. 

23 (g) REPORTS.— 

24 (1) OVERALL ASSESSMENT.—Not later than 60 

25 days after the date described in subsection (f), the 


rfrederick on DSK6VPTVN1PROD with BILLS
10 

HR 5120 RFS

1 Secretary, in coordination with directors of the Na2 tional Laboratories, shall submit to the Committee 

3 on Science, Space, and Technology of the House of 

4 Representatives and the Committee on Energy and 

5 Natural Resources of the Senate a report that— 

6 (A) assesses the overall effectiveness of the 

7 pilot program referred to in subsection (a); 

8 (B) identifies opportunities to improve the 

9 effectiveness of the pilot program; 

10 (C) assesses the potential for program ac11 tivities to interfere with the responsibilities of 

12 the National Laboratories to the Department; 

13 and 

14 (D) provides a recommendation regarding 

15 the future of the pilot program. 

16 (2) TRANSPARENCY.—The Secretary, in coordi17 nation with directors of the National Laboratories, 

18 shall submit to the Committee on Science, Space, 

19 and Technology of the House of Representatives and 

20 the Committee on Energy and Natural Resources of 

21 the Senate an annual report that accounts for all 

22 incidences of, and provides a justification for, non23 Federal entities using funds derived from a Federal 

24 contract or award to carry out agreements pursuant 

25 to this section. 


rfrederick on DSK6VPTVN1PROD with BILLS
11 

HR 5120 RFS

1 SEC. 202. PUBLIC-PRIVATE PARTNERSHIPS FOR COMMER2 CIALIZATION. 

3 (a) IN GENERAL.—Subject to subsections (b) and (c), 

4 the Secretary shall delegate to directors of the National 

5 Laboratories signature authority with respect to any 

6 agreement described in subsection (b) the total cost of 

7 which (including the National Laboratory contributions 

8 and project recipient cost share) is less than $1,000,000. 

9 (b) AGREEMENTS.—Subsection (a) applies to— 

10 (1) a cooperative research and development 

11 agreement; 

12 (2) a non-Federal work-for-others agreement; 

13 and 

14 (3) any other agreement determined to be ap15 propriate by the Secretary, in collaboration with the 

16 directors of the National Laboratories. 

17 (c) ADMINISTRATION.— 

18 (1) ACCOUNTABILITY.—The director of the af19 fected National Laboratory and the affected con20 tractor shall carry out an agreement under this sec21 tion in accordance with applicable policies of the De22 partment, including by ensuring that the agreement 

23 does not compromise any national security, eco24 nomic, or environmental interest of the United 

25 States. 


rfrederick on DSK6VPTVN1PROD with BILLS
12 

HR 5120 RFS

1 (2) CERTIFICATION.—The director of the af2 fected National Laboratory and the affected con3 tractor shall certify that each activity carried out 

4 under a project for which an agreement is entered 

5 into under this section does not present, or mini6 mizes, any apparent conflict of interest, and avoids 

7 or neutralizes any actual conflict of interest, as a re8 sult of the agreement under this section. 

9 (3) AVAILABILITY OF RECORDS.—On entering 

10 an agreement under this section, the director of a 

11 National Laboratory shall submit to the Secretary 

12 for monitoring and review all records of the National 

13 Laboratory relating to the agreement. 

14 (4) RATES.—The director of a National Lab15 oratory may charge higher rates for services per16 formed under a partnership agreement entered into 

17 pursuant to this section, regardless of the full cost 

18 of recovery, if such funds are used exclusively to 

19 support further research and development activities 

20 at the respective National Laboratory. 

21 (d) CONFORMING AMENDMENT.—Section 12 of the 

22 Stevenson-Wydler Technology Innovation Act of 1980 (15 

23 U.S.C. 3710a) is amended— 

24 (1) in subsection (a)— 


rfrederick on DSK6VPTVN1PROD with BILLS
13 

HR 5120 RFS

1 (A) by redesignating paragraphs (1) and 

2 (2) as subparagraphs (A) and (B), respectively, 

3 and indenting the subparagraphs appropriately; 

4 (B) by striking ‘‘Each Federal agency’’ 

5 and inserting the following: 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), each Federal agency’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(2) EXCEPTION.—Notwithstanding paragraph 

10 (1), in accordance with section 202(a) of the Depart11 ment of Energy Laboratory Modernization and 

12 Technology Transfer Act of 2014, approval by the 

13 Secretary of Energy shall not be required for any 

14 technology transfer agreement proposed to be en15 tered into by a National Laboratory of the Depart16 ment of Energy, the total cost of which (including 

17 the National Laboratory contributions and project 

18 recipient cost share) is less than $1,000,000.’’; and 

19 (2) in subsection (b), by striking ‘‘subsection 

20 (a)(1)’’ each place it appears and inserting ‘‘sub21 section (a)(1)(A)’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
14 

HR 5120 RFS

1 SEC. 203. INCLUSION OF EARLY-STAGE TECHNOLOGY DEM2 ONSTRATION IN AUTHORIZED TECHNOLOGY 

3 TRANSFER ACTIVITIES. 

4 Section 1001 of the Energy Policy Act of 2005 (42 

5 U.S.C. 16391) is amended by— 

6 (1) redesignating subsection (g) as subsection 

7 (h); and 

8 (2) inserting after subsection (f) the following: 

9 ‘‘(g) EARLY-STAGE TECHNOLOGY DEMONSTRA10 TION.—The Secretary shall permit the directors of the Na11 tional Laboratories to use funds authorized to support 

12 technology transfer within the Department to carry out 

13 early-stage and pre-commercial technology demonstration 

14 activities to remove technology barriers that limit private 

15 sector interest and demonstrate potential commercial ap16 plications of any research and technologies arising from 

17 National Laboratory activities.’’. 

18 SEC. 204. FUNDING COMPETITIVENESS FOR INSTITUTIONS 

19 OF HIGHER EDUCATION AND OTHER NON20 PROFIT INSTITUTIONS. 

21 Section 988(b) of the Energy Policy Act of 2005 (42 

22 U.S.C. 16352(b)) is amended— 

23 (1) in paragraph (1), by striking ‘‘Except as 

24 provided in paragraphs (2) and (3)’’ and inserting 

25 ‘‘Except as provided in paragraphs (2), (3), and 

26 (4)’’; and 


rfrederick on DSK6VPTVN1PROD with BILLS
15 

HR 5120 RFS

1 (2) by adding at the end the following: 

2 ‘‘(4) EXEMPTION FOR INSTITUTIONS OF HIGH3 ER EDUCATION AND OTHER NONPROFIT INSTITU4 TIONS.— 

5 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

6 not apply to a research or development activity 

7 performed by an institution of higher education 

8 or nonprofit institution (as defined in section 4 

9 of the Stevenson-Wydler Technology Innovation 

10 Act of 1980 (15 U.S.C. 3703)). 

11 ‘‘(B) TERMINATION DATE.—The exemp12 tion under subparagraph (A) shall apply during 

13 the 6-year period beginning on the date of en14 actment of this paragraph.’’. 

15 SEC. 205. PARTICIPATION IN THE INNOVATION CORPS PRO16 GRAM. 

17 The Secretary may enter into an agreement with the 

18 Director of the National Science Foundation to enable re19 searchers funded by the Department to participate in the 

20 National Science Foundation Innovation Corps program. 


rfrederick on DSK6VPTVN1PROD with BILLS
16 

HR 5120 RFS

1 TITLE III—ASSESSMENT OF 

2 IMPACT 

3 SEC. 301. REPORT BY GOVERNMENT ACCOUNTABILITY OF4 FICE. 

5 Not later than 3 years after the date of enactment 

6 of this Act, the Comptroller General of the United States 

7 shall submit to Congress a report— 

8 (1) describing the results of the projects devel9 oped under sections 201, 202, and 203, including in10 formation regarding— 

11 (A) partnerships initiated as a result of 

12 those projects and the potential linkages pre13 sented by those partnerships with respect to na14 tional priorities and other taxpayer-funded re15 search; and 

16 (B) whether the activities carried out 

17 under those projects result in— 

18 (i) fiscal savings; 

19 (ii) expansion of National Laboratory 

20 capabilities; 

21 (iii) increased efficiency of technology 

22 transfers; or 

23 (iv) an increase in general efficiency 

24 of the National Laboratory system; and 


rfrederick on DSK6VPTVN1PROD with BILLS
17 

HR 5120 RFS

1 (2) assess the scale, scope, efficacy, and impact 

2 of the Department’s efforts to promote technology 

3 transfer and private sector engagement at the Na4 tional Laboratories, and make recommendations on 

5 how the Department can improve these activities. 

Passed the House of Representatives July 22, 2014. 

Attest: KAREN L. HAAS, 

Clerk. 


rfrederick on DSK6VPTVN1PROD with BILLS