[Congressional Record Volume 160, Number 115 (Tuesday, July 22, 2014)]
[House]
[Pages H6601-H6604]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEPARTMENT OF ENERGY LABORATORY MODERNIZATION AND TECHNOLOGY TRANSFER
ACT OF 2014
Mr. HULTGREN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 5120) to improve management of the National Laboratories,
enhance technology commercialization, facilitate public-private
partnerships, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5120
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Department
of Energy Laboratory Modernization and Technology Transfer
Act of 2014''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Savings clause.
TITLE I--INNOVATION MANAGEMENT AT DEPARTMENT OF ENERGY
Sec. 101. Under Secretary for Science and Energy.
Sec. 102. Technology transfer assessment.
Sec. 103. Sense of Congress.
TITLE II--CROSS-SECTOR PARTNERSHIPS AND GRANT COMPETITIVENESS
Sec. 201. Agreements for Commercializing Technology pilot program.
Sec. 202. Public-private partnerships for commercialization.
Sec. 203. Inclusion of early-stage technology demonstration in
authorized technology transfer activities.
Sec. 204. Funding competitiveness for institutions of higher education
and other nonprofit institutions.
Sec. 205. Participation in the Innovation Corps program.
TITLE III--ASSESSMENT OF IMPACT
Sec. 301. Report by Government Accountability Office.
SEC. 2. DEFINITIONS.
In this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) National laboratories.--The term ``National
Laboratory'' means a Department of Energy nonmilitary
national laboratory, including--
(A) Ames Laboratory;
(B) Argonne National Laboratory;
(C) Brookhaven National Laboratory;
(D) Fermi National Accelerator Laboratory;
(E) Idaho National Laboratory;
(F) Lawrence Berkeley National Laboratory;
(G) National Energy Technology Laboratory;
(H) National Renewable Energy Laboratory;
(I) Oak Ridge National Laboratory;
(J) Pacific Northwest National Laboratory;
(K) Princeton Plasma Physics Laboratory;
(L) Savannah River National Laboratory;
(M) Stanford Linear Accelerator Center;
(N) Thomas Jefferson National Accelerator Facility; and
(O) any laboratory operated by the National Nuclear
Security Administration, but only with respect to the
civilian energy activities thereof.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 3. SAVINGS CLAUSE.
Nothing in this Act or an amendment made by this Act
abrogates or otherwise affects the primary responsibilities
of any National Laboratory to the Department.
TITLE I--INNOVATION MANAGEMENT AT DEPARTMENT OF ENERGY
SEC. 101. UNDER SECRETARY FOR SCIENCE AND ENERGY.
(a) In General.--Section 202(b) of the Department of Energy
Organization Act (42 U.S.C. 7132(b)) is amended--
(1) by striking ``Under Secretary for Science'' each place
it appears and inserting ``Under Secretary for Science and
Energy''; and
(2) in paragraph (4)--
(A) in subparagraph (F), by striking ``and'' at the end;
(B) in subparagraph (G), by striking the period at the end
and inserting a semicolon; and
(C) by inserting after subparagraph (G) the following:
``(H) establish appropriate linkages between offices under
the jurisdiction of the Under Secretary; and
``(I) perform such functions and duties as the Secretary
shall prescribe, consistent with this section.''.
(b) Conforming Amendments.--
(1) Section 3164(b)(1) of the Department of Energy Science
Education Enhancement Act (42 U.S.C. 7381a(b)(1)) is amended
by striking ``Under Secretary for Science'' and inserting
``Under Secretary for Science and Energy''.
(2) Section 641(h)(2) of the United States Energy Storage
Competitiveness Act of 2007 (42 U.S.C. 17231(h)(2)) is
amended by striking ``Under Secretary for Science'' and
inserting ``Under Secretary for Science and Energy''.
SEC. 102. TECHNOLOGY TRANSFER ASSESSMENT.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall transmit to the Committee on
Science, Space, and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report which shall include--
(1) an assessment of the Department's current ability to
carry out the goals of section 1001 of the Energy Policy Act
of 2005 (42 U.S.C. 16391), including an assessment of the
role and effectiveness of the Technology Transfer Coordinator
position; and
(2) recommended departmental policy changes and legislative
changes to section
[[Page H6602]]
1001 of the Energy Policy Act of 2005 (42 U.S.C. 16391) to
improve the Department's ability to successfully transfer new
energy technologies to the private sector.
SEC. 103. SENSE OF CONGRESS.
It is the sense of the Congress that--
(1) the establishment of the independent Commission to
Review the Effectiveness of the National Energy Laboratories
under section 319 of title III of division D of the
Consolidated Appropriations Act, 2014, is an important step
towards developing a coordinated strategy for the National
Laboratories in the 21st century;
(2) Congress looks forward to--
(A) receiving the findings and conclusions of the
Commission; and
(B) engaging with the Administration--
(i) in strengthening the mission of the National
Laboratories; and
(ii) to reform and modernize the operations and management
of the National Laboratories; and
(3) the Secretary should encourage the National
Laboratories and federally funded research and development
centers to inform small businesses of the opportunities and
resources that exist pursuant to this Act.
TITLE II--CROSS-SECTOR PARTNERSHIPS AND GRANT COMPETITIVENESS
SEC. 201. AGREEMENTS FOR COMMERCIALIZING TECHNOLOGY PILOT
PROGRAM.
(a) In General.--The Secretary shall carry out the
Agreements for Commercializing Technology pilot program of
the Department, as announced by the Secretary on December 8,
2011, in accordance with this section.
(b) Terms.--Each agreement entered into pursuant to the
pilot program referred to in subsection (a) shall provide to
the contractor of the applicable National Laboratory, to the
maximum extent determined to be appropriate by the Secretary,
increased authority to negotiate contract terms, such as
intellectual property rights, payment structures, performance
guarantees, and multiparty collaborations.
(c) Eligibility.--
(1) In general.--Any director of a National Laboratory may
enter into an agreement pursuant to the pilot program
referred to in subsection (a).
(2) Agreements with non-federal entities.--To carry out
paragraph (1) and subject to paragraph (3), the Secretary
shall permit the directors of the National Laboratories to
execute agreements with a non-Federal entity, including a
non-Federal entity already receiving Federal funding that
will be used to support activities under agreements executed
pursuant to paragraph (1), provided that such funding is
solely used to carry out the purposes of the Federal award.
(3) Restriction.--The requirements of chapter 18 of title
35, United States Code (commonly known as the ``Bayh-Dole
Act'') shall apply if--
(A) the agreement is a funding agreement (as that term is
defined in section 201 of that title); and
(B) at least 1 of the parties to the funding agreement is
eligible to receive rights under that chapter.
(d) Submission to Secretary.--Each affected director of a
National Laboratory shall submit to the Secretary, with
respect to each agreement entered into under this section--
(1) a summary of information relating to the relevant
project;
(2) the total estimated costs of the project;
(3) estimated commencement and completion dates of the
project; and
(4) other documentation determined to be appropriate by the
Secretary.
(e) Certification.--The Secretary shall require the
contractor of the affected National Laboratory to certify
that each activity carried out under a project for which an
agreement is entered into under this section--
(1) is not in direct competition with the private sector;
and
(2) does not present, or minimizes, any apparent conflict
of interest, and avoids or neutralizes any actual conflict of
interest, as a result of the agreement under this section.
(f) Extension.--The pilot program referred to in subsection
(a) shall be extended for a term of 2 years after the date of
enactment of this Act.
(g) Reports.--
(1) Overall assessment.--Not later than 60 days after the
date described in subsection (f), the Secretary, in
coordination with directors of the National Laboratories,
shall submit to the Committee on Science, Space, and
Technology of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate a report that--
(A) assesses the overall effectiveness of the pilot program
referred to in subsection (a);
(B) identifies opportunities to improve the effectiveness
of the pilot program;
(C) assesses the potential for program activities to
interfere with the responsibilities of the National
Laboratories to the Department; and
(D) provides a recommendation regarding the future of the
pilot program.
(2) Transparency.--The Secretary, in coordination with
directors of the National Laboratories, shall submit to the
Committee on Science, Space, and Technology of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate an annual report that accounts for
all incidences of, and provides a justification for, non-
Federal entities using funds derived from a Federal contract
or award to carry out agreements pursuant to this section.
SEC. 202. PUBLIC-PRIVATE PARTNERSHIPS FOR COMMERCIALIZATION.
(a) In General.--Subject to subsections (b) and (c), the
Secretary shall delegate to directors of the National
Laboratories signature authority with respect to any
agreement described in subsection (b) the total cost of which
(including the National Laboratory contributions and project
recipient cost share) is less than $1,000,000.
(b) Agreements.--Subsection (a) applies to--
(1) a cooperative research and development agreement;
(2) a non-Federal work-for-others agreement; and
(3) any other agreement determined to be appropriate by the
Secretary, in collaboration with the directors of the
National Laboratories.
(c) Administration.--
(1) Accountability.--The director of the affected National
Laboratory and the affected contractor shall carry out an
agreement under this section in accordance with applicable
policies of the Department, including by ensuring that the
agreement does not compromise any national security,
economic, or environmental interest of the United States.
(2) Certification.--The director of the affected National
Laboratory and the affected contractor shall certify that
each activity carried out under a project for which an
agreement is entered into under this section does not
present, or minimizes, any apparent conflict of interest, and
avoids or neutralizes any actual conflict of interest, as a
result of the agreement under this section.
(3) Availability of records.--On entering an agreement
under this section, the director of a National Laboratory
shall submit to the Secretary for monitoring and review all
records of the National Laboratory relating to the agreement.
(4) Rates.--The director of a National Laboratory may
charge higher rates for services performed under a
partnership agreement entered into pursuant to this section,
regardless of the full cost of recovery, if such funds are
used exclusively to support further research and development
activities at the respective National Laboratory.
(d) Conforming Amendment.--Section 12 of the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a) is
amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting the
subparagraphs appropriately;
(B) by striking ``Each Federal agency'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2),
each Federal agency''; and
(C) by adding at the end the following:
``(2) Exception.--Notwithstanding paragraph (1), in
accordance with section 202(a) of the Department of Energy
Laboratory Modernization and Technology Transfer Act of 2014,
approval by the Secretary of Energy shall not be required for
any technology transfer agreement proposed to be entered into
by a National Laboratory of the Department of Energy, the
total cost of which (including the National Laboratory
contributions and project recipient cost share) is less than
$1,000,000.''; and
(2) in subsection (b), by striking ``subsection (a)(1)''
each place it appears and inserting ``subsection (a)(1)(A)''.
SEC. 203. INCLUSION OF EARLY-STAGE TECHNOLOGY DEMONSTRATION
IN AUTHORIZED TECHNOLOGY TRANSFER ACTIVITIES.
Section 1001 of the Energy Policy Act of 2005 (42 U.S.C.
16391) is amended by--
(1) redesignating subsection (g) as subsection (h); and
(2) inserting after subsection (f) the following:
``(g) Early-Stage Technology Demonstration.--The Secretary
shall permit the directors of the National Laboratories to
use funds authorized to support technology transfer within
the Department to carry out early-stage and pre-commercial
technology demonstration activities to remove technology
barriers that limit private sector interest and demonstrate
potential commercial applications of any research and
technologies arising from National Laboratory activities.''.
SEC. 204. FUNDING COMPETITIVENESS FOR INSTITUTIONS OF HIGHER
EDUCATION AND OTHER NONPROFIT INSTITUTIONS.
Section 988(b) of the Energy Policy Act of 2005 (42 U.S.C.
16352(b)) is amended--
(1) in paragraph (1), by striking ``Except as provided in
paragraphs (2) and (3)'' and inserting ``Except as provided
in paragraphs (2), (3), and (4)''; and
(2) by adding at the end the following:
``(4) Exemption for institutions of higher education and
other nonprofit institutions.--
``(A) In general.--Paragraph (1) shall not apply to a
research or development activity performed by an institution
of higher education or nonprofit institution (as defined in
section 4 of the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3703)).
``(B) Termination date.--The exemption under subparagraph
(A) shall apply during the 6-year period beginning on the
date of enactment of this paragraph.''.
SEC. 205. PARTICIPATION IN THE INNOVATION CORPS PROGRAM.
The Secretary may enter into an agreement with the Director
of the National Science Foundation to enable researchers
[[Page H6603]]
funded by the Department to participate in the National
Science Foundation Innovation Corps program.
TITLE III--ASSESSMENT OF IMPACT
SEC. 301. REPORT BY GOVERNMENT ACCOUNTABILITY OFFICE.
Not later than 3 years after the date of enactment of this
Act, the Comptroller General of the United States shall
submit to Congress a report--
(1) describing the results of the projects developed under
sections 201, 202, and 203, including information regarding--
(A) partnerships initiated as a result of those projects
and the potential linkages presented by those partnerships
with respect to national priorities and other taxpayer-funded
research; and
(B) whether the activities carried out under those projects
result in--
(i) fiscal savings;
(ii) expansion of National Laboratory capabilities;
(iii) increased efficiency of technology transfers; or
(iv) an increase in general efficiency of the National
Laboratory system; and
(2) assess the scale, scope, efficacy, and impact of the
Department's efforts to promote technology transfer and
private sector engagement at the National Laboratories, and
make recommendations on how the Department can improve these
activities.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Hultgren) and the gentleman from Washington (Mr. Kilmer)
each will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
{time} 1600
General Leave
Mr. HULTGREN. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and to
include extraneous material on H.R. 5120, the bill now under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. HULTGREN. Mr. Speaker, I yield myself such time as I may consume.
H.R. 5120, the Department of Energy Laboratory Modernization and
Technology Transfer Act, ensures that the Department of Energy has the
tools it needs to allow new start-ups, small businesses, universities,
and the general public at large to do what they do best: react to
market signals and innovate.
The Federal Government and the national labs fill a vital role doing
the basic research needed to maintain America's role as an innovation
nation. Far too often, however, the discoveries made in our labs get
stuck in our labs. This is due to a number of reasons, and this bill
seeks to break down many of those purely bureaucratic barriers.
By extending the pilot for ACT agreements within DOE, the labs are
given the ability to negotiate more flexible contracts with non-Federal
entities that would like to take the lab's research and turn it into a
viable product.
This legislation would also grant the directors of the national labs
the signature authority for many agreements with non-Federal entities.
Currently, the Secretary of Energy must make these decisions, so
decisions a lab director can make over a phone call in the course of a
day must weave their way through unnecessary bureaucracy before they
land on the Secretary's desk. This bill would streamline that process.
H.R. 5120 also seeks to improve the Department's relationship with
small businesses that can take part in the SBIR/STTR program, and it
encourages the Secretary to enter into agreements with the I-Corps
program at the National Science Foundation.
Our national labs have been at the cutting edge of technological
development, and we must always ensure that development is in the
national interest. A discovery lost in the lab is a discovery wasted.
That is why I would like to thank my good friend from Washington (Mr.
Kilmer) for partnering with me in this effort, as well as the gentleman
from Pennsylvania (Mr. Fattah) and the gentleman from Mississippi (Mr.
Nunnelee), who were founding members with me in creating the House
Science and National Labs Caucus.
Chairmen Smith and Lummis, as well as Ranking Members Johnson and
Swalwell, were also key in this legislation coming together and
bringing it to the floor. This is a true bipartisan, bicameral effort,
as Senators Coons and Rubio have a similar companion bill on the other
side of the Hill.
I encourage my colleagues to support this bill, and I reserve the
balance of my time.
Mr. KILMER. Mr. Speaker, I rise today in support of H.R. 5120, the
Department of Energy Laboratory Modernization and Technology Transfer
Act of 2014.
In the report, ``Rising above the Gathering Storm,'' Paul Otellini,
the former CEO of Intel, challenged Congress and challenged the Nation
to step up the innovation challenge to grow our economy.
Pulitzer Prize-winning columnist George Will wrote, ``Without a
change in U.S. Government policy, the next big thing will not be
invented here. Jobs will not be created here, and wealth will not
accrue here.''
I would like to thank the gentleman from Illinois (Mr. Hultgren) and
my colleagues on both sides of the aisle for working together to
produce a bipartisan bill targeted at stepping up to that challenge.
Our national labs are currently doing innovative research that can
hit roadblocks on the path to commercialization, on the path to helping
small business run with those innovations, so this bill provides
important tools to spur and accelerate the transfer of new technologies
developed at our national laboratories and to the private sector.
It significantly broadens the range of companies that can participate
in a new pilot program with our Federal labs and allows for more
flexible partnership agreement terms between the public and private
sectors.
The bill also allows labs to use their technology transfer funds for
activities that identify and demonstrate potential commercial
opportunities for their research and technologies.
These partnerships between our national labs and the business
community will help eliminate gaps in funding by facilitating a path
for innovative ideas from basic research to commercial application.
Let me tell you why this matters to me. The region I represent is
home to the Pacific Northwest National Lab facility, and I have seen
firsthand the innovative research being done there.
I have also worked closely with our premier research universities to
find ways to enable exciting new partnership opportunities. So going
beyond just the labs, this bill removes burdens that currently prevent
many universities and other nonprofit research institutions from
working with the Department of Energy.
This bill also streamlines management and coordination of DOE's full
spectrum of energy activities, from basic research through commercial
application, by establishing a single Under Secretary for Science and
Energy.
The bill authorizes DOE to partner with the National Science
Foundation, so that its researchers can participate in NSF's
groundbreaking Innovation Corps program, which matches grant recipients
with entrepreneurs to help get their ideas out of the lab and into the
marketplace.
Lastly, the bill includes important reporting and accountability
measures, so that we will be able to evaluate the effectiveness of each
of these new tools and determine any additional steps that we should be
taking down the road.
DOE's national laboratories have been the birthplace of some of our
most revolutionary technologies. When this research is harnessed by
entrepreneurs and business leaders, start-ups with only one or two
employees can grow into companies that create hundreds of quality jobs.
We want to make sure that our national labs, our universities, and
all federally-funded institutions and initiatives remain an important
foundation of our knowledge-based economy.
That is why I was proud to cosponsor this bipartisan legislation, to
give scientists and researchers in both the public and private sectors
the tools and the freedom that they need to unlock a new wave of great
discoveries.
I would like to close by noting that this is the kind of bipartisan,
cooperative work Congress needs to do if we are going to bolster our
global competitiveness. Countries around the world are working to
recruit and develop the next generation of innovators. If we are going
to have any chance of keeping up, we absolutely
[[Page H6604]]
have to make research and development a top priority.
I am hopeful that we can renew the bipartisan spirit and commitment
to making sure tomorrow's cutting-edge technology is developed here,
not someplace else.
I reserve the balance of my time.
Mr. HULTGREN. Mr. Speaker, our national labs, like Fermilab and
Argonne, have been primary drivers of American innovation since the
Manhattan Project, but many of their most important discoveries have
been made in the past decade.
Research produced there has enormous economic potential, but many
times, their discoveries remain stuck in the labs. It is essential that
we update cold war-era policies, acknowledge the rapid pace of
technological change, and improve the lab's capacity to partner with
private enterprise and convert their cutting-edge research into
marketplace innovation. This bill does that.
I am so grateful again for the cosponsors, especially Mr. Kilmer, for
his work on this.
I reserve the balance of my time.
Mr. KILMER. Once again, I would like to thank Mr. Hultgren, Chairman
Smith, and Ranking Member Johnson.
Having no further requests for time, I yield back the balance of my
time.
Mr. HULTGREN. Mr. Speaker, I have no further requests for time
either, so I yield back the balance of my time.
Mr. SMITH of Texas. Mr. Speaker, H.R. 5120, the Department of Energy
Laboratory Modernization and Technology Transfer Act of 2014, enables
the Department of Energy (DOE) to more efficiently form partnerships
with non-federal entities and transfer research to the private sector.
I thank the gentleman from Illinois, Rep. Randy Hultgren, for his
leadership on this issue. I also thank the Science Committee's Energy
Subcommittee Chair, Cynthia Lummis, for her support for this bill.
The DOE's national laboratory complex, often called ``the crown
jewels'' of our federal research and development infrastructure,
comprises 17 labs across the United States.
These labs execute basic and applied research that keeps us on the
cutting edge of global technological capabilities. This innovative
early stage research is often not well understood by the private
sector.
Ideas and products created in the national labs are often slow to
reach the market due to a communication gap between the labs and the
private sector. Additionally, federal government red tape can
discourage the private sector from utilizing these unique state-of-the-
art facilities.
This legislation modernizes the labs for today's market by granting
operators increased flexibility. This bill:
extends a pilot program to enable more flexible contract terms
between lab operators and non-federal entities;
grants lab directors signature authority for agreements with non-
federal entities valued at less than $1 million; and
enables labs to demonstrate research for private sector adoption.
This legislation represents bipartisan, bicameral agreement to
optimize the performance of the DOE national lab system. I encourage my
colleagues to support this bill.
The SPEAKER pro tempore (Mr. Jolly). The question is on the motion
offered by the gentleman from Illinois (Mr. Hultgren) that the House
suspend the rules and pass the bill, H.R. 5120, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________