Sec. 10641. Regional Innovation Capacity

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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 and the Committee on Appropriations of the House of Representatives.

The term cooperative extension services has the meaning given the term in section 1404 of the Food and Agriculture Act of 1977 ( 7 U.S.C. 3103 ). The term historically Black colleges and universities has the meaning given the term part B institution in section 322 of the Higher Education Act of 1965 ( 20 U.S.C. 1061 ). The term labor organization has the meaning given the term in section 2(5) of the National Labor Relations Act ( 29 U.S.C. 152(5) ), except that such term shall also include— any organization composed of labor organizations, such as a labor union federation or a State or municipal labor body; and any organization which would be included in the definition for such term under such section 2(5) but for the fact that the organization represents— individuals employed by the United States, any wholly owned Government corporation, any Federal Reserve Bank, or any State or political subdivision thereof; individuals employed by persons subject to the Railway Labor Act ( 45 U.S.C. 151 et seq. ); or individuals employed as agricultural laborers.

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 a 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 minority-serving institution means a Hispanic-serving institution, an Alaska Native-serving institution, a Native Hawaiian-serving institutions, a Predominantly Black Institution, an Asian American and Native American Pacific Islander-serving institution, or a Native American-serving nontribal institution as described in section 371(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1067q(a) ).

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 state has the meaning given such term in section 27(a) of the Stevenson-Wydler Act of 1980 ( 15 U.S.C. 3722(a) ). The term Tribal Government means the governing body of any Indian or Alaska Native Tribe, band, nation, pueblo, village, community, component band or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this Act pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ).

The term Tribal College or University has the meaning given such term in section 316 of the Higher Education Act of 1965 ( 20 U.S.C. 1059c ). 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) ). The term community development financial institution has the meaning given in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 ). The term minority depository institution means an entity that is— a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note); or considered to be a minority depository institution by— the appropriate Federal banking agency; or the National Credit Union Administration, in the case of an insured credit union.

Subject to the availability of appropriations, the Secretary shall carry out a program— to encourage new and constructive collaboration among local, State, Tribal, and Federal government entities, institutions of higher education, the private sector, economic development organizations, labor organizations, worker cooperative membership associations, State or local employee ownership and cooperative development centers, nonprofit organizations, and community organizations to promote inclusive regional innovation initiatives; to support eligible consortia in the development and implementation of regional innovation strategies; to designate eligible consortia as regional technology and innovation hubs and facilitate activities by consortia designated as regional technology and innovation hubs in implementing their regional innovation strategies— to enable United States leadership in technology and innovation sectors critical to national and economic security; to support regional economic development and resilience, including in small cities and rural areas, and promote increased geographic diversity of innovation across the United States; to promote the benefits of technology development and innovation for all Americans, including underserved communities and vulnerable communities; to support the modernization and expansion of United States manufacturing based on advances in technology and innovation; to support domestic job creation and broad-based economic growth; and to improve the pace of market readiness, industry maturation, and overall commercialization and domestic production of innovative research; to ensure that the regional technology and innovation hubs address the intersection of emerging technologies and either 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 and innovation hubs under subsection (f). For purposes of this section, an eligible consortium is a consortium that— includes 1 or more of each of the following— institutions of higher education, which may include Historically Black Colleges and Universities, Tribal Colleges and Universities, and minority-serving institutions; State, territorial, local, or Tribal governments or other political subdivisions of a State, including State and local agencies, or a consortia thereof; industry or firms in relevant technology, innovation, or manufacturing sectors; labor organizations or workforce training organizations, which may include State and local workforce development boards as established under sections 101 and 107 of the Workforce Investment and Opportunity Act ( 29 U.S.C. 3111 ; 3122); and organizations that contribute to increasing the participation of underserved populations in science, technology, innovation, and entrepreneurship; and may include 1 or more— 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); economic development organizations or similar entities that are focused primarily on improving science, technology, innovation, entrepreneurship, or access to capital; venture development organizations; worker cooperative membership associations and state or local employee ownership and cooperative development centers; financial institutions and investment funds, including community development financial institutions and minority depository institutions; elementary schools and secondary schools, including area career and technical education schools (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 ( 29 U.S.C. 2302 ); 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; transportation planning organizations; a cooperative extension services; and organizations that represent the perspectives of underserved communities in economic development initiatives. In carrying out subsection (b)(1)(C), the Secretary shall use a competitive, merit-review process to designate not fewer than 10 eligible consortia as regional technology and innovation hubs. In conducting the competitive process under paragraph (1), the Secretary shall ensure geographic distribution in the designation of regional technology and innovation hubs by— focusing on localities that are not the top five leading technology centers; ensuring that not fewer than one third of eligible consortia designated as regional technology and innovation hubs significantly benefit a rural or other underserved community; ensuring that at least one eligible consortium designated as a regional technology and innovation hub is headquartered in a State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation; ensuring that at least one eligible consortium designated as a regional technology and innovation hub is headquartered in a region that has a high density of institutions of higher education serving populations historically underrepresented in STEM, including historically Black Colleges and Universities, Tribal Colleges and Universities, and minority-serving institutions; and ensuring that at least 1 eligible consortium designated as a regional technology and innovation hub significantly benefits an area or region whose economy significantly relies on or has recently relied on coal, oil, or natural gas production, development, or utilization. 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 and innovation hub under paragraph

(1)of this subsection. The Secretary shall use a competitive, merit-review 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-half of the grants and cooperative agreements under such paragraph to eligible consortia that significantly benefit a rural state, rural community, or other underserved community. 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 and capabilities. To develop or update goals and strategies to implement an existing comprehensive regional plan. To identify or implement planning and local zoning and other code changes necessary to implement a comprehensive regional technology strategy. To develop or update goals for ensuring that any new regional technology strategy mitigates and does not exacerbate economic or social inequities in a region. 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 rural or other underserved 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, merit-review process to award grants or cooperative agreements to regional technology and innovation hubs for the implementation of regional innovation strategies, including regional strategies for infrastructure and site development, in support of the regional innovation and technology and innovation hub’s plans and programs. The Secretary should determine the size and number of awards based on appropriations available to ensure the success of regional technology and innovation hubs as outlined in subsection (h). Financial assistance awarded under paragraph

(1)to a regional technology and innovation hub may be used by the regional technology and innovation hub to support any of the following activities, consistent with the most current regional innovation strategy of the regional technology and innovation hub: Workforce development activities, including activities relating to the following: The creation of partnerships between industry, workforce, nonprofit, and educational institutions to create and align technical training and educational programs. The design, development, and updating of educational and training curriculum tied to demonstrated regional workforce needs. 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 industries or other organizations. The matching of regional employers with a potential new entrant, underemployed, underrepresented, or incumbent workforce. The expansion of successful training programs at a scale required by the region served by the regional technology and innovation hub, including through the use of online education and mentoring. The development and expansion of programs with the goal of increasing the participation of persons historically underrepresented in STEM and manufacturing in the workforce development plans of the regional technology and innovation hub. Business and entrepreneur development activities, including activities relating to the following: The development and growth of local regional businesses and the training of entrepreneurs. The support of technology commercialization, including funding for activities relevant for advancing high growth potential ventures such as acceleration, incubation, early-stage production and other relevant programming. The development of local and regional capital networks and consortia to attract necessary private funding to businesses and entrepreneurs in the region. The development of local and regional networks for business and entrepreneur mentorship. The expansion of employee and worker ownership and participation in business decisionmaking, including through coordination and collaboration with worker cooperative membership associations and existing local and state employee ownership and cooperative development centers, or the creation of such centers where they do not yet exist, in order to provide information, technical assistance, access to financing, and training to startups, contractors, and businesses that are considering employee ownership as a model, and to facilitate the creation of and conversion to employee-owned startups, businesses, and cooperatives. 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 and innovation hub or to national and economic security, including industry-university research cooperation, proof of concept, prototype development, testing, and scale-up for manufacturing. The development of programming to support the creation and transfer of intellectual property into private use, such as through startup creation. The provision of facilities for technology maturation, including incubators and production testbeds for collaborative development of technologies by private sector, academic, nonprofit, and other entities. Activities to provide or ensure access to capital for new business and cooperative formation and business expansion, or preservation of existing businesses through conversion to employee ownership and cooperatives, including by attracting new private, public, and philanthropic investment and by establishing local and regional venture and loan funds, community development financial institutions, and minority depository institutions. 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 center with required tools and instrumentation for workforce development. Establishing a facility for technology development, demonstration, and testing. Establishing collaborative incubators to support technology commercialization and entrepreneur training. The term of an initial grant or cooperative agreement awarded under this subsection shall be for a period that the Secretary deems appropriate for the proposed activities but not less than 2 years. The Secretary may renew a grant or cooperative agreement awarded to a regional technology and innovation hub under paragraph

(1)for such period as the Secretary considers appropriate, if the Secretary determines that the regional technology and innovation hub has made satisfactory progress towards the metrics agreed to under subsection (j). In renewing a grant or cooperative agreement under subparagraph (B), the Secretary and the eligible consortium may agree to new or additional uses of funds in order to meet changes in the needs of the region. The amount of an initial grant or cooperative agreements awarded to a regional technology and innovation hub under paragraph (3)(A) shall be no more than $150,000,000. Upon renewal of a grant or cooperative agreement under paragraph (3)(B), the Secretary may award funding in the amount that the Secretary considers appropriate, ensuring that no single regional technology and innovation hub receives more than 15 percent of the aggregate amount of the grants and cooperative agreements awarded under this subsection. Except in the case of a regional technology and innovation hub described in subparagraph (C), the total amount of all grants awarded to a regional technology and innovation hub under this subsection in phase one shall not exceed 90 percent of the total operating costs of the regional technology and innovation hub during the initial performance period. Except in the case of a regional technology and innovation hub described in subparagraph (C), the total amount of all grants awarded to a regional technology and innovation hub in subsequent performance periods shall not exceed 75 percent of the total operating costs of the regional technology and innovation hub in each year of the grant or cooperative agreement. The total Federal financial assistance awarded in a given year to a regional technology and innovation hub under this subsection shall not exceed amounts as follows: In the case of a regional technology and innovation hub that primarily serves a rural community or other underserved community, in a fiscal year, 90 percent of the total funding of the regional technology and innovation hub in that fiscal year. In the case of a regional technology and innovation hub that is led by a Tribal government, in a fiscal year, 100 percent of the total funding of the regional technology and innovation hub in that fiscal year. For purposes of clause (i)(I), the Secretary shall establish a minimum threshold of rural representation and other underserved community representation in the regional technology and innovation 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 and innovation 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 and innovation 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 and innovation hub under subsection

(d)or a grant or cooperative agreement under subsection

(e)or

(f)shall submit to the Secretary an application therefore 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 the following: The potential of the eligible consortium to advance the research, development, deployment, and domestic manufacturing of technologies in a 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, creating new economic opportunities for economically disadvantaged and underrepresented populations, promoting employee and worker ownership, and advancing models of local and cooperative economic development that build and retain wealth in the region. 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, or other Federal entities. How the eligible consortium will engage with the private sector, including small- and medium-sized businesses and cooperatives, and employee-owned businesses and cooperatives, to commercialize new technologies and improve the resiliency and sustainability of domestic supply chains in a 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, worker cooperative membership associations, state or local employee ownership and cooperative development centers, workforce development programs, and other related activities authorized by the Secretary, to support the development of a skilled technical workforce for the regional technology and innovation hub. How the eligible consortium will improve or expand science, technology, engineering, and mathematics education programs and opportunities in the identified region in elementary and secondary school and higher education institutions located in the identified region. How the eligible consortium plans to develop partnerships with venture development organizations, community development financial institutions and minority depository institutions, and sources of private investment in support of private sector activity, including launching new or expanding existing companies. How the eligible consortium plans to organize the activities of regional partners across sectors in support of a regional technology and innovation hub. How the eligible consortium plans to procure as many goods, services, food, and supplies as is practicable from locally-owned, employee-owned, minority-owned, and women-owned businesses and cooperatives in conducting hub activities, and how individual consortium members, as applicable, plan to do the same. How the consortium plans to collaborate with local and community development financial institutions and minority depository institutions to expand the supply of such procurement options, including by creating business plans and plans for financing businesses and cooperatives that do not yet exist, and how the consortium plans to encourage entities created as a result of hub activities to follow such practices. How the eligible consortium will ensure that growth in technology, innovation, and advanced manufacturing sectors produces opportunity across the identified region, including for economically disadvantaged, minority, and rural populations, including consideration of how the eligible consortium takes into account the relevant impact of regional status and plans for— available affordable housing stock and housing policies; local and regional transportation systems; high speed internet access; and primary and secondary education. How much the regions educational institutions are committed to aligning their activities, including research and education, as appropriate, to a region’s economic strengths and areas of focus. The likelihood efforts served by the consortium will be sustained once Federal support ends. The Secretary shall ensure the activities under this section do not duplicate activities or efforts under section 27. The Secretary shall ensure eligible consortia that receive a grant or cooperative agreement under this section coordinate and share best practices for regional economic development. The Secretary shall coordinate the activities of regional technology and innovation 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 and innovation 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 and innovation hubs under subsection

(d)and awarding grants or cooperative agreements under subsection (f), the Secretary— shall collaborate with Federal departments and agencies whose missions contribute to the goals of the regional technology and innovation hub, and relevant interagency initiatives such as the Interagency Working Group for Cooperative Development; shall consult with the Director of the National Science Foundation for the purpose of ensuring that the regional technology and innovation 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 and innovation hub, the Secretary shall— in consultation with the regional technology and innovation hub, develop metrics, which may include metrics relating to domestic job creation, patent awards, increases in research funding, business formation and expansion, and participation of individuals or communities historically underrepresented in STEM, 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 and innovation hub that are based on the metrics developed under subparagraph (A); and prior to any award made under a subsequent performance period in subsection

(f)and every 2 years thereafter until Federal financial assistance under this section for the regional technology and innovation hub is discontinued, conduct an assessment of the regional technology and innovation hub to confirm whether the performance of the regional technology and innovation 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 and innovation 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 and innovation 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 and innovation hub using the grant or cooperative agreement described in subparagraph (A), including the following: A description of each project the regional technology and innovation 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 and innovation hub with respect to— the resiliency and sustainability of a supply chain; research, development, and deployment of a critical technology; workforce training and development; domestic job creation; entrepreneurship and company formation, including the number of businesses created or preserved through employee ownership and cooperative development; commercialization; access to private capital; or participation of individuals or communities historically underrepresented in STEM. A discussion of any obstacles encountered by the regional technology and innovation hub in the implementation of the regional technology and innovation hub and how the regional technology and innovation hub overcame those obstacles. An evaluation of the success of the projects of the regional technology and innovation 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 and innovation hub. The effectiveness of the regional technology and innovation hub in ensuring that, in the region of the regional technology and innovation 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 and innovation 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— $50,000,000 to award grants and cooperative agreements under subsection

(e)for the period of fiscal years 2022 through 2026; $2,000,000,000 to award grants and cooperative agreements under subsection

(f)for the period of fiscal years 2022 and 2023; and $4,800,000,000 to award grants and cooperative agreements under subsection

(f)for the period of fiscal years 2024 through 2026. The Secretary may use funds made available to carry out this section for administrative costs under this section. . Not later than 1 year after the date of the enactment of this section, subject to the availability of appropriations, the Secretary of Commerce shall commence a competition under subsection (d)(1) of section 28 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3723 ) as added by subsection (a). Not later than 1 year after the date of the enactment of this section, if the Secretary has received at least 1 application under subsection

(g)of section 28 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3723 ) 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 and innovation 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 and innovation hub designated pursuant to subparagraph

(A)of this paragraph.

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