II 113th CONGRESS 1st Session S. 1698 IN THE SENATE OF THE UNITED STATES November 13, 2013 Mr. Markey introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To provide for the establishment of clean technology consortia to enhance the economic, environmental, and energy security of the United States by promoting domestic development, manufacture, and deployment of clean technologies.

1. Short title This Act may be cited as the Consortia-Led Energy and Advanced Manufacturing Networks Act . 2. Definitions In this Act: (1) Clean technology The term clean technology means a technology, production process, or methodology that— (A) produces energy from solar, wind, geothermal, biomass, tidal, wave, ocean, and other renewable energy sources (as defined in section 609 of the Public Utility Regulatory Policies Act of 1978 ( 7 U.S.C. 918c )); (B) more efficiently transmits, distributes, or stores energy; (C) enhances energy efficiency for buildings and industry, including combined heat and power; (D) enables the development of a Smart Grid (as described in section 1301 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17381 )), including integration of renewable energy sources and distributed generation, demand response, demand side management, and systems analysis; (E) produces an advanced or sustainable material with energy or energy efficiency applications; (F) improves energy efficiency for transportation, including electric vehicles; (G) enhances water security through improved water management, conservation, distribution, and end use applications; or (H) addresses challenges in advanced manufacturing and supply chain integration. (2) Cluster The term cluster means a network of entities directly involved in the research, development, finance, and commercial application of clean technologies whose geographic proximity facilitates the use and sharing of skilled human resources, infrastructure, research facilities, educational and training institutions, venture capital, and input suppliers. (3) Consortium The term consortium means a clean technology consortium established in accordance with this Act. (4) Project The term project means an activity with respect to which a consortium provides support under this Act. (5) Qualifying entity The term qualifying entity means— (A) a research university; (B) a Federal or State institution with a focus on developing clean technologies or clusters; and (C) a nongovernmental organization with expertise in translational research, clean technology, or cluster development. (6) Secretary The term Secretary means the Secretary of Commerce. (7) Translational research The term translational research means the coordination of basic or applied research with technical applications to enable promising discoveries or inventions to achieve commercial application. 3. Establishment of clean technology consortia program (a) In general The Secretary shall establish and carry out a program to establish clean technology consortia to enhance the economic, environmental, and energy security of the United States by promoting domestic development, manufacture, and deployment of clean, state-of-the-art technologies. (b) Program The Secretary shall carry out the program described in subsection (a) by leveraging the expertise and resources of private research communities, institutions of higher education, industry, venture capital, National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 ( 42 U.S.C. 15801 )), and other participants in technology innovation— (1) to support collaborative, cross-disciplinary research and development in areas not being served by the private sector; and (2) to develop and accelerate the commercial application of innovative clean technologies. (c) Role of the Secretary The Secretary shall— (1) carry out and oversee all aspects of the program described in subsection (a); (2) select recipients of grants for the establishment and operation of consortia through a competitive selection process; and (3) coordinate the innovation activities of consortia with activities carried out by the Secretary of Energy, the Secretary of Defense, other Federal agency heads, private industry, and academia, including by annually— (A) issuing guidance regarding national clean technology and development priorities and strategic objectives; and (B) convening a conference relating to clean technology, which shall bring together representatives of Federal agencies, private industry, academia, and other entities to share research and commercialization results, program plans, and opportunities for collaboration. 4. Applications (a) In general To receive support under this Act, a consortium shall submit to the Secretary an application in such manner, at such time, and containing such information as the Secretary determines to be necessary. (b) Eligibility A consortium shall be eligible to receive support under this Act if— (1) the consortium consists of— (A) 1 or more research universities that can demonstrate a significant annual clean technology research budget, entrepreneurial support programs, and technology licensing expertise; and (B) a total of 5 or more qualifying entities that can demonstrate expertise in translational research, clean technology, and cluster development; (2) the members of the consortium have established a binding agreement that documents— (A) the structure of the partnership agreement; (B) a governance and management structure that enables cost-effective implementation of the program; (C) a conflicts of interest policy; (D) an accounting structure that meets the requirements of the Secretary and that may be audited under this Act; and (E) the existence of an external advisory committee; (3) the consortium receives funding from non-Federal sources, such as a State and participants of the consortium, that may be used to support projects; (4) the consortium is part of an existing cluster or demonstrates high potential to develop a new cluster; and (5) the consortium operates as a nonprofit organization or as a public-private partnership under an operating agreement led by a nonprofit organization. (c) Selection The Secretary may disqualify an application from a consortium under this Act if the Secretary determines that the conflicts of interest policy of the consortium is inadequate. (d) External advisory committees (1) In general To be eligible to receive a grant under this Act, a consortium shall establish an external advisory committee, the members of which shall have extensive and relevant scientific, technical, industry, financial, or research management expertise. (2) Duties An external advisory committee shall— (A) review the proposed plans, programs, project selection criteria, and projects of the consortium; and (B) ensure that projects selected by the consortium meet the applicable conflicts of interest policy of the consortium. (3) Members An external advisory committee shall consist of— (A) the Secretary; (B) representatives of the members of the consortium; and (C) such representatives of private industry, including entrepreneurs and venture capitalists, as the Secretary and members of the consortium determine to be necessary. 5. Grants (a) In general The Secretary shall award grants, on a competitive basis, to 6 or more consortia. (b) Terms (1) In general The initial term of a grant awarded under this Act shall not exceed 5 years. (2) Extension The Secretary may extend the term of a grant awarded under this Act for a period of not more than 5 additional years. (c) Amounts (1) In general A grant awarded to a consortium under this Act shall not exceed— (A) $30,000,000 per fiscal year; or (B) the collective contributions of non-Federal entities to the consortium, as described in section 4(b)(3). (2) Flexibility In determining the amount of a grant under this section, the Secretary shall consider— (A) the translational research capacity of the consortium; (B) the financial, human, and facility resources of the qualifying entities; and (C) the cluster of which the consortium is a part. (3) Increases in amounts Subject to paragraph (1), a consortium may request an increase in the amount of a grant awarded under this Act at the time the consortium requests an extension of an initial grant. (d) Use of amounts (1) In general Subject to paragraph (3), a consortium awarded a grant under this Act shall use the amounts to support translational research, technology development, manufacturing innovation, and commercialization activities relating to clean technology. (2) Project selection As a condition of receiving a grant under this Act, a consortium shall— (A) develop and make available to the public on the website of the Department of Commerce proposed plans, programs, project selection criteria, and terms for individual project awards; (B) establish conflicts of interest procedures, consistent with those of the Department of Commerce, to ensure that employees and designees for consortium activities who are in decisionmaking capacities disclose all material conflicts of interest, including financial, organizational, and personal conflicts of interest; (C) establish policies— (i) to prevent resources provided to the consortium from being used to displace private sector investment otherwise likely to occur, including investment from private sector entities that are members of the consortium; (ii) to facilitate the participation of private entities that invest in clean technologies to perform due diligence on award proposals, to participate in the award review process, and to provide guidance to projects supported by the consortium; and (iii) to facilitate the participation of parties with a demonstrated history of commercial application of clean technologies in the development of consortium projects; (D) oversee project solicitations, review proposed projects, and select projects for awards; and (E) monitor project implementation. (3) Limitations (A) Administrative expenses A consortium may use not more than 10 percent of the amounts awarded to the consortium for administrative expenses. (B) Prohibition on use A consortium shall not use any amounts awarded to the consortium under this Act to construct a new building or facility. (e) Audits (1) In general A consortium that receives a grant under this Act shall carry out, in accordance with such requirements as the Secretary may prescribe, an annual audit to determine whether the grant has been used in accordance with this Act. (2) Report The consortium shall submit a copy of each audit under paragraph (1) to the Secretary and the Comptroller General of the United States. (3) GAO review As a condition of receiving a grant under this Act, a consortium shall allow the Comptroller General of the United States, on the request of the Comptroller General, full access to the books, records, and personnel of consortium. (4) Reports to Congress The Secretary shall submit to Congress annually a report that includes— (A) a copy of the audit described in paragraph (1); and (B) any recommendations of the Secretary relating to the clean technology consortia program. (f) Revocation of awards The Secretary shall have the authority— (1) to review grants awarded under this Act; and (2) to revoke a grant awarded under this Act if the Secretary determines that a consortium has used the grant in a manner that is not consistent with this Act. (g) Authorization of appropriations (1) In general There is authorized to be appropriated to the Secretary to carry out this section $100,000,000. (2) Rescission There is hereby rescinded, from appropriated discretionary funds that remain available to the Secretary for obligation as of the date of enactment of this Act, $100,000,000.