View all text of Chapter 7 [§ 271 - § 286]
§ 278s. Manufacturing USA
(a) DefinitionsIn this section:
(1) Agency head
(2) Regional innovation initiative
(b) Establishment of Manufacturing USA Program
(1) In general
(2) Purposes of ProgramThe purposes of the Program are—
(A) to improve the competitiveness of United States manufacturing and to increase the production of goods manufactured predominantly within the United States;
(B) to stimulate United States leadership in advanced manufacturing research, innovation, and technology;
(C) to facilitate the transition of innovative technologies into scalable, cost-effective, and high-performing manufacturing capabilities;
(D) to facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance electronics and computing, and the supply chains that enable these technologies;
(E) to accelerate the development of an advanced manufacturing workforce;
(F) to facilitate peer exchange of and the documentation of best practices in addressing advanced manufacturing challenges;
(G) to leverage non-Federal sources of support to promote a stable and sustainable business model without the need for long-term Federal funding;
(H) to create and preserve jobs; and
(I) to contribute to the development of regional innovation initiatives across the United States.
(3) SupportThe Secretary, acting through the Director, shall carry out the purposes set forth in paragraph (2) by supporting—
(A) the Manufacturing USA Network established under subsection (b); and
(B) the establishment of Manufacturing USA institutes.
(4) Director
(c) Establishment of Manufacturing USA Network
(1) In general
(2) Designation
(d) Manufacturing USA institutes
(1) In generalFor purposes of this section, a Manufacturing USA institute is an institute that—
(A) has been established by a person or group of persons to address challenges in advanced manufacturing and to assist manufacturers in retaining or expanding industrial production and jobs in the United States;
(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, 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) 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, 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) includes active participation among representatives from multiple industrial entities, research universities, community colleges, and other entities as appropriate, which may include industry-led consortia, career and technical education schools, Federal laboratories, State, local, and Tribal governments, businesses, educational institutions, and nonprofit organizations.
(2) Activities
(A) Required activitiesFor purposes of this section, a Manufacturing USA institute is also an institute that carries out the following:
(i) Research, development, and demonstration projects, including proof-of-concept development and prototyping, to reduce the cost, time, or risk of commercializing new technologies and improvements in existing technologies, processes, products, and research and development of materials to solve precompetitive industrial problems with economic or national security implications.
(ii) Development and implementation of education, training, and workforce recruitment courses, materials, and programs addressing workforce needs through training and education programs at all appropriate education levels, including programs on applied engineering.
(iii) Development of innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains, as appropriate.
(iv) Outreach and engagement with small and medium-sized manufacturing enterprises, including women, minority, and veteran owned manufacturing enterprises, in addition to large manufacturing enterprises.
(v) Development of roadmaps or leveraging of existing roadmaps with respect to technology areas being pursued by that Manufacturing USA institute that take into account the research and development undertaken at other Manufacturing USA institutes and Federal agencies with respect to such areas.
(B) Permissible activities
(3) Additional Manufacturing USA institutes
(A) In general
(B) Network participation
(C) ApplicabilityEffective beginning on December 20, 2019, an institute shall be treated as a Manufacturing USA institute under this section and subject to subsections (b)(2), (d), and (e) in the same manner and to the same extent as such provisions apply to a Manufacturing USA institute described by paragraphs (1) and (2) if such institute—
(i)(I) is, as of December 20, 2019, considered a Manufacturing USA institute under subparagraph (A) or recognized as a Manufacturing USA institute under subparagraph (B); and(II) as of December 20, 2019, receives Federal financial assistance under subsection (e) or otherwise consistent with the purposes of this section;
(ii) is under pending agency review for such recognition as of December 20, 2019; or
(iii) is currently funded by the Department of Energy.
(e) Financial assistance to establish and support Manufacturing USA institutes
(1) Financial assistance authorized
(2) Period and renewal of awards
(A) Initial periods
(B) Renewal of awards
(i) Renewal authorized
(ii) Consideration of performance standards
(iii) Initial failure to meet performance standardsIf, pursuant to a rigorous merit review under clause (i) for renewal of an award under such clause for a Manufacturing USA institute, an agency head finds that the institute does not meet the standards for performance established pursuant to paragraph (5)(C), the agency head shall—(I) notify the institute of any deficiencies in the performance of the institute; and(II) provide the institute one year to remedy such deficiencies.
(iv) Further failure to meet performance standardsIf a Manufacturing USA institute fails to remedy a deficiency identified or to show significant improvement in performance during the 1-year period set forth under clause (iii)(II)—(I) the institute shall not be eligible for 1
1 So in original. Probably should be followed by “a”.
renewed award under clause (i); and(II) the agency head that conducted the review for renewal shall notify the institute of such ineligibility.(v) Continuation of existing Manufacturing USA institutesNot withstanding clauses (i) through (iv), a Manufacturing USA institute already in existence or undergoing a renewal process prior to December 1, 2019—(I) may continue to receive support for the duration of the original funding award beginning on the date of establishment of that institute; and(II) shall be eligible for renewal of that funding pursuant to clause (i).
(3) Application for financial assistance
(A) In general
(B) RequirementsAn application submitted under subparagraph (A) for an institute shall, at a minimum include the following:
(i) A description of the specific sources and amounts of non-Federal financial support for the institute on the date financial assistance is sought.
(ii) A description of the anticipated sources and amounts of non-Federal financial support during the period for which the institute could be eligible for continued Federal financial assistance under this section.
(4) Selection
(A) Competitive, merit reviewIn awarding financial assistance under paragraph (1), an agency head shall—
(i) use a competitive, merit review process that includes review by a diverse group of individuals with relevant expertise from both the private and public sectors; and
(ii) ensure that the technology focus of a Manufacturing USA institute does not substantially duplicate the technology focus of any other Manufacturing USA institute.
(B) Participation in process
(i) Prohibition on participation by political appointees
(ii) Conflict of interest policiesEach agency head shall implement a conflict of interest policy that—(I) ensures public transparency and accountability in the process used under subparagraph (A)(i); and(II) requires full disclosure of any real or potential conflicts of interest on the parts of individuals that participate in the process used under subparagraph (A)(i).
(iii) Definition of political appointee
(C) ConsiderationsIn selecting a person or group of persons who submitted an application to an agency head under paragraph (3) for an award of financial assistance under paragraph (1) for a Manufacturing USA institute, the agency head shall consider, at a minimum, the following:
(i) The potential of the Manufacturing USA institute to advance domestic manufacturing and the likelihood of economic impact, including the creation or preservation of jobs, in the predominant focus areas of the institute.
(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.
(iii) Whether the financial support provided to the Manufacturing USA institute from non-Federal sources exceeds the requested Federal financial assistance.
(iv) How the Manufacturing USA institute will increase the non-Federal investment in advanced manufacturing research in the United States.
(v) How the Manufacturing USA institute 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) How the Manufacturing USA institute will carry out educational and workforce activities that meet industrial needs related to the predominant focus areas of the institute.
(vii) How the Manufacturing USA institute will advance economic competitiveness and generate substantial benefits to the Nation that extend beyond the direct return to participants in the Program.
(viii) Whether the predominant focus of the Manufacturing USA institute is a manufacturing process, novel material, enabling technology, supply chain integration methodology, or other relevant aspect of advanced manufacturing that has not already been commercialized, marketed, distributed, or sold by another entity.
(ix) How the Manufacturing USA institute will strengthen and leverage the industrial, research, entrepreneurship, and other assets of a region.
(x) How the Manufacturing USA institute will encourage the education and training of veterans and individuals with disabilities.
(5) Performance measurement, transparency, and accountabilityFor each award of financial assistance under paragraph (1) by an agency head, the agency head shall—
(A) develop metrics to assess the effectiveness of the activities funded in making progress toward the purposes of the Program set forth under subsection (b)(2), including the effectiveness of Manufacturing USA institutes in advancing technology readiness levels or manufacturing readiness levels;
(B) establish standards for the performance of Manufacturing USA institutes that are based on the metrics developed under subparagraph (A); and
(C) for each Manufacturing USA institute supported by the award, 5 years after the initial award and every 5 years thereafter until Federal financial assistance under this subsection is discontinued, conduct an assessment of the institute to confirm whether the performance of the institute is meeting the standards for performance established under subparagraph (B).
(6) Collaboration
(7) Matching funds and preferences
(A) In general
(B) Waivers
(8) Diversity preferencesIn awarding financial assistance under paragraph (1) for planning or establishing a Manufacturing USA institute, an agency head shall give special consideration to Manufacturing USA institutes that—
(A) contribute to the geographic diversity of the Manufacturing USA Program;
(B) are located in an area with a low per capita income;
(C) are located in an area with a high proportion of socially disadvantaged residents; or
(D) are located in small and rural communities.
(f) Authority to award financial assistance for construction of test beds and specialized facilities
(1) In general
(2) Requirements
(3) Priority
(g) Grant program for public service activities for Manufacturing USA institutes without Federal fundingThe Secretary may award a grant on a competitive basis to a Manufacturing USA institute that is not receiving financial assistance under subsection (e) to carry out workforce development, outreach to small- and medium-sized manufacturers, and other activities that—
(1) are determined by the Secretary to be in the national interest; and
(2) are unlikely to receive private sector financial support.
(h) Authorization of appropriations
(1) NIST Industrial Technical Services accountTo the extent provided for in advance by appropriations Acts, the Secretary may use amounts appropriated to the Industrial Technical Services account to carry out this section as follows:
(A) For each of the fiscal years 2015 through 2019, an amount not to exceed $5,000,000.
(B) For each of fiscal years 2020 through 2030, such amounts as may be necessary to carry out this section.
(2) Department of EnergyThere are authorized to be appropriated to the Secretary of Energy for the provision of financial assistance under subsection (e) by the Department of Energy amounts as follows:
(A) $70,000,000 for each of fiscal years 2020, 2021, and 2022.
(B) $84,000,000 for each of fiscal years 2023 and 2024.
(i) National Program Office
(1) Establishment
(2) FunctionsThe functions of the National Program Office are—
(A) to oversee the planning, management, and coordination of the Program;
(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 set forth under subsection (b)(2);
(C) to develop, not later than December 16, 2015, and update not less frequently than once every 3 years thereafter, a strategic plan to guide the Program, including a strategy for retaining domestic public benefits from Manufacturing USA institutes once Federal funding has been discontinued;
(D) to establish such procedures, processes, and criteria as may be necessary and appropriate to maximize cooperation and coordinate the activities of the Program with programs and activities of other Federal departments and agencies whose missions contribute to or are affected by advanced manufacturing;
(E) to establish a clearinghouse of public information related to the activities of the Program;
(F) to act as a convener of the Network;
(G) to work with Federal agencies that are not sponsoring or supporting a Manufacturing USA institute to explore and develop options for sponsoring or supporting a Manufacturing USA institute;
(H) to work with Federal agencies that are sponsoring or supporting a Manufacturing USA institute to develop and implement network-wide performance goals with measurable targets and timelines;
(I) to help develop pilot programs that may be implemented by the Manufacturing USA institutes to address specific purposes of the Program, including to accelerate technology transfer to the private sector and to develop entrepreneurship programs;
(J) to provide support services to promote workforce development activities, including the development of industry credentials;
(K) to identify and disseminate best practices for workforce education and training across the Network and further enhance collaboration among Manufacturing USA institutes in developing and implementing such practices;
(L) 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, as appropriate, for the development of national certifications for advanced manufacturing workforce skills in the technology areas of the Manufacturing USA institutes; and
(M) to coordinate with Manufacturing USA institutes to develop best practices for the membership agreements and coordination of similar project solicitations.
(3) Recommendations
(4) Report to Congress
(5) Hollings Manufacturing Extension Partnership
(A) In generalThe Secretary shall ensure that the National Program Office leverages the capabilities of the Hollings Manufacturing Extension Partnership into Program planning to ensure—
(i) significant outreach to, participation of, and engagement of small- and medium-sized manufacturers in Manufacturing USA institutes across the entirety of the manufacturing supply chain; and
(ii) that the results of the Program, including technologies developed by the Program, reach small- and medium-sized manufacturers and that such entities have access to technical assistance, as appropriate, in deploying those technologies.
(B) LiaisonsThe 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) Support services for small- and medium-sized manufacturers, that many include the designation of a liaison.
(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.
(6) Detailees
(7) Council for coordination of institutes
(A) Council
(B) Meetings
(C) Duties of the council
(j) Reporting and auditing
(1) Annual reports to the Secretary
(A) In generalNot less frequently than once each year, each agency head that is providing financial assistance under subsection (e) shall—
(i) require each recipient of such financial assistance submit to the agency head a report that describes the finances and performance of the Manufacturing USA institute with respect to which the financial assistance is awarded; and
(ii) submit to the Secretary each report received by the agency head under clause (i).
(B) ElementsEach report submitted under subparagraph (A) shall include:
(i) an accounting of expenditures of amounts awarded to the recipient under subsection (e); and
(ii) consistent with the standards for performance established under subsection (e)(5)(B), a description of the performance of the Manufacturing USA institute with respect to—(I) its goals, plans, financial support, and accomplishments; and(II) how the Manufacturing USA institute has furthered the purposes set forth under subsection (b)(2).
(2) Annual reports to Congress
(A) In general
(B) ElementsEach report submitted under subparagraph (A) shall include, for the period covered by the report—
(i) a summary and assessment of the reports received by the Secretary under paragraph (1);
(ii) an accounting of the funds expended by the Secretary under the Program, including any waivers made under subsection (e)(7)(B);
(iii) an assessment of the participation in, and contributions to, the Network by any Manufacturing USA institutes not receiving financial assistance under subsection (e); and
(iv) an assessment of the Program with respect to meeting the purposes set forth under subsection (b)(2).
(3) Assessments by Comptroller General of the United States
(A) Assessments
(B) ElementsEach assessment submitted under subparagraph (A) shall include, for the period covered by the report—
(i) a review of the management, coordination, and industry utility of the Program;
(ii) an assessment of the extent to which the Program has furthered the purposes set forth under subsection (b)(2);
(iii) such recommendations for legislative and administrative action as the Comptroller General considers appropriate to improve the Program; and
(iv) an assessment as to whether any prior recommendations for improvement made by the Comptroller General have been implemented or adopted.
(C) Final assessment
(k) Additional authorities
(1) Appointment of personnel and contracts
(2) Transfer of funds
(3) Authority of other agencies
(4) Use of resources
(5) Acceptance of resources
(6) Covered entities
(7) Collaborations with other agenciesThe Secretary shall collaborate with Federal agencies whose missions contribute to, or are affected by, advanced manufacturing to identify and leverage existing resources at such Federal agencies to assist Manufacturing USA institutes in carrying out the purposes of the Program set forth under subsection (b)(2). Such existing resources may include programs—
(A) at the Department of Labor relating to labor and apprenticeships;
(B) at the Economic Development Administration relating to regional innovation, such as the Regional Innovation Strategies program;
(C) at the Department of Education relating to workforce development, education, training, and retraining;
(D) at the Department of Defense relating to procurement and other authorities of the Department of Defense;
(E) at the Food and Drug Administration relating to biopharmaceutical manufacturing;
(F) at the National Science Foundation, including the Advanced Technological Education program;
(G) at the National Aeronautics and Space Administration relating to procurement, workforce development, education, training, and retraining;
(H) at the Department of Energy relating to development of clean energy technologies and other authorities of the Department of Energy;
(I) at the Department of Agriculture relating to outreach to rural communities;
(J) additional programs that the Secretary determines are appropriate to support the activities of existing Manufacturing USA institutes; and 2
2 So in original. Subpars. (J) and (K) are identical and the words “additional programs” do not follow from introductory provisions.
(K) additional programs that the Secretary determines are appropriate to support the activities of existing Manufacturing USA institutes.2
(l) Patents
(m) References to prior names and terminology
(Mar. 3, 1901, ch. 872, § 34, as added Pub. L. 113–235, div. B, title VII, § 703(2), Dec. 16, 2014, 128 Stat. 2221; amended Pub. L. 116–92, div. A, title XVII, § 1741(a), Dec. 20, 2019, 133 Stat. 1826; Pub. L. 117–167, div. B, title II, §§ 10261, 10263(b)–(d), Aug. 9, 2022, 136 Stat. 1503, 1505, 1506; Pub. L. 117–263, div. E, title LIX, § 5911, Dec. 23, 2022, 136 Stat. 3442.)