[Congressional Record Volume 146, Number 124 (Friday, October 6, 2000)]
[Senate]
[Pages S10107-S10110]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       NATIONAL LABORATORIES PARTNERSHIP IMPROVEMENT ACT OF 1999

  On October 5, 2000, the Senate amended and passed S. 1756, as 
follows:

                                S. 1756

       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 2000''.

     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);

[[Page S10108]]

       (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.

[[Page S10109]]

     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

[[Page S10110]]

     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.

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