[Senate Report 116-291]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 584

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-291

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

        GLOBAL LEADERSHIP IN ADVANCED MANUFACTURING ACT OF 2019

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1427

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               November 16, 2020.--Ordered to be printed
               
               
                               __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                          WASHINGTON : 2020                     
          
--------------------------------------------------------------------------------------
               
               
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
       
                     ONE HUNDRED SIXTEENTH CONGRESS
                             SECOND SESSION

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director
               
               
               
 
                                                      Calendar No. 584

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-291

======================================================================              
 
        GLOBAL LEADERSHIP IN ADVANCED MANUFACTURING ACT OF 2019

                                _______
                                

               November 16, 2020.--Ordered to be printed

                                _______
                                

       Mr. Wicker, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1427]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1427) to amend the National 
Institute of Standards and Technology Act to improve the 
Network for Manufacturing Innovation Program, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment (in the nature of a substitute) and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    S. 1427 would amend the National Institute of Standards and 
Technology (NIST) Act to make improvements to the Network for 
Manufacturing Innovation Program, known as Manufacturing USA, 
to bolster American manufacturing competitiveness by 
accelerating innovation in industrially relevant manufacturing 
technologies and sustaining support for workforce development. 
The bill would strengthen Manufacturing USA by authorizing 
funds for centers, including those not established with Federal 
funds, to carry out program-wide activities and allow centers 
within the program to renew their funding if they are meeting 
performance standards. The bill would also reauthorize and 
strengthen the Regional Innovation Strategies (RIS) Program\1\ 
administered by the U.S. Economic Development Administration 
(EDA).
---------------------------------------------------------------------------
    \1\In February 2020, after S. 1427 was ordered to be reported 
favorably by the Committee, the RIS Program was renamed the Build to 
Scale (B2S) Program by the U.S. Economic Development Administration 
(EDA). See EDA, ``Spotlight: EDA Launches the Build to Scale Program, a 
Redesign of Its Regional Innovation Strategies Program,'' Feb. 2020 
(https://www.eda.gov/news/blogs/2020/02/01/spotlight.htm) (accessed 
Sept. 29, 2020).
---------------------------------------------------------------------------

                          Background and Needs

    Manufacturing has played a critical role in American 
economic productivity and national security since the 
Industrial Revolution. As of March 2019, manufacturing made up 
8.5 percent of U.S. employment\2\ and 11.4 percent of U.S. 
gross domestic product (GDP)\3\ but drives 35 percent of 
productivity growth, 60 percent of exports,\4\ and 70 percent 
of private-sector research and development (R&D).\5\
---------------------------------------------------------------------------
    \2\U.S. Department of Labor, Bureau of Labor Statistics, data on 
employment, hours, and earnings from the current employment statistics 
survey (national) (https://data.bls.gov/timeseries/CES0000000001) 
(accessed Apr. 17, 2020).
    \3\U.S. Department of Commerce, Bureau of Economic Analysis, 
``Interactive Data: Industry Economic Account Data: GDP by Industry'' 
(https://apps.bea.gov/iTable/iTable.cfm?reqid=
150&step=2&isuri=1&categories=gdpxind) (accessed Sep. 25, 2020).
    \4\U.S. Department of Commerce, International Trade Administration, 
``Product Profiles of U.S. Merchandise Trade with a Selected Market'' 
(http://tse.export.gov/tse/TSEReports.aspx?
DATA=NTD&39.1183579&-77.211762&false) (accessed Sep. 25, 2020).
    \5\Sree Ramaswamy et al., McKinsey Global Institute, ``Making It in 
America: Revitalizing US Manufacturing,'' Nov. 13, 2017 (https://
www.mckinsey.com/featured-insights/americas/making-it-in-america-
revitalizing-us-manufacturing) (accessed Apr. 17, 2020).
---------------------------------------------------------------------------
    The 21st century has seen dramatic changes in U.S. 
manufacturing as competitive pressures and globalization have 
driven the manufacturing sector to make investments in 
improving productivity overseas. The United States continued to 
lead the world in innovative R&D, yet many U.S. research 
discoveries were applied in other countries because 
transitioning from lab to production became financially 
prohibitive for most of the U.S. private sector. As a result, 
manufacturing employment fell by 5.6 million from December 2000 
to December 2010.\6\ By 2015, the United States had fallen 
behind China as the second largest manufacturing economy in the 
world.\7\
---------------------------------------------------------------------------
    \6\U.S. Department of Labor, Bureau of Labor Statistics, data on 
employment, hours, and earnings from the current employment statistics 
survey (national) (https://data.bls.gov/timeseries/CES3000000001) 
(accessed Apr. 17, 2020).
    \7\NIST, 2017 Annual Report and Summary of Institute Activities 
(https://nvlpubs.nist.gov/nistpubs/ams/NIST.AMS.600-3.pdf) (accessed 
Apr. 16, 2020).
---------------------------------------------------------------------------
    History has shown that rebuilding a robust domestic 
manufacturing sector will rely on the presence of innovative 
new industries that create high value for their markets.\8\ A 
critical component to this development is advancement in 
manufacturing technology, coupled with a skilled manufacturing 
workforce able to fulfill requirements of a new, innovative 
manufacturing sector.
---------------------------------------------------------------------------
    \8\Thomas W. Eagar and Christopher Musso, ``Innovation and U.S. 
Manufacturing,'' in New Directions in Manufacturing, The National 
Academies Press, 2004 (https://www.nap.edu/read/11024/chapter/8) 
(accessed Apr. 17, 2020).
---------------------------------------------------------------------------
    Recognizing the interdependence between manufacturing and 
innovation in the U.S. economy, Congress passed the Revitalize 
American Manufacturing and Innovation (RAMI) Act in 2014 to 
establish a Network for Manufacturing Innovation Program 
coordinated by NIST under the Department of Commerce. The 
program, also known as Manufacturing USA, is designed to 
improve U.S. manufacturing competitiveness and increase 
production of predominantly U.S. manufactured goods, stimulate 
U.S. leadership in advanced manufacturing research, innovation, 
and technology, accelerate the development of an advanced 
manufacturing workforce, and create and preserve jobs.
    In the years since the RAMI Act was enacted, Manufacturing 
USA has grown rapidly. According to the NIST 2017 report to 
Congress, the number of participating institutes increased to 
14, and the program leveraged Federal investment by matching $1 
billion of Federal funding with an additional $2 billion from 
industry, academia, States, and other non-Federal funding 
sources.\9\ The report identified continuing to grow the 
network of institutes, developing manufacturing technology and 
avenues for technology transfer, and developing education and 
workforce development programs as priorities in the future.\10\
---------------------------------------------------------------------------
    \9\NIST, 2017 Annual Report and Summary of Institute Activities 
(https://nvlpubs.nist.gov/nistpubs/ams/NIST.AMS.600-3.pdf) (accessed 
Apr. 16, 2020).
    \10\Id.
---------------------------------------------------------------------------
    EDA's Office of Innovation and Entrepreneurship administers 
the RIS grant program. The RIS program was authorized as a part 
of the Regional Innovation Program under section 27 of the 
Stevenson-Wydler Technology Innovation Act of 1980.\11\ 
According to the EDA, RIS grants are intended to build regional 
capacity to translate innovations into jobs by supporting 
entrepreneurs in the proof-of-concept and commercialization 
phases and by providing operational support for organizations 
that provide essential early-stage risk capital to 
entrepreneurs.\12\
---------------------------------------------------------------------------
    \11\Codified at 15 U.S.C. 3722.
    \12\U.S. Economic Development Administration, Regional Innovation 
Strategies (RIS) (https://www.eda.gov/oie/buildtoscale/) (accessed Sep. 
25, 2020).
---------------------------------------------------------------------------

                         Summary of Provisions

    S. 1427 would establish Manufacturing USA as a recognized 
alternative name for the Network of Manufacturing Innovation 
Program. The bill would create procedures for renewing funding 
for Manufacturing USA centers if they meet performance 
standards established by the Secretary of Commerce. The 
Secretary would conduct an assessment of each center after the 
initial award of funding and every 5 years thereafter. The bill 
would clarify the specific Federal departments with which the 
Manufacturing USA National Program Office may coordinate. The 
Secretary would also be directed to increase the number of 
centers participating in the Manufacturing USA program.
    S. 1427 would also extend the authorization of funding for 
the Regional Innovation Program through fiscal year 2024. The 
bill would also clarify the purpose and focus of the Program 
and establish additional oversight and accountability 
requirements.

                          Legislative History

    S. 1427, the Global Leadership in Advanced Manufacturing 
Act of 2019, was introduced on May 13, 2019, by Senator Coons 
(for himself and Senators Gardner, Gillibrand, Tillis, Hassan, 
Peters, Moran, and Rubio) and was referred to the Committee on 
Commerce, Science, and Transportation of the Senate. Senators 
Klobuchar and Collins are additional cosponsors. On July 10, 
2019, the Committee met in open Executive Session and, by voice 
vote, ordered S. 1427 reported favorably with an amendment (in 
the nature of a substitute).
    A companion bill, H.R. 2397, the American Manufacturing 
Leadership Act, was introduced on April 30, 2019, by 
Representative Stevens [D-MI] (for himself and Representatives 
Balderson [R-OH], Kennedy [D-MA], Reed [R-NY], Johnson [D-TX], 
and Gonzalez [R-OH]) and was referred to the Committee on 
Science, Space, and Technology in the House of Representatives. 
There are 17 additional cosponsors. On June 19, 2019, H.R. 2397 
was reported favorably, as amended, and on July 23, 2019, that 
bill was passed, by voice vote, in the House of 
Representatives. On July 24, 2019, H.R. 2397 was referred to 
the Committee on Commerce, Science, and Transportation of the 
Senate.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Bill summary: S. 1427 would amend the authorization for 
Manufacturing USA, a federal grant program administered by the 
National Institute of Standards and Technology (NIST) that 
funds a national network of advanced manufacturing institutes. 
The bill also would eliminate the authority of the Department 
of Energy (DOE) to transfer appropriated funds to NIST. 
Finally, the bill would amend the authorization for the 
Regional Innovation Program administered by the Economic 
Development Administration (EDA).
    Federal Costs: On net, CBO estimates that the bill would 
increase authorized appropriations by $15 million over the 
2020-2024 period. Assuming appropriation actions consistent 
with legislative language, CBO estimates that implementing the 
bill would reduce outlays for those authorizations by $85 
million over the same period. The costs of the legislation (as 
detailed in Table 1) fall within budget function 370 (commerce 
and housing credit).
    Current law authorizes the appropriation of $5 million a 
year through 2024 for NIST to carry out the Manufacturing USA 
program. S. 1427 would authorize whatever amounts are necessary 
for that program each year through 2030. The bill would require 
NIST to implement and enforce more rigorous metrics-based 
performance standards, carry out new pilot programs, develop 
best practices for network membership agreements, and perform 
other activities not required under current law. Using 
information from the agency, CBO estimates that NIST would need 
an additional $3 million each year through 2024 to administer 
the Manufacturing USA program. Assuming appropriation of the 
estimated amounts, CBO estimates that implementing the bill 
would cost $12 million over the 2020-2024 period.

                 TABLE 1.--ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1427
----------------------------------------------------------------------------------------------------------------
                                                           By fiscal year, millions of dollars--
                                          ----------------------------------------------------------------------
                                             2019      2020      2021      2022      2023      2024    2019-2024
----------------------------------------------------------------------------------------------------------------
NIST:
    Estimated Authorization..............         0         3         3         3         3         3         15
    Estimated Outlays....................         0         1         2         3         3         3         12
DOE:
    Estimated Authorization..............         0       -50       -50       -50       -50       -50       -250
    Estimated Outlays....................         0       -23       -45       -50       -50       -50       -218
EDA:
    Authorization........................         0        50        50        50        50        50        250
    Estimated Outlays....................         0         3        14        25        39        40        121
    Total Changes:
        Estimated Authorization..........         0         3         3         3         3         3         15
        Estimated Outlays................         0       -19       -29       -22        -8        -7        -85
----------------------------------------------------------------------------------------------------------------
NIST = National Institute of Standards and Technology, DOE = Department of Energy, EDA = Economic Development
  Administration.

    Current law also authorizes DOE to transfer a total of $250 
million in appropriated funds over the 2015-2024 period to NIST 
to carry out the Manufacturing USA program. To date, DOE has 
not used that authority. S. 1427 would eliminate that 
authority, which CBO estimates would reduce spending subject to 
appropriation by $218 million over the 2020-2024 period, 
assuming appropriations to DOE through 2024 are reduced by $250 
million.
    Finally, current law authorizes the appropriation of $10 
million each year through 2019 for the EDA's Regional 
Innovation Program. (In 2019, the Congress provided $23.5 
million for the program.) S. 1427 would authorize the 
appropriation of $50 million each year from 2020 through 2024 
for that program, which CBO estimates would cost $119 million 
over the 2020-2024 period, assuming appropriation of the 
authorized amounts.
    On May 29, 2019, CBO transmitted an estimate for H.R. 2397, 
the American Manufacturing Leadership Act, as ordered reported 
by the House Committee on Science, Space, and Technology on May 
1, 2019. The two bills are similar and the estimated budgetary 
effects for the two bills reflect differences in the 
legislative language.
    The CBO staff contact for this estimate is David Hughes. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    The number of persons and businesses covered by S. 1427 
should be consistent with current levels already participating 
in or eligible for the Manufacturing USA program and the 
Regional Innovation Program, though that number will increase 
if additional appropriations are made available for the 
program.

                            economic impact

    S. 1427, as reported, is not expected to have an adverse 
impact on the Nation's economy. Rather, the legislation is 
expected to promote growth in regional manufacturing sectors by 
supporting pathways to commercialization for new technologies 
and by other means.

                                privacy

    S. 1427, as reported, is not expected to have an adverse 
impact on the personal privacy of individuals.

                               paperwork

    The legislation would not increase paperwork requirements 
for private individuals or businesses. Centers for 
manufacturing innovation that are subject to the new 
performance standards may need to create or preserve records of 
performance for assessment by the Secretary.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title.

    This section would provide that the bill may be cited as 
the ``Global Leadership in Advanced Manufacturing Act of 
2019''.

Section 2. Improvements to Network for Manufacturing Innovation 
        Program.

    Subsection (a) would establish Manufacturing USA as an 
alternate name for the Network for Manufacturing Innovation 
Program.
    Subsection (b) would expand the list of potential focus 
areas for centers for manufacturing innovation to include: tool 
development for microelectronics, food manufacturing, 
superconductors, advanced battery technologies, robotics, 
advanced sensors, quantum information science, supply chain 
water optimization, aeronautics and advanced materials, and 
graphene and graphene commercialization. This subsection would 
also add veterans to the list of communities involved in 
outreach activities by a center of manufacturing innovation.
    Subsection (c) allows for renewals of funding for centers. 
Accordingly, it also establishes a method for evaluating the 
performance of each center by directing the Secretary to 
establish standards of performance for centers for 
manufacturing innovation. The Secretary would conduct an 
assessment of each center for manufacturing innovation 
receiving financial assistance after the initial award and 
every 5 years thereafter to determine the performance of that 
center based on the standards of performance this subsection 
would establish. This subsection would prohibit financial 
awards to any center for manufacturing innovation not meeting 
these standards of performance after a 1-year period to remedy 
any deficiencies.
    Subsection (d) would remove funding limits by authorizing 
for appropriations such sums as may be necessary for the 
Industrial Technical Services account for each of fiscal years 
2020 through 2030. This subsection would also end the 
authorization for Department of Energy to transfer funding for 
the Network for Manufacturing Innovation to the Department of 
Commerce.
    Subsection (e) would broaden the functions of the National 
Program Office to include carrying out collaborative programs 
with the centers for manufacturing innovation, providing 
support for workforce development activities, and developing 
national certifications for advanced manufacturing workforce 
skills. This subsection would specify the other Federal 
departments with which the National Program Office may enter 
into memoranda of understanding. This subsection would 
additionally give the Secretary authority to provide financial 
assistance that would support partnerships between 
manufacturing extension centers and centers for manufacturing 
innovation.
    Subsection (f) would extend the annual reporting 
requirement to 2030. This subsection would also reduce the 
frequency of required GAO assessments on the operation of 
Manufacturing USA to every 3 years.
    Subsection (g) would direct the Secretary of Commerce to 
increase the number of centers for manufacturing innovation 
participating in the Network for Manufacturing Innovation 
Program.

Section 3. Regional Innovation Program.

    Subsection (a) would establish definitions for the terms 
``eligible recipient'', ``regional innovation initiative'', and 
``venture development organization''.
    Subsection (b) would require the Secretary to establish a 
regional innovation program.
    Subsection (c) would amend 15 U.S.C. 3722 to clarify the 
purpose and focus of the Regional Innovation Program. This 
subsection would allow regional innovation grants to be used 
for new activities, including to increase availability of 
private and philanthropic financing, to increase employment 
opportunities within the region, and to achieve quantifiable 
benefits to the economic performance of the region. This 
subsection would prohibit awardees from using grants for costs 
related to inducing an existing business to relocate from one 
geographic area to another or to offset lost revenue due to tax 
incentives. It also allows venture development organizations to 
receive these grants.
    In addition to requirements in current law, subsection (d) 
would require applications for regional innovation grants to 
describe the regional innovation initiative, identify what 
activities it will undertake, and describe the expected 
outcomes of the initiative and how progress will be measured. 
This subsection would require the Secretary to provide feedback 
to program applicants that are not awarded grants to help them 
improve future applications. This subsection would require the 
Secretary, through the EDA, to submit an annual report to 
Congress that explains the balance in the allocation of grants 
to eligible recipients under this subsection between rural and 
urban areas.
    Subsection (e) would require the Secretary to coordinate 
with other Federal agencies to ensure that programs are 
complementary of existing programs and not duplicative.
    Additionally, subsection (f) would require evaluations 
conducted by an independent entity to include an assessment of 
the program's efficacy in providing awards to geographically 
diverse entities.
    Subsection (g) would require the Secretary to submit a 
report to Congress that describes the outcome of each regional 
innovation initiative that was completed during the previous 5 
years. This reporting requirement would begin 5 years after the 
first grant is awarded and every 5 years thereafter and would 
end 5 years after the last grant recipient completes the 
regional innovation initiative for which the grant was awarded.
    Subsection (h) would authorize the Secretary to use up to 
$50 million in each of fiscal years 2020 through 2024 of funds 
appropriated for economic development assistance to carry out 
this subsection.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes made by the bill, as 
reported, to existing law at the time the bill was ordered 
reported, are shown as follows: (existing law proposed to be 
omitted is enclosed in brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT

           *       *       *       *       *       *       *


                            [15 U.S.C. 278s]

SEC. 34. NETWORK FOR MANUFACTURING INNOVATION.

  (a) Establishment of Network for Manufacturing Innovation 
Program.--
          (1) In general.--The Secretary shall establish within 
        the Institute a program to be known as the ``Network 
        for Manufacturing Innovation Program'' or as 
        ``Manufacturing USA'' (referred to in this section as 
        the ``Program'').
          (2) * * *
          (3) * * *
          (4) * * *
  (b) * * *
  (c) Centers for Manufacturing Innovation.--
          (1) In general.--For purposes of this section, a 
        ``center for manufacturing innovation'' is a center 
        that--
                  (A) * * *
                  (B) has a predominant focus on a 
                manufacturing process, novel material, enabling 
                technology, supply chain integration 
                methodology, or another relevant aspect of 
                advanced manufacturing, such as nanotechnology 
                applications, advanced ceramics, photonics and 
                optics, composites, biobased and advanced 
                materials, flexible hybrid technologies, [and 
                tool development for microelectronics] tool 
                development for microelectronics, food 
                manufacturing, superconductors, advanced 
                battery technologies, robotics, advanced 
                sensors, quantum information science, supply 
                chain water optimization, aeronautics and 
                advanced materials, and graphene and graphene 
                commercialization;
                  (C) as determined by the Secretary, has the 
                potential--
                          (i) to improve the competitiveness of 
                        United States manufacturing, including 
                        key advanced manufacturing technologies 
                        such as nanotechnology, advanced 
                        ceramics, photonics and optics, 
                        composites, biobased and advanced 
                        materials, flexible hybrid 
                        technologies, [and tool development for 
                        microelectronics] tool development for 
                        microelectronics, food manufacturing, 
                        superconductors, advanced battery 
                        technologies, robotics, advanced 
                        sensors, quantum information science, 
                        supply chain water optimization, 
                        aeronautics and advanced materials, and 
                        graphene and graphene 
                        commercialization;
                          (ii) to accelerate non-Federal 
                        investment in advanced manufacturing 
                        production capacity in the United 
                        States; or
                          (iii) to enable the commercial 
                        application of new technologies or 
                        industry-wide manufacturing processes; 
                        and
                  (D) * * *
          (2) Activities.--Activities of a center for 
        manufacturing innovation may include the following:
                  (A) * * *
                  (B) * * *
                  (C) * * *
                  (D) Outreach and engagement with small and 
                medium-sized manufacturing enterprises, 
                including women [and minority], minority, and 
                veteran owned manufacturing enterprises, in 
                addition to large manufacturing enterprises.
                  (E) * * *
          (3) Additional centers for manufacturing 
        innovation.--
                  (A) In general.--The National Additive 
                Manufacturing Innovation Institute and other 
                manufacturing centers formally recognized as 
                manufacturing innovation centers pursuant to 
                Federal law or executive actions, or under 
                pending interagency review for such recognition 
                as of December 16, 2014, shall be considered 
                centers for manufacturing innovation[, but such 
                centers shall not receive any financial 
                assistance under subsection (d)].
                  (B) * * *
  (d) Financial Assistance to Establish and Support Centers for 
Manufacturing Innovation.--
          [(1) In general.--In carrying out the Program, the 
        Secretary shall award financial assistance to a person 
        or group of persons to assist the organization in 
        planning, establishing, or supporting a center for 
        manufacturing innovation.]
          (1) In general.--In carrying out the Program, the 
        Secretary shall award financial assistance to the 
        following:
                  (A) To a person or group of persons to assist 
                the person or group of persons in planning, 
                establishing, or supporting a center for 
                manufacturing innovation.
                  (B) To a center for manufacturing innovation, 
                including a center that was not established 
                using Federal funds, to support workforce 
                development, cross-center projects, and other 
                efforts which support the purposes of the 
                Program.
          (2) Application.--A person or group of persons 
        seeking financial assistance [under paragraph (1)] 
        under paragraph (1)(A) shall submit to the Secretary an 
        application therefor at such time, in such manner, and 
        containing such information as the Secretary may 
        require. The application shall, at a minimum, describe 
        the specific sources and amounts of non-Federal 
        financial support for the center on the date financial 
        assistance is sought, as well as the anticipated 
        sources and amounts of non-Federal financial support 
        during the period for which the center could be 
        eligible for continued Federal financial assistance 
        under this section.
          (3) Open process.--In soliciting applications for 
        financial assistance [under paragraph (1)] under 
        paragraph (1)(A), the Secretary shall ensure an open 
        process that will allow for the consideration of all 
        applications relevant to advanced manufacturing 
        regardless of technology area.
          (4) Selection.--
                  (A) Competitive, merit review.--In awarding 
                financial assistance [under paragraph (1)] 
                under paragraph (1)(A), the Secretary shall use 
                a competitive, merit review process that 
                includes peer review by a diverse group of 
                individuals with relevant expertise from both 
                the private and public sectors.
                  (B) * * *
                  (C) Performance measurement, transparency, 
                and accountability.--For each award of 
                financial assistance under paragraph (1), the 
                Secretary shall--
                          (i) make publicly available at the 
                        time of the award a description of the 
                        bases for the award, including an 
                        explanation of the relative merits of 
                        the winning applicant as compared to 
                        other applications received, if 
                        applicable[; and];
                          (ii) develop and implement metrics-
                        based performance measures , including 
                        appropriate measures for assessing the 
                        effectiveness of the activities funded 
                        with regards to the center's success in 
                        advancing the current state of the 
                        applicable advanced manufacturing 
                        technology area such as technology 
                        readiness level and manufacturing 
                        readiness level, to assess the 
                        effectiveness of the activities 
                        funded[.];
                          (iii) establish standards for the 
                        performance of centers for 
                        manufacturing innovation that are based 
                        on the measures developed under clause 
                        (ii); and
                          (iv) for each center for 
                        manufacturing innovation supported by 
                        the award, 5 years after the initial 
                        award and every 5 years thereafter 
                        until Federal funding is discontinued, 
                        conduct an assessment of the center to 
                        confirm whether the performance of the 
                        center is meeting the standards for 
                        performance established under clause 
                        (iii).
                  (D) Collaboration.--In awarding financial 
                assistance under paragraph (1), the Secretary 
                shall, acting through the National Program 
                Office established under subsection (f)(1), 
                collaborate with Federal departments and 
                agencies whose missions contribute to or are 
                affected by advanced manufacturing, including, 
                as appropriate, the Department of Agriculture, 
                the Department of Defense, the Department of 
                Education, the Department of Energy, the 
                Department of Labor, the Food and Drug 
                Administration, the National Aeronautics and 
                Space Administration, the National Institutes 
                of Health, and the National Science Foundation.
                  (E) Considerations.--In selecting a person 
                who submitted an application under paragraph 
                (2) for an award of financial assistance under 
                paragraph (1), the Secretary shall consider, at 
                a minimum, the following:
                          (i) * * *
                          (ii) The commitment of continued 
                        financial support, advice, 
                        participation, and other contributions 
                        from non-Federal sources, to provide 
                        leverage and resources to promote a 
                        stable and sustainable business model 
                        [without the need for long-term Federal 
                        funding].
                          (iii) Whether the financial support 
                        provided to the center for 
                        manufacturing innovation from non-
                        Federal sources [significantly] exceeds 
                        the requested Federal financial 
                        assistance.
                          (iv) * * *
                          (v) How the center for manufacturing 
                        innovation will engage with small and 
                        medium-sized manufacturing enterprises, 
                        to improve the capacity of such 
                        enterprises to commercialize new 
                        processes and technologies and to 
                        improve the domestic supply chain.
                          (vi) * * *
                          (vii) * * *
                          (viii) * * *
                          (ix) How the center for manufacturing 
                        innovation will strengthen and leverage 
                        the industrial, research, 
                        entrepreneurship, and other assets of a 
                        region.
                          (x) * * *
          (5) Limitations on awards.--
                  [(A) In general.--No award of financial 
                assistance may be made under paragraph (1) to a 
                center of manufacturing innovation after the 7-
                year period beginning on the date on which the 
                Secretary first awards financial assistance to 
                that center under that paragraph.]
                  (A) Performance deficiency.--
                          (i) Notice of deficiency.--If the 
                        Secretary finds that a center for 
                        manufacturing innovation does not meet 
                        the standards for performance 
                        established under clause (iii) of 
                        paragraph (4)(C) during an assessment 
                        pursuant to clause (iv) of such 
                        paragraph, the Secretary shall notify 
                        the center of any deficiencies in the 
                        performance of the center and provide 
                        the center one year to remedy such 
                        deficiencies.
                          (ii) Failure to remedy.--If a center 
                        for manufacturing innovation fails to 
                        remedy a deficiency identified under 
                        clause (i) or to show significant 
                        improvement in performance one year 
                        after notification of a performance 
                        deficiency identified under clause (i), 
                        the Secretary shall notify the center 
                        that the center is ineligible for 
                        further financial assistance awarded 
                        under paragraph (1).
                  (B) Matching funds and preferences.--The 
                total Federal financial assistance awarded to a 
                center of manufacturing innovation, including 
                the financial assistance under paragraph (1), 
                in a given year shall not exceed 50 percent of 
                the total funding of the center in that year, 
                except that the Secretary may make an exception 
                in the case of [large capital facilities or 
                equipment purchases] satellite centers, large 
                capital facilities, equipment purchases, 
                workforce development, or general operations. 
                The Secretary shall give weighted preference to 
                applicants seeking less than the maximum 
                Federal share of funds allowed under this 
                paragraph.
                  [(C) Funding decrease.--The amount of 
                financial assistance provided to a center of 
                manufacturing innovation under paragraph (1) 
                shall decrease after the second year of funding 
                for the center, and shall continue to decrease 
                thereafter in each year in which financial 
                assistance is provided, unless the Secretary 
                determines that-
                          [(i) the center is otherwise meeting 
                        its stated goals and metrics under this 
                        section;
                          [(ii) unforeseen circumstances have 
                        altered the center's anticipated 
                        funding; and
                          [(iii) the center can identify future 
                        non-Federal funding sources that would 
                        warrant a temporary exemption from the 
                        limitations established in this 
                        subparagraph.]
          (6) Use of financial assistance.--Financial 
        assistance awarded under paragraph (1)(B) may be used 
        to carry out Program-wide activities directed by the 
        Secretary, such as activities targeting workforce 
        development.
  (e) Funding.--
          (1) General rule.--Except as provided in paragraph 
        (2), no funds are authorized to be appropriated by the 
        Revitalize American Manufacturing and Innovation Act of 
        2014 for carrying out this section.
          (2) Authority.--
                  [(A) NIST industrial technical services 
                account.--To the extent provided for in advance 
                by appropriations Acts, the Secretary may use 
                not to exceed $5,000,000 for each of the fiscal 
                years 2015 through 2024 to carry out this 
                section from amounts appropriated to the 
                Institute for Industrial Technical Services.]
                  (A) NIST industrial technical services 
                account.--To the extent provided for in advance 
                by appropriations Acts, the Secretary may use 
                amounts appropriated to the Institute for 
                Industrial Technical Services account to carry 
                out this section as follows:
                          (i) For each of the fiscal years 2015 
                        through 2019, an amount not to exceed 
                        $5,000,000.
                          (ii) For each of fiscal years 2020 
                        through 2030, such amounts as may be 
                        necessary to carry out this section.
                  (B) Energy efficiency and renewable energy 
                account.--To the extent provided for in advance 
                by appropriations Acts, the Secretary of Energy 
                may transfer to the Institute not to exceed 
                $250,000,000 for the period encompassing fiscal 
                years 2015 [through 2024] through 2019 for the 
                Secretary to carry out this section from 
                amounts appropriated for advanced manufacturing 
                research and development within the Energy 
                Efficiency and Renewable Energy account for the 
                Department of Energy.
  (f) National Program Office.--
          (1) * * *
          (2) Functions.--The functions of the National Program 
        Office are--
                  (A) * * *
                  (B) to coordinate with and, as appropriate, 
                enter into memorandums of understanding with 
                Federal departments and agencies whose missions 
                contribute to or are affected by advanced 
                manufacturing, including the Department of 
                Agriculture, the Department of Defense, the 
                Department of Education, the Department of 
                Energy, the Department of Labor, the Food and 
                Drug Administration, the National Aeronautics 
                and Space Administration, the National 
                Institutes of Health, and the National Science 
                Foundation, to carry out the purposes described 
                in subsection (a)(2);
                  (C) * * *
                  (D) * * *
                  (E) to establish a clearinghouse of public 
                information related to the activities of the 
                Program[; and];
                  (F) to carry out pilot programs in 
                collaboration with the centers for 
                manufacturing innovation such as a laboratory-
                embedded entrepreneurship program;
                  (G) to provide support services and funding 
                as necessary to promote workforce development 
                activities;
                  (H) to coordinate with centers for 
                manufacturing innovation to develop best 
                practices for the membership agreements and 
                coordination of similar project solicitations;
                  (I) to collaborate with the Department of 
                Labor, the Department of Education, industry, 
                career and technical education schools, local 
                community colleges, universities, and labor 
                organizations to provide input for the 
                development of national certifications for 
                advanced manufacturing workforce skills in the 
                technology areas of the centers for 
                manufacturing innovation; and
                  [(F)](J) to act as a convener of the Network.
          (3) Recommendations.--In developing and updating the 
        strategic plan under paragraph (2)(C), the Secretary 
        shall solicit recommendations and advice from a wide 
        range of stakeholders, including industry, small and 
        medium-sized manufacturing enterprises, research 
        universities, community colleges, State, Tribal, and 
        local governments, and other relevant organizations and 
        institutions on an ongoing basis.
          (4) * * *
          (5) Hollings Manufacturing Extension Partnership.--
        [The Secretary]
                  (A) In general.--The Secretary shall ensure 
                that the National Program Office incorporates 
                the Hollings Manufacturing Extension 
                Partnership into Program planning to ensure 
                that the results of the Program reach small and 
                medium-sized entities.
                  (B) Liaisons.--
                          (i) In general.--The Secretary may 
                        provide financial assistance to a 
                        manufacturing extension center 
                        established as part of the Hollings 
                        Manufacturing Extension Partnership to 
                        support the purposes of the Program by 
                        providing services in one or more of 
                        the following areas:
                                  (I) Cybersecurity awareness 
                                and support services for small- 
                                and medium-sized manufacturers.
                                  (II) Assistance with 
                                workforce development.
                                  (III) Technology transfer for 
                                small and medium-sized 
                                manufacturers.
                                  (IV) Such other areas as the 
                                Secretary determines 
                                appropriate to support the 
                                purposes of the Program.
                          (ii) Support.--Support under clause 
                        (i) may include the designation of a 
                        liaison.
          (6) * * *
  (g) Reporting and Auditing.--
          (1) Annual reports to the Secretary.--
                  (A) In general.--The Secretary shall require 
                each recipient of financial assistance [under 
                subsection (d)(1)] under subsection (d)(1)(A) 
                to annually submit a report to the Secretary 
                that describes the finances and performance of 
                the center for manufacturing innovation for 
                which such assistance was awarded.
                  (B) * * *
          (2) Annual reports to Congress.--
                  (A) In general.--Not less frequently than 
                once each year until [December 31, 2024] 
                December 31, 2030, the Secretary shall submit a 
                report to Congress that describes the 
                performance of the Program during the most 
                recent 1-year period.
                  (B) Elements.--Each report submitted under 
                subparagraph (A) shall include, for the period 
                covered by the report--
                          (i) * * *
                          (ii) * * *
                          (iii) an assessment of the 
                        participation in, and contributions to, 
                        the Network by any centers for 
                        manufacturing innovation not receiving 
                        financial assistance [under subsection 
                        (d)(1)] under subsection (d)(1)(A); and
                          (iv) * * *
          (3) Assessments by GAO.--
                  (A) Assessments.--Not less frequently than 
                once every [2 years] 3 years, the Comptroller 
                General shall submit to Congress an assessment 
                of the operation of the Program during the most 
                recent [2-year] 3-year period.
                  (B) Final assessment.--Not later than 
                [December 31, 2024] December 31, 2030, the 
                Comptroller General shall submit to Congress a 
                final report regarding the overall success of 
                the Program.
                  (C) * * *
  (h) * * *
  (i) * * *

           *       *       *       *       *       *       *


STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980

           *       *       *       *       *       *       *


                            [15 U.S.C. 3722]

[SEC. 27. REGIONAL INNOVATION PROGRAM.

  [(a) Establishment.--The Secretary shall establish a regional 
innovation program to encourage and support the development of 
regional innovation strategies, including regional innovation 
clusters.
  [(b) Cluster Grants.--
          [(1) In general.--As part of the program established 
        under subsection (a), the Secretary may award grants on 
        a competitive basis to eligible recipients for 
        activities relating to the formation and development of 
        regional innovation clusters.
          [(2) Permissible activities.--Grants awarded under 
        this subsection may be used for activities determined 
        appropriate by the Secretary, including the following:
                  [(A) Feasibility studies.
                  [(B) Planning activities.
                  [(C) Technical assistance.
                  [(D) Developing or strengthening 
                communication and collaboration between and 
                among participants of a regional innovation 
                cluster.
                  [(E) Attracting additional participants to a 
                regional innovation cluster.
                  [(F) Facilitating market development of 
                products and services developed by a regional 
                innovation cluster, including through 
                demonstration, deployment, technology transfer, 
                and commercialization activities.
                  [(G) Developing relationships between a 
                regional innovation cluster and entities or 
                clusters in other regions.
                  [(H) Interacting with the public and State 
                and local governments to meet the goals of the 
                cluster.
          [(3) Eligible recipient defined.--In this subsection, 
        the term ``eligible recipient'' means--
                  [(A) a State;
                  [(B) an Indian tribe;
                  [(C) a city or other political subdivision of 
                a State;
                  [(D) an entity that--
                          [(i) is a nonprofit organization, an 
                        institution of higher education, a 
                        public-private partnership, a science 
                        or research park, a Federal laboratory, 
                        or an economic development organization 
                        or similar entity; and
                          [(ii) has an application that is 
                        supported by a State or a political 
                        subdivision of a State; or
                  [(E) a consortium of any of the entities 
                described in subparagraphs (A) through (D).
          [(4) Application.--
                  [(A) In general.--An eligible recipient shall 
                submit an application to the Secretary at such 
                time, in such manner, and containing such 
                information and assurances as the Secretary may 
                require.
                  [(B) Components.--The application shall 
                include, at a minimum, a description of the 
                regional innovation cluster supported by the 
                proposed activity, including a description of--
                          [(i) whether the regional innovation 
                        cluster is supported by the private 
                        sector, State and local governments, 
                        and other relevant stakeholders;
                          [(ii) how the existing participants 
                        in the regional innovation cluster will 
                        encourage and solicit participation by 
                        all types of entities that might 
                        benefit from participation, including 
                        newly formed entities and those rival 
                        existing participants;
                          [(iii) the extent to which the 
                        regional innovation cluster is likely 
                        to stimulate innovation and have a 
                        positive impact on regional economic 
                        growth and development;
                          [(iv) whether the participants in the 
                        regional innovation cluster have access 
                        to, or contribute to, a well-trained 
                        workforce;
                          [(v) whether the participants in the 
                        regional innovation cluster are capable 
                        of attracting additional funds from 
                        non-Federal sources; and
                          [(vi) the likelihood that the 
                        participants in the regional innovation 
                        cluster will be able to sustain 
                        activities once grant funds under this 
                        subsection have been expended.
                  [(C) Special consideration.--The Secretary 
                shall give special consideration to 
                applications from regions that contain 
                communities negatively impacted by trade.
          [(5) Special consideration.--The Secretary shall give 
        special consideration to an eligible recipient who 
        agrees to collaborate with local workforce investment 
        area boards.
          [(6) Cost share.--The Secretary may not provide more 
        than 50 percent of the total cost of any activity 
        funded under this subsection.
          [(7) Outreach to rural communities.--The Secretary 
        shall conduct outreach to public and private sector 
        entities in rural communities to encourage those 
        entities to participate in regional innovation cluster 
        activities under this subsection.
          [(8) Funding.--The Secretary may accept funds from 
        other Federal agencies to support grants and activities 
        under this subsection.
  [(c) Regional Innovation Research and Information Program.--
          [(1) In general.--As part of the program established 
        under subsection (a), the Secretary shall establish a 
        regional innovation research and information program--
                  [(A) to gather, analyze, and disseminate 
                information on best practices for regional 
                innovation strategies (including regional 
                innovation clusters), including information 
                relating to how innovation, productivity, and 
                economic development can be maximized through 
                such strategies;
                  [(B) to provide technical assistance, 
                including through the development of technical 
                assistance guides, for the development and 
                implementation of regional innovation 
                strategies (including regional innovation 
                clusters);
                  [(C) to support the development of relevant 
                metrics and measurement standards to evaluate 
                regional innovation strategies (including 
                regional innovation clusters), including the 
                extent to which such strategies stimulate 
                innovation, productivity, and economic 
                development; and
                  [(D) to collect and make available data on 
                regional innovation cluster activity in the 
                United States, including data on--
                          [(i) the size, specialization, and 
                        competitiveness of regional innovation 
                        clusters;
                          [(ii) the regional domestic product 
                        contribution, total jobs and earnings 
                        by key occupations, establishment size, 
                        nature of specialization, patents, 
                        Federal research and development 
                        spending, and other relevant 
                        information for regional innovation 
                        clusters; and
                          [(iii) supply chain product and 
                        service flows within and between 
                        regional innovation clusters.
          [(2) Research grants.--The Secretary may award 
        research grants on a competitive basis to support and 
        further the goals of the program established under this 
        subsection.
          [(3) Dissemination of information.--Data and analysis 
        compiled by the Secretary under the program established 
        in this subsection shall be made available to other 
        Federal agencies, State and local governments, and 
        nonprofit and for-profit entities.
          [(4) Regional innovation grant program.--The 
        Secretary shall incorporate data and analysis relating 
        to any grant under subsection (b) into the program 
        established under this subsection.
  [(d) Interagency Coordination.--
          [(1) In general.--To the maximum extent practicable, 
        the Secretary shall ensure that the activities carried 
        out under this section are coordinated with, and do not 
        duplicate the efforts of, other programs at the 
        Department of Commerce or other Federal agencies.
          [(2) Collaboration.--
                  [(A) In general.--The Secretary shall explore 
                and pursue collaboration with other Federal 
                agencies, including through multiagency funding 
                opportunities, on regional innovation 
                strategies.
                  [(B) Small businesses.--The Secretary shall 
                ensure that such collaboration with Federal 
                agencies prioritizes the needs and challenges 
                of small businesses.
  [(e) Evaluation.--
          [(1) In general.--Not later than 3 years after the 
        date of enactment of the Revitalize American 
        Manufacturing and Innovation Act of 2014, the Secretary 
        shall enter into a contract with an independent entity, 
        such as the National Academy of Sciences, to conduct an 
        evaluation of the program established under subsection 
        (a).
          [(2) Requirements.--The evaluation shall include--
                  [(A) whether the program is achieving its 
                goals;
                  [(B) any recommendations for how the program 
                may be improved; and
                  [(C) a recommendation as to whether the 
                program should be continued or terminated.
  [(f) Definitions.--In this section:
          [(1) Regional innovation cluster.--The term 
        ``regional innovation cluster'' means a geographically 
        bounded network of similar, synergistic, or 
        complementary entities that--
                  [(A) are engaged in or with a particular 
                industry sector and its related sectors;
                  [(B) have active channels for business 
                transactions and communication;
                  [(C) share specialized infrastructure, labor 
                markets, and services; and
                  [(D) leverage the region's unique competitive 
                strengths to stimulate innovation and create 
                jobs.
          [(2) State.--The term ``State'' means one of the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, or any other territory or possession 
        of the United States.
  [(g) Funding.--
          [(1) General rule.--Except as provided in paragraph 
        (2), no funds are authorized to be appropriated by the 
        Revitalize American Manufacturing and Innovation Act of 
        2014 for carrying out this section.
          [(2) Authority.--To the extent provided for in 
        advance by appropriations Acts, the Secretary may use 
        not to exceed $10,000,000 for each of the fiscal years 
        2015 through 2019 to carry out this section from 
        amounts appropriated for economic development 
        assistance programs.]

SEC. 27. REGIONAL INNOVATION PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible recipient defined.--The term ``eligible 
        recipient'' means--
                  (A) a State;
                  (B) an Indian tribe;
                  (C) a city or other political subdivision of 
                a State;
                  (D) an entity that is a nonprofit 
                organization, an institution of higher 
                education, a public-private partnership, a 
                science or research park, a Federal laboratory, 
                a venture development organization, or an 
                economic development organization or similar 
                entity that is focused primarily on improving 
                science, technology, innovation, or 
                entrepreneurship; or
                  (E) a consortium of any of the entities 
                described in subparagraphs (A) through (D).
          (2) Regional innovation initiative.--The term 
        ``regional innovation initiative'' means a 
        geographically-bounded public or nonprofit activity or 
        program to address issues in the local innovation 
        systems in order to--
                  (A) increase the success of innovation-driven 
                industry;
                  (B) strengthen the competitiveness of 
                industry through new product innovation and new 
                technology adoption;
                  (C) improve the pace of market readiness and 
                overall commercialization of innovative 
                research;
                  (D) enhance the overall innovation capacity 
                and long-term resilience of the region; and
                  (E) leverage the region's unique competitive 
                strengths to stimulate innovation and to create 
                jobs.
          (3) State.--The term ``State'' means one of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, or any 
        other territory or possession of the United States.
          (4) Venture development organization.--The term 
        ``venture development organization'' means a State or 
        nonprofit organization that contributes to regional or 
        sector-based economic prosperity by providing services 
        for the purposes of--
                  (A) accelerating the commercialization of 
                research;
                  (B) strengthening the competitive position of 
                industry through the development, commercial 
                adoption, or deployment of technology; and
                  (C) providing financial grants, loans, or 
                direct financial investment to commercialize 
                technology.
  (b) Establishment.--The Secretary shall establish a regional 
innovation program to encourage and support the development of 
regional innovation strategies designed to increase innovation-
driven economic opportunity within their respective regions.
  (c) Regional Innovation Grants.--
          (1) Authorization of grants.--As part of the program 
        established pursuant to subsection (b), the Secretary 
        may award grants, on a competitive basis, to eligible 
        recipients for activities designed to develop and 
        support a regional innovation initiative.
          (2) Permissible activities.--A grant awarded under 
        this subsection shall be used for multiple activities 
        determined appropriate by the Secretary, including--
                  (A) improving the connectedness and strategic 
                orientation of the region through planning, 
                technical assistance, and communication among 
                participants of a regional innovation 
                initiative;
                  (B) attracting additional participants to a 
                regional innovation initiative;
                  (C) increasing the availability and 
                investment of private and philanthropic 
                financing that supports innovation-based 
                business ventures;
                  (D) completing the research, development and 
                introduction of new products, processes, and 
                services into the commercial market;
                  (E) increasing the number of full-time 
                equivalent employment opportunities within 
                innovation-based business ventures in the 
                geographic region; and
                  (F) achieving quantifiable, positive benefits 
                to, or measurable enhancements for, the 
                economic performance of the geographic region.
          (3) Restricted activities.--Grants awarded under this 
        subsection may not be used to pay for--
                  (A) costs related to the recruitment, 
                inducement, or associated financial or tangible 
                incentives that might be offered to relocate an 
                existing business from a geographic area to 
                another geographic area; or
                  (B) costs associated with offsetting revenues 
                forgone by one or more taxing authorities 
                through tax incentives, tax increment 
                financing, special improvement districts, tax 
                abatements for private development within 
                designated zones or geographic areas, or other 
                reduction in revenues resulting from tax 
                credits affecting the geographic region of the 
                eligible recipients.
          (4) Applications.--
                  (A) In general.--An eligible recipient shall 
                submit an application to the Secretary at such 
                time, in such manner, and containing such 
                information and assurances as the Secretary may 
                require.
                  (B) Components.--Each application submitted 
                under subparagraph (A) shall--
                          (i) describe the regional innovation 
                        initiative;
                          (ii) indicate whether the regional 
                        innovation initiative is supported by 
                        the private sector, State and local 
                        governments, and other relevant 
                        stakeholders;
                          (iii) identify what activities the 
                        regional innovation initiative will 
                        undertake;
                          (iv) describe the expected outcomes 
                        of the regional innovation initiative 
                        and how the eligible recipient will 
                        measure progress toward those outcomes;
                          (v) indicate whether the participants 
                        in the regional innovation initiative 
                        have access to, or contribute to, a 
                        well-trained workforce and other 
                        innovation assets that are critical to 
                        the successful outcomes specified in 
                        the application;
                          (vi) indicate whether the 
                        participants in the regional innovation 
                        initiative are capable of attracting 
                        additional funds from non-Federal 
                        sources; and
                          (vii) if appropriate for the 
                        activities proposed in the application, 
                        analyze the likelihood that the 
                        participants in the regional innovation 
                        initiative will be able to sustain 
                        activities after grant funds received 
                        under this subsection have been 
                        expended.
                  (C) Feedback.--The Secretary shall provide 
                feedback to program applicants that are not 
                awarded grants to help them improve future 
                applications.
                  (D) Special considerations.--The Secretary 
                shall give special consideration to--
                          (i) applications proposing to include 
                        workforce or training related 
                        activities in their regional innovation 
                        initiative from eligible recipients who 
                        agree to collaborate with local 
                        workforce investment area boards; and
                          (ii) applications from regions that 
                        contain communities negatively impacted 
                        by trade.
          (5) Cost share.--The Secretary may not provide more 
        than 50 percent of the total cost of any activity 
        funded under this subsection.
          (6) Outreach to rural communities.--
                  (A) In general.--The Secretary shall conduct 
                outreach to public and private sector entities 
                in rural communities to encourage those 
                entities to participate in regional innovation 
                initiatives under this subsection.
                  (B) Justification.--As part of the program 
                established pursuant to subsection (b), not 
                less frequently than once each year for the 
                duration of the program as authorized, the 
                Secretary, acting through the Assistant 
                Secretary of Commerce for Economic Development, 
                shall submit to Congress an annual report that 
                explains the balance in the allocation of 
                grants to eligible recipients under this 
                subsection between rural and urban areas.
          (7) Funding.--The Secretary may accept funds from 
        other Federal agencies to support grants and activities 
        under this subsection.
  (d) Regional Innovation Research and Information Program.--
          (1) In general.--As part of the program established 
        pursuant to subsection (b), the Secretary shall 
        establish a regional innovation research and 
        information program--
                  (A) to gather, analyze, and disseminate 
                information on best practices for regional 
                innovation initiatives, including information 
                relating to how innovation, productivity, and 
                economic development can be maximized through 
                such strategies;
                  (B) to provide technical assistance, 
                including through the development of technical 
                assistance guides, for the development and 
                implementation of regional innovation 
                initiatives;
                  (C) to support the development of relevant 
                metrics and measurement standards to evaluate 
                regional innovation initiatives, including the 
                extent to which such strategies stimulate 
                innovation, productivity, and economic 
                development; and
                  (D) to collect and make available data on 
                regional innovation initiatives in the United 
                States, including data on--
                          (i) the size, specialization, and 
                        competitiveness of regional innovation 
                        initiatives;
                          (ii) the regional domestic product 
                        contribution, total jobs and earnings 
                        by key occupations, establishment size, 
                        nature of specialization, patents, 
                        Federal research and development 
                        spending, and other relevant 
                        information for regional innovation 
                        initiatives; and
                          (iii) supply chain product and 
                        service flows within and between 
                        regional innovation initiatives.
          (2) Research grants.--The Secretary may award 
        research grants on a competitive basis to support and 
        further the goals of the program established under this 
        section.
          (3) Dissemination of information.--Data and analysis 
        compiled by the Secretary under the program established 
        in this subsection shall be made available to other 
        Federal agencies, State and local governments, and 
        nonprofit and for-profit entities.
          (4) Regional innovation grant program.--The Secretary 
        shall incorporate data and analysis relating to any 
        grant awarded under subsection (c) into the program 
        established under this subsection.
  (e) Interagency Coordination.--
          (1) In general.--To the maximum extent practicable, 
        the Secretary shall ensure that the activities carried 
        out under this section are coordinated with, and do not 
        duplicate the efforts of, other programs at the 
        Department of Commerce or at other Federal agencies.
          (2) Collaboration.--
                  (A) In general.--The Secretary shall explore 
                and pursue collaboration with other Federal 
                agencies, including through multi-agency 
                funding opportunities, on regional innovation 
                strategies.
                  (B) Small businesses.--The Secretary shall 
                ensure that such collaboration with Federal 
                agencies prioritizes the needs and challenges 
                of small businesses.
  (f) Evaluation.--
          (1) In general.--Not later than 5 years after 
        Congress first appropriates funds to carry out this 
        section, the Secretary shall competitively award a 
        contract with an independent entity to conduct an 
        evaluation of programs established under this section.
          (2) Requirements.--The evaluation conducted under 
        paragraph (1) shall include--
                  (A) an assessment of whether the program is 
                achieving its goals;
                  (B) the program's efficacy in providing 
                awards to geographically diverse entities;
                  (C) any recommendations for how the program 
                may be improved; and
                  (D) a recommendation as to whether the 
                program should be continued or terminated.
  (g) Reporting Requirement.--Not later than 5 years after the 
first grant is awarded under subsection (c), and every 5 years 
thereafter until 5 years after the last grant recipient 
completes the regional innovation initiative for which such 
grant was awarded, the Secretary shall submit a report to 
Congress that describes the outcome of each regional innovation 
initiative that was completed during the previous 5 years.
  (h) Funding.--From amounts appropriated by Congress for 
economic development assistance authorized under section 27 of 
the Stevenson-Wydler Technology Innovation Act of 1980 (15 
U.S.C. 3722), the Secretary may use up to $50,000,000 in each 
of the fiscal years 2020 through 2024 to carry out this 
section.

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