[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 419 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 419
To provide for enhanced cooperation between the Federal Government and
the United States commercial aircraft industry in aeronautical
technology research, development, and commercialization, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 24 (legislative day, January 5), 1993
Mr. Danforth (for himself, Mr. Rockefeller, Mr. Gorton, Mr. Lieberman,
Mr. Baucus, Mr. Bond, Mr. Dodd, Mrs. Murray, and Mr. Riegle) introduced
the following bill; which was read twice and referred to the Committee
on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To provide for enhanced cooperation between the Federal Government and
the United States commercial aircraft industry in aeronautical
technology research, development, and commercialization, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Aeronautical Technology Consortium
Act of 1993''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) a strong commercial aircraft industry is critical to
the health of the United States economy: aircraft production in
the United States affects nearly 80 percent of the economy, and
for every additional dollar of shipments of aircraft, output of
the economy increases by an estimated $2.30;
(2) a strong commercial aircraft industry is critical to
the national security of the United States because of the
synergies between commercial and military aeronautical
technologies and the need for a strong advanced technology
industrial base;
(3) the National Critical Technologies Panel has identified
aeronautics as one of twenty-two categories of technologies
critical to the national economic prosperity and to national
security;
(4) while the United States has traditionally dominated the
world commercial aircraft market, the United States aircraft
industry is facing two critical challenges: significant
cutbacks in defense procurement and related military spending,
and the growing competitive strength of the European aircraft
consortium, Airbus Industrie;
(5) Airbus Industrie, a consortium of four European
aircraft manufacturing companies that have received almost
$26,000,000,000 in government subsidies over two decades, has
developed a family of competitive aircraft models and has
captured one-fourth of the world market for large civil
aircraft;
(6) in 1992, the United States signed an agreement with the
European Community that permits the European governments to
continue to subsidize up to 33 per centum of the development
costs of new large civil aircraft;
(7) given current and expected reductions in defense
spending and increased competitive pressures in the commercial
aircraft market, it is critical for the Federal Government to
coordinate its aeronautics and related programs and redirect
these resources to assist the United States commercial aircraft
industry to meet the competitive challenge from Airbus
Industrie;
(8) the Federal Government has played an active role in
research and development of aeronautical technologies since the
National Advisory Committee on Aeronautics (NACA) was created
in 1915;
(9) in recent years, however, Federal Government support
for aerospace research and development has focused
overwhelmingly on military and space technologies;
(10) Federal programs relating to aeronautics research and
development today are spread among a number of different
agencies and departments, including the Departments of Defense,
Transportation, and Commerce, as well as the National
Aeronautics and Space Administration and the National Science
Foundation;
(11) Federal financial assistance to the semiconductor
industry consortium known as Sematech has been successful in
improving the competitiveness of the United States
semiconductor industry;
(12) the Federal Government should use Sematech as a model
in developing a program to provide financial assistance to an
industry-led consortium of United States commercial aircraft
manufacturing companies; and
(13) such a government-industry consortium should focus its
efforts on research, development, and commercialization of new
aeronautical technologies and related manufacturing
technologies, as well as the transfer and conversion of
aeronautical technologies developed for national security
purposes to commercial applications for large civil aircraft.
(b) Purpose.--The purpose of this Act is to strengthen and assist
the United States commercial aircraft industry by--
(1) providing for an interagency aeronautical technology
program to coordinate and expand Federal research and
development programs relating to aeronautical technologies and
related manufacturing technologies; and
(2) assisting the United States commercial aircraft
industry in developing an Aeronautical Technology Consortium
for the purpose of providing Federal assistance to industry-led
joint ventures established for research, development, and
commercialization of aeronautical technologies and related
manufacturing technologies applicable to large civil aircraft.
SEC. 3. DEFINITIONS.
For purposes of this Act--
(1) The term ``Director'' means the Director of the Office
of Science and Technology Policy.
(2) The term ``eligible firm'' means a company or other
business entity that, as determined by the Secretary of
Commerce--
(A) conducts a significant level of its research,
development, engineering, and manufacturing activities
in the United States; and
(B) either--
(i) is a United States-owned company; or
(ii) is a company incorporated in the
United States and has a parent company which is
incorporated in a country the government of
which--
(I) affords United States-owned
companies opportunities, comparable to
those afforded any other company, to
participate in research and development
consortia to which the government of
that country provides funding directly
or provides funding indirectly through
international organizations or
agreements; and
(II) affords adequate and effective
protection for the intellectual
property rights of United States-owned
companies.
Such term includes a consortium of such companies or other
business entities, as determined by the Secretary of Commerce.
(3) The term ``Federal laboratory'' has the meaning given
such term in section 4(6) of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3703(6)).
(4) The term ``joint venture'' has the meaning given such
term in section 28(j)(1) of the National Institute of Standards
and Technology Act (15 U.S.C. 278n(j)(1)).
(5) The term ``large civil aircraft'' means all aircraft
that are designed for passenger or cargo transportation and
have one hundred or more passenger seats or its equivalent in
cargo configuration.
(6) The term ``manufacturing technology'' means techniques
and processes designed to improve manufacturing quality,
productivity, and practices, including engineering design,
quality assurance, concurrent engineering, continuous process
production technology, energy efficiency, waste minimization,
design for recyclability or parts reuse, shop floor management,
inventory management, worker training, and communications with
customers and suppliers, as well as manufacturing equipment and
software.
(7) The term ``United States-owned company'' means a
company or other business entity the majority ownership or
control of which is by United States citizens.
SEC. 4. AERONAUTICAL TECHNOLOGY PROGRAM.
(a) Establishment.--The President shall establish an Aeronautical
Technology Program (hereafter in this Act referred to as the
``Program''), which shall--
(1) provide for interagency coordination of Federal
research and development programs relating to aeronautical
technologies and related manufacturing technologies;
(2) provide a mechanism for private industry comment and
guidance regarding the cost-effectiveness and commercial
practicability of existing and proposed Federal research and
development programs relating to aeronautical technologies and
related manufacturing technologies;
(3) promote, to the maximum extent practicable, the
transfer and conversion to commercial applications of
aeronautical technologies developed for national security
purposes;
(4) coordinate and expand existing Federal research and
development programs relating to--
(A) subsonic aeronautics, and
(B) supersonic aeronautics,
with particular focus on government-industry cooperative
programs to develop large civil aircraft beyond the financial
means of any single company;
(5) assist the United States commercial aircraft industry
in developing an Aeronautical Technology Consortium for the
purpose of providing Federal assistance to industry-led joint
ventures established for research, development, and
commercialization of aeronautical technologies and related
manufacturing technologies applicable to large civil aircraft;
and
(6) establish other goals and priorities for Federal
research and development programs relating to aeronautical
technologies and related manufacturing technologies.
(b) National Aeronautics Strategy.--
(1) In general.--The President, acting through the
Coordinating Committee established in subsection (c), shall
develop a National Aeronautics Strategy (hereafter in this Act
referred to as the ``Strategy'') to implement the Program. The
Strategy shall contain specific recommendations for a five-year
national effort, to be submitted to the Congress within six
months after the date of enactment of this Act.
(2) Contents of strategy.--The Strategy shall--
(A) establish the specific goals and priorities for
the Program for the fiscal year in which the Strategy
is submitted and the succeeding four fiscal years;
(B) set forth the role of each Federal agency and
department in implementing the Program;
(C) describe the levels of Federal funding for each
agency and specific research, development, and
commercialization activities required to achieve such
goals and priorities;
(D) take into account the recommendations of the
Advisory Committee established in section 6; and
(E) consider and use, as appropriate, reports and
studies conducted by Federal agencies and departments,
the National Research Council, or other entities.
(3) Federal agencies and departments to be addressed.--The
Strategy shall address, where appropriate, the relevant
programs and activities of--
(A) the Department of Defense, particularly the
Department of the Air Force, the Department of the
Navy, and the Defense Advanced Research Projects
Agency;
(B) the Department of Commerce, particularly the
National Institute of Standards and Technology;
(C) the Department of Transportation, particularly
the Federal Aviation Administration;
(D) the National Aeronautics and Space
Administration;
(E) the National Science Foundation;
(F) the Federal laboratories; and
(G) such other agencies and departments as the
President or the Coordinating Committee considers
appropriate.
(c) Coordinating Committee.----
(1) Authority; composition.--The Program shall be
administered by an Aeronautical Technology Coordinating
Committee (hereafter in this Act referred to as the
``Coordinating Committee'') composed of the following
officials:
(A) The Director, who shall be chairperson.
(B) The Secretary of Defense.
(C) The Secretary of Commerce.
(D) The Secretary of Transportation.
(E) The Administrator of the National Aeronautics
and Space Administration.
(F) The Director of the National Science
Foundation.
(2) Functions.--The Coordinating Committee shall--
(A) serve as the lead entity responsible for
implementation of the Program;
(B) coordinate all Federal research and development
programs relating to aeronautical technologies and
related manufacturing technologies;
(C) consult regularly with and seek recommendations
from the Advisory Committee established by section 6;
(D) consult with academic, State, industry, and
other appropriate groups conducting research on and
using aeronautical technologies; and
(E) submit to the Congress an annual report, along
with the President's annual budget request, describing
the implementation of the Program.
SEC. 5. AERONAUTICAL TECHNOLOGY CONSORTIUM.
(a) In General.--Under the Program, the Coordinating Committee
shall provide assistance to an Aeronautical Technology Consortium
(hereafter in this Act referred to as the ``Consortium''), which shall
consist of all eligible firms that--
(1) are engaged in research, development, testing,
demonstration, or production of aeronautical technology
applicable to the production of large civil aircraft;
(2) are selected by the Coordinating Committee, through the
Director, on the basis of the criteria specified under
subsection (d); and
(3) are necessary to enable the Consortium to achieve its
purpose as described under subsection (b).
(b) Purpose.--The purpose of the Consortium is to conduct industry-
led joint ventures relating to--
(1) manufacturing technologies applicable to the production
of large civil aircraft;
(2) the transfer and conversion of aeronautical
technologies developed for national security purposes to
commercial applications for large civil aircraft;
(3) subsonic aeronautical technologies applicable to the
development and production of large civil aircraft; and
(4) supersonic aeronautical technologies applicable to the
development and production of large civil aircraft.
(c) Assistance To Be Provided.--In providing assistance to the
Consortium, the Coordinating Committee, acting through the Director,
shall--
(1) provide financial and other assistance to the United
States commercial aircraft industry in the formation of the
Consortium;
(2) support the Consortium, and such subordinate joint
ventures as the Consortium may establish, by making available
equipment, facilities, and personnel;
(3) aid the Consortium, and such subordinate joint ventures
as the Consortium may establish, by means of grants,
cooperative agreements, contracts, and provision of
organizational and technical advice;
(4) enter into contracts and cooperative agreements in
support of the Consortium with independent research
organizations, institutions of higher education, and agencies
of State and local governments;
(5) involve the Federal laboratories in the Consortium,
where appropriate, using among other authorities the
cooperative research and development agreements provided for
under section 12 of the Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3710a); and
(6) carry out, in a manner consistent with this section,
such other cooperative research activities with the Consortium
and joint ventures as may be authorized by law or assigned to
the Coordinating Committee by the President.
(d) Selection of Consortium Participants.--The criteria for
selection of industry participants in the Consortium, as referred to in
subsection (a)(2), are as follows:
(1) The extent of present participation of the eligible
firm in Federal research and development programs relating to
aeronautical technologies and related manufacturing
technologies.
(2) The extent of present commercial activity of the
eligible firm relating to the development and production of
large civil aircraft, engines, advanced materials, avionics,
and other related components.
(3) The extent of present commercial activity of the
eligible firm relating to aeronautical technologies developed
for national security purposes that may have commercial
applications for large civil aircraft.
(4) The technical excellence of the eligible firm.
(5) The extent of financial commitment of the eligible firm
to the Consortium.
(6) Such other criteria that the Director prescribes.
(e) Charter; Operating Plan.--The Consortium shall have--
(1) a charter, agreed to by all industry participants in
the Consortium, that meets requirements established by the
Coordinating Committee; and
(2) an annual operating plan that is developed in
consultation with the Coordinating Committee and the Advisory
Committee established in section 6.
(f) Financial Commitment of Industry Participants.--
(1) In general.--The Director shall ensure that, to the
maximum extent the Director determines to be practicable, the
total amount of the funds provided by the Federal Government to
the Consortium does not exceed the total amount provided by the
industry participants in the Consortium.
(2) Authority to exceed 50 per centum federal funding.--
Nothing in this subsection shall be construed to prohibit the
Federal Government from providing greater than 50 per centum of
the funds for any individual joint venture, project, or program
where the Director determines such funding to be consistent
with the goals of the Program.
(3) Consideration of in-kind contributions.--The Director
shall prescribe regulations to provide for consideration of in-
kind contributions by industry participants in the Consortium
and joint ventures for the purpose of determining the share of
the funds that have been or are being provided by such
participants.
(g) Merit Review.--No contract or other award for a research
project may be made under this section until the research project in
question has been subject to a merit review, and, in the opinion of the
reviewers appointed by the Director, has been shown to have scientific
and technical merit.
(h) Oversight of Consortium Activities.--The Coordinating
Committee, acting through the Director, shall take such actions as are
necessary and appropriate to ensure that the Consortium's activities
help to achieve the purposes of this act, including--
(1) prescribing regulations for the purpose of this
section;
(2) establishing procedures for the use by the Coordinating
Committee of funds authorized to a particular Federal agency or
department that is participating in the Consortium;
(3) establishing procedures regarding financial reporting
and auditing to ensure that contracts and other awards are used
for the purposes specified in this section and are in
accordance with sound accounting practices;
(4) monitoring how technologies developed through the
Consortium are used, and reporting to the Congress on the
extent of any overseas transfer of those technologies;
(5) assuring that the recommendations of the Advisory
Committee established in section 6 are considered routinely in
carrying out the responsibilities of the Coordinating Committee
under this Act; and
(6) providing for the expeditious and timely transfer of
technology developed and owned by the Consortium to the
participants in the Consortium.
(i) Export of Aeronautical Technology.--Any export of materials,
equipment, and technology developed by the Consortium in whole or in
part with financial assistance provided under this section shall be
subject to the Export Administration Act of 1979 (50 U.S.C. App. 2401
et seq.) and shall not be subject to the Arms Export Control Act.
(j) Freedom of Information Act.--Section 552 of title 5, United
States Code, shall not apply to the following information obtained by
the Federal Government on a confidential basis in connection with the
activities of any industry participant in the Consortium:
(1) information on the business operation of any industry
participant in the Consortium; and
(2) intellectual property, trade secrets, and technical
data possessed by any industry participant in the Consortium.
(k) Intellectual Property.--
(1) Disclosure limitations.--Notwithstanding any other
provision of law, intellectual property, trade secrets, and
technical data owned and developed by the Consortium or any
industry participant in the Consortium may not be disclosed by
any officer or employee of the Federal Government except in
accordance with a written agreement between the owner or
developer and the Director.
(2) Title to and licensing of inventions and patents.--
Title to any invention or patent arising from assistance
provided under this section shall vest in a company or
companies incorporated in the United States. The Federal
Government may reserve a nonexclusive, nontransferable,
irrevocable paid-up license, to have practiced for or on behalf
of the Federal Government, in connection with any such
invention or patent, but shall not, in the exercise of such
license, publicly disclose proprietary information related to
the license. Title to any such invention or patent shall not be
transferred or passed, except to a company incorporated in the
United States, until the expiration of the first patent
obtained in connection with such invention. For purposes of
this paragraph, the term ``invention or patent'' means an
invention patentable under title 35, United States Code, or any
patent on such an invention.
(3) Licensing to companies.--Nothing in this subsection
shall be construed to prohibit the licensing, to any company,
of intellectual property rights arising from assistance
provided under this section.
SEC. 6. AERONAUTICAL TECHNOLOGY ADVISORY COMMITTEE.
(a) Establishment.--There is established an Aeronautical Technology
Advisory Committee (hereafter in this Act referred to as the ``Advisory
Committee'').
(b) Functions.--The Advisory Committee shall advise the
Coordinating Committee and the Consortium on--
(1) the Strategy and other appropriate goals and priorities
for the Program, and how best to achieve those goals;
(2) the operating plan of the Consortium;
(3) the annual progress of the Program and the Consortium
in meeting the requirements of section 4(a) and, in the first
five years, the Strategy;
(4) organizational and programmatic reforms which would
improve the effectiveness of Federal research and development
programs relating to aeronautical technologies and related
manufacturing technologies in promoting the competitiveness of
the United States commercial aircraft industry;
(5) mechanisms for private industry comment and guidance
regarding the cost-effectiveness and commercial practicability
of existing and proposed Federal research and development
programs relating to aeronautical technologies and related
manufacturing technologies; and
(6) policies and mechanisms to promote the transfer and
conversion to commercial applications of aeronautical
technologies developed for national security purposes; and
(7) other goals and priorities for Federal research and
development programs relating to aeronautical technologies and
related manufacturing technologies.
(c) Membership.--The Advisory Committee shall be composed of twelve
members, who shall be appointed by the President from among individuals
who, because of their experience and accomplishments in the field of
aeronautics and related technological and scientific fields, are
exceptionally qualified to analyze and recommend policy relating to
aeronautical technology research and development. Membership of the
Advisory Committee shall be composed of representatives of--
(1) large civil aircraft manufacturing companies;
(2) aircraft engine manufacturing companies;
(3) advanced materials companies;
(4) avionics and other systems companies;
(5) other subcontractor firms engaged in aeronautical
technology research, development, and production; and
(6) Federal laboratories, universities, and independent
research institutes.
(d) Terms of Membership.--Each member of the Advisory Committee
shall be appointed for a term of three years, except that of the
members first appointed, four shall be appointed for a term of one
year, four shall be appointed for a term of two years, and four shall
be appointed for a term of three years, as designated by the President
at the time of the appointment. A member of the Advisory Committee may
serve after the expiration of the member's term until a successor has
taken office.
(e) Chairperson.--The President shall appoint one member of the
Advisory Committee to serve as chairperson.
(f) Quorum.--Seven members of the Advisory Committee shall
constitute a quorum.
(g) Meetings.--The Advisory Committee shall meet at least quarterly
at the call of the chairperson or one-third of its members, and at the
call of the Coordinating Committee.
(h) Compensation and Expenses.--
(1) No compensation for members.--Each member of the
Advisory Committee shall serve without compensation.
(2) Travel expenses authorized.--While away from their
homes or regular places of business in performance of the
duties of the Advisory Committee, members of the Advisory
Committee shall be allowed travel expenses in accordance with
subchapter I of chapter 57 of title 5, United States Code.
(i) Federal Advisory Committee Act.--Section 14 of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the Advisory
Committee.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Office of Science
and Technology Policy, to carry out the provisions of this Act, such
sums as may be necessary for the fiscal years 1994 and 1995.
<all>
S 419 IS----2