[Congressional Record Volume 143, Number 147 (Tuesday, October 28, 1997)]
[Senate]
[Pages S11292-S11294]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FRIST (for himself, Mr. Rockfeller, Mr. Burns, and Mr. 
        Hollings):
  S. 1325. A bill to authorize appropriations for the Technology 
Administration of the Department of Commerce for fiscal years 1998 and 
1999, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.


 THE TECHNOLOGY ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEARS 1998 
                                AND 1999

  Mr. FRIST. Mr. President, I rise today to offer a bill to authorize 
appropriations for the Technology Administration [TA] of the Department 
of Commerce for fiscal year 1998 and 1999. This bill funds activities 
in the National Institutes of Standards and Technology [NIST].
  I am keenly aware of my responsibilities to the American people for 
ensuring that the people's money is spent wisely. I have a 
responsibility to exercise prudent fiscal management over programs that 
cost taxpayers millions of dollars each year. Each program must be 
examined, and wasteful, ineffective programs must be changed or 
eliminated. I also have a responsibility to make appropriate long term 
investments that will help Americans create the technology and wealth 
of tomorrow. I view both of these duties as part of the principle of 
``wise stewardship'. The TA legislation represents a challenging 
application of wise stewardship. This bill covers some of the most 
productive and necessary areas of governments, as well as a few of the 
most controversial.
  There is no question that the work done by NIST's Standards 
Laboratory is essential to U.S. commerce. These laboratories house of 
the best scientific minds in the world. A perfect example is the award 
of the 1997 Nobel Prize for Science to Dr. William Phillips in the area 
of low temperature physics. His accomplishment, as well as the 
achievements of the world class scientific cadre at NIST are reminders 
of

[[Page S11293]]

the necessity for investment in the Standards Laboratory, the people 
most of all, but the buildings and infrastructure as well. This 
legislation provides for continued investment into this research and 
those services
  The reauthorization bill contains a provision to add accountability 
and controls to the new Experimental Program to Stimulate Competitive 
Technology [EPSCoT] program. Modeled after National Science 
Foundation's successful and effective EPSoR program, the goal of EPSCoT 
is to increase the technological competitiveness of these States that 
have historically received less Federal research and development funds 
than the majority of the States. While I believe that the aims of this 
program are good, we cannot afford to put this or any other Federal 
grant program on automatic pilot. Our legislation contains a 
graduations criteria, that moves a State out of the program when that 
State has become competitive. The bill contains a provision that 
mandates periodic evaluation of this program. Using this data we can 
tell if and when the program ceases to be effective. If that happens we 
have the information needed to see if the program can be fixed, or 
should be terminated.
  This legislation contains provisions for two programs that have been 
particularly contentious: the Advanced Technology Program [ATP], and 
the manufacturing Extension Program [MEP]. Both are technology 
enhancement programs designed with the intent of increasing the ability 
of U.S. firms to compete in the global marketplace.
  Under existing law each MEP center is funded for a maximum of 6 
years. This legislation removes the hard and fast sunset provision and 
replaces it with a 2-year renewal cycle. Each center must win renewal, 
and with it eligibility for Federal funds by receiving a satisfactory 
grade from this new biennial review. If the center is not fulfilling 
its expectation for assistance of manufacturing technology, then it 
will fail its review and will not be able to receive Federal funding.
  The Advanced Technology Program has been improved under this 
legislation. Large companies will no longer be able to participate as 
single applicants. They must partner with one or more small businesses 
in order to be eligible to apply for an ATP grant. This provision 
maximizes the benefit of this program by encouraging the transfer of 
technology and expertise from large businesses to the most dynamic 
section of our economy--small business. The legislation also takes 
steps to ensure that ATP does not displace private venture capital. 
finally, the bill takes an important step to continued evaluation and 
possible evolution of the program. It instructs the Department of 
Commerce to commission the National Academy of Sciences to study the 
effectiveness of the Advanced Technology Program. In addition the study 
will investigate alternative methods for the Federal Government to help 
keep U.S. businesses competitive.
  Finally, the TA NIST reauthorization bill creates a new educational 
resource for the country. There has never been a time in our country's 
history when science and technology has been more important. It is 
playing an increasingly critical role in our economy, and most of all 
to our economic future. It is all too clear that our children are not 
well enough prepared to take their places as part of the world's 
scientific leaders. As the recent NAEP and TIMSS science results show, 
there is a gap between our children's science abilities and those from 
other countries. In this bill, we have created the Teacher Science and 
Technology Enhancement Institute Program to help bridge that gap. The 
program is structured to afford primary and secondary educators the 
chance to become reacquainted with science. Armed with fresh 
experiences, the teachers will be better equipped to excite our 
children about technology and scientific inquiry. This is an investment 
that we cannot afford to pass up.
  I believe that this legislation embodies the concept of wise 
stewardship. The bill reflects input that we have received from my 
colleagues in the Senate, the House and the administration. More 
importantly, we have heard from constituents from my own State of 
Tennessee, as well as businesses, professional groups and academia from 
around the country. I am sure that the result will not please everyone. 
I believe, however, that it represents a necessary step in the constant 
evolution of these Federal programs. I take my congressional oversight 
obligations extremely seriously. Creating responsible, fair, timely 
authorizing legislation is a key part of that obligation. I believe 
that this legislation meets these requirements. I hope you will join me 
in honoring our obligation to the American people by supporting this 
legislation.
  Mr. ROCKEFELLER. Mr. President, I rise today to join my colleagues 
Senator Frist, Senator Hollings, Senator Burns in introducing 
legislation to reauthorize the programs of the Technology 
Administration for fiscal years 1998 and 1999. This bill reauthorizes 
the Office of Science and Technology Policy as well as the NIST labs 
and facilities about the President's budget request. It also funds the 
Advanced Technology Program at $198 million and the Manufacturing 
Extension Program at $111 million.
  It is noteworthy that after several hearings on ATP, and after 
assessing Secretary of Commerce Daley's detailed review of the program, 
we are now putting forward a bill that continues to authorize this 
important form of investment in America's economic competitiveness. As 
I, along with many others in this Chamber, have stated before, this 
program supports American industry's own efforts to develop new, 
cutting-edge technologies which create the new industries and jobs of 
the 21st century.
  Let me remind my colleagues that ATP does not, and I repeat, does not 
fund the development of commercial products. Instead, this program 
provides matching funds to both individual companies and joint ventures 
for pre-product research on high-risk technologies which have the 
potential to place U.S. industry as the leader in new industrial areas. 
This high-risk, high-reward strategy has already led to the creation of 
new U.S. industries based on information transfer, biotechnology, and 
new materials synthesis.
  In spite of the merits of this program ATP has been criticized by 
some Members for the past 4 years of the program's 6 years of 
existence. This year Secretary Daley undertook a 60-day review to 
assess the ATP's performance and evaluate these criticisms. The 
Department of Commerce solicited comments from more than 3,500 
interested parties and took into account comments provided by both 
critics and supporters of the program. fact, Senators Lieberman, 
Domenici, Frist and I joined together and provided one of the 80-plus 
comments the Department received. I would like to take a moment and 
commend Secretary Daley for the job he did in undertaking this review. 
As we all know, there is not a department or program that can't be 
improved. And as a long time and avid supporter of ATP I believe, that 
after 6 years of operation, experience would suggest that there should 
be some areas that can be improved. This review has done just that. The 
recommendations that Secretary Daley has put forth further strengthens 
a strong and productive program. I agree with his suggestion to place 
more emphasis on small and medium-size single applicants, joint-
ventures, and consortia. This bill adopts that recommendation by 
amending the National Institute of Standards and Technology Act to 
define a large business as one with gross annual revenues in excess of 
$2.5 billion and prohibits such businesses from participating in ATP 
programs as single applicants.
  In addition, I was pleased to see the added emphasis by the Secretary 
on the need for an EPSCoT program, based on the EPSCoR model, which 
would enhance technology development in the 18 States that have 
traditionally been under-represented in Federal R&D funding. EPSCoT 
would provide the opportunity for States which have been able to build 
infrastructure capable of supporting high-tech research to use this 
infrastructure to its maximum advantage. Studies have shown that 
strengthening the competitive performance of research laboratories, 
usually universities, in an underdeveloped area, which is the purpose 
of EPSCoR, is often not sufficient to establish new, high-tech 
companies. EPSCoT seeks to assist in technology

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transfer to the local economy by encouraging links between 
universities, local businesses, and local and State governments. Unlike 
ATP, which focuses on the national economic interest in research and 
development, EPSCoT focuses on allowing under-represented States the 
opportunity to participate in the technological revolution that is 
sweeping the global economy. In order to help the success of the 
program, Governors, business leaders and researchers were consulted 
about the importance of technology transfer for economic development. 
This bill provides statutory language to implement the Secretary's 
proposal of creating the EPSCoT program.
  Secretary Daley's review could not have been done at a better time. 
After 6 years of existence, a thorough and complete review of the 
process has shown that is it competently managed, produces positive 
results and has been working to achieve it's stated objectives. The 
proposals set forth in this review strengthen a very strong program 
that is one of the cornerstones to the Nation's long-term economic 
prosperity. The bill we are introducing today provides the necessary 
changes to existing law to implement many of the recommendations. I 
encourage my colleagues to support this bill.
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