[Congressional Record (Bound Edition), Volume 160 (2014), Part 9]
[House]
[Pages 12644-12647]
[From the U.S. 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 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.

[[Page 12645]]

       (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 
     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.

[[Page 12646]]

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 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.

[[Page 12647]]

  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.

                          ____________________