[Congressional Record Volume 145, Number 24 (Wednesday, February 10, 1999)]
[Senate]
[Pages S1414-S1417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN:
  S. 397. A bill to authorize the Secretary of Energy to establish a 
multiagency program in support of the Materials Corridor Partnership 
Initiative to promote energy efficient, environmentally sound economic 
development along the border with Mexico through the research, 
development, and use of new materials; to the Committee on Energy and 
Natural Resources.


          NATIONAL MATERIALS CORRIDOR PARTNERSHIP ACT OF 1999

 Mr. BINGAMAN. Mr. President, today I am pleased to introduce 
the ``National Materials Corridor Partnership Act of 1999.'' This bill 
will establish a comprehensive, multiagency program, led by the 
Department of Energy, to promote energy efficient, environmentally 
sound economic development along the US-Mexican border through the 
research, development, and use of new materials technology. I am also 
pleased to say that I developed this bill with Congressman George 
Brown, the ranking member of the House Science Committee, who will 
introduce it in the House of Representatives.
  As many of you are aware, NAFTA and the globalization of our economy 
have created a surge of economic

[[Page S1415]]

growth all along the 2000 mile US-Mexican border. The border region has 
become a major center for manufacturing and assembly in many 
industries, such as microelectronics and automobile parts, as well as a 
center for many materials industries, such as metals and plastics. 
However, with this economic growth have come serious problems. 
Pollution, hazardous wastes, and the inefficient use of resources 
threaten people's health and the prospects for long term economic 
growth. For example, there are numerous ``non-attainment'' regions for 
carbon monoxide and ozone along the border. If you've been down to the 
El Paso area, where New Mexico, Texas, and Mexico come together, your 
eyes and nose will tell you something's not as it should be.
  However, solutions to some of these problems may lie close at hand--
in new materials technologies. There are many research institutions 
along both sides of the border which have expertise in materials 
technology. In my state alone, Los Alamos and Sandia National Labs, New 
Mexico Tech, and the University of New Mexico, among others, are all 
involved in materials research. The importance of materials technology 
is often underappreciated, perhaps because it is so ubiquitous. But in 
many cases it is the very wellspring of technological revolutions. We 
have named various epochs of our history after new materials--the Stone 
Age, the Bronze Age, the Iron Age--because of how powerfully they can 
change our lives. Even today, materials science gave us the transistors 
and fiber optics lines that created the information age, the age of 
Silicon Valley. Materials technology can be a very powerful tool for 
improving people's standard of living.
  Of course, the technologies coming out of this program are unlikely 
to create a new age, but they will be extremely helpful. For example, 
there are many family operated brick factories along the border which 
use very dirty fuels, like old tires, to fire their kilns. This fuel 
is, as you might guess, extremely polluting. In fact, brick factories 
are the third most significant source of air pollution along the 
border, after automobiles and road dust. Los Alamos has looked at 
redesigning the kilns, a materials processing technology, to use much 
less fuel and have a lower reject rate. This means less pollution and 
suggests the possibility of maybe even using natural gas to 
economically fire the kilns. The end result could be a major reduction 
in one pollution source.
  Another well known problem is the solvents the microelectronics 
industry uses to clean its devices during assembly, which also 
contribute to smog. Los Alamos has developed a way to substitute 
supercritical carbon dioxide for these solvents within a closed system. 
This substitution of materials could reduce energy consumption, 
processing time, and an important source of industrial pollution.
  The idea for a US-Mexican program to promote environmentally sound 
economic growth along the border via materials technology was 
originally suggested in 1993 by Hans Mark, then of the University of 
Texas, now the Director of Defense Research and Engineering. While 
Mexico's economic crisis of the early 90's stalled things, in 1998 the 
Mexican government revived the idea, proposing a ``Materials Corridor 
Partnership Initiative'' to the US-Mexican Binational Commission, and 
offering $1 million of funding for it if the United States would do the 
same. While an informal group with many research organizations, the 
``Materials Corridor Council,'' has organized itself in response, the 
US government has yet to pick up on the Mexican offer. My legislation 
is meant to kick start the ``Materials Corridor Partnership 
Initiative'' inside the federal government.
  So, what are the features of the program? It would be an interagency 
program led by the Department of Energy (DOE). An interagency program 
is a good way to bring various talents to bear on complex problems. DOE 
is a good choice to lead this program because its energy efficiency and 
national security missions, including nuclear cleanup, have led it to 
develop a large array of materials technologies to improve energy 
efficiency, reduce pollution, or handle hazardous wastes. In fact, in 
1996, DOE was the largest civilian funder of materials research. Under 
DOE's leadership, the State Department, Environmental Protection 
Agency, National Science Foundation, and National Institutes of 
Standards and Technology will bring their complementary capabilities to 
the program as diplomats, environmental scientists, basic researchers, 
and standards experts.
  The program will focus on materials technology to improve energy 
efficiency, minimize or eliminate pollution and global climate change 
gases, and use recycled materials as primary materials through three 
types of projects. First, there will be applied research projects aimed 
at showing the feasibility of a materials technology in order to hasten 
its adoption by industry. These projects will typically be led by 
companies, and to ensure the firms are really interested in the 
technology, the federal government will pay no more than 50% of the 
cost of such a project. Second, there will be basic research projects 
to discover new knowledge useful in creating these materials 
technologies; these will typically be led by an academic or other 
research institutions. Third, there will education and training 
projects to train border scientists, engineers, and workers in these 
new technologies. To cover this, the bill authorizes $5 million per 
year for five years.
  Finally, this program will be a cooperative program with Mexico. Our 
border is, by definition, something we share. We share its 
opportunities and its problems, so it makes sense to share the 
solutions. Pollution needs no passport. Now, perhaps we will still be 
able to pick up Mexico's offer of $1 million for this program, but, in 
any event, the bill calls upon the Secretary of Energy to encourage 
Mexican organizations to contribute to it. And, to foster US-Mexican 
cooperation whenever possible, the bill allows US funds to be used by 
organizations located in Mexico provided Mexican organizations 
contribute significant resources to that particular project. Working 
closely with the Mexicans to solve our common problems will be much 
more effective than trying to go it alone.
  Mr. President, I think the ``National Materials Corridor Partnership 
Act of 1999'' is an idea whose time has finally arrived. I hope my 
colleagues, particularly from the states along the US-Mexican border, 
will join me in supporting this important piece of legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
placed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows.

                                 S. 397

       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 Materials Corridor 
     Partnership Act of 1999''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the region adjacent to the 2,000-mile border between 
     the United States and Mexico is an important region for 
     energy-intensive manufacturing and materials industries 
     critical to the economic and social wellbeing of both 
     countries;
       (2) there are currently more than 800 multinational firms 
     (including firms known as ``maquiladoras'') representing 
     United States investments of more than $1,000,000,000 in the 
     San Diego, California, and Tijuana, Baja California, border 
     region and in the El Paso, Texas, and Juarez, Chihuahua, 
     border region;
       (3) materials and materials-related industries comprise a 
     major portion of the industries operating on both sides of 
     the border, amounting to more than $6,800,000,000 in annual 
     commerce on the Mexican side alone;
       (4) there are a significant number of major institutions in 
     the border States of both countries currently conducting 
     academic and research activities in materials;
       (5)(A) the United States Government currently invests 
     approximately $1,000,000,000 annually in materials research, 
     of which, in 1996, the Department of Energy funded the 
     largest proportion of civilian materials research; and
       (B) there are also major materials programs at the National 
     Science Foundation, the National Institute of Standards and 
     Technology, and Department of Defense, among other entities;
       (6) the United States and Mexico have invested heavily in 
     domestic and binational cooperative programs to address major 
     concerns for the natural resources, environment, and public 
     health of the United States-Mexico border region, expending 
     hundreds of millions of dollars annually in those efforts;
       (7)(A) scientific and technical advances in materials and 
     materials processing provide major opportunities for--

[[Page S1416]]

       (i) significantly improving energy efficiency;
       (ii) reducing emissions of global climate change gases;
       (iii) using recycled natural resources as primary materials 
     for industrial production; and
       (iv) minimizing industrial wastes and pollution; and
       (B) such advances will directly benefit both sides of the 
     United States-Mexico border by encouraging energy efficient, 
     environmentally sound economic development that protects the 
     health and natural resources of the border region;
       (8)(A) promoting clean materials industries in the border 
     region that are energy efficient has been identified as a 
     high priority issue by the United States-Mexico Foundation 
     for Science Cooperation; and
       (B) at the 1998 discussions of the United States-Mexico 
     Binational Commission, Mexico formally proposed joint funding 
     of a ``Materials Corridor Partnership Initiative'', proposing 
     $1,000,000 to implement the Initiative if matched by the 
     United States;
       (9) recognizing the importance of materials and materials 
     processing, academic and research institutions in the border 
     States of both the United States and Mexico, in conjunction 
     with private sector partners of both countries, and with 
     strong endorsement from the Government of Mexico, in 1998 
     organized the Materials Corridor Council to implement a 
     cooperative program of materials research and development, 
     education and training, and sustainable industrial 
     development as part of the Materials Corridor Partnership 
     Initiative; and
       (10) successful implementation of the Materials Corridor 
     Partnership Initiative would advance important United States 
     energy, environmental, and economic goals not only in the 
     United States-Mexico border region but also as a model for 
     similar collaborative materials initiatives in other regions 
     of the world.

     SEC. 3. PURPOSE.

       The purpose of this Act is to establish a multiagency 
     program in support of the Materials Corridor Partnership 
     Initiative referred to in section 2(8) to promote energy 
     efficient, environmentally sound economic development along 
     the United States-Mexico border through the research, 
     development, and use of new materials technology.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Program.--The term ``program'' means the program 
     established under section 5(a).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 5. ESTABLISHMENT AND IMPLEMENTATION OF THE PROGRAM.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish a 
     comprehensive program to promote energy efficient, 
     environmentally sound economic development along the United 
     States-Mexico border through the research, development, and 
     use of new materials technology.
       (2) Considerations.--In developing the program, the 
     Secretary shall give due consideration to the proposal made 
     to the United States-Mexico Binational Commission for the 
     Materials Corridor Partnership Initiative.
       (b) Participation of Other Federal Agencies.--The Secretary 
     shall organize and conduct the program jointly with--
       (1) the Department of State;
       (2) the Environmental Protection Agency;
       (3) the National Science Foundation;
       (4) the National Institute of Standards and Technology; and
       (5) any other departments or agencies the participation of 
     which the Secretary considers appropriate.
       (c) Participation of the Private Sector.--When appropriate, 
     funds made available under this Act shall be made available 
     for research and development or education and training 
     activities that are conducted with the participation and 
     support of private sector organizations located in the United 
     States and, subject to section 7(c)(2), Mexico, to promote 
     and accelerate in the United States-Mexico border region the 
     use of energy efficient, environmentally sound technologies 
     and other advances resulting from the program.
       (d) Mexican Resource Contributions.--The Secretary shall--
       (1) encourage public, private, nonprofit, and academic 
     organizations located in Mexico to contribute significant 
     financial and other resources to the program; and
       (2) take any such contributions into account in conducting 
     the program.
       (e) Transfer of Technology From National Laboratories.--In 
     conducting the program, the Secretary shall emphasize the 
     transfer and use of materials technology developed by the 
     national laboratories of the Department of Energy before the 
     date of enactment of this Act.

     SEC. 6. ACTIVITIES AND MAJOR PROGRAM ELEMENTS.

       (a) Activities.--Funds made available under this Act shall 
     be made available for research and development and education 
     and training activities that are primarily focused on 
     materials, and the synthesis, processing, and fabrication of 
     materials, that promote--
       (1) improvement of energy efficiency;
       (2) elimination or minimization of emissions of global 
     climate change gases and contaminants;
       (3) minimization of industrial wastes and pollutants; and
       (4) use of recycled resources as primary materials for 
     industrial production.
       (b) Major Program Elements.--
       (1) In general.--The program shall have the following major 
     elements:
       (A) Applied research, focused on maturing and refining 
     materials technologies to demonstrate the feasibility or 
     utility of the materials technologies.
       (B) Basic research, focused on the discovery of new 
     knowledge that may eventually prove useful in creating 
     materials technologies to promote energy efficient, 
     environmentally sound manufacturing.
       (C) Education and training, focused on educating and 
     training scientists, engineers, and workers in the border 
     region in energy efficient, environmentally sound materials 
     technologies.
       (2) Applied research.--Applied research projects under 
     paragraph (1)(A) should typically involve significant 
     participation from private sector organizations that would 
     use or sell such a technology.
       (3) Basic research.--Basic research projects conducted 
     under paragraph (1)(B) should typically be led by an academic 
     or other research institution.

     SEC. 7. PARTICIPATION OF DEPARTMENTS AND AGENCIES OTHER THAN 
                   THE DEPARTMENT OF ENERGY.

       (a) Agreement.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary shall enter into an 
     agreement with the departments and agencies referred to in 
     section 5(b) on the coordination and implementation of the 
     program.
       (b) Actions of Departments and Agencies.--Any action of a 
     department or agency under an agreement under subsection (a) 
     shall be the responsibility of that department or agency and 
     shall not be subject to approval by the Secretary.
       (c) Use of Funds.--
       (1) In general.--The Secretary and the departments and 
     agencies referred to in section 5(b) may use funds made 
     available for the program for research and development or 
     education and training activities carried out by--
       (A) State and local governments and academic, nonprofit, 
     and private organizations located in the United States; and
       (B) State and local governments and academic, nonprofit, 
     and private organizations located in Mexico.
       (2) Condition.--Funds may be made available to a State or 
     local government or organization located in Mexico only if a 
     government or organization located in Mexico (which need not 
     be the recipient of the funds) contributes a significant 
     amount of financial or other resources to the project to be 
     funded.
       (d) Transfer of Funds.--The Secretary may transfer funds to 
     the departments and agencies referred to in section 5(b) to 
     carry out the responsibilities of the departments and 
     agencies under this Act.

     SEC. 8. PROGRAM ADVISORY COMMITTEE.

       (a) Establishment.--
       (1) In general.--The Secretary shall establish an advisory 
     committee consisting of representatives of the private, 
     academic, and public sectors.
       (2) Considerations.--In establishing the advisory 
     committee, the Secretary shall take into consideration 
     organizations in existence on the date of enactment of this 
     Act, such as the Materials Corridor Council and the Business 
     Council for Sustainable Development-Gulf Mexico.
       (b) Consultation and Coordination.--Departments and 
     agencies of the United States to which funds are made 
     available under this Act shall consult and coordinate with 
     the advisory committee in identifying and implementing the 
     appropriate types of projects to be funded under this Act.

     SEC. 9. FINANCIAL AND TECHNICAL ASSISTANCE.

       (a) In General.--Federal departments and agencies 
     participating in the program may provide financial and 
     technical assistance to other organizations to achieve the 
     purpose of the program.
       (b) Applied Research.--
       (1) Use of cooperative agreements.--
       (A) In general.--Federal departments and agencies shall, to 
     the extent practicable, use cooperative agreements to fund 
     applied research activities by organizations outside the 
     Federal Government.
       (B) National laboratories.--In the case of an applied 
     research activity conducted by a national laboratory, a 
     funding method other than a cooperative agreement may be used 
     if such a funding method would be more administratively 
     convenient.
       (2) Federal share.--
       (A) In general.--The Federal Government shall pay not more 
     than 50 percent of the cost of applied research activities 
     under the program.
       (B) Qualified funding and resources.--No funds or other 
     resources expended either before the start of a project under 
     the program or outside the scope of work covered by the 
     funding method determined under paragraph (1) shall be 
     credited toward the non-Federal share of the cost of the 
     project.
       (c) Basic Research and Education and Training.--
       (1) In general.--Federal departments and agencies shall, to 
     the extent practicable, use grants to fund basic research and 
     education and training activities by organizations outside 
     the Federal Government.
       (2) National laboratories.--In the case of a basic research 
     or education activity conducted by a national laboratory, a 
     funding method other than a grant may be used if such a 
     funding method would be more administratively convenient.

[[Page S1417]]

       (3) Federal share.--The Federal Government may fund 100 
     percent of the cost of the basic research and education and 
     training activities of the program.
       (d) Competitive Selection.--All projects funded under the 
     program shall be competitively selected using such selection 
     criteria as the Secretary, in consultation with the 
     departments and agencies referred to in section 5(b), 
     determines to be appropriate.
       (e) Accounting Standards.--
       (1) Waiver.--To facilitate participation in the program, 
     Federal departments and agencies may waive any requirements 
     for Government accounting standards by organizations that 
     have not established such standards.
       (2) GAAP.--Generally accepted accounting principles shall 
     be sufficient for projects under the program.
       (f) No Construction.--No program funds may be used for 
     construction.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $5,000,000 for each of fiscal years 2000 through 
     2004.
                                 ______