Smart Manufacturing Leadership Act

II Calendar No. 183 116TH CONGRESS 1ST SESSION S. 715 [Report No. 116–80] To improve the productivity and energy efficiency of the manufacturing sector by directing the Secretary of Energy, in coordination with the National Academies and other appropriate Federal agencies, to develop a national smart manufacturing plan and to provide assistance to small- and me- dium-sized manufacturers in implementing smart manufacturing pro- grams, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 7, 2019 Mrs. SHAHEEN (for herself, Mr. ALEXANDER, and Ms. HASSAN) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources SEPTEMBER 10, 2019 Reported by Ms. MURKOWSKI, without amendment A BILL To improve the productivity and energy efficiency of the manufacturing sector by directing the Secretary of En- ergy, in coordination with the National Academies and other appropriate Federal agencies, to develop a national smart manufacturing plan and to provide assistance to small- and medium-sized manufacturers in implementing smart manufacturing programs, and for other purposes. VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 715 RS Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Smart Manufacturing 4 Leadership Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds that— 7 (1) the industrial sector— 8 (A) represents approximately 20 percent of 9 the economy of the United States; 10 (B) provides approximately 13 percent of 11 employment in the United States; and 12 (C) accounts for more than 13 30,000,000,000,000,000 Btus of energy, a 14 quantity that is equal to almost 1⁄3 of the en- 15 ergy consumption of the United States; 16 (2) smart manufacturing is set to transform the 17 manufacturing sector and the use by the manufac- 18 turing sector of energy, water, raw materials, and 19 labor over the 10 years following the date of enact- 20 ment of this Act; 21 (3) the transformation described in paragraph 22 (2) will result in savings in electricity, natural gas, 23 transportation fuels, chemical feedstocks, and many 24 other fuels; 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 715 RS (4) the interconnection of the many components 1 of manufacturing within a manufacturing plant with 2 other business functions within a company and 3 across companies within a supply chain will enable 4 new production efficiencies; 5 (5) the improvements in automation described 6 in paragraph (4) are estimated to produce between 7 $5,000,000,000 and $25,000,000,000 in energy sav- 8 ings per year across the manufacturing sector for 9 electricity alone by 2035; 10 (6) smart manufacturing technologies are esti- 11 mated to add between $10,000,000,000,000 and 12 $15,000,000,000,000 to the global gross domestic 13 product over 20 years following the date of enact- 14 ment of this Act; 15 (7) market barriers exist to the widespread 16 adoption of smart manufacturing practices by all 17 sizes of firms and to the investment in smart manu- 18 facturing technologies, including lack of— 19 (A) common communication protocols be- 20 tween smart manufacturing devices, which pre- 21 vents interoperability, reduces system effi- 22 ciencies, and stifles innovation; 23 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 715 RS (B) common standards for storing and 1 sharing information relating to energy con- 2 sumption and energy savings; 3 (C) an open-access smart manufacturing 4 platform that enables the networking of busi- 5 ness and automation systems of multiple ven- 6 dors; and 7 (D) common cybersecurity protocols and 8 standards; 9 (8) addressing the barriers described in para- 10 graph (7) is in the interest of the United States; 11 (9) in response to the barriers described in 12 paragraph (7), the Secretary of Energy is working 13 with the private sector to reduce the market barriers 14 through the development of voluntary protocols and 15 standards; 16 (10) there exist many technologies of which 17 many domestic manufacturers are unaware that 18 could— 19 (A) improve the competitiveness of the do- 20 mestic manufacturers; and 21 (B) reduce the environmental impacts of 22 the domestic manufacturers; 23 (11) Federal agency action can facilitate great- 24 er economic growth through outreach and engage- 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 715 RS ment in the smart manufacturing technology area; 1 and 2 (12) the United States would benefit from a 3 concerted and focused effort to advance the adoption 4 of smart manufacturing throughout the manufac- 5 turing sector of the United States. 6 SEC. 3. DEFINITIONS. 7 In this Act: 8 (1) ENERGY MANAGEMENT SYSTEM.—The term 9 ‘‘energy management system’’ means a business 10 management process based on standards of the 11 American National Standards Institute that enables 12 an organization to follow a systematic approach in 13 achieving continual improvement of energy perform- 14 ance, including energy efficiency, security, use, and 15 consumption. 16 (2) INDUSTRIAL ASSESSMENT CENTER.—The 17 term ‘‘industrial assessment center’’ means a center 18 located at an institution of higher education that— 19 (A) receives funding from the Department 20 of Energy; 21 (B) provides an in-depth assessment of 22 small- and medium-size manufacturer plant 23 sites to evaluate the facilities, services, and 24 manufacturing operations of the plant site; and 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 715 RS (C) identifies opportunities for potential 1 savings for small- and medium-size manufac- 2 turer plant sites from energy efficiency improve- 3 ments, waste minimization, pollution preven- 4 tion, and productivity improvement. 5 (3) INFORMATION AND COMMUNICATION TECH- 6 NOLOGY.—The term ‘‘information and communica- 7 tion technology’’ means any electronic system or 8 equipment (including the content contained in the 9 system or equipment) used to create, convert, com- 10 municate, or duplicate data or information, including 11 computer hardware, firmware, software, communica- 12 tion protocols, networks, and data interfaces. 13 (4) INSTITUTION OF HIGHER EDUCATION.—The 14 term ‘‘institution of higher education’’ has the 15 meaning given the term in section 101(a) of the 16 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 17 (5) NATIONAL LABORATORY.—The term ‘‘Na- 18 tional Laboratory’’ has the meaning given the term 19 in section 2 of the Energy Policy Act of 2005 (42 20 U.S.C. 15801). 21 (6) NORTH AMERICAN INDUSTRY CLASSIFICA- 22 TION SYSTEM.—The term ‘‘North American Indus- 23 try Classification System’’ means the standard used 24 by Federal statistical agencies in classifying business 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 715 RS establishments for the purpose of collecting, ana- 1 lyzing, and publishing statistical data relating to the 2 business economy of the United States. 3 (7) SECRETARY.—The term ‘‘Secretary’’ means 4 the Secretary of Energy. 5 (8) SMALL AND MEDIUM MANUFACTURERS.— 6 The term ‘‘small and medium manufacturers’’ 7 means manufacturing firms— 8 (A) classified in the North American In- 9 dustry Classification System as any of sectors 10 31 through 33; 11 (B) with gross annual sales of less than 12 $100,000,000; 13 (C) with fewer than 500 employees at the 14 plant site; and 15 (D) with annual energy bills totaling more 16 than $100,000 and less than $2,500,000. 17 (9) SMART MANUFACTURING.—The term 18 ‘‘smart manufacturing’’ means advanced tech- 19 nologies in information, automation, monitoring, 20 computation, sensing, modeling, and networking 21 that— 22 (A) digitally— 23 (i) simulate manufacturing production 24 lines; 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 715 RS (ii) operate computer-controlled man- 1 ufacturing equipment; 2 (iii) monitor and communicate pro- 3 duction line status; and 4 (iv) manage and optimize energy pro- 5 ductivity and cost throughout production; 6 (B) model, simulate, and optimize the en- 7 ergy efficiency of a factory building; 8 (C) monitor and optimize building energy 9 performance; 10 (D) model, simulate, and optimize the de- 11 sign of energy efficient and sustainable prod- 12 ucts, including the use of digital prototyping 13 and additive manufacturing to enhance product 14 design; 15 (E) connect manufactured products in net- 16 works to monitor and optimize the performance 17 of the networks, including automated network 18 operations; and 19 (F) digitally connect the supply chain net- 20 work. 21 SEC. 4. DEVELOPMENT OF NATIONAL SMART MANUFAC- 22 TURING PLAN. 23 (a) IN GENERAL.—Not later than 3 years after the 24 date of enactment of this Act, the Secretary, in consulta- 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 715 RS tion with the National Academies, shall develop and com- 1 plete a national plan for smart manufacturing technology 2 development and deployment to improve the productivity 3 and energy efficiency of the manufacturing sector of the 4 United States. 5 (b) CONTENT.— 6 (1) IN GENERAL.—The plan developed under 7 subsection (a) shall identify areas in which agency 8 actions by the Secretary and other heads of relevant 9 Federal agencies would— 10 (A) facilitate quicker development, deploy- 11 ment, and adoption of smart manufacturing 12 technologies and processes; 13 (B) result in greater energy efficiency and 14 lower environmental impacts for all American 15 manufacturers; and 16 (C) enhance competitiveness and strength- 17 en the manufacturing sectors of the United 18 States. 19 (2) INCLUSIONS.—Agency actions identified 20 under paragraph (1) shall include— 21 (A) an assessment of previous and current 22 actions of the Department of Energy relating to 23 smart manufacturing; 24 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 715 RS (B) the establishment of voluntary inter- 1 connection protocols and performance stand- 2 ards; 3 (C) the use of smart manufacturing to im- 4 prove energy efficiency and reduce emissions in 5 supply chains across multiple companies; 6 (D) actions to increase cybersecurity in 7 smart manufacturing infrastructure; 8 (E) deployment of existing research re- 9 sults; and 10 (F) the leveraging of existing high-per- 11 formance computing infrastructure. 12 (c) BIENNIAL REVISIONS.—Not later than 2 years 13 after the date on which the Secretary completes the plan 14 under subsection (a), and not less frequently than once 15 every 2 years thereafter, the Secretary shall revise the 16 plan to account for advancements in information and com- 17 munication technology and manufacturing needs. 18 (d) REPORT.—Annually until the completion of the 19 plan under subsection (a), the Secretary shall submit to 20 Congress a report on the progress made in developing the 21 plan. 22 (e) FUNDING.—The Secretary shall use unobligated 23 funds of the Department of Energy to carry out this sec- 24 tion. 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 715 RS SEC. 5. LEVERAGING EXISTING AGENCY PROGRAMS TO AS- 1 SIST SMALL AND MEDIUM MANUFACTURERS. 2 (a) FINDINGS.—Congress finds that— 3 (1) the Department of Energy has existing 4 technical assistance programs that facilitate greater 5 economic growth through outreach to and engage- 6 ment with small and medium manufacturers; 7 (2) those technical assistance programs rep- 8 resent an important conduit for increasing the 9 awareness of and providing education to small and 10 medium manufacturers regarding the opportunities 11 for implementing smart manufacturing; and 12 (3) those technical assistance programs help fa- 13 cilitate the implementation of best practices. 14 (b) EXPANSION OF TECHNICAL ASSISTANCE PRO- 15 GRAMS.—The Secretary shall expand the scope of tech- 16 nologies covered by the Industrial Assessment Centers of 17 the Department of Energy— 18 (1) to include smart manufacturing technologies 19 and practices; and 20 (2) to equip the directors of the Industrial As- 21 sessment Centers with the training and tools nec- 22 essary to provide technical assistance in smart man- 23 ufacturing technologies and practices, including en- 24 ergy management systems, to manufacturers. 25 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 715 RS (c) FUNDING.—The Secretary shall use unobligated 1 funds of the Department of Energy to carry out this sec- 2 tion. 3 SEC. 6. LEVERAGING SMART MANUFACTURING INFRA- 4 STRUCTURE AT NATIONAL LABORATORIES. 5 (a) STUDY.— 6 (1) IN GENERAL.—Not later than 180 days 7 after the date of enactment of this Act, the Sec- 8 retary shall conduct a study on how the Department 9 of Energy can increase access to existing high-per- 10 formance computing resources in the National Lab- 11 oratories, particularly for small and medium manu- 12 facturers. 13 (2) INCLUSIONS.—In identifying ways to in- 14 crease access to National Laboratories under para- 15 graph (1), the Secretary shall— 16 (A) focus on increasing access to the com- 17 puting facilities of the National Laboratories; 18 and 19 (B) ensure that— 20 (i) the information from the manufac- 21 turer is protected; and 22 (ii) the security of the National Lab- 23 oratory facility is maintained. 24 VerDate Sep 11 2014 22:07 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S715.RS S715 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 715 RS (3) REPORT.—Not later than 1 year after the 1 date of enactment of this Act, the Secretary shall 2 submit to Congress a report describing the results of 3 the study. 4 (b) ACTIONS FOR INCREASED A [Text truncated for display. 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