[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 517 Reported in Senate (RS)]






                                                        Calendar No. 65
107th CONGRESS
  1st Session
                                 S. 517

                          [Report No. 107-30]

 To authorize funding the Department of Energy to enhance its mission 
  areas through technology transfer and partnerships for fiscal years 
               2002 through 2006, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 12, 2001

 Mr. Bingaman (for himself, Mr. Domenici, Mrs. Murray, and Mr. Crapo) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

                              June 5, 2001

              Reported by Mr. Murkowski, without amendment

_______________________________________________________________________

                                 A BILL


 
 To authorize funding the Department of Energy to enhance its mission 
  areas through technology transfer and partnerships for fiscal years 
               2002 through 2006, 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 ``National Laboratories Partnership 
Improvement Act of 2001''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Department'' means the Department of Energy;
            (2) the term ``departmental mission'' means any of the 
        functions vested in the Secretary of Energy by the Department 
        of Energy Organization Act (42 U.S.C. 7101 et seq.) or other 
        law;
            (3) the term ``institution of higher education'' has the 
        meaning given such term in section 1201(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1141(a));
            (4) the term ``National Laboratory'' means any of the 
        following institutions owned by the Department of Energy--
                    (A) Argonne National Laboratory;
                    (B) Brookhaven National Laboratory;
                    (C) Idaho National Engineering and Environmental 
                Laboratory;
                    (D) Lawrence Berkeley National Laboratory;
                    (E) Lawrence Livermore National Laboratory;
                    (F) Los Alamos National Laboratory;
                    (G) National Renewable Energy Laboratory;
                    (H) Oak Ridge National Laboratory;
                    (I) Pacific Northwest National Laboratory; or
                    (J) Sandia National Laboratory;
            (5) the term ``facility'' means any of the following 
        institutions owned by the Department of Energy--
                    (A) Ames Laboratory;
                    (B) East Tennessee Technology Park;
                    (C) Environmental Measurement Laboratory;
                    (D) Fermi National Accelerator Laboratory;
                    (E) Kansas City Plant;
                    (F) National Energy Technology Laboratory;
                    (G) Nevada Test Site;
                    (H) Princeton Plasma Physics Laboratory;
                    (I) Savannah River Technology Center;
                    (J) Stanford Linear Accelerator Center;
                    (K) Thomas Jefferson National Accelerator Facility;
                    (L) Waste Isolation Pilot Plant;
                    (M) Y-12 facility at Oak Ridge National Laboratory; 
                or
                    (N) other similar organization of the Department 
                designated by the Secretary that engages in technology 
                transfer, partnering, or licensing activities;
            (6) the term ``nonprofit institution'' has the meaning 
        given such term in section 4 of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3703(5));
            (7) the term ``Secretary'' means the Secretary of Energy;
            (8) the term ``small business concern'' has the meaning 
        given such term in section 3 of the Small Business Act (15 
        U.S.C. 632);
            (9) the term ``technology-related business concern'' means 
        a for-profit corporation, company, association, firm, 
        partnership, or small business concern that--
                    (A) conducts scientific or engineering research,
                    (B) develops new technologies,
                    (C) manufacturers products based on new 
                technologies, or
                    (D) performs technological services;
            (10) the term ``technology cluster'' means a concentration 
        of--
                    (A) technology-related business concerns;
                    (B) institutions of higher education; or
                    (C) other nonprofit institutions,
        that reinforce each other's performance through formal or 
        informal relationships;
            (11) the term ``socially and economically disadvantaged 
        small business concerns'' has the meaning given such term in 
        section 8(a)(4) of the Small Business Act (15 U.S.C. 
        637(a)(4)); and
            (12) the term ``NNSA'' means the National Nuclear Security 
        Administration established by title XXXII of the National 
        Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
        65).

SEC. 3. TECHNOLOGY INFRASTRUCTURE PILOT PROGRAM.

    (a) Establishment.--The Secretary, through the appropriate 
officials of the Department, shall establish a Technology 
Infrastructure Pilot Program in accordance with this section.
    (b) Purpose.--The purpose of the program shall be to improve the 
ability of National Laboratories or facilities to support departmental 
missions by--
            (1) stimulating the development of technology clusters that 
        can support the missions of the National Laboratories or 
        facilities;
            (2) improving the ability of National Laboratories or 
        facilities to leverage and benefit from commercial research, 
        technology, products, processes, and services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between National Laboratories or 
        facilities and--
                    (A) institutions of higher education,
                    (B) technology-related business concerns,
                    (C) nonprofit institutions, and
                    (D) agencies of State, tribal, or local 
                governments,
        that can support the missions of the National Laboratories and 
        facilities.
    (c) Pilot Program.--In each of the first three fiscal years after 
the date of enactment of this section, the Secretary may provide no 
more than $10,000,000, divided equally, among no more than ten National 
Laboratories or facilities selected by the Secretary to conduct 
Technology Infrastructure Program Pilot Programs.
    (d) Projects.--The Secretary shall authorize the Director of each 
National Laboratory or facility designated under subsection (c) to 
implement the Technology Infrastructure Pilot Program at such National 
Laboratory or facility through projects that meet the requirements of 
subsections (e) and (f).
    (e) Program Requirements.--Each project funded under this section 
shall meet the following requirements:
            (1) Minimum participants.--Each project shall at a minimum 
        include--
                    (A) a National Laboratory or facility; and
                    (B) one of the following entities--
                            (i) a business,
                            (ii) an institution of higher education,
                            (iii) a nonprofit institution, or
                            (iv) an agency of a State, local, or tribal 
                        government.
            (2) Cost sharing.--
                    (A) Minimum amount.--Not less than 50 percent of 
                the costs of each project funded under this section 
                shall be provided from non-Federal sources.
                    (B) Qualified funding and resources.--
                            (i) The calculation of costs paid by the 
                        non-Federal sources to a project shall include 
                        cash, personnel, services, equipment, and other 
                        resources expended on the project.
                            (ii) Independent research and development 
                        expenses of government contractors that qualify 
                        for reimbursement under section 31-205-18(e) of 
                        the Federal Acquisition Regulations issued 
                        pursuant to section 25(c)(1) of the Office of 
                        Federal Procurement Policy Act (41 U.S.C. 
                        421(c)(1)) may be credited towards costs paid 
                        by non-Federal sources to a project, if the 
                        expenses meet the other requirements of this 
                        section.
                            (iii) No funds or other resources expended 
                        either before the start of a project under this 
                        section or outside the project's scope of work 
                        shall be credited toward the costs paid by the 
                        non-Federal sources to the project.
            (3) Competitive selection.--All projects where a party 
        other than the Department or a National Laboratory or facility 
        receives funding under this section shall, to the extent 
        practicable, be competitively selected by the National 
        Laboratory or facility using procedures determined to be 
        appropriate by the Secretary or his designee.
            (4) Accounting standards.--Any participant receiving 
        funding under this section, other than a National Laboratory or 
        facility, may use generally accepted accounting principles for 
        maintaining accounts, books, and records relating to the 
        project.
            (5) Limitations.--No Federal funds shall be made available 
        under this section for--
                    (A) construction; or
                    (B) any project for more than five years.
    (f) Selection Criteria.--
            (1) Threshold funding criteria.--The Secretary shall 
        authorize the provision of Federal funds for projects under 
        this section only when the Director of the National Laboratory 
        or facility managing such a project determines that the project 
        is likely to improve the participating National Laboratory or 
        facility's ability to achieve technical success in meeting 
        departmental missions.
            (2) Additional criteria.--The Secretary shall also require 
        the Director of the National Laboratory or facility managing a 
        project under this section to consider the following criteria 
        in selecting a project to receive Federal funds--
                    (A) the potential of the project to succeed, based 
                on its technical merit, team members, management 
                approach, resources, and project plan;
                    (B) the potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster, one that will derive most of the demand for 
                its products or services from the private sector, that 
                can support the missions of the participating National 
                Laboratory or facility;
                    (C) the potential of the project to promote the use 
                of commercial research, technology, products, 
                processes, and services by the participating National 
                Laboratory or facility to achieve its departmental 
                mission or the commercial development of technological 
                innovations made at the participating National 
                Laboratory or facility;
                    (D) the commitment shown by non-Federal 
                organizations to the project, based primarily on the 
                nature and amount of the financial and other resources 
                they will risk on the project;
                    (E) the extent to which the project involves a wide 
                variety and number of institutions of higher education, 
                nonprofit institutions, and technology-related business 
                concerns that can support the missions of the 
                participating National Laboratory or facility and that 
                will make substantive contributions to achieving the 
                goals of the project;
                    (F) the extent of participation in the project by 
                agencies of State, tribal, or local governments that 
                will make substantive contributions to achieving the 
                goals of the project; and
                    (G) the extent to which the project focuses on 
                promoting the development of technology-related 
                business concerns that are small business concerns or 
                involves such small business concerns substantively in 
                the project.
            (3) Savings clause.--Nothing in this subsection shall limit 
        the Secretary from requiring the consideration of other 
        criteria, as appropriate, in determining whether projects 
        should be funded under this section.
    (g) Report to Congress on Full Implementation.--Not later than 120 
days after the start of the third fiscal year after the date of 
enactment of this section, the Secretary shall report to Congress on 
whether the Technology Infrastructure Program should be continued 
beyond the pilot stage, and, if so, how the fully implemented program 
should be managed. This report shall take into consideration the 
results of the pilot program to date and the views of the relevant 
Directors of the National laboratories and facilities. The report shall 
include any proposals for legislation considered necessary by the 
Secretary to fully implement the program.

SEC. 4. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Advocacy Function.--The Secretary shall direct the Director of 
each National Laboratory, and may direct the Director of each facility 
the Secretary determines to be appropriate, to establish a small 
business advocacy function that is organizationally independent of the 
procurement function at the National Laboratory or facility. The person 
or office vested with the small business advocacy function shall--
            (1) work to increase the participation of small business 
        concerns, including socially and economically disadvantaged 
        small business concerns, in procurements, collaborative 
        research, technology licensing, and technology transfer 
        activities conducted by the National Laboratory or facility;
            (2) report to the Director of the National Laboratory or 
        facility on the actual participation of small business concerns 
        in procurements and collaborative research along with 
        recommendations, if appropriate, on how to improve 
        participation;
            (3) make available to small business concerns training, 
        mentoring, and clear, up-to-date information on how to 
        participate in the procurements and collaborative research, 
        including how to submit effective proposals;
            (4) increase the awareness inside the National Laboratory 
        or facility of the capabilities and opportunities presented by 
        small business concerns; and
            (5) establish guidelines for the program under subsection 
        (b) and report on the effectiveness of such program to the 
        Director of the National Laboratory or facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall direct the Director of each National Laboratory, and 
may direct the Director of each facility the Secretary determines to be 
appropriate, to establish a program to provide small business 
concerns--
            (1) assistance directed at making them more effective and 
        efficient subcontractors or suppliers to the National 
        Laboratory or facility; or
            (2) general technical assistance, the cost of which shall 
        not exceed $10,000 per instance of assistance, to improve the 
        small business concern's products or services.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to the small business concerns.

SEC. 5. TECHNOLOGY PARTNERSHIPS OMBUDSMAN.

    (a) Appointment of Ombudsman.--The Secretary shall direct the 
Director of each National Laboratory, and may direct the Director of 
each facility the Secretary determines to be appropriate, to appoint a 
technology partnership ombudsman to hear and help resolve complaints 
from outside organizations regarding each laboratory's policies and 
actions with respect to technology partnerships (including cooperative 
research and development agreements), patents, and technology 
licensing. Each ombudsman shall--
            (1) be a senior official of the National Laboratory or 
        facility who is not involved in day-to-day technology 
        partnerships, patents, or technology licensing, or, if 
        appointed from outside the laboratory, function as such a 
        senior official; and
            (2) have direct access to the Director of the National 
        Laboratory or facility.
    (b) Duties.--Each ombudsman shall--
            (1) serve as the focal point for assisting the public and 
        industry in resolving complaints and disputes with the 
        laboratory regarding technology partnerships, patents, and 
        technology licensing;
            (2) promote the use of collaborative alternative dispute 
        resolution techniques such as mediation to facilitate the 
        speedy and low-cost resolution of complaints and disputes, when 
        appropriate; and
            (3) report, through the Director of the National Laboratory 
        or facility, to the Department annually on the number and 
        nature of complaints and disputes raised, along with the 
        ombudsman's assessment of their resolution, consistent with the 
        protection of confidential and sensitive information.
    (c) Dual Appointment.--A person vested with the small business 
advocacy function of section 4 may also serve as the technology 
partnership ombudsman.

SEC. 6. STUDIES RELATED TO IMPROVING MISSION EFFECTIVENESS, 
              PARTNERSHIPS, AND TECHNOLOGY TRANSFER AT NATIONAL 
              LABORATORIES.

    (a) Studies.--The Secretary shall direct the Laboratory Operations 
Board to study and report to him, not later than one year after the 
date of enactment of this section, on the following topics--
            (1) the possible benefits from and need for policies and 
        procedures to facilitate the transfer of scientific, technical, 
        and professional personnel among National Laboratories and 
        facilities; and
            (2) the possible benefits from and need for changes in--
                    (A) the indemnification requirements for patents or 
                other intellectual property licensed from a National 
                Laboratory or facility;
                    (B) the royalty and fee schedules and types of 
                compensation that may be used for patents or other 
                intellectual property licensed to a small business 
                concern from a National Laboratory or facility;
                    (C) the licensing procedures and requirements for 
                patents and other intellectual property;
                    (D) the rights given to a small business concern 
                that has licensed a patent or other intellectual 
                property from a National Laboratory or facility to 
                bring suit against third parties infringing such 
                intellectual property;
                    (E) the advance funding requirements for a small 
                business concern funding a project at a National 
                Laboratory or facility through a Funds-In-Agreement;
                    (F) the intellectual property rights allocated to a 
                business when it is funding a project at a National 
                Laboratory or facility through a Funds-In-Agreement; 
                and
                    (G) policies on royalty payments to inventors 
                employed by a contractor-operated National Laboratory 
                or facility, including those for inventions made under 
                a Funds-In-Agreement.
    (b) Definition.--For the purposes of this section, the term 
``Funds-In-Agreement'' means a contract between the Department and a 
non-Federal organization where that organization pays the Department to 
provide a service or material not otherwise available in the domestic 
private sector.
    (c) Report to Congress.--Not later than one month after receiving 
the report under subsection (a), the Secretary shall transmit the 
report, along with his recommendations for action and proposals for 
legislation to implement the recommendations, to Congress.

SEC. 7. OTHER TRANSACTIONS AUTHORITY.

    (a) New Authority.--Section 646 of the Department of Energy 
Organization Act (42 U.S.C. 7256) is amended by adding at the end the 
following new subsection:
    ``(g) Other Transactions Authority.--(1) In addition to other 
authorities granted to the Secretary to enter into procurement 
contracts, leases, cooperative agreements, grants, and other similar 
arrangements, the Secretary may enter into other transactions with 
public agencies, private organizations, or persons on such terms as the 
Secretary may deem appropriate in furtherance of basic, applied, and 
advanced research functions now or hereafter vested in the Secretary. 
Such other transactions shall not be subject to the provisions of 
section 9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908).
    ``(2)(A) The Secretary of Energy shall ensure that--
            ``(i) to the maximum extent practicable, no transaction 
        entered into under paragraph (1) provides for research that 
        duplicates research being conducted under existing programs 
        carried out by the Department of Energy; and
            ``(ii) to the extent that the Secretary determines 
        practicable, the funds provided by the Government under a 
        transaction authorized by paragraph (1) do not exceed the total 
        amount provided by other parties to the transaction.
    ``(B) A transaction authorized by paragraph (1) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or appropriate.
    ``(3)(A) The Secretary shall not disclose any trade secret or 
commercial or financial information submitted by a non-Federal entity 
under paragraph (1) that is privileged and confidential.
    ``(B) The Secretary shall not disclose, for five years after the 
date the information is received, any other information submitted by a 
non-Federal entity under paragraph (1), including any proposal, 
proposal abstract, document supporting a proposal, business plan, or 
technical information that is privileged and confidential.
    ``(C) The Secretary may protect from disclosure, for up to five 
years, any information developed pursuant to a transaction under 
paragraph (1) that would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if obtained from a person 
other than a Federal agency.''.
    (b) Implementation.--Not later than six months after the date of 
enactment of this section, the Department shall establish guidelines 
for the use of other transactions. Other transactions shall be made 
available, if needed, in order to implement projects funded under 
section 3.

SEC. 8. CONFORMANCE WITH NNSA ORGANIZATIONAL STRUCTURE.

    All actions taken by the Secretary in carrying out this Act with 
respect to National Laboratories and facilities that are part of the 
NNSA shall be through the Administrator for Nuclear Security in 
accordance with the requirements of title XXXII of the National Defense 
Authorization Act for Fiscal Year 2000.

SEC. 9. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS FOR GOVERNMENT-
              OWNED, CONTRACTOR-OPERATED LABORATORIES.

    (a) Strategic Plans.--Subsection (a) of section 12 of the 
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a) is 
amended by striking ``joint work statement,'' and inserting ``joint 
work statement or, if permitted by the agency, in an agency-approved 
annual strategic plan,''.
    (b) Experimental Federal Waivers.--Subsection (b) of that section 
is amended by adding at the end the following new paragraph:
            ``(6)(A) In the case of a Department of Energy laboratory, 
        a designated official of the Department of Energy may waive any 
        license retained by the Government under paragraph (1)(A), (2), 
        or (3)(D), in whole or in part and according to negotiated 
        terms and conditions, if the designated official finds that the 
        retention of the license by the Department of Energy would 
        substantially inhibit the commercialization of an invention 
        that would otherwise serve an important Federal mission.
            ``(B) The authority to grant a waiver under subparagraph 
        (A) shall expire on the date that is 5 years after the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 2001.
            ``(C) The expiration under subparagraph (B) of authority to 
        grant a waiver under subparagraph (A) shall not effect any 
        waiver granted under subparagraph (A) before the expiration of 
        such authority.''.
    (c) Time Required for Approval.--Subsection (c)(5) of that section 
is amended--
            (1) by striking subparagraph (C);
            (2) by redesignating subparagraph (D) as subparagraph (C); 
        and
            (3) in subparagraph (C) as so redesignated--
                    (A) in clause (i)--
                            (i) by striking ``with a small business 
                        firm''; and
                            (ii) by inserting ``if'' after 
                        ``statement''; and
                    (B) by adding at the end the following new clauses:
                            ``(iv) Any agency that has contracted with 
                        a non-Federal entity to operate a laboratory 
                        may develop and provide to such laboratory one 
                        or more model cooperative research and 
                        development agreements, for the purposes of 
                        standardizing practices and procedures, 
                        resolving common legal issues, and enabling 
                        review of cooperative research and development 
                        agreements to be carried out in a routine and 
                        prompt manner.
                            ``(v) A Federal agency may waive the 
                        requirements of clause (i) or (ii) under such 
                        circumstances as the agency considers 
                        appropriate. However, the agency may not take 
                        longer than 30 days to review and approve, 
                        request modifications to, or disapprove any 
                        proposed agreement or joint work statement that 
                        it elects to receive.''.

SEC. 10. COOPERATIVE RESEARCH AND DEVELOPMENT OF THE NATIONAL NUCLEAR 
              SECURITY ADMINISTRATION.

    (a) Objective for Obligation of Funds.--It shall be an objective of 
the Administrator of the National Nuclear Security Administration to 
obligate funds for cooperative research and development agreements (as 
that term is defined in section 12(d)(1) of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 3710a(d)(1))), or similar 
cooperative, cost-shared research partnerships with non-Federal 
organizations, in a fiscal year covered by subsection (b) in an amount 
at least equal to the percentage of the total amount appropriated for 
the Administration for such fiscal year that is specified for such 
fiscal year under subsection (b).
    (b) Fiscal Year Percentages.--The percentages of funds appropriated 
for the National Nuclear Security Administration that are obligated in 
accordance with the objective under subsection (a) are as follows:
            (1) In each of fiscal years 2001 and 2002, 0.5 percent.
            (2) In any fiscal year after fiscal year 2002, the 
        percentage recommended by the Administrator for each such 
        fiscal year in the report under subsection (c).
    (c) Recommendtions for Percentages in Later Fiscal Years.--Not 
later than one year after the date of the enactment of this Act, the 
Administrator shall submit to the congressional defense committees a 
report setting forth the Administrator's recommendations for 
appropriate percentages of funds appropriated for the National Nuclear 
Security Administration to be obligated for agreements described in 
subsection (a) during each fiscal year covered by the report.
    (d) Consistency of Agreements.--Any agreement entered into under 
this section shall be consistent with and in support of the mission of 
the National Nuclear Security Administration.
    (e) Reports on Achievement of Objective.--(1) Not later than March 
30, 2002, and each year thereafter, the Administrator shall submit to 
the congressional defense committees a report on whether funds of the 
National Nuclear Security Administration were obligated in the fiscal 
year ending in the preceding year in accordance with the objective for 
such fiscal year under this section.
    (2) If funds were not obligated in a fiscal year in accordance with 
the objective under this section for such fiscal year, the report under 
paragraph (1) shall--
            (A) describe the actions the Administrator proposes to take 
        to ensure that the objective under this section for the current 
        fiscal year and future fiscal years will be met; and
            (B) include any recommendations for legislation required to 
        achieve such actions.




                                                        Calendar No. 65

107th CONGRESS

  1st Session

                                 S. 517

                          [Report No. 107-30]

_______________________________________________________________________

                                 A BILL

 To authorize funding the Department of Energy to enhance its mission 
  areas through technology transfer and partnerships for fiscal years 
               2002 through 2006, and for other purposes.

_______________________________________________________________________

                              June 5, 2001

                       Reported without amendment