< Back to S. 1468 (113th Congress, 2013–2015)

Text of the Revitalize American Manufacturing and Innovation Act of 2014

This bill was introduced on April 9, 2014, in a previous session of Congress, but was not enacted. The text of the bill below is as of Aug 26, 2014 (Reported by Senate Committee).

II

Calendar No. 547

113th CONGRESS

2d Session

S. 1468

[Report No. 113–247]

IN THE SENATE OF THE UNITED STATES

August 1, 2013

(for himself, Mr. Blunt, Mr. Graham, Ms. Stabenow, Mr. Schumer, Mr. Kirk, Mr. Coons, Ms. Collins, Mr. King, Mr. Wicker, Mr. Levin, Mr. Reed, Mr. Boozman, Mr. Rockefeller, Ms. Ayotte, and Mr. Udall of New Mexico) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

August 26, 2014

Reported, under authority of the order of the Senate of August 5 (legislative day, August 1), 2014, by , with an amendment

Strike out all after the enacting clause and insert the part printed in italic

A BILL

To require the Secretary of Commerce to establish the Network for Manufacturing Innovation and for other purposes.

1.

Short title

This Act may be cited as the Revitalize American Manufacturing and Innovation Act of 2013 .

2.

Findings

Congress finds the following:

(1)

In 2011, manufacturing contributed $1,800,000,000,000 to the Nation’s economy and accounted for 47 percent of all United States exports.

(2)

If ranked as its own country, the United States manufacturing sector would be the 10th largest economy in the world.

(3)

American manufacturers employ more than 11,000,000,000 Americans in jobs with wages and benefits that are one-third higher than the wages and benefits in other sectors.

(4)

Manufacturing has the highest multiplier effect, with every dollar in final sales of manufactured products resulting in $1.34 in output from other sectors.

(5)

As the source of nearly one-third of the United States investment in research and development manufacturing, firms drive innovation in the United States.

(6)

Countries such as Korea, Japan, and Germany have a larger share of the advanced manufacturing sector than the United States. Each of these countries has a positive trade balance in advanced manufacturing products. In contrast, the United States had an $81,000,000,000 trade deficit in 2010.

(7)

The United States share of research and development spending dropped from 43.1 percent in 1998 to 37.3 percent in 2008, while China’s share of research and development spending increased from 3 percent to 11.4 percent during the same period.

(8)

According to a survey by the Council on Competitiveness, chief executive officers view the quality and availability of scientists, researchers, and engineers and the quality and availability of skilled production workers as the first and second most important drivers of competitiveness.

(9)

According to the Organization for Economic Co-Operation and Development, the United States ranked 27th out of 29 developed countries in the percentage of students who earned bachelor’s degrees in science and engineering in 2009.

(10)

Colleges in China and India award more 4-year engineering bachelor’s degrees than United States colleges.

3.

Establishment of Network for Manufacturing Innovation

The National Institute of Standards and Technology Act (15 U.S.C. 271 et seq.) is amended—

(1)

by redesignating section 34 as section 35; and

(2)

by inserting after section 33 (15 U.S.C. 278r) the following:

34.

Network for Manufacturing Innovation

(a)

Establishment of Network for Manufacturing Innovation Program

(1)

In general

The Secretary of Commerce shall establish within the Institute a program to be known as the Network for Manufacturing Innovation Program (referred to in this section as the Program).

(2)

Purposes of program

The purposes of the Program are—

(A)

to improve the competitiveness of United States manufacturing and to increase domestic production;

(B)

to stimulate United States leadership in advanced manufacturing research, innovation, and technology;

(C)

to facilitate the transition of innovative technologies into scalable, cost-effective, and high-performing manufacturing capabilities;

(D)

to facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance computing, in order to improve the speed with which such enterprises commercialize new processes and technologies;

(E)

to accelerate the development of an advanced manufacturing workforce;

(F)

to facilitate peer exchange of and the documentation of best practices in addressing advanced manufacturing challenges; and

(G)

to leverage non-Federal sources of support to promote a stable and sustainable business model without the need for long-term Federal funding.

(3)

Support

The Secretary, acting through the Director, shall carry out the purposes set forth in paragraph (2) by supporting—

(A)

the Network for Manufacturing Innovation established under subsection (b); and

(B)

the establishment of centers for manufacturing innovation.

(4)

Director

The Secretary shall carry out the Program through the Director.

(b)

Establishment of Network for Manufacturing Innovation

(1)

In general

As part of the Program, the Secretary of Commerce shall establish a network of centers for manufacturing innovation.

(2)

Designation

The network established under paragraph (1) shall be known as the Network for Manufacturing Innovation (referred to in this section as the Network).

(c)

Centers for manufacturing innovation

(1)

In general

For purposes of this section, a center for manufacturing innovation is a center that—

(A)

has been established by a person to address challenges in advanced manufacturing and to assist manufacturers in retaining or expanding industrial production and jobs in the United States;

(B)

has a predominant focus on a manufacturing process, novel material, enabling technology, supply chain integration methodology, or another relevant aspect of advanced manufacturing, as determined by the Secretary, with the potential—

(i)

to improve the competitiveness of United States manufacturing;

(ii)

to accelerate investment in advanced manufacturing production capacity in the United States; and

(iii)

to enable the commercial application of new technologies or industry-wide manufacturing processes; and

(C)

includes active participation among representatives from multiple industrial entities, research universities, community colleges, and such other entities as the Secretary considers appropriate, which may include career and technical education schools, Federal laboratories, State, local, and tribal governments, businesses, educational institutions, and nonprofit organizations.

(2)

Activities

Activities of a center for manufacturing innovation may include the following:

(A)

Research, development, and demonstration projects, including proof-of-concept development and prototyping, to reduce the cost, time, and risk of commercializing new technologies and improvements in existing technologies, processes, products, and research and development of materials to solve pre-competitive industrial problems with economic or national security implications.

(B)

Development and implementation of education and training courses, materials, and programs.

(C)

Development of innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains.

(D)

Outreach and engagement with small- and medium-sized manufacturing enterprises, in addition to large manufacturing enterprises.

(E)

Such other activities as the Secretary, in consultation with Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing, considers consistent with the purposes described in subsection (a)(2).

(3)

Additional centers for manufacturing innovation

The National Additive Manufacturing Innovation Institute and pending manufacturing centers under interagency review shall be considered centers for manufacturing innovation.

(d)

Financial assistance To establish and support centers for manufacturing innovation

(1)

In general

In carrying out the Program, the Secretary of Commerce shall award financial assistance to a person to assist the person in planning, establishing, or supporting a center for manufacturing innovation.

(2)

Application

A person seeking financial assistance under paragraph (1) shall submit to the Secretary an application therefor at such time, in such manner, and containing such information as the Secretary may require.

(3)

Open process

In soliciting applications for financial assistance under paragraph (1), the Secretary shall ensure an open process that will allow for the consideration of all applications relevant to advanced manufacturing regardless of technology area.

(4)

Selection

(A)

Competitive, merit review

In awarding financial assistance under paragraph (1), the Secretary shall use a competitive, merit review process.

(B)

Collaboration

In awarding financial assistance under paragraph (1), the Secretary shall, acting through the National Program Office established under subsection (e)(1), collaborate with Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing.

(C)

Considerations

In selecting a person who submitted an application under paragraph (2) for an award of financial assistance under paragraph (1) the Secretary shall consider, at a minimum, the following:

(i)

The potential of the center for manufacturing innovation to advance domestic manufacturing and the likelihood of economic impact in the predominant focus areas of the center for manufacturing innovation.

(ii)

The commitment of continued financial support, advice, participation, and other contributions from non-Federal sources, to provide leverage and resources to promote a stable and sustainable business model without the need for long-term Federal funding.

(iii)

How the center for manufacturing innovation will engage with small- and medium-sized manufacturing enterprises, to improve the capacity of such enterprises to commercialize new processes and technologies.

(iv)

How the center for manufacturing innovation will carry out educational and workforce activities that meet industrial needs related to the predominant focus areas of the center for manufacturing innovation.

(v)

How the center for manufacturing innovation will advance economic competitiveness.

(vi)

How the center for manufacturing innovation will strengthen and leverage the assets of a region.

(5)

Limitation on period for awards

No award of financial assistance may be made under paragraph (1) to a center of manufacturing innovation after the 7-year period beginning on the date on which the Secretary first awards financial assistance to a center under such paragraph.

(e)

National Program Office

(1)

Establishment

The Secretary of Commerce shall establish, within the Institute, the National Office of the Network for Manufacturing Innovation Program (referred to in this section as the National Program Office), which shall oversee and carry out the Program.

(2)

Functions

The functions of the National Program Office are—

(A)

to oversee the planning, management, and coordination of the Program;

(B)

to enter into memorandums of understanding with Federal departments and agencies, whose missions contribute to or are affected by advanced manufacturing, to carry out the purposes described in subsection (a)(2);

(C)

to develop, not later than 1 year after the date of the enactment of the Revitalize American Manufacturing and Innovation Act of 2013, and update not less frequently than once every 3 years thereafter, a strategic plan to guide the Program;

(D)

to establish such procedures, processes, and criteria as may be necessary and appropriate to maximize cooperation and coordinate the activities of the Program with programs and activities of other Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing;

(E)

to establish a clearinghouse of public information related to the activities of the Program; and

(F)

to act as a convener of the Network.

(3)

Recommendations

In developing and updating the strategic plan under paragraph (2)(C), the Secretary shall solicit recommendations and advice from a wide range of stakeholders, including industry, small- and medium-sized manufacturing enterprises, research universities, community colleges, and other relevant organizations and institutions.

(4)

Report to congress

The Secretary shall transmit the strategic plan required under paragraph (2)(C) to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives.

(5)

Hollings Manufacturing Extension Partnership

The Secretary shall ensure that the National Program Office incorporates the Hollings Manufacturing Extension Partnership into Program planning to ensure that the results of the Program reach small- and medium-sized entities.

(6)

Detailees

Any Federal Government employee may be detailed to the National Program Office without reimbursement. Such detail shall be without interruption or loss of civil service status or privilege.

(f)

Reporting and auditing

(1)

Annual reports to the Secretary

(A)

In general

The Secretary of Commerce shall require recipients of financial assistance under subsection (d)(1) to annually submit a report to the Secretary that describes the finances and performance of the center for manufacturing innovation for which such assistance was awarded.

(B)

Elements

Each report submitted under subparagraph (A) shall include—

(i)

an accounting of expenditures of amounts awarded to the recipient under subsection (d)(1); and

(ii)

a description of the performance of the center for manufacturing innovation with respect to—

(I)

its goals, plans, financial support, and accomplishments; and

(II)

how the center for manufacturing innovation has furthered the purposes described in subsection (a)(2).

(2)

Annual reports to Congress

(A)

In general

Not less frequently than once each year, the Secretary shall submit a report to Congress that describes the performance of the Program during the most recent 1-year period.

(B)

Elements

Each report submitted under subparagraph (A) shall include, for the period covered by the report—

(i)

a summary and assessment of the reports received by the Secretary under paragraph (1);

(ii)

an accounting of the funds expended by the Secretary under the Program; and

(iii)

an assessment of the Program with respect to the purposes described in subsection (a)(2).

(3)

Triennial assessment by GAO

(A)

In general

Not less frequently than once every 3 years, the Comptroller General of the United States shall submit to Congress an assessment of the operation of the Program during the most recent 3-year period.

(B)

Elements

Each assessment submitted under subparagraph (A) shall include, for the period covered by the report—

(i)

a review of the management, coordination, and industry utility of the Program;

(ii)

an assessment of the extent to which the Program has furthered the purposes described in subsection (a)(2); and

(iii)

such recommendations for legislative and administrative action as the Comptroller General considers appropriate to improve the Program.

(g)

Additional authorities

(1)

Appointment of personnel and contracts

The Secretary of Commerce may appoint such personnel and enter into such contracts, financial assistance agreements, and other agreements as the Secretary considers necessary or appropriate to carry out the Program including support for research and development activities involving a center for manufacturing innovation.

(2)

Transfer of funds

The Secretary may transfer to other Federal agencies such sums as the Secretary considers necessary or appropriate to carry out the Program.

(3)

Authority of other agencies

In the event that the Secretary exercises the authority to transfer funds to another agency under paragraph (2), such agency may award and administer all aspects of financial assistance awards under this section.

(4)

Use of resources

In furtherance of the purposes of the Program, the Secretary may use, with the consent of a covered entity and with or without reimbursement, the land, services, equipment, personnel, and facilities of such covered entity.

(5)

Acceptance of resources

In addition to amounts appropriated to carry out the Program, the Secretary may accept funds, services, equipment, personnel, and facilities from any covered entity to carry out the Program.

(6)

Covered entity

For purposes of this subsection, a covered entity is any Federal department, Federal agency, instrumentality of the United States, State, local government, tribal government, Territory or possession of the United States, or of any political subdivision thereof, or international organization, or any public or private entity or individual.

(h)

Patents

Chapter 18 of title 35, United States Code, shall not apply if financial assistance is awarded under this section solely for the purpose of planning, establishing, or supporting new or existing centers for manufacturing innovation.

(i)

Funding

(1)

Network for Manufacturing Innovation Fund

(A)

Establishment

There is established in the Treasury of the United States a fund to be known as the Network for Manufacturing Innovation Fund (referred to in this paragraph as the Fund).

(B)

Elements

There shall be deposited in the Fund, which shall constitute the assets of the Fund, amounts appropriated or otherwise made available to carry out the Program.

(C)

Availability

Amounts deposited in the Fund shall be available to the Secretary of Commerce, at the discretion of the Secretary, or the Secretary’s delegee, to carry out the Program without further appropriation and without fiscal year limitation.

(2)

Authorization of appropriations

There is authorized to be appropriated $600,000,000 to the Secretary of Commerce to carry out this section.

(3)

Administrative expenses

The Secretary of Commerce may use not more than 5 percent of the amounts appropriated pursuant to paragraph (2) to pay the salaries, expenses, and other administrative costs incurred by the Secretary under this section.

(4)

Rescission

There is hereby rescinded, from appropriated discretionary funds that remain available for obligation as of the date of the enactment of this Act, $600,000,000.

.

4.

Report

(a)

Defined term

In this section, the term rare earth monopoly means the domination of the market for rare earth elements, including—

(1)

rare earth oxides, metals, alloys, and magnets;

(2)

integrated systems that include rare earth components, including wind turbines, motors, and catalysts for green technology lighting and transportation in commercial products; and

(3)

oxide, metal, or alloy-based rare earth materials, magnets, components and systems for guided ordinance, stealth and drone technologies, interrogating and targeting lasers, radar, sonar, and weapons systems used by the United States military.

(b)

Survey

The Secretary of Commerce shall conduct a survey that—

(1)

measures the economic impact of China's rare earth monopoly on the United States and other affected nations to determine the magnitude of economic and intellectual property loss resulting from China's rare earth monopoly; and

(2)

looks beyond gross economic figures of value added goods and identifies specific technologies, industries, and defense systems that are now primarily produced in, or are likely to relocate or migrate to, China.

(c)

Report

Not later than 1 year after the date of the enactment of this Act, the Secretary of Commerce shall submit a report to Congress that contains the results of the survey conducted under subsection (a). The report shall contain recommendations on how the United States should—

(1)

initiate direct dialogue with affected nations to assess the short- and long-term economic consequences of China's rare earth monopoly and related trade practices; and

(2)

promote cooperative resolutions to facilitate partnership structures that will offset imbalances caused by China's rare earth monopoly.

1.

Short title

This Act may be cited as the Revitalize American Manufacturing and Innovation Act of 2014 .

2.

Findings

Congress finds the following:

(1)

In 2011, manufacturing contributed $1,800,000,000,000 to the Nation’s economy and accounted for 47 percent of all United States exports.

(2)

If ranked as its own country, the United States manufacturing sector would be the 10th largest economy in the world.

(3)

American manufacturers employ more than 11,000,000 Americans in jobs with wages and benefits that are one-third higher than the wages and benefits in other sectors.

(4)

Manufacturing has the highest multiplier effect, with every dollar in final sales of manufactured products resulting in $1.34 in output from other sectors.

(5)

As the source of nearly one-third of the United States investment in research and development, manufacturing firms drive innovation in the United States.

(6)

Countries such as Korea, Japan, and Germany have a larger share of the advanced manufacturing sector than the United States. Each of these countries has a positive trade balance in advanced manufacturing products. In contrast, the United States had an $81,000,000,000 trade deficit in goods with advanced technology products in 2013.

(7)

The United States share of research and development spending dropped from 43.1 percent in 1998 to 37.3 percent in 2008, while China’s share of research and development spending increased from 3 percent to 11.4 percent during the same period.

(8)

According to a survey by the Council on Competitiveness, chief executive officers view the quality and availability of scientists, researchers, and engineers and the quality and availability of skilled production workers as the first and second most important drivers of competitiveness.

(9)

According to the Organization for Economic Co-Operation and Development, the United States ranked 27th out of 29 developed countries in the percentage of students who earned bachelor’s degrees in science and engineering in 2009.

(10)

Colleges in China and India award more 4-year engineering bachelor’s degrees than United States colleges.

3.

Establishment of Network for Manufacturing Innovation

(a)

In general

The National Institute of Standards and Technology Act ( 15 U.S.C. 271 et seq. ) is amended—

(1)

by redesignating section 34 as section 35; and

(2)

by inserting after section 33 ( 15 U.S.C. 278r ) the following:

34.

Network for Manufacturing Innovation

(a)

Establishment of Network for Manufacturing Innovation Program

(1)

In general

The Secretary of Commerce shall establish within the Institute a program to be known as the Network for Manufacturing Innovation Program (referred to in this section as the Program).

(2)

Purposes of program

The purposes of the Program are—

(A)

to improve measurably the competitiveness of United States manufacturing and to increase domestic production;

(B)

to stimulate United States leadership in advanced manufacturing research, innovation, and technology that has a strong potential to generate substantial benefits to the Nation that extend significantly beyond the direct return to participants in the Program;

(C)

to facilitate the transition of innovative and transformative technologies into scalable, cost-effective, and high-performing manufacturing capabilities;

(D)

to facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance computing, in order to improve the speed with which such enterprises commercialize new processes and technologies;

(E)

to accelerate measurably the development of an advanced manufacturing workforce;

(F)

to facilitate peer exchange of and the documentation of best practices in addressing advanced manufacturing challenges; and

(G)

to leverage non-Federal sources of support to promote a stable and sustainable business model without the need for long-term Federal funding.

(3)

Support

The Secretary, acting through the Director, shall carry out the purposes set forth in paragraph (2) by supporting—

(A)

the Network for Manufacturing Innovation established under subsection (b); and

(B)

the establishment of centers for manufacturing innovation.

(4)

Director

The Secretary shall carry out the Program through the Director.

(b)

Establishment of Network for Manufacturing Innovation

(1)

In general

As part of the Program, the Secretary of Commerce shall establish a network of centers for manufacturing innovation.

(2)

Designation

The network established under paragraph (1) shall be known as the Network for Manufacturing Innovation (referred to in this section as the Network).

(c)

Centers for manufacturing innovation

(1)

In general

For purposes of this section, a center for manufacturing innovation is a center that—

(A)

has been established by a person or group of persons to address challenges in advanced manufacturing and to assist manufacturers in retaining or expanding industrial production and jobs in the United States;

(B)

has a predominant focus on a manufacturing process, novel material, enabling technology, supply chain integration methodology, or another relevant aspect of advanced manufacturing, as determined by the Secretary, with the potential—

(i)

to improve the competitiveness of United States manufacturing;

(ii)

to accelerate non-Federal investment in advanced manufacturing production capacity in the United States;

(iii)

to increase measurably the non-Federal investment in advanced manufacturing research; and

(iv)

to enable the commercial application of new technologies or industry-wide manufacturing processes; and

(C)

includes active participation among representatives from multiple industrial entities, research universities, community colleges, and such other entities as the Secretary considers appropriate, which may include industry-led consortia, career and technical education schools, Federal laboratories, State, local, and tribal governments, businesses, educational institutions, and nonprofit organizations.

(2)

Activities

Activities of a center for manufacturing innovation may include the following:

(A)

Research, development, and demonstration projects, including proof-of-concept development and prototyping, to reduce the cost, time, and risk of commercializing new technologies and improvements in existing technologies, processes, products, and research and development of materials to solve pre-competitive industrial problems with economic or national security implications.

(B)

Development and implementation of education and training courses, materials, and programs.

(C)

Development of workforce recruitment programs and initiatives.

(D)

Development of innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains.

(E)

Development or updating of industry-led, shared-vision technology roadmaps for the development of technologies underpinning next-generation or transformational innovations.

(F)

Outreach and engagement with small- and medium-sized manufacturing enterprises, in addition to large manufacturing enterprises.

(G)

Such other activities as the Secretary, in consultation with Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing, considers consistent with the purposes described in subsection (a)(2).

(3)

Additional centers for manufacturing innovation

(A)

In general

The National Additive Manufacturing Innovation Institute and manufacturing centers formally recognized or under pending interagency review on the date of enactment of the Revitalize American Manufacturing and Innovation Act of 2014 shall be considered centers for manufacturing innovation, but such centers shall not receive any preference for financial assistance under subsection (d) solely on the basis of being considered centers for manufacturing innovation under this paragraph.

(B)

Network Participation

A manufacturing center that is substantially similar to those established under this subsection but that does not receive financial assistance under subsection (d) may, upon request of the center, be recognized as a center by the Secretary for purposes of participation in the Network.

(d)

Financial assistance To establish and support centers for manufacturing innovation

(1)

In general

In carrying out the Program, the Secretary of Commerce shall award financial assistance to a person to assist the person in planning, establishing, or supporting a center for manufacturing innovation.

(2)

Application

A person seeking financial assistance under paragraph (1) shall submit to the Secretary an application therefor at such time, in such manner, and containing such information as the Secretary may require. The application shall, at a minimum, describe the specific sources and amounts of non-Federal financial support for the center on the date financial assistance is sought, as well as the anticipated sources and amounts of non-Federal financial support during the period for which the center could be eligible for continued Federal financial assistance under this section.

(3)

Open process

In soliciting applications for financial assistance under paragraph (1), the Secretary shall ensure an open process that will allow for the consideration of all applications relevant to advanced manufacturing regardless of technology area.

(4)

Selection

(A)

Competitive, merit review

In awarding financial assistance under paragraph (1), the Secretary shall use a competitive, merit review process that includes peer review by a diverse group of individuals with relevant expertise.

(B)

Performance measurement, transparency, and accountability

For each award of financial assistance under paragraph (1), the Secretary shall—

(i)

make publicly available at the time of the award a description of the bases for the award, including an explanation of the relative merits of the winning applicant as compared to other applications received, if applicable; and

(ii)

develop and implement metrics-based performance measures to assess the effectiveness of the activities funded.

(C)

Collaboration

In awarding financial assistance under paragraph (1), the Secretary shall, acting through the National Program Office established under subsection (e)(1), collaborate with Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing.

(D)

Considerations

In selecting a person who submitted an application under paragraph (2) for an award of financial assistance under paragraph (1) the Secretary shall consider, at a minimum, the following:

(i)

The potential of the center for manufacturing innovation to advance domestic manufacturing and the likelihood of economic impact in the predominant focus areas of the center for manufacturing innovation.

(ii)

The commitment of continued financial support, advice, participation, and other contributions from non-Federal sources, to provide leverage and resources to promote a stable and sustainable business model without the need for long-term Federal funding.

(iii)

Whether the financial support provided to the center from non-Federal sources significantly outweighs the requested Federal financial assistance.

(iv)

How the center for manufacturing innovation will increase the non-Federal investment in advanced manufacturing research in the United States

(v)

How the center for manufacturing innovation will engage with small- and medium-sized manufacturing enterprises, to improve the capacity of such enterprises to commercialize new processes and technologies.

(vi)

How the center for manufacturing innovation will carry out educational and workforce activities that meet industrial needs related to the predominant focus areas of the center for manufacturing innovation.

(vii)

How the center for manufacturing innovation will advance economic competitiveness both globally and domestically and generate substantial benefits to the Nation that extend beyond the direct return to participants in the Program.

(viii)

Whether the predominant focus of the center for manufacturing innovation is a manufacturing process, novel material, enabling technology, supply chain integration methodology, or other relevant aspect of advanced manufacturing that has not already been commercialized, marketed, distributed, or sold by another entity.

(ix)

How the center for manufacturing innovation will strengthen and leverage the assets of a region.

(5)

Limitations on awards

(A)

In general

No award of financial assistance may be made under paragraph (1) to a center of manufacturing innovation after the 7-year period beginning on the date on which the Secretary first awards financial assistance to a center under that paragraph.

(B)

Matching funds and weighted preferences

The total Federal financial assistance awarded to a center of manufacturing innovation, including the financial assistance under paragraph (1), in a given year shall not exceed 50 percent of the total funding of the center in that year. The Secretary may give a weighted preference to applicants seeking less than the maximum amount of funding allowed under this paragraph.

(C)

Funding decrease

The amount of financial assistance provided to a center of manufacturing innovation under paragraph (1) shall decrease after the second year of funding for a center, and shall continue to decrease thereafter in each year in which financial assistance is provided, unless the Secretary determines that—

(i)

the center is otherwise meeting its stated goals and metrics under this Act;

(ii)

unforeseen circumstances have altered the center’s anticipated funding; and

(iii)

the center can identify future non-Federal funding sources that would warrant a temporary exemption from the limitations established in this subparagraph.

(D)

Award limit

No more than 15 centers of manufacturing innovation may receive financial assistance under paragraph (1) in any single year.

(e)

National Program Office

(1)

Establishment

The Secretary of Commerce shall establish, within the Institute, the National Office of the Network for Manufacturing Innovation Program (referred to in this section as the National Program Office ), which shall oversee and carry out the Program.

(2)

Functions

The functions of the National Program Office are—

(A)

to oversee the planning, management, and coordination of the Program;

(B)

to enter into memorandums of understanding with Federal departments and agencies, whose missions contribute to or are affected by advanced manufacturing, to carry out the purposes described in subsection (a)(2);

(C)

to develop, not later than 1 year after the date of the enactment of the Revitalize American Manufacturing and Innovation Act of 2014 , and update not less frequently than once every 2 years thereafter, a strategic plan to guide the Program;

(D)

to establish such procedures, processes, and criteria as may be necessary and appropriate to maximize cooperation and coordinate the activities of the Program with programs and activities of other Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing;

(E)

to establish a clearinghouse of public information related to the activities of the Program; and

(F)

to act as a convener of the Network.

(3)

Recommendations

In developing and updating the strategic plan under paragraph (2)(C), the Secretary shall solicit recommendations and advice from a wide range of stakeholders, including industry, small- and medium-sized manufacturing enterprises, research universities, community colleges, and other relevant organizations and institutions on an ongoing basis.

(4)

Report to congress

Upon completion, the Secretary shall transmit the strategic plan required under paragraph (2)(C) to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives .

(5)

Hollings Manufacturing Extension Partnership

The Secretary shall ensure that the National Program Office incorporates the Hollings Manufacturing Extension Partnership into Program planning to ensure that the results of the Program reach small- and medium-sized entities.

(6)

Detailees

Any Federal Government employee may be detailed to the National Program Office without reimbursement. Such detail shall be without interruption or loss of civil service status or privilege.

(f)

Reporting and auditing

(1)

Annual reports to the Secretary

(A)

In general

The Secretary of Commerce shall require each recipient of financial assistance under subsection (d)(1) to annually submit a report to the Secretary that describes the finances and performance of the center for manufacturing innovation for which such assistance was awarded.

(B)

Elements

Each report submitted under subparagraph (A) shall include—

(i)

an accounting of expenditures of amounts awarded to the recipient under subsection (d)(1); and

(ii)

consistent with the metrics-based performance measures developed and implemented by the Secretary under this section, a description of the performance of the center for manufacturing innovation with respect to—

(I)

its goals, plans, financial support, and accomplishments; and

(II)

how the center for manufacturing innovation has furthered or failed to meet the purposes described in subsection (a)(2).

(2)

Annual reports to Congress

(A)

In general

Not less frequently than once each year, the Secretary shall submit a report to Congress that describes the performance of the Program during the most recent 1-year period.

(B)

Elements

Each report submitted under subparagraph (A) shall include, for the period covered by the report—

(i)

a summary and assessment of the reports received by the Secretary under paragraph (1);

(ii)

an accounting of the funds expended by the Secretary under the Program, including any temporary exemptions granted from the requirements of subsection (d)(5)(C);

(iii)

an assessment of the participation in, and contributions to, the Network by any centers for manufacturing innovation not receiving financial assistance under subsection (d)(1); and

(iv)

an assessment of the Program with respect to meeting the purposes described in subsection (a)(2).

(3)

Biennial assessment by GAO

(A)

In general

Not less frequently than once every 2 years, the Comptroller General of the United States shall submit to Congress an assessment of the operation of the Program during the most recent 2-year period, including a final report regarding the overall success of the Program.

(B)

Elements

Each assessment submitted under subparagraph (A) shall include, for the period covered by the report—

(i)

a review of the management, coordination, and industry utility of the Program;

(ii)

an assessment of the extent to which the Program has furthered the purposes described in subsection (a)(2);

(iii)

such recommendations for legislative and administrative action as the Comptroller General considers appropriate to improve the Program; and

(iv)

an assessment as to whether any prior recommendations for improvement made by the Comptroller General have been implemented or adopted.

(g)

Additional authorities

(1)

Appointment of personnel and contracts

The Secretary of Commerce may appoint such personnel and enter into such contracts, financial assistance agreements, and other agreements as the Secretary considers necessary or appropriate to carry out the Program, including support for research and development activities involving a center for manufacturing innovation.

(2)

Transfer of funds

The Secretary may transfer to other Federal agencies such sums as the Secretary considers necessary or appropriate to carry out the Program. No funds so transferred may be used to reimburse or otherwise pay for the costs of financial assistance incurred or commitments of financial assistance made prior to the date of enactment of the Revitalize American Manufacturing and Innovation Act of 2014 .

(3)

Authority of other agencies

In the event that the Secretary exercises the authority to transfer funds to another agency under paragraph (2), such agency may award and administer, under the same conditions and constraints applicable to the Secretary, all aspects of financial assistance awards under this section.

(4)

Use of resources

In furtherance of the purposes of the Program, the Secretary may use, with the consent of a covered entity and with or without reimbursement, the land, services, equipment, personnel, and facilities of such covered entity.

(5)

Acceptance of resources

In addition to amounts appropriated to carry out the Program, the Secretary may accept funds, services, equipment, personnel, and facilities from any covered entity to carry out the Program, subject to the same conditions and constraints otherwise applicable to the Secretary under this section.

(6)

Covered entity

For purposes of this subsection, a covered entity is any Federal department, Federal agency, instrumentality of the United States, State, local government, tribal government, Territory or possession of the United States, or of any political subdivision thereof, or international organization, or any public or private entity or individual.

(h)

Patents

Chapter 18 of title 35, United States Code, shall apply to any funding agreement (as defined in section 201 of that title) awarded to new or existing centers for manufacturing innovation.

(i)

Funding

(1)

Network for Manufacturing Innovation Fund

(A)

Establishment

There is established in the Treasury of the United States a fund to be known as the Network for Manufacturing Innovation Fund (referred to in this subsection as the Fund).

(B)

Elements

There shall be deposited in the Fund, which shall constitute the assets of the Fund, amounts appropriated or otherwise made available to carry out the Program.

(C)

Availability

Amounts deposited in the Fund shall be available to the Secretary of Commerce, at the discretion of the Secretary, or the Secretary’s designee, to carry out the Program without further appropriation and without fiscal year limitation.

(2)

Authorization of appropriations

There is authorized to be appropriated $300,000,000 to the Secretary of Commerce to be deposited in the Fund established under paragraph (1) to carry out this section .

(3)

Administrative expenses

The Secretary of Commerce may use not more than 5 percent of the amounts appropriated pursuant to paragraph (2) to pay the salaries and expenses of those Federal employees in the National Program Office.

(4)

Additional funding sources

Notwithstanding any other provision of law, in addition to any funds appropriated under paragraph (2), the Secretary of Commerce may use not more than 10 percent of the funds of any economic development, manufacturing, or small business assistance program, except for the Hollings Manufacturing Extension Program, to carry out the Program established in this section.

(5)

Rescission

There is hereby rescinded, from appropriated discretionary funds that remain available for obligation as of the date of the enactment of the Revitalize American Manufacturing and Innovation Act of 2014 , $300,000,000.

(j)

Consolidation of advanced manufacturing technology consortia (AMTech) program

The Secretary is directed to merge the Advanced Manufacturing Technology Consortia (AMTech) Program, which has not been previously authorized but has been funded in both fiscal year 2013 and 2014, into the Program established in this section.

(k)

Sunset

The authority to provide financial assistance to establish or support a center for manufacturing innovation under subsection (i) terminates effective December 31, 2024, but the Program and the Network established under this section may continue to operate, subject to the availability of appropriations, if the Secretary determines that the purposes in subsection (a)(2) are being met.

.

(b)

Repeal of duplicative program; technology innovation program

(1)

In general

Section 28 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278n ) is repealed.

(2)

Transition

Notwithstanding the repeal made by paragraph (1), the Director shall carry out section 28 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278n ) as that section was in effect on the day before the date of enactment of this Act, with respect to applications for grants, cooperative agreements, or contracts under that section submitted before that date.

(3)

Technical and conforming amendments

(A)

Section 2(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 272(d) ) is amended by striking sections 25, 26, and 28 and inserting sections 25 and 26 .

(B)

Section 10(h)(1) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278(h)(1) ) is amended by striking , including the Program established under section 28,.

(c)

Sense of Congress

It is the sense of Congress that the industry-led consortia envisioned under the Advanced Manufacturing Technology Consortia (AMTech) Program should participate in the centers for manufacturing innovation established under section 34 of the National Institute of Standards and Technology Act ( 15 U.S.C. 271 et seq. ).

4.

Report

(a)

Defined term

In this section, the term rare earth monopoly means the domination of the market for rare earth elements, including—

(1)

rare earth oxides, metals, alloys, and magnets;

(2)

integrated systems that include rare earth components, including wind turbines, motors, electronics, and catalysts for green technology lighting and transportation in commercial products; and

(3)

oxide, metal, or alloy-based rare earth materials, magnets, components and systems for guided ordinance, stealth and drone technologies, interrogating and targeting lasers, radar, sonar, and weapons systems used by the United States military.

(b)

Survey

The Secretary of Commerce shall conduct a survey that—

(1)

measures the economic impact of China's rare earth monopoly on the United States and other affected nations to determine the magnitude of economic and intellectual property loss resulting from China's rare earth monopoly; and

(2)

looks beyond gross economic figures of value added goods and identifies specific technologies, industries, and defense systems that are now primarily produced in, or are likely to relocate or migrate to, China.

(c)

Report

Not later than 1 year after the date of the enactment of this Act, the Secretary of Commerce shall submit a report to Congress that contains the results of the survey conducted under subsection (b). The report shall contain recommendations on how the United States should—

(1)

initiate direct dialogue with affected nations to assess the short- and long-term economic consequences of China's rare earth monopoly and related trade practices; and

(2)

promote cooperative resolutions to facilitate partnership structures that will offset imbalances caused by China's rare earth monopoly.

5.

Report on competitiveness of United States in international trade

Not later than 180 days after the date of the enactment of this Act, the Secretary of Commerce, acting through the Under Secretary for International Trade, shall submit to Congress a report that—

(1)

identifies the 20 industries in the United States in which United States persons export the most goods or services;

(2)

evaluates the competitiveness of the United States in such industries in global markets;

(3)

identifies domestic regulatory and policy barriers to increasing exports by United States persons operating in such industries;

(4)

identifies foreign barriers that impede the access of United States persons operating in such industries to foreign markets; and

(5)

makes recommendations for legislative action—

(A)

to reduce barriers described in paragraphs (3) and (4); and

(B)

to improve the competitiveness of the United States in these industries in foreign markets.

6.

National strategic plan for advanced manufacturing

Section 102 of the America COMPETES Reauthorization Act of 2010 ( 42 U.S.C. 6622 ) is amended—

(1)

in subsection (a), by adding at the end the following: In furtherance of the Committee’s work, the Committee shall consult with the National Economic Council.;

(2)

in subsection (b), by striking paragraph (7) and inserting the following:

(7)

develop and update a national strategic plan for advanced manufacturing in accordance with subsection (c).

; and

(3)

by striking subsection (c) and inserting the following:

(c)

National strategic plan for advanced manufacturing

(1)

In general

The President shall submit to Congress, and publish on an Internet website that is accessible to the public, the strategic plan developed under paragraph (2).

(2)

Development

The Committee shall develop and update as required under paragraph (4), in coordination with the National Economic Council, a strategic plan to improve Government coordination and provide long-term guidance for Federal programs and activities in support of United States manufacturing competitiveness, including advanced manufacturing research and development.

(3)

Contents

The strategic plan described in paragraph (2) shall—

(A)

specify and prioritize near-term and long-term objectives, including research and development objectives, the anticipated time frame for achieving the objectives, and the metrics for use in assessing progress toward the objectives;

(B)

describe the progress made in achieving the objectives from prior strategic plans, including a discussion of why specific objectives were not met;

(C)

specify the role, including the programs and activities, of each relevant Federal agency in meeting the objectives of the strategic plan;

(D)

describe how the Federal agencies and Federally funded research and development centers supporting advanced manufacturing research and development will foster the transfer of research and development results into new manufacturing technologies and United States based manufacturing of new products and processes for the benefit of society to ensure national, energy, and economic security;

(E)

describe how such Federal agencies and centers will strengthen all levels of manufacturing education and training programs to ensure an adequate, well-trained workforce;

(F)

describe how such Federal agencies and centers will assist small- and medium-sized manufacturers in developing and implementing new products and processes;

(G)

analyze factors that impact innovation and competitiveness for United States advanced manufacturing, including—

(i)

technology transfer and commercialization activities;

(ii)

the adequacy of the national security industrial base;

(iii)

the capabilities of the domestic manufacturing workforce;

(iv)

export opportunities and trade policies;

(v)

financing, investment, and taxation policies and practices;

(vi)

emerging technologies and markets; and

(vii)

advanced manufacturing research and development undertaken by competing nations; and

(H)

elicit and consider the recommendations of a wide range of stakeholders, including representatives from diverse manufacturing companies, academia, and other relevant organizations and institutions.

(4)

Updates

Not later than May 1, 2018, and not less frequently than once every 4 years thereafter, the President shall submit to Congress, and publish on an Internet website that is accessible to the public, an update of the strategic plan submitted under paragraph (1). Such updates shall be developed in accordance with the procedures set forth under this subsection.

(5)

Requirement to consider strategy in the budget

In preparing the budget for a fiscal year under section 1105(a) of title 31, United States Code, the President shall include information regarding the consistency of the budget with the goals and recommendations included in the strategic plan developed under this subsection applying to that fiscal year.

(6)

AMP steering committee input

The Advanced Manufacturing Partnership Steering Committee of the President’s Council of Advisors on Science and Technology shall provide input, perspective, and recommendations to assist in the development and updates of the strategic plan under this subsection.

.

August 26, 2014

Reported with an amendment