HR250SEP23

TheWeekInCongress.com

Week Ending September 23, 2005

H.R.250 To establish an interagency committee to coordinate Federal manufacturing research and development efforts in manufacturing, strengthen existing programs to assist manufacturing innovation and education, and expand outreach programs for small and medium-sized manufacturers, and for other purposes.

BRIEF

The bill was intended for passage prior to Hurricane Katrina and has since been modified to add several efforts to aid manufacturing businesses get back on their feet after the storm.

The original bill notes that, with the exception of advanced technology products, US manufacturing trade is running at a $300 billion deficit as of 2000, the Bureau of Census concluded. (The export data for the past five years was not given). The bill aims to overcome that deficit through a process of government spending for grants to manufacturers and educational institutions for manufacturing research.

The bill would establish an interagency committee to coordinate Federal involvement in private sector manufacturing research and development. The Interagency Committee would be chaired by the US Office of Science and Technology, and would include the National Institute of Standards and Technology, the Department of Homeland Security, the National Science Foundation, the Department of Energy and any other agency the President might add.

The Committee would be expected to create a pilot program for research grants to manufacturers, establish research fellowships for postdoctoral and senior researchers. Funding, in addition to federal funds, could be received from private sources.

The areas of laboratory activities include electronics, manufacturing engineering, chemical science and technology, computer science and allied math, technical assistance, neutron research and nanotechnology.

Education grants would be made available to develop curricula on the role of standards in engineering, business, science and economics.

A good bit of manufacturing aid comes through the network of Manufacturing Extension Partnerships (MEP) through which manufacturers share some costs with the Federal sector to improve manufacturing processes that produce less waste and errors, thereby increasing US manufacturer’s ability to compete worldwide. The President has repeatedly requested nearly a two thirds cut in MEP spending and that is an indication that the bill itself may have some Congressional leadership and White House obstacles to overcome.

The bill was expanded to apply the expertise effort for reconstruction on the Gulf Coast of the US. The MEP would be required to assist businesses affected by Katrina. The National Institute of Standards and Technology would study the effects of Katrina on buildings so to determine recommendations for building code changes.

The bill goes further to establish ‘triage teams’ from the MEPs. NIS&T and local experts to develop virtual assistance centers with databases incorporating the results and recommendations of the team, access potential disruption of manufacturing supply chains and study and recommend how to avoid those interruptions in the future, and provide assistance to small and medium-sized manufacturers in the affected areas.

The NSI&T would conduct an engineering performance study of the effects of Katrina by studying physical structures damaged including ports, utilities, lifelines associated with facilities and transportation systems, engineered and non-engineered buildings.

The study aims to develop new knowledge concerning practices related to building standards and codes and determine effectiveness of current building codes ability to withstand excessive wind, storm surge and flooding.

Sponsor: Representative Vernon J. Ehlers (R-MI-3^rd)

Vote: Passed House 394 to 24 (RC 485). A Motion to Recommit the bill failed 196 to 226 (RC 484) September 20, 2005.

Cost to the taxpayers: “CBO estimates that implementing H.R. 250 would cost $366 million in 2006 and about $2 billion over the 2006-2010 period.” The matching fund requirement is waived for the hurricane programs.

MORE INFORMATION

SPENDING BREAKDOWN

BACKGROUND AND NEED FOR THE BILL

DETAILED SPENDING

SPENDING BREAKDOWN

(a) Laboratory Activities- There are authorized to be appropriated to the Secretary of Commerce for the scientific and technical research and services laboratory activities of the National Institute of Standards and Technology--

(1) $426,267,000 for fiscal year 2006, of which--

(A) $50,833,000 shall be for Electronics and Electrical Engineering;

(B) $28,023,000 shall be for Manufacturing Engineering;

(D) $46,706,000 shall be for Physics;

(E) $33,500,000 shall be for Material Science and Engineering;

(F) $24,321,000 shall be for Building and Fire Research;

(G) $68,423,000 shall be for Computer Science and Applied Mathematics;

(H) $20,134,000 shall be for Technical Assistance;

(I) $48,326,000 shall be for Research Support Activities;

(J) $29,369,000 shall be for the National Institute of Standards and Technology Center for Neutron Research; and

(K) $18,543,000 shall be for the National Nanomanufacturing and Nanometrology Facility;

(2) $447,580,000 for fiscal year 2007; and

(3) $456,979,000 for fiscal year 2008.

(b) Malcolm Baldrige National Quality Award Program- There are authorized to be appropriated to the Secretary of Commerce for the Malcolm Baldrige National Quality Award program under section 17 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3711a)--

(1) $5,654,000 for fiscal year 2006;

(2) $5,795,000 for fiscal year 2007; and

(3) $5,939,000 for fiscal year 2008.

(c) Construction and Maintenance- There are authorized to be appropriated to the Secretary of Commerce for construction and maintenance of facilities of the National Institute of Standards and Technology--

(1) $58,898,000 for fiscal year 2006;

(2) $61,843,000 for fiscal year 2007; and

(3) $63,389,000 for fiscal year 2008.

(d) Advanced Technology Program Elimination Report- Not later than 3 months after the date of enactment of this Act, the Secretary shall provide to the Congress a report detailing the impacts of the possible elimination of the Advanced Technology Program on the laboratory programs at the National Institute of Standards Technology.

(e) Loss of Funding- At the time of the President's budget request for fiscal year 2007, the Secretary shall provide the Congress a report on how the Department of Commerce plans to absorb the loss of Advanced Technology Program funds to the laboratory programs at the National Institute of Standards and Technology, or otherwise mitigate the effects of this loss on its programs and personnel.

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BACKGROUND AND NEED FOR THE LEGISLATION

Manufacturing remains a key sector of the U.S. economy. According to the Bureau of the Census, between 1988 and 2000, the U.S. manufacturing trade balance for advanced technology products remained positive (though shrinking), whereas all other products went from an annual deficit of $100 billion to one of more than $300 billion.

NIST plays a critical role in helping maintain and advance the U.S. manufacturing industry. NIST's two laboratories, in Gaithersburg, MD and Boulder, CO, and its extramural Manufacturing Extension Partnership (MEP) program support research and development (R&D) and technology transfer that are directly relevant to the manufacturing sector's needs. NIST also hosts the Baldrige National Quality Program, which supports programs and activities that improve the quality and competitiveness of U.S. manufacturers.

MEP centers help increase the competitiveness of small and medium-sized manufacturers in areas involving technological change, lean manufacturing (`lean' principles include perfect first-time quality, waste minimization by removing all activities that do not add value, continuous improvement, flexibility, and long-term relationships), and acquisition of equipment, as well as business organization. MEP center costs are divided approximately equally among the Federal government, the State the center serves, and the center's clientele, who pay fees for services. The Federal share of MEP was funded at approximately $105 million from Fiscal Year (FY) 1998 to FY 2003 before the funding was cut to $39 million in FY 2004. The Administration's FY 2005 request was also $39 million, although it was eventually funded at $109 million. The Administration request for FY 2006 is $47 million. The $47 million is insufficient to maintain the existing network of MEP services and Centers that is available to small and medium-sized manufacturers. The Administration expects funds from other agencies to supplement funds for MEP in FY 2005 and 2006.

In June 2004, the National Academy of Public Administration (NAPA) published a report on the MEP program that concluded that the MEP program was the only Federal program that helped smaller firms modernize and compete successfully. The NAPA report also said that there were emerging challenges facing smaller firms, such as how to economically introduce the use of information technology into small manufacturing enterprises, and that MEP should introduce some changes in its current business model to help firms overcome these challenges.

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DETAILED SPENDING

(1) $426,267,000 for fiscal year 2006, of which--

(A) $50,833,000 shall be for Electronics and Electrical Engineering;

(B) $28,023,000 shall be for Manufacturing Engineering;

(C) $52,433,000 shall be for Chemical Science and Technology;

(D) $46,706,000 shall be for Physics;

(E) $33,500,000 shall be for Material Science and Engineering;

(F) $24,321,000 shall be for Building and Fire Research;

(G) $68,423,000 shall be for Computer Science and Applied Mathematics;

(H) $20,134,000 shall be for Technical Assistance;

(I) $48,326,000 shall be for Research Support Activities;

(J) $29,369,000 shall be for the National Institute of Standards and Technology Center for Neutron Research; and

(K) $18,543,000 shall be for the National Nanomanufacturing and Nanometrology Facility;

(2) $447,580,000 for fiscal year 2007; and

(3) $456,979,000 for fiscal year 2008.

(1) $5,654,000 for fiscal year 2006;

(2) $5,795,000 for fiscal year 2007; and

(3) $5,939,000 for fiscal year 2008.

(1) $58,898,000 for fiscal year 2006;

(2) $61,843,000 for fiscal year 2007; and

(3) $63,389,000 for fiscal year 2008.

SEC. 7. STANDARDS EDUCATION PROGRAM.

(a) Program Authorized- (1) As part of the Teacher Science and Technology Enhancement Institute Program, the Director of the National Institute of Standards and Technology shall carry out a Standards Education program to award grants to institutions of higher education to support efforts by such institutions to develop curricula on the role of standards in the fields of engineering, business, science, and economics. The curricula should address topics such as--

(A) development of technical standards;

(B) demonstrating conformity to standards;

(C) intellectual property and antitrust issues;

(D) standardization as a key element of business strategy;

(E) survey of organizations that develop standards;

(F) the standards life cycle;

(G) case studies in effective standardization;

(H) managing standardization activities; and

(I) managing organizations that develop standards.

(2) Grants shall be awarded under this section on a competitive, merit-reviewed basis and shall require cost-sharing from non-Federal sources.

(b) Selection Process- (1) An institution of higher education seeking funding under this section shall submit an application to the Director at such time, in such manner, and containing such information as the Director may require. The application shall include at a minimum--

(A) a description of the content and schedule for adoption of the proposed curricula in the courses of study offered by the applicant; and

(B) a description of the source and amount of cost-sharing to be provided.

(2) In evaluating the applications submitted under paragraph (1) the Director shall consider, at a minimum--

(A) the level of commitment demonstrated by the applicant in carrying out and sustaining lasting curricula changes in accordance with subsection (a)(1); and

(B) the amount of cost-sharing provided.

(c) Authorization of Appropriations- There are authorized to be appropriated to the Secretary of Commerce for the Teacher Science and Technology Enhancement Institute program of the National Institute of Standards and Technology--

(1) $773,000 for fiscal year 2006;

(2) $796,000 for fiscal year 2007; and

(3) $820,000 for fiscal year 2008.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

(a) Manufacturing Extension Partnership Program- There are authorized to be appropriated to the Secretary of Commerce, or other appropriate Federal agencies, for the Manufacturing Extension Partnership program under sections 25 and 26 of the National Institute of Standards and Technology Act (15 U.S.C. 278k and 278l)--

(1) $110,000,000 for fiscal year 2006, of which not more than $1,000,000 shall be for the competitive grant program under section 25(e) of such Act (15 U.S.C. 278k(e));

(2) $115,000,000 for fiscal year 2007, of which not more than $4,000,000 shall be for the competitive grant program under section 25(e) of such Act (15 U.S.C. 278k(e)); and

(3) $120,000,000 for fiscal year 2008, of which not more than $4,100,000 shall be for the competitive grant program under section 25(e) of such Act (15 U.S.C. 278k(e)).

(b) Collaborative Manufacturing Research Pilot Grants Program- There are authorized to be appropriated to the Secretary of Commerce for the Collaborative Manufacturing Research Pilot Grants program under section 33 of the National Institute of Standards and Technology Act--

(1) $10,000,000 for fiscal year 2006;

(2) $10,000,000 for fiscal year 2007; and

(3) $10,000,000 for fiscal year 2008.

(c) Fellowships- There are authorized to be appropriated to the Secretary of Commerce for Manufacturing Fellowships at the National Institute of Standards and Technology under section 18(b) of the National Institute of Standards and Technology Act, as added by section 4 of this Act--

(1) $1,500,000 for fiscal year 2006;

(2) $1,750,000 for fiscal year 2007; and

(3) $2,000,000 for fiscal year 2008.

SEC. 9. TECHNICAL WORKFORCE EDUCATION AND DEVELOPMENT.

(a) Authorization of Appropriations- There are authorized to be appropriated to the Director of the National Science Foundation, from sums otherwise authorized to be appropriated, for the Advanced Technological Education Program established under section 3 of the Scientific and Advanced-Technology Act of 1992 (42 U.S.C. 1862i)--

(1) $55,000,000 for fiscal year 2006, $5,000,000 of which may be used to support the education and preparation of manufacturing technicians for certification;

(2) $57,750,000 for fiscal year 2007, $5,000,000 of which may be used to support the education and preparation of manufacturing technicians for certification; and

(3) $60,600,000 for fiscal year 2008, $5,000,000 of which may be used to support the education and preparation of manufacturing technicians for certification.

(b) Amendment- Section 3 of the Scientific and Advanced-Technology Act of 1992 (42 U.S.C. 1862i) is amended--

(1) by inserting `, including manufacturing' after `advanced-technology fields' each place it appears other than in subsection (c)(2); and

(2) by inserting `, including manufacturing,' after `advanced-technology fields' in subsection (c)(2).

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