[House Report 108-89]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-89

======================================================================



 
          NANOTECHNOLOGY RESEARCH AND DEVELOPMENT ACT OF 2003

                                _______
                                

  May 6, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Boehlert, from the Committee on Science, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEW

                        [To accompany H.R. 766]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science, to whom was referred the bill (H.R. 
766) to provide for a National Nanotechnology Research and 
Development Program, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................7
 III. Background and Need for the Legislation.........................7
  IV. Summary of Hearings.............................................8
   V. Committee Actions...............................................9
  VI. Summary of Major Provisions of the Bill........................12
 VII. Section-by-Section Analysis (by Title and Section).............13
VIII. Committee Views................................................15
  IX. Cost Estimate..................................................21
   X. Congressional Budget Office Cost Estimate......................21
  XI. Compliance With Public Law 104-4 (Unfunded Mandates)...........23
 XII. Committee Oversight Findings and Recommendations...............23
XIII. Statement on General Performance Goals and Objectives..........23
 XIV. Constitutional Authority Statement.............................23
  XV. Federal Advisory Committee Statement...........................23
 XVI. Congressional Accountability Act...............................23
XVII. Statement on Preemption of State, Local, or Tribal Law.........23
XVIII.Changes in Existing Law Made by the Bill, as Reported..........23

 XIX. Committee Recommendations......................................23
  XX. Additional View................................................24

                              I. AMENDMENT

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Nanotechnology Research and 
Development Act of 2003''.

SEC. 2. DEFINITIONS.

  In this Act--
          (1) the term ``advanced technology user facility'' means a 
        nanotechnology research and development facility supported, in 
        whole or in part, by Federal funds that is open to all United 
        States researchers on a competitive, merit-reviewed basis;
          (2) the term ``Advisory Committee'' means the advisory 
        committee established or designated under section 5;
          (3) the term ``Director'' means the Director of the Office of 
        Science and Technology Policy;
          (4) the term ``Interagency Committee'' means the interagency 
        committee established under section 3(c);
          (5) the term ``nanotechnology'' means science and engineering 
        aimed at creating materials, devices, and systems at the atomic 
        and molecular level;
          (6) the term ``Program'' means the National Nanotechnology 
        Research and Development Program described in section 3; and
          (7) the term ``program component area'' means a major subject 
        area established under section 3(c)(2) under which is grouped 
        related individual projects and activities carried out under 
        the Program.

SEC. 3. NATIONAL NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

  (a) In General.--The President shall implement a National 
Nanotechnology Research and Development Program to promote Federal 
nanotechnology research, development, demonstration, education, 
technology transfer, and commercial application activities as necessary 
to ensure continued United States leadership in nanotechnology research 
and development and to ensure effective coordination of nanotechnology 
research and development across Federal agencies.
  (b) Program Activities.--The activities of the Program shall be 
designed to--
          (1) provide sustained support for nanotechnology research and 
        development through--
                  (A) grants to individual investigators and 
                interdisciplinary teams of investigators;
                  (B) establishment of advanced technology user 
                facilities; and
                  (C) establishment of interdisciplinary research 
                centers, which shall--
                          (i) network with each other to foster the 
                        exchange of technical information and best 
                        practices;
                          (ii) involve academic institutions or 
                        national laboratories and other partners, which 
                        may include States and industry;
                          (iii) make use of existing expertise in 
                        nanotechnology in their regions and nationally;
                          (iv) make use of ongoing research and 
                        development at the micrometer scale to support 
                        their work in nanotechnology; and
                          (v) be capable of accelerating the commercial 
                        application of nanotechnology innovations in 
                        the private sector;
          (2) ensure that solicitation and evaluation of proposals 
        under the Program encourage interdisciplinary research;
          (3) expand education and training of undergraduate and 
        graduate students in interdisciplinary nanotechnology science 
        and engineering;
          (4) accelerate the commercial application of nanotechnology 
        innovations in the private sector;
          (5) ensure that societal and ethical concerns, including 
        environmental concerns and the potential implications of human 
        performance enhancement and the possible development of 
        nonhuman intelligence, will be addressed as the technology is 
        developed by--
                  (A) establishing a research program to identify 
                societal and ethical concerns related to 
                nanotechnology, and ensuring that the results of such 
                research are widely disseminated;
                  (B) insofar as possible, integrating research on 
                societal and ethical concerns with nanotechnology 
                research and development, and ensuring that advances in 
                nanotechnology bring about improvements in quality of 
                life for all Americans; and
                  (C) requiring that interdisciplinary research centers 
                under paragraph (1)(C) include activities that address 
                societal and ethical concerns; and
          (6) include to the maximum extent practicable diverse 
        institutions, including Historically Black Colleges and 
        Universities and those serving large proportions of Hispanics, 
        Native Americans, Asian-Pacific Americans, or other 
        underrepresented populations.
  (c) Interagency Committee.--The President shall establish or 
designate an interagency committee on nanotechnology research and 
development, which shall include representatives from the Office of 
Science and Technology Policy, the National Science Foundation, the 
Department of Energy, the National Aeronautics and Space 
Administration, the National Institute of Standards and Technology, the 
Environmental Protection Agency, and any other agency that the 
President may designate. The Director shall select a chairperson from 
among the members of the Interagency Committee. The Interagency 
Committee, which shall also include a representative from the Office of 
Management and Budget, shall oversee the planning, management, and 
coordination of the Program. The Interagency Committee shall--
          (1) establish goals and priorities for the Program;
          (2) establish program component areas, with specific 
        priorities and technical goals, that reflect the goals and 
        priorities established for the Program;
          (3) develop, within 6 months after the date of enactment of 
        this Act, and update annually, a strategic plan to meet the 
        goals and priorities established under paragraph (1) and to 
        guide the activities of the program component areas established 
        under paragraph (2);
          (4) propose a coordinated interagency budget for the Program 
        that will ensure the maintenance of a balanced nanotechnology 
        research portfolio and ensure that each agency and each program 
        component area is allocated the level of funding required to 
        meet the goals and priorities established for the Program;
          (5) develop a plan to utilize Federal programs, such as the 
        Small Business Innovation Research Program and the Small 
        Business Technology Transfer Research Program, in support of 
        the goal stated in subsection (b)(4); and
          (6) in carrying out its responsibilities under paragraphs (1) 
        through (5), take into consideration the recommendations of the 
        Advisory Committee and the views of academic, State, industry, 
        and other appropriate groups conducting research on and using 
        nanotechnology.

SEC. 4. ANNUAL REPORT.

  The chairperson of the Interagency Committee shall prepare an annual 
report, to be submitted to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate at the time of the President's budget 
request to Congress, that includes--
          (1) the Program budget, for the current fiscal year, for each 
        agency that participates in the Program, including a breakout 
        of spending for the development and acquisition of research 
        facilities and instrumentation, for each program component 
        area, and for all activities pursuant to section 3(b)(5);
          (2) the proposed Program budget, for the next fiscal year, 
        for each agency that participates in the Program, including a 
        breakout of spending for the development and acquisition of 
        research facilities and instrumentation, for each program 
        component area, and for all activities pursuant to section 
        3(b)(5);
          (3) an analysis of the progress made toward achieving the 
        goals and priorities established for the Program;
          (4) an analysis of the extent to which the Program has 
        incorporated the recommendations of the Advisory Committee; and
          (5) an assessment of how Federal agencies are implementing 
        the plan described in section 3(c)(5), and a description of the 
        amount of Small Business Innovative Research and Small Business 
        Technology Transfer Research funds supporting the plan.

SEC. 5. ADVISORY COMMITTEE.

  (a) In General.--The President shall establish or designate an 
advisory committee on nanotechnology consisting of non-Federal members, 
including representatives of research and academic institutions and 
industry, who are qualified to provide advice and information on 
nanotechnology research, development, demonstration, education, 
technology transfer, commercial application, and societal and ethical 
concerns. The recommendations of the Advisory Committee shall be 
considered by Federal agencies in implementing the Program.
  (b) Assessment.--The Advisory Committee shall assess--
          (1) trends and developments in nanotechnology science and 
        engineering;
          (2) progress made in implementing the Program;
          (3) the need to revise the Program;
          (4) the balance among the components of the Program, 
        including funding levels for the program component areas;
          (5) whether the program component areas, priorities, and 
        technical goals developed by the Interagency Committee are 
        helping to maintain United States leadership in nanotechnology;
          (6) the management, coordination, implementation, and 
        activities of the Program; and
          (7) whether societal and ethical concerns are adequately 
        addressed by the Program.
  (c) Reports.--The Advisory Committee shall report not less frequently 
than once every 2 fiscal years to the President on its findings of the 
assessment carried out under subsection (b), its recommendations for 
ways to improve the Program, and the concerns assessed under subsection 
(b)(7). The first report shall be due within 1 year after the date of 
enactment of this Act.
  (d) Federal Advisory Committee Act Application.--Section 14 of the 
Federal Advisory Committee Act shall not apply to the Advisory 
Committee.

SEC. 6. NATIONAL NANOTECHNOLOGY COORDINATION OFFICE.

  The President shall establish a National Nanotechnology Coordination 
Office, with full-time staff, which shall--
          (1) provide technical and administrative support to the 
        Interagency Committee and the Advisory Committee;
          (2) serve as a point of contact on Federal nanotechnology 
        activities for government organizations, academia, industry, 
        professional societies, and others to exchange technical and 
        programmatic information; and
          (3) conduct public outreach, including dissemination of 
        findings and recommendations of the Interagency Committee and 
        the Advisory Committee, as appropriate.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

  (a) National Science Foundation.--There are authorized to be 
appropriated to the National Science Foundation for carrying out this 
Act--
          (1) $350,000,000 for fiscal year 2004;
          (2) $385,000,000 for fiscal year 2005; and
          (3) $424,000,000 for fiscal year 2006.
  (b) Department of Energy.--There are authorized to be appropriated to 
the Secretary of Energy for carrying out this Act--
          (1) $265,000,000 for fiscal year 2004;
          (2) $292,000,000 for fiscal year 2005; and
          (3) $322,000,000 for fiscal year 2006.
  (c) National Aeronautics and Space Administration.--There are 
authorized to be appropriated to the National Aeronautics and Space 
Administration for carrying out this Act--
          (1) $31,000,000 for fiscal year 2004;
          (2) $34,000,000 for fiscal year 2005; and
          (3) $37,000,000 for fiscal year 2006.
  (d) National Institute of Standards and Technology.--There are 
authorized to be appropriated to the National Institute of Standards 
and Technology for carrying out this Act--
          (1) $62,000,000 for fiscal year 2004;
          (2) $68,000,000 for fiscal year 2005; and
          (3) $75,000,000 for fiscal year 2006.
  (e) Environmental Protection Agency.--There are authorized to be 
appropriated to the Environmental Protection Agency for carrying out 
this Act--
          (1) $5,000,000 for fiscal year 2004;
          (2) $5,500,000 for fiscal year 2005; and
          (3) $6,000,000 for fiscal year 2006.

SEC. 8. EXTERNAL REVIEW OF THE NATIONAL NANOTECHNOLOGY RESEARCH AND 
                    DEVELOPMENT PROGRAM.

  (a) In General.--Not later than 6 months after the date of enactment 
of this Act, the Director shall enter into an agreement with the 
National Academy of Sciences to conduct periodic reviews of the 
Program. The reviews shall be conducted once every 3 years during the 
10-year period following the enactment of this Act. The reviews shall 
include--
          (1) an evaluation of the technical achievements of the 
        Program;
          (2) recommendations for changes in the Program;
          (3) an evaluation of the relative position of the United 
        States with respect to other nations in nanotechnology research 
        and development;
          (4) an evaluation of the Program's success in transferring 
        technology to the private sector;
          (5) an evaluation of whether the Program has been successful 
        in fostering interdisciplinary research and development; and
          (6) an evaluation of the extent to which the Program has 
        adequately considered societal and ethical concerns.
  (b) Study on Molecular Manufacturing.--Not later than 3 years after 
the date of enactment of this Act a review shall be conducted in 
accordance with subsection (a) that includes a study to determine the 
technical feasibility of the manufacture of materials and devices at 
the molecular scale. The study shall--
          (1) examine the current state of the technology for enabling 
        molecular manufacturing;
          (2) determine the key scientific and technical barriers to 
        achieving molecular manufacturing;
          (3) review current and planned research activities that are 
        relevant to advancing the prospects for molecular 
        manufacturing; and
          (4) develop, insofar as possible, a consensus on whether 
        molecular manufacturing is technically feasible, and if found 
        to be feasible--
                  (A) the estimated timeframe in which molecular 
                manufacturing may be possible on a commercial scale; 
                and
                  (B) recommendations for a research agenda necessary 
                to achieve this result.
  (c) Study on Safe Nanotechnology.--Not later than 6 years after the 
date of enactment of this Act a review shall be conducted in accordance 
with subsection (a) that includes a study to assess the need for 
standards, guidelines, or strategies for ensuring the development of 
safe nanotechnology, including those applicable to--
          (1) self-replicating nanoscale machines or devices;
          (2) the release of such machines or devices in natural 
        environments;
          (3) distribution of molecular manufacturing development;
          (4) encryption;
          (5) the development of defensive technologies;
          (6) the use of nanotechnology as human brain extenders; and
          (7) the use of nanotechnology in developing artificial 
        intelligence.

SEC. 9. SCIENCE AND TECHNOLOGY GRADUATE SCHOLARSHIP PROGRAMS.

  (a) Establishment of Programs.--
          (1) In general.--The agency heads shall each establish within 
        their respective departments and agencies a Science and 
        Technology Graduate Scholarship Program to award scholarships 
        to individuals that is designed to recruit and prepare students 
        for careers in the Federal Government that require engineering, 
        scientific, and technical training.
          (2) Competitive process.--Individuals shall be selected to 
        receive scholarships under this section through a competitive 
        process primarily on the basis of academic merit, with 
        consideration given to financial need and the goal of promoting 
        the participation of individuals identified in section 33 or 34 
        of the Science and Engineering Equal Opportunities Act (42 
        U.S.C. 1885a or 1885b).
          (3) Service agreements.--To carry out the Programs the agency 
        heads shall enter into contractual agreements with individuals 
        selected under paragraph (2) under which the individuals agree 
        to serve as full-time employees of the Federal Government, for 
        the period described in subsection (f)(1), in positions needed 
        by the Federal Government and for which the individuals are 
        qualified, in exchange for receiving a scholarship.
  (b) Scholarship Eligibility.--In order to be eligible to participate 
in a Program, an individual must--
          (1) be enrolled or accepted for enrollment as a full-time 
        student at an institution of higher education in an academic 
        field or discipline described in a list made available under 
        subsection (d);
          (2) be a United States citizen or permanent resident; and
          (3) at the time of the initial scholarship award, not be a 
        Federal employee as defined in section 2105 of title 5 of the 
        United States Code.
  (c) Application Required.--An individual seeking a scholarship under 
this section shall submit an application to an agency head at such 
time, in such manner, and containing such information, agreements, or 
assurances as the agency head may require.
  (d) Eligible Academic Programs.--The agency heads shall each make 
publicly available a list of academic programs and fields of study for 
which scholarships under their department's or agency's Program may be 
utilized, and shall update the list as necessary.
  (e) Scholarship Requirement.--
          (1) In general.--Agency heads may provide scholarships under 
        their department's or agency's Program for an academic year if 
        the individual applying for the scholarship has submitted to 
        the agency head, as part of the application required under 
        subsection (c), a proposed academic program leading to a degree 
        in a program or field of study on a list made available under 
        subsection (d).
          (2) Duration of eligibility.--An individual may not receive a 
        scholarship under this section for more than 4 academic years, 
        unless an agency head grants a waiver.
          (3) Scholarship amount.--The dollar amount of a scholarship 
        under this section for an academic year shall be determined 
        under regulations issued by the agency heads, but shall in no 
        case exceed the cost of attendance.
          (4) Authorized uses.--A scholarship provided under this 
        section may be expended for tuition, fees, and other authorized 
        expenses as established by the agency heads by regulation.
          (5) Contracts regarding direct payments to institutions.--
        Each agency head may enter into a contractual agreement with an 
        institution of higher education under which the amounts 
        provided for a scholarship under this section for tuition, 
        fees, and other authorized expenses are paid directly to the 
        institution with respect to which the scholarship is provided.
  (f) Period of Obligated Service.--
          (1) Duration of service.--The period of service for which an 
        individual shall be obligated to serve as an employee of the 
        Federal Government is, except as provided in subsection (h)(2), 
        24 months for each academic year for which a scholarship under 
        this section is provided.
          (2) Schedule for service.--(A) Except as provided in 
        subparagraph (B), obligated service under paragraph (1) shall 
        begin not later than 60 days after the individual obtains the 
        educational degree for which the scholarship was provided.
          (B) An agency head may defer the obligation of an individual 
        to provide a period of service under paragraph (1) if the 
        agency head determines that such a deferral is appropriate. The 
        agency head shall prescribe the terms and conditions under 
        which a service obligation may be deferred through regulation.
  (g) Penalties for Breach of Scholarship Agreement.--
          (1) Failure to complete academic training.--Scholarship 
        recipients who fail to maintain a high level of academic 
        standing, as defined by the appropriate agency head by 
        regulation, who are dismissed from their educational 
        institutions for disciplinary reasons, or who voluntarily 
        terminate academic training before graduation from the 
        educational program for which the scholarship was awarded, 
        shall be in breach of their contractual agreement and, in lieu 
        of any service obligation arising under such agreement, shall 
        be liable to the United States for repayment within 1 year 
        after the date of default of all scholarship funds paid to them 
        and to the institution of higher education on their behalf 
        under the agreement, except as provided in subsection (h)(2). 
        The repayment period may be extended by the agency head when 
        determined to be necessary, as established by regulation.
          (2) Failure to begin or complete the service obligation or 
        meet the terms and conditions of deferment.--Scholarship 
        recipients who, for any reason, fail to begin or complete their 
        service obligation after completion of academic training, or 
        fail to comply with the terms and conditions of deferment 
        established by the appropriate agency head pursuant to 
        subsection (f)(2)(B), shall be in breach of their contractual 
        agreement. When recipients breach their agreements for the 
        reasons stated in the preceding sentence, the recipient shall 
        be liable to the United States for an amount equal to--
                  (A) the total amount of scholarships received by such 
                individual under this section; plus
                  (B) the interest on the amounts of such awards which 
                would be payable if at the time the awards were 
                received they were loans bearing interest at the 
                maximum legal prevailing rate, as determined by the 
                Treasurer of the United States,
        multiplied by 3.
  (h) Waiver or Suspension of Obligation.--
          (1) Death of individual.--Any obligation of an individual 
        incurred under a Program (or a contractual agreement 
        thereunder) for service or payment shall be canceled upon the 
        death of the individual.
          (2) Impossibility or extreme hardship.--The agency heads 
        shall by regulation provide for the partial or total waiver or 
        suspension of any obligation of service or payment incurred by 
        an individual under their department's or agency's Program (or 
        a contractual agreement thereunder) whenever compliance by the 
        individual is impossible or would involve extreme hardship to 
        the individual, or if enforcement of such obligation with 
        respect to the individual would be contrary to the best 
        interests of the Government.
  (i) Definitions.--In this section the following definitions apply:
          (1) Agency head.--The term ``agency head'' means the Director 
        of the National Science Foundation, the Secretary of Energy, 
        the Administrator of the National Aeronautics and Space 
        Administration, the Director of the National Institute of 
        Standards and Technology, or the Administrator of the 
        Environmental Protection Agency.
          (2) Cost of attendance.--The term ``cost of attendance'' has 
        the meaning given that term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
          (3) Institution of higher education.--The term ``institution 
        of higher education'' has the meaning given that term in 
        section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1001(a)).
          (4) Program.--The term ``Program'' means a Science and 
        Technology Graduate Scholarship Program established under this 
        section.

                        II. PURPOSE OF THE BILL

    The purpose of the bill is to provide for a National 
Nanotechnology Research and Development Program, and to 
authorize funding for this program at the National Science 
Foundation (NSF), the Department of Energy (DOE), the National 
Aeronautics and Space Administration (NASA), the National 
Institute of Standards and Technology (NIST), and the 
Environmental Protection Agency (EPA).

              III. BACKGROUND AND NEED FOR THE LEGISLATION

    Nanotechnology is the science of manipulating and 
characterizing matter at the atomic and molecular level. It is 
one of the most promising and exciting fields of science today, 
involving a multitude of science and engineering disciplines, 
with widespread applications in electronics, advanced 
materials, medicine, and information technology. For example, 
nanotechnology likely represents the future of information 
processing and storage, as computer chips and magnetic disk 
drive components will increasingly depend on nanotechnology 
innovations. A variety of nanotechnology products are already 
in development or on the market, and experts agree that more 
revolutionary products will emerge from nanotechnology research 
currently underway. Large companies are investing in 
nanotechnology development programs, and many small start-up 
companies have been founded to develop new technologies and new 
products based on breakthroughs in our understanding of 
materials at the atomic and molecular level.
    The promise of nanotechnology to accelerate technological 
change has prompted some to advise caution about pursuing rapid 
innovation without some understanding of where it might lead 
us. The research community should be prepared to respond to 
legitimate questions about the consequences of new products 
based on nanotechnology. For example, one of the more salient 
concerns is the possible environmental or health impact of 
nanotechnology materials. Nanoscale particles, or 
nanoparticles, because of their small size, may readily enter 
living systems with potentially toxic results. While few 
comprehensive studies have been completed, early research 
suggests that some common nanotechnology materials may be 
biologically inert and thus pose little threat. Nonetheless, 
new materials can interact with the environment or with living 
systems in unexpected ways. Studies of the environmental 
impacts as well as of societal and ethical questions associated 
with the adoption of these new technologies will be needed.
    The National Nanotechnology Initiative (NNI) is a research 
initiative involving 10 federal agencies--one of the 
President's most significant new commitments to continued U.S. 
leadership in science and technology. The initiative has grown 
rapidly from an initial budget request of $464 million in 
fiscal year 2001 to the $849 million requested for fiscal year 
2004. In 2002, the National Academy of Sciences conducted a 
review \1\ of the program and spoke favorably of the quality of 
the research and the opportunities for rapid technological 
innovation. However, the review raised several concerns and 
made a number of recommendations, including:
---------------------------------------------------------------------------
    \1\ Small Wonders, Endless Frontiers: A Review of the National 
Nanotechnology Initiative, National Academy Press, Washington, DC, 
2002.
---------------------------------------------------------------------------
           Establish an independent advisory board,
           Develop a strategic plan,
           Effect greater interagency coordination,
           Promote interdisciplinary nanotechnology 
        R&D, and
           Address potential societal and ethical 
        concerns.
    This Act addresses all of these issues with the program as 
raised by the National Academy of Sciences and other outside 
experts. In addition, by authorizing a federal nanotechnology 
research and development (R&D) program in statute, the act 
assures stable, long-term support for these programs. The Act 
also sets up review and oversight mechanisms to assure that new 
funds are used in the most effective manner possible.

                        IV. SUMMARY OF HEARINGS

    On March 19, 2003, the Committee on Science held a hearing 
to examine the current state of federal nanotechnology research 
and development (R&D) activities, consider the needs in 
nanotechnology for interdisciplinary research and education and 
for greater interagency coordination, and learn about the 
potential for future economic growth associated with 
nanotechnology developments. Witnesses provided comments on and 
recommendations for additions to H.R. 766, The Nanotechnology 
Research and Development Act of 2003, introduced by Chairman 
Boehlert and Rep. Honda on February 13, 2003. The Committee 
heard testimony from Senator Allen and Senator Wyden, on S. 
189, The 21st Century Nanotechnology Research and Development 
Act, the Senate companion to H.R. 766. The Committee also heard 
testimony from the Associate Director for Technology at the 
Office of Science and Technology Policy, nanotechnology 
researchers from IBM, Cornell University, and Oak Ridge 
National Laboratory, and a venture capital expert from JP 
Morgan Partners. Witnesses addressed the need for technology 
transfer mechanisms to allow the United States to translate its 
global advantage in nanotechnology research into new products 
and commercial leadership and the importance of education 
efforts by the nanotechnology community to increase public 
understanding of nanotechnology as well as to interest the next 
generation of scientists in nanotechnology-related fields.
    On April 9, 2003, the Committee on Science held a hearing 
to examine the societal implications of nanotechnology, to 
learn about concerns about existing and potential applications 
of nanotechnology, and to consider how research and debate on 
societal, ethical, and environmental concerns could be 
integrated into the research and development process. Witnesses 
provided comments on and recommendations for additions to H.R. 
766, The Nanotechnology Research and Development Act of 2003. 
The Committee heard testimony from the executive director of 
the Center for Biological and Environmental Nanotechnology at 
Rice University, a professor of political science at Rensselaer 
Polytechnic Institute, the president of the Foresight 
Institute, and the author of The Age of Intelligent Machines. 
Witnesses addressed the need to involve the public in the 
debate on future applications of nanotechnology and stressed 
the importance of integrating research on new technologies with 
research on the concerns about the new technologies, so that 
questions about technologies' implications can be tackled early 
and that ethical and environmental researchers can focus on the 
most technically feasible scenarios.

                          V. COMMITTEE ACTIONS

    On February 13, 2003, Science Committee Chairman Sherwood 
Boehlert and Rep. Michael Honda introduced H.R. 766, The 
Nanotechnology Research and Development Act of 2003, a bill to 
provide for a National Nanotechnology Research and Development 
Program.
    The Full Committee on Science met on Thursday, May 1, 2003, 
to consider the bill.
     An amendment was offered by Chairman Boehlert, 
which made technical changes to the bill and added provisions 
(1) increasing the authorization levels for nanotechnology 
programs at the Department of Energy (DOE) to match the numbers 
authorized in H.R. 6, and (2) granting the Administration the 
flexibility to designate an existing Presidential Advisory 
Committee to serve as the Advisory Committee on Nanotechnology. 
The amendment was adopted by a rollcall vote (Y-22; N-19).


     An amendment was offered by Mr. Smith of Michigan, 
Ms. Hart, Mr. Wu, and Mr. Matheson to require interdisciplinary 
research centers to exchange technical information and best 
practices; to partner with States and industry; to make use of 
existing expertise in their regions and of ongoing micrometer-
scale R&D and to accelerate commercialization of 
nanotechnology. The amendment was adopted by a voice vote.
     An amendment was offered by Ms. Jackson-Lee and 
Mr. Wu to ensure that the Program will include the Nation's 
colleges and universities serving under-represented minorities. 
The amendment was adopted by a voice vote.
     An amendment was offered by Ms. Jackson-Lee to 
ensure that research on nanotechnology brings about 
improvements that benefit all Americans. The amendment was 
adopted by a voice vote.
     An amendment was offered by Mr. Sherman to clarify 
that research on societal and ethical concerns includes study 
of environmental concerns and the implications of possible 
development of non-human intelligence. The amendment was 
adopted by a voice vote.
     An amendment was offered by Mr. Bell to ensure 
that interdisciplinary research centers include activities that 
address societal and ethical concerns. The amendment was 
adopted by a voice vote.
     An amendment was offered by Mr. Sherman and Mr. 
Bell to require that the annual report include budget 
information on spending for research programs on societal and 
ethical concerns. The amendment was adopted by a voice vote.
     An amendment was offered by Mr. Matheson to 
require that the annual report include budget information on 
spending for development and acquisition of research facilities 
and instrumentation. The amendment was adopted by a voice vote.
     An amendment was offered by Mr. Honda to require 
that the Interagency Committee develop a plan for using Federal 
programs, such as the Small Business Innovation Research (SBIR) 
Program and the Small Business Technology Transfer Research 
(SBTTR) Program, in support of commercialization of 
nanotechnology and that the annual report include an assessment 
of the implementation of the plan and a report on the amount of 
SBIR and SBTTR funds supporting the plan. The amendment was 
adopted by a voice vote.
     An amendment was offered by Mr. Wu to require that 
the external review of the National Nanotechnology Research and 
Development Program by the National Academy of Sciences 
include, not less than three years after the enactment of the 
act, a study on the technical feasibility of the manufacture of 
materials and devices at the molecular scale. The amendment was 
adopted by a voice vote.
     An amendment was offered by Mr. Sherman to require 
that the external review of the National Nanotechnology 
Research and Development Program by the National Academy of 
Sciences include, not less than six years after the enactment 
of the act, a study that assesses the need for standards, 
guidelines, or strategies for ensuring the development of safe 
nanotechnology. The amendment was adopted by a voice vote.
     An amendment was offered by Mr. Rohrabacher to add 
a new section to the bill that authorizes the Science and 
Technology Graduate Scholarships Programs and requires the 
heads of the National Science Foundation, the Department of 
Energy, the National Aeronautics and Space Administration, the 
National Institute of Standards and Technology, and the 
Environmental Protection Agency to award scholarships on a 
competitive basis, designed to recruit and prepare graduate 
students for careers in the federal government that require 
engineering, scientific, and technical training. Individuals 
who receive scholarships are required to serve as full-time 
employees of the federal government for two years for each year 
of scholarship funding received. An amendment was offered by 
Mr. Wu to the amendment by Mr. Rohrabacher to extend 
scholarship eligibility to permanent residents and was adopted 
by a voice vote. The amendment by Mr. Rohrabacher was adopted, 
as amended, by a voice vote.
     An amendment was offered by Mr. Honda to specify 
in greater detail the qualifications required of members of the 
Advisory Committee. A unanimous consent request to withdraw the 
amendment was agreed to.
     An amendment was offered by Ms. Johnson of Texas 
to require that the Advisory Committee convene citizen panels 
of nonscientific and nontechnical experts to consider and make 
recommendations on the societal and ethical concerns arising 
from the development of nanotechnology. The amendment was 
defeated by a voice vote.
     An amendment was offered by Mr. Honda to authorize 
appropriations for nanotechnology research and development 
within the Advanced Technology Program in the Department of 
Commerce. A unanimous consent request to withdraw the amendment 
was agreed to.
     An amendment was offered by Mr. Sherman and Mr. 
Bell to require that not less than five percent of the total 
appropriations be set aside for research on societal and 
ethical implications of nanotechnology. The amendment was 
defeated by a voice vote.
     An amendment was offered by Ms. Jackson-Lee to 
require the Technology Administration of the Department of 
Commerce to sponsor seminars on nanotechnology hubs and State-
led nanotechnology initiatives and to maintain an electronic 
archive of best practices for promoting and developing 
nanotechnology hubs and State-led initiatives. A unanimous 
consent request to withdraw the amendment was agreed to.
     An amendment was offered by Mr. Baird to support 
funding for the application of nanotechnology to systems 
biology. A unanimous consent request to withdraw the amendment 
was agreed to.
    Mr. Gordon moved that the Committee favorably report the 
bill, H.R. 766, as amended, to the House with the 
recommendation that the bill as amended do pass, and that the 
staff be instructed to make technical and conforming changes to 
the bill as amended and prepare the legislative report and that 
the Chairman take all necessary steps to bring the bill before 
the House for consideration. With a quorum present, the motion 
was agreed to by a voice vote.

              VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL

     Requires the implementation of a National 
Nanotechnology Research and Development Program to promote 
Federal nanotechnology research, development, demonstration, 
education, technology transfer, and commercial application 
activities. Requires grants to individual investigators and 
interdisciplinary teams of investigators and the establishment 
of interdisciplinary research centers and advanced technology 
user facilities. Requires expansion of education and training 
of undergraduate and graduate students in interdisciplinary 
nanotechnology science and engineering and acceleration of the 
commercial application of nanotechnology innovations in the 
private sector.
     Authorizes appropriations for NSF of $350,000,000 
for FY 2004, $385,000,000 for FY 2005, and $424,000,000 for FY 
2006. Authorizes appropriations for DOE of $265,000,000 for FY 
2004, $292,000,000 for FY 2005, and $322,000,000 for FY 2006. 
Authorizes appropriations for NASA of $31,000,000 for FY 2004, 
$34,000,000 for FY 2005, and $37,000,000 for FY 2006. 
Authorizes appropriations for NIST of $62,000,000 for FY 2004, 
$68,000,000 for FY 2005, and $75,000,000 for FY 2006. 
Authorizes appropriations for EPA of $5,000,000 for FY 2004, 
$5,500,000 for FY 2005, and $6,000,000 for FY 2006.
     Requires that research is conducted to identify 
societal and ethical concerns related to nanotechnology. 
Requires that such research be integrated with nanotechnology 
research and development.
     Requires the establishment of an interagency 
committee to oversee the planning, management, and coordination 
of the National Nanotechnology Research and Development 
Program. Requires the interagency committee to establish goals 
and priorities for the Program, and to develop and update 
annually a strategic plan to meet these goals and priorities.
     Requires the chairperson of the interagency 
committee to submit an annual report to Congress containing the 
current and proposed Program budget for each agency and for 
each program component area and an analysis of the progress 
made toward achieving the Program goals and priorities.
     Requires the President to establish or designate 
an Advisory Committee to assess overall trends in 
nanotechnology and to review the conduct and impact of the 
Program. Requires the Advisory Committee to report not less 
frequently than once every 2 fiscal years.
     Requires the establishment of a National 
Nanotechnology Coordination Office to provide technical and 
administrative support to the Interagency Committee and the 
Advisory Committee and to conduct public outreach.
     Requires the Director of the Office of Science and 
Technology Policy to have the National Academy of Sciences 
conduct periodic reviews of the Program (once every 3 years 
during the 10-year period following the enactment of this Act).
     Establishes a Science and Technology Graduate 
Scholarship program at the agencies authorized in this Act. 
Requires individuals who receive scholarships to serve as full-
time employees of the federal government for two years for each 
year of scholarship funding received.

        VII. SECTION-BY-SECTION ANALYSIS (BY TITLE AND SECTION)

Sec. 1. Short title

    ``Nanotechnology Research and Development Act of 2003.''

Sec. 2. Definitions

    Defines terms used in the text.

Sec. 3. National Nanotechnology Research and Development Program

    Establishes an interagency R&D program to promote and 
coordinate Federal nanotechnology research, development, 
demonstration, education, technology transfer, and commercial 
application activities. The program will provide sustained 
support for interdisciplinary nanotechnology R&D through grants 
to researchers and through the establishment of 
interdisciplinary research centers and advanced technology user 
facilities.
    Establishes a research program to identify societal and 
ethical concerns related to nanotechnology and requires that 
such research be integrated into nanotechnology R&D programs 
insofar as possible.
    Establishes an interagency committee, composed of 
representatives of participating Federal agencies, as well as 
representatives from the Office of Science and Technology 
Policy and the Office of Management and Budget, to oversee the 
planning, management, and coordination of all Federal 
nanotechnology R&D activities. Requires the Interagency 
Committee to establish goals and priorities, establish program 
component areas to implement those goals and priorities, 
develop a strategic plan to be updated annually, propose a 
coordinated interagency budget for Federal nanotechnology R&D, 
and develop a plan for using Federal programs in support of 
commercialization of nanotechnology.

Sec. 4. Annual report

    Requires the chairperson of the interagency committee to 
submit an annual report, at the time of the President's budget 
request to Congress, describing Federal nanotechnology budgets 
and activities for the current fiscal year, and what is 
proposed for the next fiscal year, by agency and by program 
component area; also requires current and next fiscal year 
budget information on funds for research on societal and 
ethical concerns and for development and acquisition of 
research facilities and instrumentation. Requires that the 
report include an analysis of the progress made toward 
achieving the goals and priorities established for Federal 
nanotechnology R&D, and the extent to which the program 
incorporates the recommendations of the Advisory Committee 
(established in sec. 5). Requires that the report include an 
assessment of the implementation of the plan for using Federal 
programs in support of commercialization of nanotechnology 
(required in Sec. 3) and a report on the amount of Small 
Business Innovation Research Program and the Small Business 
Technology Transfer Research Program funds supporting the plan.

Sec. 5. Advisory committee

    Establishes or designates a Presidentially-appointed 
advisory committee, consisting of non-Federal experts, to 
conduct a broad assessment of Federal nanotechnology R&D 
activities and issue a biennial report.

Sec. 6. National Nanotechnology Coordination Office

    Establishes a National Nanotechnology Coordination Office 
with full-time staff to provide technical and administrative 
support to the Interagency Committee and the Advisory 
Committee, to serve as a point of contact for outside groups, 
and to conduct public outreach.

Sec. 7. Authorization of appropriations

    Authorizes appropriations for nanotechnology R&D programs 
at the National Science Foundation, the Department of Energy, 
the National Aeronautics and Space Administration, the National 
Institute of Standards and Technology, and the Environmental 
Protection Agency.

                        [In millions of dollars]
------------------------------------------------------------------------
                   Agency                       FY04     FY05      FY06
------------------------------------------------------------------------
NSF.........................................      350     385        424
DOE.........................................      265     292        322
NASA........................................       31      34         37
NIST........................................       62      68         75
EPA.........................................        5       5.5        6
                                             ---------------------------
      Total.................................      713     784.5      864
------------------------------------------------------------------------

Sec. 8. External review of the National Nanotechnology Research and 
        Development Program

    Requires the Director of the Office of Science and 
Technology Policy to contract with the National Academy of 
Sciences to conduct a triennial review of Federal 
nanotechnology R&D programs including technical progress, 
managerial effectiveness, and adequacy in addressing societal 
and ethical concerns. Requires a study within three years on 
the technical feasibility of the manufacture of materials and 
devices at the molecular scale and within six years on an 
assessment of the need for standards, guidelines, or strategies 
for ensuring the development of safe nanotechnology.

Sec. 9. Science and Technology Graduate Scholarship Program

    Authorizes the Director of the National Science Foundation, 
the Secretary of Energy, the Administrator of the National 
Aeronautics and Space Administration, the Director of the 
National Institute of Standards and Technology, and the 
Administrator of the Environmental Protection Agency to 
establish, within their respective departments and agencies, a 
Science and Technology Graduate Scholarship Program to award 
scholarships to individuals designed to recruit and prepare 
undergraduate and graduate students for careers in the federal 
government that require scientific and technical training. 
Individuals who receive scholarships are required to serve as 
full-time employees of the federal government for two years for 
each year of scholarship funding received.

                         VIII. COMMITTEE VIEWS

The Potential of nanotechnology

    The Committee believes that nanotechnology, the science of 
manipulating and characterizing matter at the atomic and 
molecular level, is one of the most promising and exciting 
fields of science today. Nanotechnology involves a multitude of 
science and engineering disciplines, with widespread 
applications in electronics, advanced materials, medicine, and 
information technology. For example, nanotechnology likely 
represents the future of information processing and storage, as 
computer chips and magnetic disk drive components will 
increasingly depend on nanotechnology innovations.
    The National Nanotechnology Initiative (NNI), a research 
initiative involving 10 federal agencies, has grown rapidly 
from an initial budget request of $464 million in fiscal year 
2001 to the $849 million requested for fiscal year 2004. In 
2002, the National Academy of Sciences conducted a review \2\ 
of the program and spoke favorably of the quality of the 
research and the opportunities for rapid technological 
innovation. The Committee believes that the research and 
development supported by the NNI is laying the groundwork for 
the eventual introduction of a wide variety of new products and 
applications. Some of the near-term applications, such as 
ultraviolet-light blocking sunscreens, are already in the 
marketplace, while longer-term possibilities, such as new 
cancer treatments, are still at the stage of promising 
laboratory results.
---------------------------------------------------------------------------
    \2\ Small Wonders, Endless Frontiers: A Review of the National 
Nanotechnology Initiative, National Academy Press, Washington, DC, 
20002.
---------------------------------------------------------------------------

Technology transfer

    The Committee believes that the United States is the global 
leader in innovative, cross-disciplinary nanotechnology 
research and development activities. However, to fully realize 
the economic and societal benefits of nanotechnology, ideas and 
knowledge must be translated into products and applications. 
The Committee has heard that other countries are very active in 
nanotechnology, particularly in supporting the development and 
commercialization phases of nanotechnology. The Committee 
believes that it will be important for private industry to be 
involved in nanotechnology research and development programs. 
Having industrial partners in research programs allows 
scientists early access to critical sources of information on 
to what sort of technologies and research programs would be 
most attractive and useful for industry and to lay the 
groundwork for efficient commercialization.
    The Committee recognizes that there are a number of Federal 
programs and efforts that are directed towards facilitating 
technology transfer. The Act directs the Interagency Committee 
to develop and report on a plan for utilizing the relevant 
Federal programs, such as the Small Business Innovation 
Research (SBIR) Program and the Small Business Technology 
Transfer Research (SBTTR) Program, to encourage acceleration of 
commercialization of nanotechnology. The Committee also 
recognizes the importance of other outreach efforts related to 
technology transfer, such as work by the Technology 
Administration of the Department of Commerce promoting 
technology-led economic development. The Committee encourages 
the Department to continue these efforts by sponsoring a series 
of seminars on developing nanotechnology hubs and State-led 
nanotechnology initiatives, which bring together researchers, 
government officials, corporations, start-ups, and other 
interested parties; and by maintaining an electronic archive of 
best practices for promoting and developing nanotechnology hubs 
and State-led initiatives.
    The Committee is aware of, and encourages, numerous ongoing 
efforts in which companies and universities are working 
together on research that could lead to new products, including 
research that could lead to unique biosensing materials and 
devices.

Concerns about the societal, environmental, and ethical implications of 
        nanotechnology

    The Committee anticipates that many benefits will be 
realized as new materials and products emerge through the 
pursuit of nanotechnology research. However, past experience 
demonstrated that new technologies can produce unintended, 
negative consequences. Recent experience with public debates 
about biotechnology indicate the public's recognition that new 
knowledge and technological pursuits carry risks as well as 
benefits. These debates also express the desire of the public 
for serious consideration of these risks and benefits.
    The scientific community has recognized that the promise of 
nanotechnology to accelerate technological change requires 
caution about pursuing rapid innovation without some 
understanding of where it might lead us. The National Academy 
of Sciences review noted that the social and economic 
consequences of nanotechnology promise to be diverse, difficult 
to anticipate, and sometimes disruptive. The increasing rate of 
innovation associated with nanotechnology developments, coupled 
with advances in biotechnology and information technology, has 
``the potential to compress the time from discovery to full 
deployment, thereby shortening the time society has to adjust 
to these changes. Speculation about unintended consequences of 
nanotechnology, some of it informed, but a lot of it wildly 
uninformed, has already captured the imagination and, to some 
extent, the fear of the general public.'' \3\
---------------------------------------------------------------------------
    \3\ Small Wonders, Endless Frontiers: A Review of the National 
Nanotechnology Initiative, National Academy Press, Washington, DC, 
20002. Page 31.
---------------------------------------------------------------------------
    The Committee believes that the National Nanotechnology 
Research and Development Program should include measured 
consideration of environmental, societal and economic, and 
ethical implications of nanotechnology. A number of significant 
questions--such as those about the toxicological properties of 
nanomaterials, about changing workforce needs for new 
manufacturing modes, about the appropriateness of nano-enabled 
health and capability enhancements--exist and should be 
studied. The Committee emphasizes the importance of tackling 
these questions early, so that potential negative consequences 
of nanotechnology can be averted. The research program in 
societal and ethical concerns is analogous to the Ethical, 
Legal, and Social Implications (ELSI) Research Program that has 
been a part of the Human Genome Project since 1990.
    The Committee stresses the importance of integrating 
research on environmental, societal, and ethical implications 
with nanotechnology research and development programs to ensure 
that the feasibility of scenarios under study are taken into 
account and that results of the environmental, societal, and 
ethical research influences the direction of ongoing 
nanotechnology research and development of commercial 
applications.
    The Committee recognizes that the National Science 
Foundation has increased its efforts to attract proposals that 
include a societal implications dimension and to involve NSF's 
Directorate for Social, Behavioral, and Economic Sciences in 
proposal review. The Committee strongly encourages continued 
efforts at all agencies to integrate social science research 
and health-related research into the nanotechnology research 
and development activities. A better understanding of how 
technical and social systems affect one another will support 
smoother commercialization and adoption not only of 
nanotechnology applications but also of other future 
technologies.
    Many varied predictions have been made about the long-term 
impact of nanotechnology on society and on human capabilities. 
The Committee feels that the research on societal and ethical 
concerns should include efforts to educate the public regarding 
the societal and ethical issues and to invite public input; 
studies designed to forecast future, long-term developments in 
nanotechnology and identify the societal and ethical questions 
raised by such possible developments; efforts to address the 
societal and ethical concerns raised by technologies which may 
create entities with intelligence surpassing that of the 
average human today; and efforts to address the societal and 
ethical concerns raised by molecular engineering and molecular 
assembly technologies. The Committee believes that an important 
part of such research programs is assuring that the results of 
the research are widely disseminated. Therefore, Section 
3(b)(5) is designed to include efforts to educate and involve 
the public on the societal and ethical issues raised by 
nanotechnology including, but not limited to, the conduct of 
public forums. Public support for nanotechnology research and 
development and public acceptance of the products derived from 
it will be enhanced through proactive, reasoned consideration 
of the potential impacts of the new materials and technologies.
    The Committee has specified that the annual report on the 
Program include a funding breakout, by agency and for the 
current and following fiscal years, of all activities that are 
related to societal and ethical concerns in accordance with 
section 3(b)(5) of the bill. This requirement reflects the 
Committee's strong interest in the way the Program addresses 
societal and ethical concerns of nanotechnology and in the 
level of resources that are allocated for this purpose. The 
Committee expects the annual report to include a description of 
the nature of the activities being supported and how the 
activities relate to overall Program objectives. The Committee 
also expects the report to describe how the Program is 
complying with the requirement to integrate research on 
societal and ethical concerns with research and development 
efforts to advance nanotechnology. In particular, the report 
should indicate how the goals and objectives of the Program are 
influenced by the outcomes of societal and ethical activities 
being supported.

The interdisciplinary nature of nanotechnology

    Just as nanotechnology applications have the potential to 
revolutionize the technologies available in many areas, such as 
healthcare, telecommunications, and homeland defense, achieving 
these breakthroughs will require input from many scientific and 
engineering fields. In nanotechnology, many different 
disciplines are converging--biology, physics, chemistry, 
materials science, mechanical engineering, and electrical 
engineering, to name several. The Committee recognizes that 
standard, discipline-based models of research and education, 
will not support rapid advancement in nanoscience and 
engineering, nor will they provide the next generation of nano-
researchers. The Act authorizes sustained support for 
interdisciplinary nanotechnology research and development 
through grants to researchers and through the establishment of 
interdisciplinary research centers and advanced technology user 
facilities. The bill requires the activities of the National 
Nanotechnology Research and Development Program to ensure that 
solicitation and evaluation of proposals under the Program 
encourage interdisciplinary research. The Committee strongly 
encourages the use of new and creative approaches to bridging 
cultural and technical gaps between researchers in different 
fields and to providing educational experiences that allow 
students to be exposed to nanotechnology early and to receive 
degrees that reflect the collaborative and technical skills 
needed for careers in nanotechnology research and development.
    One example of the potential benefits of interdisciplinary 
research can be seen in the area of ``bio-nanotechnology.'' The 
Committee believes that the application of nanotechnology to 
the field of systems biology is of great importance and 
strongly recommends investment and research to achieve 
integration of these disciplines. Systems biology analyzes all 
of the elements in a system rather than an individual cell, 
gene or protein. By applying nanotechnology to systems biology, 
it will be possible to achieve ultra-rapid diagnostic results, 
by analyzing on a molecular level the signatures of thousands 
genes and proteins. This will lead to the advancement of 
predictive medicine generating revolutions in the prevention, 
diagnosis and treatment of disease. The Committee believes this 
acceleration of the medical field necessitates further study of 
integration of nanotechnology and systems biology and expects 
adequate resources to be allocated for reaching this goal.

Interagency coordination of nanotechnology research

    The National Nanotechnology Initiative includes 10 federal 
agencies. Each agency has its own mission and supports and 
provides progress in nanotechnology research and development in 
a different way. The Committee believes that this multi-pronged 
approach is effective, and the federal nanotechnology effort is 
indeed more than the sum of its parts. However, to reduce 
redundancy and ensure that important areas do not fall through 
the gaps, the Committee believes that more meaningful 
interagency coordination and collaboration is required.
    The Act establishes in statute an interagency committee to 
oversee the planning, management, and coordination of all 
federal nanotechnology research and development activities, 
establish goals and priorities, establish program component 
areas to implement those goals and priorities, develop a 
strategic plan to be updated annually, consult widely with 
stakeholders, and propose a coordinated interagency budget for 
federal nanotechnology research and development. The Committee 
believes that the Nanotechnology Research and Development 
Program would benefit from the development of a crisp, 
compelling, overarching strategic plan that articulates short- 
(1 to 5 years), medium- (6 to 10 years), and long-range (beyond 
10 years) goals and objectives, emphasizing goals that move 
results out of the laboratory and into the service of society. 
The Act places representatives from the National Science 
Foundation, the Department of Energy, the National Aeronautics 
and Space Administration, the National Institute of Standards 
and Technology, and the Environmental Protection Agency on the 
interagency committee, and the Committee expects that the 
President will include the other agencies involved in the 
National Nanotechnology Initiative on the interagency 
committee, as these agencies also have a key role to play in 
the federal performance and support of nanotechnology research 
and development.
    The Committee also believes that a dedicated office is 
necessary to provide support for the interagency committee and 
the advisory committee, to serve as a point of contact for 
outside groups, and to conduct public outreach.

External input into the Nanotechnology Research and Development Program

    The Committee recognizes the complexity of the proposed 
nanotechnology research and development activities--the Program 
will involve cross-disciplinary research, multi-agency 
programs, technology transfer, and societal implications. The 
Committee believes, as did the National Academy of Sciences 
review, that an independent advisory committee could provide 
useful external perspectives to the administration and the 
agencies regarding the goals, priorities, and implementation 
and the administration of the Program.
    Whether the requirement of Section 5 of the bill for an 
advisory committee is met by establishing a new entity or by 
assigning the responsibility to an existing one, the Committee 
expects the advisory committee to have members with a wide 
variety of expertise and perspectives on nanotechnology 
research, development, and demonstration, on the Program's 
strategic plan, and on the execution of the Program. In 
addition, the range of expertise encompassed by the advisory 
committee should allow it to assess the education, technology 
transfer, commercial application, and societal and ethical 
research aspects of the Program.
    The Committee expects the advisory committee, if designated 
to be an existing committee with broader responsibilities than 
the Program, to devote sustained attention to the Program over 
the entire life of the Program and at the level of intensity 
necessary to carry out the comprehensive assessment 
requirements specified in section 5(b) of the bill.
    The Committee also believes that regular external 
assessment of the Program will be valuable, and therefore the 
Act authorizes periodic review by the National Academy of 
Sciences of the Program, including of the technical progress, 
effectiveness of technology transfer, ability to foster 
interdisciplinary research and development, and adequacy in 
addressing societal and ethical concerns. The Committee 
recognizes that reviews in these areas, like the other 
authorized studies on molecular manufacturing and safe 
nanotechnology, may be best conducted as individual studies by 
separate National Academy of Sciences panels. Therefore, the 
Committee believes that the triennial review required by 
Section 8 can consist of a collection of individual National 
Academy of Sciences reports grouped together, as long as all 
the review topics required by the Act are covered in the 
collection and all of the reviews in the included reports were 
conducted within 3 years of the release of the triennial 
review.

Science and technology scholarships

    The Committee is concerned about the ability of the federal 
government to attract and retain the trained personnel it needs 
to fill positions that require a high level of scientific and 
technical skill. The Act contains a provision that the 
Committee intends and expects to result in the award of 
scholarships for talented young scientists pursuing degrees in 
scientific and technical disciplines of importance to the 
government. Students participating in this program will receive 
scholarships in exchange for a commitment to serve in a federal 
government position upon completion of their degrees. The 
Committee believes that this program will provide an important 
tool for recruiting talented young scientists to government 
service, particularly in agencies, such as the National 
Aeronautics and Space Administration and the Patent and 
Trademark Office, that have positions demanding a high degree 
of scientific or technical literacy.

                           IX. COST ESTIMATE

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted to 
the Committee on Science prior to the filing of this report and 
is included in Section X of this report pursuant to House Rule 
XIII, clause 3(c)(3).
    H.R. 766 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
766 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section X of this report.

              X. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 5, 2003.
Hon. Sherwood L. Boehlert,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 766, the 
Nanotechnology Research and Development Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kathleen 
Gramp.
            Sincerely,
                                          Barry B. Anderson
                               (For Douglas Holtz-Eakin, Director.)
    Enclosure.

H.R. 766--Nanotechnology Research and Development Act of 2003

    Summary: H.R. 766 would authorize appropriations for fiscal 
years 2004 through 2006 for various nanotechnology initiatives 
at five agencies: the National Science Foundation (NSF), 
Department of Energy, National Aeronautics and Space 
Administration, National Institute of Standards and Technology, 
and Environmental Protection Agency. These programs, which 
involve technologies that manipulate matter at the atomic 
level, would be overseen by both external and intergovernmental 
committees. The bill also would direct the Office of Science 
and Technology Policy (OSTP) to fund several studies by the 
National Academy of Sciences (NAS) over the next 10 years.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing this bill would cost a total of 
$1.9 billion over the 2004-2008 period. CBO estimates that 
enacting this bill would have no effect on direct spending or 
revenues.
    H.R. 766 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 766 is shown in the following table. 
The costs of this legislation fall within budget functions 250 
(general science, space, and technology), 300 (natural 
resources and the environment), and 376 (commerce and housing 
credit).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Estimated authorization level \1\.....................      497      350        0        0        0        0
    Estimated outlays.....................................      412      350      233       89       26        7
Proposed changes:
    Estimated authorization level.........................        0      364      785      865        1        1
    Estimated outlays.....................................        0      200      450      686      465      130
Spending under H.R. 766:
    Estimated authorization level.........................      497      714      785      865        1        1
    Estimated outlays.....................................      412      550      683      775      491      137
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level reflects agencies' estimates of the amount appropriated for nanotechnology programs that
  year. The 2004 level is the amount authorized to be appropriated for NSF's nanotechnology program under
  current law.

    Basis of estimate: For this estimate, CBO estimates that 
the amounts authorized will be appropriated each year and that 
outlays will occur at rates similar to those of existing 
research and development programs. H.R. 766 would specify 
funding levels for each of the agencies, totaling $713 million 
in 2004, $785 million in 2005, and $864 million in 2006. (The 
$350 million specified for NSF's program for 2004 is not 
included in the table as a proposed change because that amount 
has already been authorized under current law.) The amounts 
specified in the bill would not cover costs associated with the 
external advisory functions and studies. Based on information 
from OSTP and NAS, CBO estimates that those activities would 
cost an average of about $700,000 annually.
    Intergovernmental and private-sector impact: H.R. 766 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Kathleen Gramp; impact 
on state, local, and tribal governments: Greg Waring; impact on 
the private sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

        XI. COMPLIANCE WITH PUBLIC LAW 104-4 (UNFUNDED MANDATES)

    H.R. 766 contains no unfunded mandates.

         XII. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    The Committee on Science's oversight findings and 
recommendations are reflected in the body of this report.

      XIII. STATEMENT ON GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause (3)(c) of House rule XIII, the goals of 
H.R. 766 are to establish a National Nanotechnology Research 
and Development Program; to authorize appropriations for NSF, 
DOE, NASA, NIST, and EPA to carry out the Program; to establish 
an interagency committee to oversee the planning, management, 
and coordination of the Program; to establish an advisory 
committee on nanotechnology and a National Nanotechnology 
Coordination Office; to provide for external reviews of the 
Program by the National Academy of Sciences; and to establish a 
Science and Technology Graduate Scholarships Program to recruit 
and prepare students for careers in the Federal government that 
require scientific and technical training.

                XIV. CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 766.

                XV. FEDERAL ADVISORY COMMITTEE STATEMENT

    The functions of the advisory committee required by H.R. 
766 could be performed by one or more agencies or by enlarging 
the mandate of another existing advisory committee.

                 XVI. CONGRESSIONAL ACCOUNTABILITY ACT

    The Committee finds that H.R. 766 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

      XVII. STATEMENT ON PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    This bill is not intended to preempt any state, local, or 
tribal law.

      XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                     XIX. COMMITTEE RECOMMENDATIONS

    On May 1, 2003, a quorum being present, the Committee on 
Science favorably reported H.R. 766, The Nanotechnology 
Research and Development Act of 2003, by a voice vote, and 
recommended its enactment.

                          XX. ADDITIONAL VIEW

    One of the primary goals of this Act is to provide 
opportunities for expanded university research in the area of 
nanotechnology. I strongly support such efforts and expect that 
funding of the interdisciplinary research centers will be 
allocated to a broad range of universities engaged in 
nanotechnology research, particularly universities located in 
regions with a concentration of high-technology companies and 
which provide educational opportunities to underserved and 
minority students. Portland State University's Center for 
Nanoscience and Nanotechnology, which focuses on the 
development of carbon nanotubes and nanowires as a new 
generation of electron field emitters, the creation of building 
blocks for nano-electronic devices, and the preparation of 
future scientists and engineers with advanced nanoscience 
knowledge and the state-of-the-art instrumentation skills, is 
conducting particularly interesting research on such sciences 
and would serve as a strong example of an interdisciplinary 
research center.
                                                          David Wu.

                                
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