I 
115TH CONGRESS 
1ST SESSION H. R. 3240 
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 me-
dium-sized manufacturers in implementing smart manufacturing pro-
grams, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2017 
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 con-
cerned 
A BILL 
To improve the productivity and energy efficiency of the 
manufacturing sector by directing the Secretary of En-
ergy, 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Smart Manufacturing 
Leadership Act’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) the industrial sector— 
(A) represents approximately 20 percent of 
the economy of the United States; 
(B) provides approximately 13 percent of 
employment in the United States; and 
(C) 
accounts 
for 
more 
than 
30,000,000,000,000,000 Btus of energy, a 
quantity that is equal to almost 1⁄3 of the en-
ergy consumption of the United States; 
(2) smart manufacturing is set to transform the 
manufacturing sector and the use by the manufac-
turing sector of energy, water, raw materials, and 
labor over the 10 years following the date of enact-
ment of this Act; 
(3) the transformation described in paragraph 
(2) will result in savings in electricity, natural gas, 
transportation fuels, chemical feedstocks, and many 
other fuels; 
(4) the interconnection of the many components 
of manufacturing within a manufacturing plant with 
other business functions within a company and 
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across companies within a supply chain will enable 
new production efficiencies; 
(5) the improvements in automation described 
in paragraph (4) are estimated to produce between 
$5,000,000,000 and $25,000,000,000 in energy sav-
ings per year across the manufacturing sector for 
electricity alone by 2035; 
(6) smart manufacturing technologies are esti-
mated to add between $10,000,000,000,000 and 
$15,000,000,000,000 to the global gross domestic 
product over 20 years following the date of enact-
ment of this Act; 
(7) market barriers exist to the widespread 
adoption of smart manufacturing practices by all 
sizes of firms and to the investment in smart manu-
facturing technologies, including lack of— 
(A) common communication protocols be-
tween smart manufacturing devices, which pre-
vents interoperability, reduces system effi-
ciencies, and stifles innovation; 
(B) common standards for storing and 
sharing information relating to energy con-
sumption and energy savings; 
(C) an open-access smart manufacturing 
platform that enables the networking of busi-
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ness and automation systems of multiple ven-
dors; and 
(D) common cybersecurity protocols and 
standards; 
(8) addressing the barriers described in para-
graph (7) is in the interest of the United States; 
(9) in response to the barriers described in 
paragraph (7), the Secretary of Energy is working 
with the private sector to reduce the market barriers 
through the development of voluntary protocols and 
standards; 
(10) there exist many technologies of which 
many domestic manufacturers are unaware that 
could— 
(A) improve the competitiveness of the do-
mestic manufacturers; and 
(B) reduce the environmental impacts of 
the domestic manufacturers; 
(11) Federal agency action can facilitate great-
er economic growth through outreach and engage-
ment in the smart manufacturing technology area; 
and 
(12) the United States would benefit from a 
concerted and focused effort to advance the adoption 
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of smart manufacturing throughout the manufac-
turing sector of the United States. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ENERGY MANAGEMENT SYSTEM.—The term 
‘‘energy management system’’ means a business 
management process based on standards of the 
American National Standards Institute that enables 
an organization to follow a systematic approach in 
achieving continual improvement of energy perform-
ance, including energy efficiency, security, use, and 
consumption. 
(2) INDUSTRIAL
ASSESSMENT
CENTER.—The 
term ‘‘industrial assessment center’’ means a center 
located at an institution of higher education that— 
(A) receives funding from the Department 
of Energy; 
(B) provides an in-depth assessment of 
small- and medium-sized manufacturer plant 
sites to evaluate the facilities, services, and 
manufacturing operations of the plant site; and 
(C) identifies opportunities for potential 
savings for small- and medium-sized manufac-
turer plant sites from energy efficiency improve-
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ments, waste minimization, pollution preven-
tion, and productivity improvement. 
(3) INFORMATION AND COMMUNICATION TECH-
NOLOGY.—The term ‘‘information and communica-
tion technology’’ means any electronic system or 
equipment (including the content contained in the 
system or equipment) used to create, convert, com-
municate, or duplicate data or information, including 
computer hardware, firmware, software, communica-
tion protocols, networks, and data interfaces. 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 101(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1001(a)). 
(5) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ has the meaning given the term 
in section 2 of the Energy Policy Act of 2005 (42 
U.S.C. 15801). 
(6) NORTH AMERICAN INDUSTRY CLASSIFICA-
TION SYSTEM.—The term ‘‘North American Indus-
try Classification System’’ means the standard used 
by Federal statistical agencies in classifying business 
establishments for the purpose of collecting, ana-
lyzing, and publishing statistical data relating to the 
business economy of the United States. 
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(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(8) SMALL AND MEDIUM MANUFACTURERS.— 
The term ‘‘small and medium manufacturers’’ 
means manufacturing firms— 
(A) classified in the North American In-
dustry Classification System as any of sectors 
31 through 33; 
(B) with gross annual sales of less than 
$100,000,000; 
(C) with fewer than 500 employees at the 
plant site; and 
(D) with annual energy bills totaling more 
than $100,000 and less than $2,500,000. 
(9) 
SMART
MANUFACTURING.—The 
term 
‘‘smart manufacturing’’ means advanced tech-
nologies in information, automation, monitoring, 
computation, sensing, modeling, and networking 
that— 
(A) digitally— 
(i) simulate manufacturing production 
lines; 
(ii) operate computer-controlled man-
ufacturing equipment; 
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(iii) monitor and communicate pro-
duction line status; and 
(iv) manage and optimize energy pro-
ductivity and cost throughout production; 
(B) model, simulate, and optimize the en-
ergy efficiency of a factory building; 
(C) monitor and optimize building energy 
performance; 
(D) model, simulate, and optimize the de-
sign of energy efficient and sustainable prod-
ucts, including the use of digital prototyping 
and additive manufacturing to enhance product 
design; 
(E) connect manufactured products in net-
works to monitor and optimize the performance 
of the networks, including automated network 
operations; and 
(F) digitally connect the supply chain net-
work. 
SEC. 4. DEVELOPMENT OF NATIONAL SMART MANUFAC-
TURING PLAN. 
(a) IN GENERAL.—Not later than 3 years after the 
date of enactment of this Act, the Secretary, in consulta-
tion with the National Academies, shall develop and com-
plete a national plan for smart manufacturing technology 
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development and deployment to improve the productivity 
and energy efficiency of the manufacturing sector of the 
United States. 
(b) CONTENT.— 
(1) IN GENERAL.—The plan developed under 
subsection (a) shall identify areas in which agency 
actions by the Secretary and other heads of relevant 
Federal agencies would— 
(A) facilitate quicker development, deploy-
ment, and adoption of smart manufacturing 
technologies and processes; 
(B) result in greater energy efficiency and 
lower environmental impacts for all American 
manufacturers; and 
(C) enhance competitiveness and strength-
en the manufacturing sectors of the United 
States. 
(2) INCLUSIONS.—Agency actions identified 
under paragraph (1) shall include— 
(A) an assessment of previous and current 
actions of the Department of Energy relating to 
smart manufacturing; 
(B) the establishment of voluntary inter-
connection protocols and performance stand-
ards; 
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(C) deployment of existing research re-
sults; and 
(D) the leveraging of existing high-per-
formance computing infrastructure. 
(c) BIENNIAL REVISIONS.—Not later than 2 years 
after the date on which the Secretary completes the plan 
under subsection (a), and not less frequently than once 
every 2 years thereafter, the Secretary shall revise the 
plan to account for advancements in information and com-
munication technology and manufacturing needs. 
(d) REPORT.—Annually until the completion of the 
plan under subsection (a), the Secretary shall submit to 
Congress a report on the progress made in developing the 
plan. 
(e) FUNDING.—The Secretary shall use unobligated 
funds of the Department of Energy to carry out this sec-
tion. 
SEC. 5. LEVERAGING EXISTING AGENCY PROGRAMS TO AS-
SIST SMALL AND MEDIUM MANUFACTURERS. 
(a) FINDINGS.—Congress finds that— 
(1) the Department of Energy has existing 
technical assistance programs that facilitate greater 
economic growth through outreach to and engage-
ment with small and medium manufacturers; 
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(2) those technical assistance programs rep-
resent an important conduit for increasing the 
awareness of and providing education to small and 
medium manufacturers regarding the opportunities 
for implementing smart manufacturing; and 
(3) those technical assistance programs help fa-
cilitate the implementation of best practices. 
(b) EXPANSION OF TECHNICAL ASSISTANCE PRO-
GRAMS.—The Secretary shall expand the scope of tech-
nologies covered by the Industrial Assessment Centers of 
the Department of Energy— 
(1) to include smart manufacturing technologies 
and practices; and 
(2) to equip the directors of the Industrial As-
sessment Centers with the training and tools nec-
essary to provide technical assistance in smart man-
ufacturing technologies and practices, including en-
ergy management systems, to manufacturers. 
(c) FUNDING.—The Secretary shall use unobligated 
funds of the Department of Energy to carry out this sec-
tion. 
SEC. 6. LEVERAGING SMART MANUFACTURING INFRA-
STRUCTURE AT NATIONAL LABORATORIES. 
(a) STUDY.— 
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(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall conduct a study on how the Department 
of Energy can increase access to existing high-per-
formance computing resources in the National Lab-
oratories, particularly for small and medium manu-
facturers. 
(2) INCLUSIONS.—In identifying ways to in-
crease access to National Laboratories under para-
graph (1), the Secretary shall— 
(A) focus on increasing access to the com-
puting facilities of the National Laboratories; 
and 
(B) ensure that— 
(i) the information from the manufac-
turer is protected; and 
(ii) the security of the National Lab-
oratory facility is maintained. 
(3) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall 
submit to Congress a report describing the results of 
the study. 
(b) ACTIONS FOR INCREASED ACCESS.—The Sec-
retary shall facilitate access to the National Laboratories 
studied under subsection (a) for small and medium manu-
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facturers so that small and medium manufacturers can 
fully use the high-performance computing resources of the 
National Laboratories to enhance the manufacturing com-
petitiveness of the United States. 
SEC. 7. STATE LEADERSHIP GRANTS. 
(a) FINDING.—Congress finds that the States— 
(1) are committed to promoting domestic manu-
facturing and supporting robust economic develop-
ment activities; and 
(2) are uniquely positioned to assist manufac-
turers, particularly small and medium manufactur-
ers, with deployment of smart manufacturing 
through the provision of infrastructure, including— 
(A) access to shared supercomputing facili-
ties; 
(B) assistance in developing process sim-
ulations; and 
(C) conducting demonstrations of the bene-
fits of smart manufacturing. 
(b) GRANTS
AUTHORIZED.—The Secretary may 
make grants on a competitive basis to States for estab-
lishing State programs to be used as models for sup-
porting the implementation of smart manufacturing tech-
nologies. 
(c) APPLICATION.— 
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(1) IN GENERAL.—To be eligible to receive a 
grant under this section, a State shall submit to the 
Secretary an application at such time, in such man-
ner, and containing such information as the Sec-
retary may require. 
(2) CRITERIA.—The Secretary shall evaluate an 
application for a grant under this section on the 
basis of merit using criteria identified by the Sec-
retary, including— 
(A) the breadth of academic and private 
sector partners; 
(B) alternate sources of funding; 
(C) plans for dissemination of results; and 
(D) the permanence of the infrastructure 
to be put in place by the project. 
(d) REQUIREMENTS.— 
(1) TERM.—The term of a grant under this 
section shall not exceed 3 years. 
(2) MAXIMUM
AMOUNT.—The amount of a 
grant under this section shall be not more than 
$3,000,000. 
(3) MATCHING
REQUIREMENT.—Each State 
that receives a grant under this section shall con-
tribute matching funds in an amount equal to not 
less than 30 percent of the amount of the grant. 
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(e) USE OF FUNDS.— 
(1) IN GENERAL.—A State shall use a grant 
provided under this section— 
(A) to provide access to shared supercom-
puting facilities to small and medium manufac-
turers; 
(B) to fund research and development of 
transformational manufacturing processes and 
materials technology that advance smart manu-
facturing; and 
(C) to provide tools and training to small 
and medium manufacturers on how to adopt en-
ergy management systems and implement smart 
manufacturing technologies in the facilities of 
the small and medium manufacturers. 
(f) EVALUATION.—The Secretary shall conduct bian-
nual evaluations of each grant made under this section— 
(1) to determine the impact and effectiveness of 
programs funded with the grant; and 
(2) to provide guidance to States on ways to 
better execute the program of the State. 
(g) FUNDING.—There is authorized to be appro-
priated to the Secretary to carry out this section 
$10,000,000 for each of fiscal years 2018 through 2021. 
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SEC. 8. REPORT. 
The Secretary annually shall submit to Congress and 
make publicly available a report on the progress made in 
advancing smart manufacturing in the United States. 
Æ 
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