SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Our Economy Through 
Small Business Innovation Act of 2008''.

SEC. 2. SENSE OF THE SENATE.

    It is the sense of the Senate that--
            (1) this Nation's small businesses are the source of nearly 
        50 percent of our country's employment;
            (2) small businesses have been and are a leading source of 
        this country's innovation and entrepreneurial strategies and 
        skills;
            (3) small technology businesses tend to be highly 
        innovative, play a substantial role in technological 
        advancement, and contribute to the standard of living in this 
        country;
            (4) the SBIR and STTR programs can result and have resulted 
        in the development and commercialization of new products and 
        processes;
            (5) the Federal Government should give particular 
        encouragement to small businesses that address priority 
        national interests, including water security, energy 
        innovation, transportation efficiencies and domestic security 
        needs; and
            (6) the SBIR and STTR programs should be extended for these 
        purposes and the administrative costs associated with such 
        extensions should be borne by the respective Federal 
        departments and agencies.

SEC. 3. EXTENSION OF TERMINATION DATES.

    (a) SBIR.--Section 9(m) of the Small Business Act (15 U.S.C. 
638(m)) is amended by striking ``2008'' and inserting ``2022''.
    (b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 
638(n)(1)(A)) is amended by striking ``2009'' and inserting ``2023''.

SEC. 4. INCREASE IN THE ALLOCATION OF FEDERAL AGENCY GRANTS FOR SBIR 
              AND STTR PROGRAMS.

    (a) SBIR Program Expenditures.--Section 9(f)(1) of the Small 
Business Act (15 U.S.C. 638(f)(1)) is amended by striking subparagraphs 
(A) through (C) and inserting the following:
            ``(1) not less than 2.5 percent of such budget in fiscal 
        year 2008;
            ``(2) not less than 5.0 percent of such budget in fiscal 
        year 2009;
            ``(3) not less than 7.5 percent of such budget in fiscal 
        year 2010; and
            ``(4) not less than 10.0 percent of such budget in fiscal 
        year 2011 and each fiscal year thereafter,''.
    (b) STTR Program Expenditures.--Section 9(n)(1)(B) of the Small 
Business Act (15 U.S.C. 638(n)(1)(B)) is amended by striking clauses 
(i) and (ii) and inserting the following:
                            ``(i) not less than 0.3 percent in fiscal 
                        year 2008;
                            ``(ii) not less than 0.6 percent in fiscal 
                        year 2009;
                            ``(iii) not less than 0.8 percent in fiscal 
                        year 2010; and
                            ``(iv) not less than 1.0 percent in fiscal 
                        year 2011 and each fiscal year thereafter.''.

SEC. 5. INCREASED SBIR AND STTR AWARD LEVELS.

    (a) SBIR Award Level.--Section 9(j)(2)(D) of the Small Business Act 
(15 U.S.C. 638(j)(2)(D)) is amended--
            (1) by striking ``$100,000'' and inserting ``$300,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$2,200,000''.
    (b) STTR Award Level.--Section 9(p)(2)(B)(ix) of the Small Business 
Act (15 U.S.C. 638(p)(2)(B)(ix)) is amended--
            (1) by striking ``$100,000'' and inserting ``$300,000''; 
        and
            (2) by striking ``$750,000'' and inserting ``$2,200,000''.

SEC. 6. INCLUSION OF ENERGY, SECURITY, TRANSPORTATION, AND WATER 
              RELATED RESEARCH IN THE LIST OF TOPICS DESERVING SPECIAL 
              CONSIDERATION AS SBIR RESEARCH TOPICS.

    Section 9(g)(3) of the Small Business Act (15 U.S.C. 638(g)(3)) is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``or pressing research priorities'' after ``critical 
        technologies'';
            (2) in subparagraph (A) by striking ``or'' at the end; and
            (3) by adding at the end the following:
                    ``(C) the National Academy of Sciences in the final 
                report issued by the America's Energy Future: 
                Technology Opportunities, Risks, and Tradeoffs project 
                that relate to emerging renewable energy, energy 
                efficiency, or renewable fuels technologies, or in 
                subsequent reports relating to such technologies;
                    ``(D) the National Academy of Sciences in the final 
                report issued by the Transit Research and Development: 
                Federal Role in the National Program project, the 
                Research and Innovative Technology Administration of 
                the Department of Transportation in the report entitled 
                `Transportation Research, Development and Technology 
                Strategic Plan (2006-2010)', or the National Academy of 
                Sciences or the Department of Transportation in 
                subsequent reports relating to transportation and 
                infrastructure;
                    ``(E) the Committee on Water System Security 
                Research of the National Academy of Sciences in the 
                2007 report by the committee, entitled `Improving the 
                Nation's Water Security; Opportunities for Research' or 
                the 2006 report by the committee, entitled `Public 
                Water Distribution Systems: Assessing and Reducing 
                Risks', or by the National Academy of Sciences or the 
                Environmental Protection Agency in subsequent reports 
                relating to improving the Nation's water supply and 
                security;
                    ``(F) the Government Accountability Office, in--
                            ``(i) the report entitled `Homeland 
                        Security: First Responders' Ability to Detect 
                        and Model Hazardous Releases in Urban Areas Is 
                        Significantly Limited', GAO-08-180, issued June 
                        27, 2008;
                            ``(ii) the report entitled `Nuclear 
                        Security: NRC and DHS Need to Take Additional 
                        Steps to Better Track and Detect Radioactive 
                        Materials', GAO-08-598, issued June 19, 2008; 
                        or
                            ``(iii) the report entitled `Supply Chain 
                        Security: Challenges to Scanning 100 Percent of 
                        U.S.-Bound Cargo Containers', GAO-08-533T, 
                        issued June 12, 2008; or
                    ``(G) the National Academy of Science, in the 
                report entitled `Toward a Safer and More Secure 
                Cyberspace' or in subsequent reports by the National 
                Academy of Science relating to cybersecurity and which 
                shall include cybersecurity technologies also designed 
                to protect privacy;''.

SEC. 7. OFFSET.

    The Secretary of Defense shall terminate the Airborne Laser 
program.
Output: Strengthening Our Economy Through Small Business Innovation Act of 2008 - Amends the Small Business Act to extend: (1) the Small Business Innovation Research (SBIR) program through FY2022; and (2) the Small Business Technology Transfer (STTR) program through FY2023.

Increases, for FY2009 and thereafter, the percentage allocation of a federal agency's annual extramural research and development budget that may be allocated to SBIR and STTR programs.

Increases, for both the SBIR and STTR programs, the individual small business award levels for program participation at phase one and two levels.

Includes energy, security, transportation, and water related research topics as "special consideration" SBIR research topics.

Directs the Secretary of Defense to terminate the Airborne Laser program.