Sec. 7. Regional technology hub program

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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 30; 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 8A(d)(2) of the National Science Foundation Act of 1950. The term labor organization has the meaning given such term in section 8A(a) of the National Science Foundation Act of 1950. The term large metropolitan community means a metropolitan statistical area with a population of more than 500,000.

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 mid-sized metropolitan community means a metropolitan statistical area with a population of more than 200,000 and not more than 500,000.

The term other technology and innovation sectors critical to national and economic security means other technology and innovation sectors that the Secretary determines are critical to national and economic security. 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 means a State or nonprofit organization focused primarily toward strengthening regional economic development through innovation by— accelerating the commercialization of research and technology; strengthening the competitive position of startups and industry through the development, commercial adoption, or deployment of technology; providing financial grants, loans, or direct investment to commercialize technology; pairing direct financial assistance under subparagraph

(C)with entrepreneurship, technological, or business assistance to maximize the likelihood of success for a venture and increased employment growth for the region or a sector; and returning any proceeds gained from direct financial assistance made using organization funds to the organization for future reinvestment, entrepreneurial assistance, and support of operations. The Secretary shall carry out a program— to designate eligible consortia as regional technology hubs that create the conditions, within a region, to facilitate activities that— enable United States leadership in a key technology focus area, complementing the Federal research and development investments under section 8A of the National Science Foundation Act of 1950, or other technology and innovation sectors critical to national and economic security; support regional economic development that diffuses innovation around the United States, enabling better broad-based growth and competitiveness in key technology focus areas; support domestic job creation; and otherwise support the purposes set forth under paragraph (2); to support regional technology hubs designated under subparagraph (A); and to conduct ongoing research, evaluation, analysis, and dissemination of best practices for regional development and competitiveness in technology and innovation. The purposes of the program carried out under paragraph

(1)are as follows: To designate eligible consortia as regional technology hubs throughout the United States that create the conditions within a region to facilitate activities that establish the global competitive edge of the United States in the 21st century across a range of technology and innovation sectors critical to national and economic security, including to encourage lower-cost but economically viable technology hubs in the United States to reduce technology offshoring. To encourage new and constructive collaboration among local, State, and Federal Government entities, academia, private industry, and labor organizations to mobilize investment, talent, entrepreneurship, and innovation for research, development, deployment, and manufacturing in a range of technology and innovation sectors critical to national and economic security. To assist regions across the United States, including small cities and rural areas— to develop and implement strategies through technology-based economic development practices, including infrastructure and workforce development, entrepreneurship and commercialization support, increasing access to capital, and building networks and systems to help bring ideas and businesses to market, and other relevant activities; to improve domestic supply chains in technology and innovation sectors; and to enable broad-based economic growth, job creation and competitiveness in the United States. 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; and workforce training organizations, including State and local workforce development boards as established under section 101 of the Workforce Investment and Opportunity Act ( 29 U.S.C. 3111 ); 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); for-profit entities with relevant expertise; venture development organizations; financial institutions and investment funds; primary and secondary educational institutions, including career and technical education schools; industry and industry associations; 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 paragraph

(6)or

(7)of section 8A(d) of the National Science Foundation Act of 1950; and a cooperative extension. The Secretary shall use a competitive process for the designation of regional technology hubs under subsection (b)(1)(A). During the 5-year period beginning on the date of the enactment of the Endless Frontier Act , the Secretary shall designate not fewer than 10 and not more than 15 eligible consortia as regional technology hubs under subsection (b)(1)(A), if the Secretary has received a sufficient number of qualified applications and appropriations to carry out this section. In conducting the competitive process under paragraph (1), the Secretary shall ensure geographic distribution in the designation of regional technology hubs by— aiming to designate regional technology hubs in as many regions of the United States as possible; and focusing on localities that have clear potential and relevant assets for developing a self-sustaining competitive position in a technology or innovation sector but have not yet become leading technology centers. Under subsection (b)(1)(A), the Secretary shall designate at least 3 eligible consortia that— serve small and rural communities; and have received a grant under section 29. The Secretary shall ensure that, of the eligible consortia designated as regional technology hubs under subsection (b)(1)(A), not fewer than 5 of such consortia include at least 1 State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation. The Secretary may not require an eligible consortium to receive a grant under section 29 in order to be designated as a regional technology hub under subsection (b)(1)(A) of this section. The Secretary shall carry out subparagraph

(B)of subsection (b)(1) through the award of grants or cooperative agreements to eligible consortia designated under subparagraph

(A)of such subsection. The term of a grant or cooperative agreement awarded under paragraph

(1)shall be for such period as the Secretary considers appropriate. The Secretary may renew a grant or cooperative agreement awarded to an eligible consortia under paragraph

(1)as the Secretary considers appropriate if the Secretary determines pursuant to subsection

(i)that the performance of the eligible consortia is satisfactory. Except in the case of an eligible consortium described in subparagraph (B), the total Federal financial assistance awarded in a given year to an eligible consortium in support of the eligible consortium's operation as a regional technology hub under this section shall not exceed amounts as follows: In first year of the grant or cooperative agreement, 90 percent of the total operating and maintenance costs of the regional technology hub in that fiscal year. In second year of the grant or cooperative agreement, 85 percent of the total operating and maintenance costs of the regional technology hub in that fiscal year. In third year of the grant or cooperative agreement, 80 percent of the total operating and maintenance costs of the regional technology hub in that fiscal year. In fourth year of the grant or cooperative agreement and each year thereafter, 75 percent of the total operating and maintenance costs of the regional technology hub in that fiscal year. The total Federal financial assistance awarded in a given year to an eligible consortium in support of the eligible consortium's operation as a regional technology hub under this section shall not exceed amounts as follows: In the case of an eligible consortium 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 eligible consortium 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. The Secretary shall establish a minimum threshold of rural representation for purposes of clause (i)(I). 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. The recipient of a grant or cooperative agreement awarded under paragraph

(1)shall use the grant or cooperative agreement for multiple activities determined appropriate by the Secretary, including— the permissible activities set forth under section 27(c)(2); and activities in support of key technology focus areas and other technology and innovation sectors critical to national and economic security— to develop regional strategies for infrastructure and site development in support of the regional technology hub’s plans and programs; to support business activity that makes domestic supply chain more resilient and encourages the growth of coordinated multiparty systems in the United States and creation and growth of business entities; to attract new private, public, and philanthropic investment in the region for developing innovation capacity, including establishing regional venture and loan funds, including through venture development organizations, for financing technology commercialization, new business formation, and business expansions; to further the development, deployment, and domestic manufacturing of technologies in the key technology focus areas and other technology and innovation sectors critical to national and economic security, including innovations derived from research conducted at institutions of higher education or other research entities, including research conducted by federally funded research and development centers, National Laboratories, Federal laboratories, Manufacturing USA institutes, university technology centers established under paragraph

(6)of section 8A(d) of the National Science Foundation Act of 1950, the program established under paragraph

(7)of such section 8A(d), test beds established and operated under paragraph

(8)of such section 8A(d), or other Federal research entities, through activities that may include— proof-of-concept development and prototyping; technology transfer and commercialization, including patenting and licensing; public-private partnerships in order to reduce the cost, time, and risk of commercializing new technologies; creating and funding competitions to allow entrepreneurial ideas to illustrate their commercialization and domestic job creation potential; facilitating relationships between local and national business leaders and potential entrepreneurs to encourage successful commercialization; creating and funding not-for-profit entities that could enable researchers at institutions of higher education and other research entities to further develop new technology, through patient funding, advice, staff support, or other means; providing facilities for start-up companies where technology maturation could occur; and commercialization, deployment, and adoption of the technologies that lead to domestic manufacturing of such technologies; to develop the region’s skilled workforce through the training and retraining of workers, partnerships with labor organizations, and skills-based education, including the alignment of career technical training and educational programs in the region’s elementary and secondary schools and institutions of higher education; and to carry out such other activities as the Secretary considers appropriate to improve United States competitiveness and regional economic development to support a key technology focus area and that would further the purposes of this section. Any grant or cooperative agreement awarded under paragraph

(1)to support the construction of physical 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. An eligible consortium seeking designation as a regional technology hub under subparagraph

(A)of subsection (b)(1) and support under subparagraph

(B)of such subsection 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

(f)for designation and support under subsection (b)(1), 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 paragraph

(6)of section 8A(d) of the National Science Foundation Act of 1950, the program established under paragraph

(7)of such section 8A(d), test beds established and operated under paragraph

(8)of such section 8A(d), 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 the proposed regional technology hub, including the development of necessary infrastructure improvements and site preparation. 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 that the region served by the eligible consortium will be able to become a self-sustaining globally leading technology hub once Federal support ends. The Secretary may use a comprehensive regional technology strategy supported by a grant under section 29 as the basis for making findings under paragraph

(1)of this subsection. The Secretary shall coordinate the activities of regional technology hubs designated under this title, the Hollings Manufacturing Extension Partnership, and the Manufacturing USA Program with each other to the degree that doing so does not diminish the effectiveness of the ongoing activities of a manufacturing extension center or a Manufacturing USA institute. Coordination by the Secretary under subparagraph

(A)may include the following: The alignment of activities of the Hollings Manufacturing Extension Partnership with the activities of regional technology hubs designated under this subsection, if applicable. The alignment of activities of the Manufacturing USA Program and the Manufacturing USA institutes with the activities of regional technology hubs designated under this subsection, if applicable. The Secretary shall, in coordination with the Secretary of Energy, coordinate the activities and selection of regional technology hubs designated under subsection (b)(1)(A) with activities at the Department of Energy and the National Laboratories that were in effect on the day before the date of the enactment of the Endless Frontier Act , to the degree that doing so does not diminish the effectiveness of the ongoing activities or mission of the Department of Energy and the National Laboratories. In selecting and assisting regional technology hubs designated under subsection (b)(1)(A), the Secretary— shall collaborate, to the extent possible, with the interagency advisory committee established under subparagraph (B); shall collaborate with Federal departments and agencies whose missions contribute to the goals of the regional technology hub; and may accept funds from other Federal agencies to support grants and activities under this title. The Secretary shall establish an interagency coordinating council to coordinate with the Secretary in the designation of regional technology hubs under subparagraph

(A)of subsection (b)(1) and in the selection of eligible consortia to receive support under subparagraph

(B)of such subsection. The interagency coordinating council established under clause

(i)shall be composed of the following (or their designees): The Secretary of Commerce. The Secretary of Education. The Administrator of the Small Business Administration. The Deputy Secretary for Housing and Urban Development. The Director of the Community Development Financial Institution Fund. The Director of the National Science Foundation. The Director of the National Institute of Standards and Technology. The Director of the National Economic Council. The Assistant Secretary of Commerce for Economic Development. The Assistant Secretary for Employment and Training. The Director of the Office of Science and Technology Policy. The Under Secretary of Defense for Research and Engineering. The Under Secretary of Defense for Acquisition and Sustainment. The Under Secretary for Science of the Department of Energy. The Director of the National Institutes of Health. The Under Secretary for Science and Technology of the Department of Homeland Security. The Administrator of the National Aeronautics and Space Administration. The Director of the Office of Management and Budget. Such other Federal officials as the Secretary of Commerce considers appropriate. The Secretary shall be the chairperson of the interagency coordinating council established under clause (i). The Director of the Office of Science and Technology Policy and the Director of the Office of Management and Budget shall coordinate with the each head of a Federal agency that conducts research to set goals for at least doubling the amount of federally funded research awarded, as in effect on the day before the date of the enactment of the Endless Frontier Act , to regions served by regional technology hubs designated under subsection (b)(1)(A). Not less frequently than once each year, the Director of the Office of Science and Technology Policy and the Director of the Office of Management and Budget shall submit to the appropriate committees of Congress an annual report on progress made relating to the goals set under subparagraph (A). For each grant and cooperative agreement awarded under subsection (e)(1) for a regional technology hub, the Secretary shall— develop metrics to assess the effectiveness of the activities funded in making progress toward the purposes set forth under subsection (b)(2), which may include— research supported in a key technology focus area; commercialization activities undertaken by each regional technology hub that is designated and supported under subsection (b)(1); educational and workforce development improvements undertaken by each regional technology hub that is designated and supported under subsection (b)(1); sources of matching funds for each regional technology hub that is designated and supported under subsection (b)(1); and domestic job creation, patent awards, and business formation and expansion relating to the activities of the regional technology hub that is designated and supported 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 (e)(1) 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 (e)(1) for support of a regional technology hub, as a condition of receipt of such grant or cooperative agreement, submit to the Secretary, not later than 90 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 eligible consortium using the assistance described in subparagraph (A), including the following: A description of each project the eligible consortium completed using such assistance. 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 of the eligible consortium 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 eligible consortium in the implementation of the regional technology hub and how the eligible entity overcame those obstacles. An evaluation of the success of the projects supported by the eligible consortium to implement 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 comprehensive strategy for the regional technology hub if the regional technology hub has such a strategy. The effectiveness of the eligible consortium in ensuring that, in the region of the eligible consortium's 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 an eligible consortium 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 to carry out this section $9,425,000,000 for the period of fiscal years 2022 through 2026. . Not later than 180 days after the date of the enactment of this Act, 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 Act, if the Secretary has received at least 1 application under subsection

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

(A)of this paragraph.

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