[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Pages S3580-S3582]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2190. Mr. COTTON (for himself, Mr. Schumer, Mr. Reed, Mr. Risch,
Ms. Collins, Mr. King, Mr. Hawley, Mr. Jones, and Mrs. Gillibrand)
submitted an amendment intended to be proposed by him to the bill S.
4049, to authorize appropriations for fiscal year 2021 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal
[[Page S3581]]
year, and for other purposes; which was ordered to lie on the table; as
follows:
At the appropriate place in title X, insert the following:
SEC. ____. GRANTS FOR CONSTRUCTION OF MICROELECTRONICS
MANUFACTURING AND RESEARCH AND DEVELOPMENT
FACILITIES, AND WORKFORCE DEVELOPMENT.
(a) Grants for States With Demonstrated Interest in
Constructing Microelectronics Manufacturing and Advanced
Research and Development Facilities.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Commerce, in
consultation with the Secretary of Defense, shall commence
carrying out a program on the award of grants to States
described in paragraph (2) to assist in financing the
construction, expansion, or modernization (including
acquisition of equipment and intellectual property) of
microelectronics fabrication, assembly, test, advanced
packaging, or advanced research and development facilities.
(2) States described.--A State described in this paragraph
is a State that demonstrates to the Secretary of Commerce the
following:
(A) Documented interest from a microelectronics company,
that has a demonstrated ability to build and operate
microelectronics fabrication, assembly, test, advanced
packaging, or advanced research and development facilities,
in constructing, expanding, or modernizing a commercial
microelectronics fabrication, assembly, test, advanced
packaging, or advanced research and develop facility, or
documented interest from a public-private consortium that has
a demonstrated ability to build and operate an advanced
research and development facility in the State.
(B) Documented interest from a private entity to provide
funding to support the construction, expansion, or
modernization of the facility that is the subject of the
interest documented under subparagraph (A).
(C) Commitments from such microelectronics company or
consortia to worker and community investment, including--
(i) training and education benefits paid for by the
company; and
(ii) programs to expand employment opportunity for
economically disadvantaged individuals.
(D) Commitments from regional educational and training
entities and institutions of higher education to develop
curriculum or engage in workforce training, including
programming for training and job placement of economically
disadvantaged individuals.
(E) Guaranteed State-level economic incentives for the
construction, expansion, or modernization of the facility
described in subparagraph (B), such as site development, tax
incentives, job-training programs and State-level funding for
microelectronics research and development.
(3) Limitation on grant amount.--A State may not be awarded
more than $3,000,000,000 under paragraph (1).
(4) Use of funds .--
(A) In general.--A State receiving a grant under paragraph
(1) may only use the amount of the grant to finance--
(i) the construction, expansion, or modernization of a
state-of-the-art microelectronics fabrication, assembly,
test, advanced packaging, or advanced research and
development facility with respect to which the State
demonstrated to the Secretary documented interest under
paragraph (2), or for similar uses in state of practice and
legacy facilities as deemed necessary by the Secretary for
national security and economic competitiveness;
(ii) to support workforce development for such facility; or
(iii) to support site development for such facility.
(B) Return of funds.--A State awarded a grant under
paragraph (1) shall return any unused funds to the Treasury
of the United States on an agreed-upon timeframe determined
by the Secretary prior to issuing the funds.
(C) Recovery of certain funds.--If a microelectronics
entity receiving grant funds under this subsection engages in
increased levels of joint research and development,
technology licensing or transfer, or investment involving
sensitive technologies with entities under the foreign
ownership, control, or influence (FOCI) of the Government of
the People's Republic of China or other foreign adversary
during the period of the grant, as determined by the
Secretary as part of a periodic review of whether a
microelectronics entity participating in the program
specified in this subsection is under foreign ownership,
control, or influence, the Secretary shall recover the
amounts provided by the Secretary under this subsection.
(5) Prohibition.--If pursuant to the periodic review of
foreign ownership, control, or influence specified in
paragraph (4)(C), the Secretary determines that a
microelectronics entity is under the foreign ownership,
control or influence of the Government of the People's
Republic of China or other foreign adversary during the
period of the grant, such entity shall be prohibited from
participating in the program specified in this subsection.
(6) Nonrelocation between states.--
(A) Prohibition.--A State may not use any amount of a grant
awarded under this subsection to induce the relocation or the
movement of existing jobs from one State to another State in
competition for those jobs.
(B) Remedies.--In the event that the Secretary determines
an amount of a grant awarded to a State under this subsection
was used in violation of subparagraph (A), the Secretary may
pursue appropriate enforcement actions, including--
(i) suspension of disbursements of the grant awarded; and
(ii) termination of the grant awarded, which may include
the establishment of a debt requiring the recipient of the
grant to reimburse the amount of the grant.
(7) Implementation.--The Secretary shall carry out this
section acting through the Director of the National Institute
of Standards and Technology.
(8) Reports and notices.--
(A) Secretary of commerce.--
(i) Report on implementation plan.--Not later than 90 days
after the date of the enactment of this Act, the Secretary
shall submit to Congress a report on the plans of the
Secretary to carry out the program required by paragraph (1).
(ii) Notice of pending award.--
(I) In general.--Not later than 30 days before awarding a
grant to a State under this subsection, the Secretary shall
submit to Congress a notice of the intended award.
(II) Contents.--Each notice submitted under subclause (I)
shall include a description of the State to which the
Secretary intends to award a grant under this subsection, the
project or projects for which the amount of the grant is
intended to be used, specifics on the planned use of the
amounts of the grant for that project, and the rationale of
the Secretary for awarding the grant.
(B) Comptroller general of the united states.--
(i) Biennial report.--Not later than 1 year after the date
on which the Secretary of Commerce submits the report under
subparagraph (A)(i) and not less frequently than once every 2
years thereafter, the Comptroller General of the United
States shall submit to Congress a report on the activities
carried out under this subsection during the previous year.
(ii) Contents.--Each report submitted under clause (i)
shall include, at a minimum, assessments of the following:
(I) How the program is being carried out and how recipients
of grants are being selected under the program.
(II) How other Federal programs are leveraged for
manufacturing, research, and training to complement the
grants awarded to States under this subsection.
(III) Outcomes of projects supported by grants under this
subsection, including the construction, expansion, or
modernization of a microelectronics fabrication, assembly,
test, advanced packaging, or advanced research and
development facilities, research and development, workforce
training, employment, wages, and hiring of economically
disadvantaged populations.
(9) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection
$15,000,000,000 for fiscal year 2021, with such amount to
remain available for such purpose until September 30, 2031.
(b) Creation, Expansion, or Modernization of
Microelectronics Manufacturing Facilities and Capabilities
for National Security Needs.--
(1) Incentives authorized.--The Secretary of Defense and
the Director of National Intelligence, in consultation with
the Secretary of Commerce, may jointly enter into
arrangements with private sector entities or consortia
thereof to provide incentives for the creation, expansion, or
modernization of one or more commercially competitive and
sustainable microelectronics manufacturing or advanced
research and development facilities capable of producing
measurably secure and specialized microelectronics for use by
the Department of Defense, the intelligence community,
critical infrastructure sectors of the United States economy,
and other national security applications.
(2) Commercial manufacturing.--A facility constructed,
expanded, or modernized with an incentive provided under
paragraph (1) may--
(A) be principally oriented toward commercial
manufacturing; or
(B) devote surplus manufacturing capacity to the production
of commercial microelectronics.
(3) Risk mitigation requirements.--A facility constructed,
expanded, or modernized with an incentive provided under
paragraph (1), or the components thereof, shall--
(A) have the potential to perform fabrication, assembly,
package, test, or advanced research and development functions
for classified and export-controlled microelectronics;
(B) include management processes to identify and mitigate
supply chain security risks; and
(C) be able to produce microelectronics consistent with
applicable trusted supply chain and operational security
standards established under section 224 of the National
Defense Authorization Act for Fiscal Year 2020 (Public Law
116-92).
(4) National security requirements.--In the provision of
incentives under paragraph (1), the Secretary of Defense and
the Director of National Intelligence shall jointly give
preference to private sector entities and consortia that--
(A) have participated in previous programs and projects of
the Department of Defense or the Office of the Director of
National Intelligence, including--
[[Page S3582]]
(i) the Trusted Integrated Circuit program of the
Intelligence Advanced Research Projects Activity;
(ii) trusted and assured microelectronics projects, as
administered by the Department of Defense; or
(iii) the Electronics Resurgence Initiative (ERI) program
of the Defense Advanced Research Projects Agency;
(B) have demonstrated an ongoing commitment to performing
contracts for the Department of Defense and the intelligence
community;
(C) are approved by the Defense Counterintelligence and
Security Agency or the Office of the Director of National
Intelligence as presenting an acceptable security risk,
taking into account supply chain assurance vulnerabilities,
counterintelligence risks, and any risks presented by
companies whose owners are located outside the United States;
and
(D) are evaluated periodically for foreign ownership,
control, or influence, consistent with the determinations in
paragraphs (4)(C) and (5) of subsection (a).
(5) Use of incentives.--Incentives may be provided under
paragraph (1) for the construction, expansion, or
modernization of a facility that was constructed, expanded,
or modernized with funds from a grant awarded under
subsection (a).
(6) Nontraditional defense contractors and commercial
entities.--The arrangements entered into under paragraph (1)
shall be in the form the Secretary of Defense and the
Director of National Intelligence determine to be appropriate
to encourage industry participation of nontraditional defense
contractors or commercial entities and may include a
contract, a grant, a cooperative agreement, a commercial
agreement, the use of other transaction authority under
section 2371 of title 10, United States Code, or another such
arrangement.
(7) Reports.--
(A) Report by secretary of defense and director of national
intelligence.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense and the
Director of National Intelligence shall jointly submit to
Congress a report on the plans of the Secretary and the
Director to provide incentives under paragraph (1).
(B) Biennial reports by comptroller general of the united
states.--Not later than 1 year after the date on which the
Secretary submits the report required by subparagraph (A) and
not less frequently than once every 2 years thereafter, the
Comptroller General of the United States shall submit to
Congress a report on the activities carried out under this
subsection.
(8) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection
$5,000,000,000 for fiscal year 2021, with such amount to
remain available for such purpose until September 30, 2031.
(c) Additional Amounts for Ensuring the Future of United
States Leadership in Microelectronics.--
(1) Authorization of appropriations.--There is authorized
to be appropriated $2,000,000,000 for fiscal year 2021, with
such amount to remain available until September 30, 2031, to
expand the Electronics Resurgence Initiative of the Defense
Advanced Research Projects Agency to develop advanced
disruptive microelectronics technology, including research
and development to enable production at a volume required to
sustain a robust domestic microelectronics industry and
mitigate parts obsolescence.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out microelectronics research at
the National Science Foundation $1,500,000,000 for fiscal
year 2021, with such amount to remain available for such
purpose until September 30, 2031.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out microelectronics research at
the Department of Energy $1,250,000,000 for fiscal year 2021,
with such amount to remain available for such purpose until
September 30, 2031.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out microelectronics research at
the National Institute of Standards and Technology
$250,000,000 for fiscal year 2021, with such amount to remain
available for such purpose until September 30, 2031.
(5) Supplement, not supplant.--The amounts authorized to be
appropriated under paragraphs (1) through (4) shall
supplement and not supplant amounts already appropriated to
carry out the purposes described in such paragraphs.
(6) Domestic production requirements.--The heads of
executive agencies receiving funding under this section shall
develop policies to require domestic production, to the
extent possible, for any intellectual property resulting from
microelectronics research and development conducted as a
result of these funds and domestic control requirements to
protect any such intellectual property from foreign
adversaries.
(7) Sense of congress.--Congress supports and encourages
efforts by the heads of executive agencies receiving funding
under this subsection to co-invest in industry-led
microelectronics investment consortiums to increase private
capital investment in the domestic microelectronics industry.
(d) National Microelectronics Research and Development
Plan.--
(1) In general.--The President shall establish a standing
subcommittee of the President's Office of Science and
Technology's National Science and Technology Council for
interagency efforts relating to microelectronics policy.
(2) National microelectronics research plan.--
(A) In general.--The subcommittee established under
paragraph (1) shall develop a national microelectronics
research and development plan to guide and coordinate funding
for breakthroughs in next-generation microelectronics
research and technology, strengthen the domestic
microelectronics workforce, and encourage collaboration
between government, industry, and academia.
(B) Updates.--Not less frequently than once each year, the
subcommittee established under paragraph (1) shall update the
plan developed under subparagraph (A) of this paragraph.
(e) Industry Advisory Committee.--The President shall
establish a standing subcommittee of the President's Council
of Advisors on Science and Technology to advise the United
States Government on matters relating to microelectronics
policy.
(f) Multilateral Export Control Plan.--Not later than 180
days after the date of the enactment of this Act, the
Secretary of State, the Secretary of the Treasury, and the
Secretary of Commerce, in consultation with the Director of
National Intelligence, the Secretary of Homeland Security,
the Secretary of Defense, and the Secretary of Energy, shall
jointly develop and submit to Congress a plan to coordinate
with foreign government partners on establishing common
microelectronics export control and foreign direct investment
screening measures to align with national and multilateral
security priorities.
(g) Prohibition Relating to Foreign Adversaries.--None of
the funds appropriated pursuant to an authorization in this
section may be provided to an entity--
(1) under the foreign ownership, control, or influence of
the Government of the People's Republic of China or the
Chinese Communist Party, or other foreign adversary; or
(2) determined to have beneficial ownership from foreign
individuals subject to the jurisdiction, direction, or
influence of foreign adversaries.
(h) Requirements for Sourcing From Domestic
Microelectronics Design and Foundry Services.--
(1) Requirements required.--Not later than 1 year after the
date of the enactment of this Act, the Secretary of Defense
shall establish requirements, and a timeline for enforcement
of such requirements, to the extent possible, for domestic
sourcing for microelectronics design and foundry services by
programs, contractors, subcontractors, and other recipients
of funding from the Department of Defense.
(2) Processes for waivers.--The requirements established
under paragraph (1) shall include processes to permit waivers
for specific contracts or transactions for domestic sourcing
requirements based on cost, availability, severity of
technical and mission requirements, emergency requirements
and operational needs, other legal or international treaty
obligations, or other factors.
(3) Updates.--Not less frequently than once each year, the
Secretary shall--
(A) update the requirements and timelines established under
paragraph (1) and the processes under paragraph (2); and
(B) submit to Congress a report on the updates made under
subparagraph (A).
(i) Definitions.--In this section:
(1) Beneficial owner; beneficial ownership.--The terms
``beneficial owner'' and ``beneficial ownership'' have the
meanings given such terms in section 847 of the National
Defense Authorization Act for Fiscal Year 2020 (Public Law
116-92).
(2) Entity; company.--The terms ``entity'' and ``company''
mean any corporation, company, limited liability company,
limited partnership, business trust, business association, or
other similar entity.
(3) Foreign ownership, control, or influence.--The term
``foreign ownership, control, or influence'' has the meaning
given such term in section 847 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92).
(4) Intelligence community.--In this section, the term
``intelligence community'' has the meaning given such term in
section 3 of the National Security Act of 1947 (50 U.S.C.
3003).
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