Sec. 2401. Regional technology hubs

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The Stevenson-Wydler Technology Innovation Act of 1980 ( Public Law 96–480 ; 15 U.S.C. 3701 et seq. ) is amended— by redesignating section 28 as section 29; and by inserting after section 27 the following: In this section: The term appropriate committees of Congress means— the Committee on Commerce, Science, and Transportation, the Committee on Environment and Public Works, and the Committee on Appropriations of the Senate; and the Committee on Science, Space, and Technology, the Committee on Transportation and Infrastructure, and the Committee on Appropriations of the House of Representatives.

The term cooperative extension has the meaning given the term extension in section 1404 of the Food and Agriculture Act of 1977 ( 7 U.S.C. 3103 ). The term key technology focus areas means the areas included on the most recent list under section 2005 of the Endless Frontier Act . The term labor organization has the meaning given such term in section 2101 of the Endless Frontier Act . The term low population State means a State without an urbanized area with a population greater than 200,000 as reported in the 2010 decennial census.

The term manufacturing extension center has the meaning given the term Center in section 25(a) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k(a) ). The term Manufacturing USA institute means an Manufacturing USA institute described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) ). The term site connectivity infrastructure means localized driveways and access roads to a facility as well as hookups to the new facility for drinking water, waste water, broadband, and other basic infrastructure services already present in the area.

The term small and rural community means a noncore area, a micropolitan area, or a small metropolitan statistical area with a population of not more than 200,000. The term venture development organization has the meaning given such term in section 27(a) of the Stevenson-Wydler Act of 1980 ( 15 U.S.C. 3722(a) ). Subject to the availability of appropriations, the Secretary shall carry out a program— to encourage new and constructive collaboration among local, State, and Federal government entities, academia, the private sector, economic development organizations, and labor organizations; to support eligible consortia in the creation of regional innovation strategies; to designate eligible consortia as regional technology hubs and facilitate activities by consortia designated as regional technology hubs in implementing their regional innovation strategies, in order— to enable United States leadership in technology and innovation sectors critical to national and economic security; to support regional economic development, including in small cities and rural areas, and diffuse innovation around the United States; and to support domestic job creation and broad-based economic growth; and to ensure that the regional technology hubs address the intersection of emerging technologies and either local and regional challenges or national challenges; and to conduct ongoing research, evaluation, analysis, and dissemination of best practices for regional development and competitiveness in technology and innovation.

The Secretary shall carry out the program required by paragraph

(1)through the award of the following: Strategy development grants or cooperative agreements to eligible consortia under subsection (e). Strategy implementation grants or cooperative agreements to regional technology hubs under subsection (f). The Secretary shall carry out this section through the Assistant Secretary of Commerce for Economic Development in coordination with the Under Secretary of Commerce for Standards and Technology. For purposes of this section, an eligible consortium is a consortium that— includes 1 or more— institutions of higher education; local or Tribal governments or other political subdivisions of a State; State governments represented by an agency designated by the governor of the State or States that is representative of the geographic area served by the consortia; economic development organizations or similar entities that are focused primarily on improving science, technology, innovation, or entrepreneurship; industry or firms in relevant technology or innovation sectors; labor organizations or workforce training organizations, including State and local workforce development boards as established under section 101 and 107 of the Workforce Investment and Opportunity Act ( 29 U.S.C. 3111 ; 3122); and may include 1 or more— nonprofit economic development entities with relevant expertise, including a district organization (as defined in section 300.3 of title 13, Code of Federal Regulations, or successor regulation); venture development organizations; financial institutions and investment funds; primary and secondary educational institutions, including career and technical education schools; National Laboratories (as defined in section 2 of the Energy Policy Act of 2005 ( 42 U.S.C. 15801 )); Federal laboratories; Manufacturing extension centers; Manufacturing USA institutes; institutions receiving an award under section 2104 of the Endless Frontier Act ; and a cooperative extension. In carrying out subsection (b)(1)(C), the Secretary shall use a competitive process to designate eligible consortia as regional technology hubs. In conducting the competitive process under paragraph (1), the Secretary shall ensure geographic distribution in the designation of regional technology hubs by— seeking to designate at least three technology hubs in each region covered by a regional office of the Economic Development Administration; focusing on localities that are not leading technology centers; ensuring that not fewer than one-third of eligible consortia designated as regional technology hubs significantly benefit a small and rural community, which may include a State described in subparagraph (D); ensuring that not fewer than one-third of eligible consortia designated as regional technology hubs include as a member of the eligible consortia at least 1 member that is a State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation; and ensuring that at least one eligible consortium designated as a regional technology hub is headquartered in a low population State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation. The Secretary shall not require an eligible consortium to receive a grant or cooperative agreement under subsection

(e)in order to be designated as a regional technology hub under paragraph

(1)of this subsection. The Secretary shall use a competitive process to award grants or cooperative agreements to eligible consortia for the development of regional innovation strategies. The Secretary shall award a grant or cooperative agreement under paragraph

(1)to not fewer than 20 eligible consortia. The Secretary shall carry out paragraph

(1)in a manner that ensures geographic diversity and representation from communities of differing populations. In carrying out paragraph (1), the Secretary shall— award not fewer than one-third of the grants and cooperative agreements under such paragraph to eligible consortia that significantly benefit a small and rural community, which may include a State described in clause (ii); and award not fewer than one-third of the grants and cooperative agreements under such paragraph to eligible consortia that include as a member of the eligible consortia at least 1 member that is a State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation. The amount of a grant or cooperative agreement awarded under paragraph

(1)shall be as follows: To coordinate locally defined planning processes, across jurisdictions and agencies, relating to developing a comprehensive regional technology strategy. To identify regional partnerships for developing and implementing a comprehensive regional technology strategy. To conduct or update assessments to determine regional needs. To develop or update goals and strategies to implement an existing comprehensive regional plan. To identify or implement local zoning and other code changes necessary to implement a comprehensive regional technology strategy. The Federal share of the cost of an effort carried out using a grant or cooperative agreement awarded under this subsection may not exceed 80 percent— where in-kind contributions may be used for all or part of the non-Federal share, but Federal funding from other Government sources may not count towards the non-Federal share; except in the case of an eligible consortium that represents all or part of a small and rural community, the Federal share may be up to 90 percent of the total cost, subject to subparagraph (A); and except in the case of an eligible consortium that is led by a Tribal government, the Federal share may be up to 100 percent of the total cost of the project. The Secretary shall use a competitive process to award grants or cooperative agreements to regional technology hubs for the implementation of regional innovation strategies, including regional strategies for infrastructure and site development, in support of the regional technology hub’s plans and programs. The amount of a grant or cooperative agreement awarded under subparagraph

(A)to a regional technology hub may be used by the regional technology hub to support any of the following activities, consistent with the most current regional innovation strategy of the regional technology hub: Workforce development activities, including activities relating to the following: The creation of partnerships between industry, workforce, and academic groups, which may include community colleges, to create and align technical training and educational programs. The design, development, and updating of educational and training curriculum. The procurement of facilities and equipment, as required to train a technical workforce. The development and execution of programs to rapidly award certificates or credentials recognized by regional industry groups. The matching of regional employers with a potential new entrant, underemployed, or incumbent workforce. The expansion of successful training programs at a scale required by the region served by the regional technology hub, including through the use of online education. Business and entrepreneur development activities, including activities relating to the following: The development and growth of regional businesses and the training of entrepreneurs. The support of technology commercialization, including funding for activities relevant to the protection of intellectual property. The development of networks for business and entrepreneur mentorship. Technology maturation activities, including activities relating to the following: The development and deployment of technologies in sectors critical to the region served by the regional technology hub or to national and economic security, including proof of concept, prototype development, and testing. The provision of facilities for technology maturation, including incubators for collaborative development of technologies by private sector, academic, and other entities. Activities to ensure access to capital for new business formation and business expansion, including by attracting new private, public, and philanthropic investment and by establishing regional venture and loan funds. Activities determined appropriate by the Secretary under section 27(c)(2) of this Act. The building of facilities and site connectivity infrastructure necessary to carry out activities described in subparagraphs (A), (B), and (C), including activities relating to the following: Establishing a workforce training center with required tools and instrumentation. Establishing a facility for technology development, demonstration, and testing. Establishing collaborative incubators to support technology commercialization and entrepreneur training. The Secretary shall ensure that no single regional technology hub receives more than 10 percent of the aggregate amount of the grants and cooperative agreements awarded under this subsection. The term of a grant or cooperative agreement awarded under this subsection shall be for such period as the Secretary considers appropriate. The Secretary may renew a grant or cooperative agreement awarded to a regional technology hub under this subsection as the Secretary considers appropriate if the Secretary determines that the performance of the regional technology hub is satisfactory. Except in the case of a regional technology hub described in subparagraph (B), the total amount of all grants awarded to a regional technology hub under this subsection in a given year shall not exceed amounts as follows: In the first year of the grant or cooperative agreement, 90 percent of the total operating costs of the regional technology hub in that year. In the second year of the grant or cooperative agreement, 85 percent of the total operating costs of the regional technology hub in that year. In the third year of the grant or cooperative agreement, 80 percent of the total operating costs of the regional technology hub in that year. In the fourth year of the grant or cooperative agreement and each year thereafter, 75 percent of the total operating costs of the regional technology hub in that year. The total Federal financial assistance awarded in a given year to a regional technology hub under this subsection shall not exceed amounts as follows: In the case of a regional technology hub that represents a small and rural community, in a fiscal year, 90 percent of the total funding of the regional technology hub in that fiscal year. In the case of an regional technology hub that is led by a Tribal government, in a fiscal year, 100 percent of the total funding of the regional technology hub in that fiscal year. For purposes of clause (i)(I), the Secretary shall establish a minimum threshold of rural representation in the regional technology hub. For purposes of this paragraph, in-kind contributions may be used for part of the non-Federal share of the total funding of a regional technology hub in a fiscal year. Any grant or cooperative agreement awarded under this subsection to support the construction of facilities and site connectivity infrastructure shall be awarded pursuant to section 201 of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3141 ) and subject to the provisions of such Act, except that subsection

(b)of such section and sections 204 and 301 of such Act ( 42 U.S.C. 3144 , 3161) shall not apply. The Secretary shall not require a regional technology hub to receive a grant or cooperative agreement under subsection

(e)in order to receive a grant or cooperative agreement under this subsection. An eligible consortium seeking designation as a regional technology hub under subsection

(d)or a grant or cooperative agreement under subsection

(e)or

(f)shall submit to the Secretary an application therefor at such time, in such manner, and containing such information as the Secretary may specify. In selecting an eligible consortium that submitted an application under subsection

(g)for designation under subsection

(d)or for a grant or cooperative agreement under subsection (f), the Secretary shall consider, at a minimum, the following: The potential of the eligible consortium to advance the research, development, deployment, and domestic manufacturing of technologies in a key technology focus area or other technology or innovation sector critical to national and economic security. The likelihood of positive regional economic effect, including increasing the number of high wage domestic jobs, and creating new economic opportunities for economically disadvantaged and underrepresented populations. How the eligible consortium plans to integrate with and leverage the resources of 1 or more federally funded research and development centers, National Laboratories, Federal laboratories, Manufacturing USA institutes, Hollings Manufacturing Extension Partnership centers, university technology centers established under section 2104 of the Endless Frontier Act , the program established under section 2107 of the such Act, test beds established and operated under section 2108 of such Act, or other Federal research entities. How the eligible consortium will engage with the private sector, including small- and medium-sized businesses to commercialize new technologies and improve the resiliency of domestic supply chains in a key technology focus area or other technology or innovation sector critical to national and economic security. How the eligible consortium will carry out workforce development and skills acquisition programming, including through partnerships with entities that include State and local workforce development boards, institutions of higher education, including community colleges, historically Black colleges and universities, Tribal colleges and universities, and minority serving institutions, labor organizations, and workforce development programs, and other related activities authorized by the Secretary, to support the development of a key technology focus area or other technology or innovation sector critical to national and economic security. How the eligible consortium will improve science, technology, engineering, and mathematics education programs in the identified region in elementary and secondary school and higher education institutions located in the identified region to support the development of a key technology focus area or other technology or innovation sector critical to national and economic security. How the eligible consortium plans to develop partnerships with venture development organizations and sources of private investment in support of private sector activity, including launching new or expanding existing companies, in a key technology focus area or other technology or innovation sector critical to national and economic security. How the eligible consortium plans to organize the activities of regional partners across sectors in support of a regional technology hub. How the eligible consortium will ensure that growth in technology and innovation sectors produces broadly shared opportunity across the identified region, including for economic disadvantaged and underrepresented populations and rural areas. The likelihood efforts served by the consortium will be sustained once Federal support ends. How the eligible consortium will— enhance the economic, environmental, and energy security of the United States by promoting domestic development, manufacture, and deployment of innovative clean technologies and advanced manufacturing practices; and support translational research, technology development, manufacturing innovation, and commercialization activities relating to clean technology. The Secretary shall work to ensure the activities under this section do not duplicate activities or efforts under section 27, as the Secretary considers appropriate. The Secretary shall coordinate the activities of regional technology hubs designated under this section, the Hollings Manufacturing Extension Partnership, and the Manufacturing USA Program, as the Secretary considers appropriate, to maintain the effectiveness of a manufacturing extension center or a Manufacturing USA institute. The Secretary shall, in collaboration with the Secretary of Energy, coordinate the activities and selection of regional technology hubs designated under this section, as the Secretaries consider appropriate, to maintain the effectiveness of activities at the Department of Energy and the National Laboratories. In designating regional technology hubs under subsection

(d)and awarding grants or cooperative agreements under subsection (f), the Secretary— shall collaborate, to the extent possible, with the interagency working group established under section 2004 of the Endless Frontier Act ; shall collaborate with Federal departments and agencies whose missions contribute to the goals of the regional technology hub; shall consult with the Director of the National Science Foundation for the purpose of ensuring that the regional technology hubs are aligned with relevant science, technology, and engineering expertise; and may accept funds from other Federal agencies to support grants, cooperative agreements, and activities under this section. For each grant and cooperative agreement awarded under subsection

(f)for a regional technology hub, the Secretary shall— develop metrics, which may include metrics relating to domestic job creation, patent awards, and business formation and expansion, to assess the effectiveness of the activities funded in making progress toward the purposes set forth under subsection (b)(1); establish standards for the performance of the regional technology hub that are based on the metrics developed under subparagraph (A); and 4 years after the initial award under subsection

(f)and every 2 years thereafter until Federal financial assistance under this section for the regional technology hub is discontinued, conduct an assessment of the regional technology hub to confirm whether the performance of the regional technology hub is meeting the standards for performance established under subparagraph

(B)of this paragraph. The Secretary shall require each eligible consortium that receives a grant or cooperative agreement under subsection

(f)for activities of a regional technology hub, as a condition of receipt of such grant or cooperative agreement, to submit to the Secretary, not later than 120 days after the last day of the term of the grant or cooperative agreement, a report on the activities of the regional technology hub supported by the grant or cooperative agreement. Each report submitted by an eligible consortium under subparagraph

(A)shall include the following: A detailed description of the activities carried out by the regional technology hub using the grant or cooperative agreement described in subparagraph (A), including the following: A description of each project the regional technology hub completed using such grant or cooperative agreement. An explanation of how each project described in subclause

(I)achieves a specific goal under this section in the region of the regional technology hub with respect to— the resiliency of a supply chain; research, development, and deployment of a critical technology; workforce training and development; domestic job creation; or entrepreneurship. A discussion of any obstacles encountered by the regional technology hub in the implementation of the regional technology hub and how the regional technology hub overcame those obstacles. An evaluation of the success of the projects of the regional technology hub using the performance standards and measures established under paragraph (1), including an evaluation of the planning process and how the project contributes to carrying out the regional innovation strategy of the regional technology hub. The effectiveness of the regional technology hub in ensuring that, in the region of the regional technology hub, growth in technology and innovation sectors produces broadly shared opportunity across the region, including for economic disadvantaged and underrepresented populations and rural areas. Information regarding such other matters as the Secretary may require. In addition to requiring submittal of final reports under paragraph (2)(A), the Secretary may require a regional technology hub described in such paragraph to submit to the Secretary such interim reports as the Secretary considers appropriate. Not less frequently than once each year, the Secretary shall submit to the appropriate committees of Congress an annual report on the results of the assessments conducted by the Secretary under paragraph (1)(C) during the period covered by the report. There is authorized to be appropriated to the Secretary, for the period of fiscal years 2022 through 2026— $9,425,000,000 to award grants and cooperative agreements under subsection (f); and $575,000,000 to award grants and cooperative agreements under subsection (e). . Not later than 180 days after the date of the enactment of this division, the Secretary of Commerce shall commence a competition under subsection (d)(1) of section 28 of the Stevenson-Wydler Technology Innovation Act of 1980 ( Public Law 96–480 ), as added by subsection (a). Not later than 1 year after the date of the enactment of this division, if the Secretary has received at least 1 application under subsection

(g)of such section from an eligible consortium whom the Secretary considers suitable for designation under subsection (d)(1) of such section, the Secretary shall— designate at least 1 regional technology hub under subsection (d)(1) of such section; and award a grant or cooperative agreement under subsection (f)(1) of such section to each regional technology hub designated pursuant to subparagraph

(A)of this paragraph.

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