Smart Manufacturing Leadership Act

I 116TH CONGRESS 1ST SESSION H. R. 1633 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 HOUSE OF REPRESENTATIVES MARCH 7, 2019 Mr. WELCH (for himself and Mr. REED) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee con- cerned 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 2 •HR 1633 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Smart Manufacturing 2 Leadership Act’’. 3 SEC. 2. FINDINGS. 4 Congress finds that— 5 (1) the industrial sector— 6 (A) represents approximately 20 percent of 7 the economy of the United States; 8 (B) provides approximately 13 percent of 9 employment in the United States; and 10 (C) accounts for more than 11 30,000,000,000,000,000 Btus of energy, a 12 quantity that is equal to almost 1⁄3 of the en- 13 ergy consumption of the United States; 14 (2) smart manufacturing is set to transform the 15 manufacturing sector and the use by the manufac- 16 turing sector of energy, water, raw materials, and 17 labor over the 10 years following the date of enact- 18 ment of this Act; 19 (3) the transformation described in paragraph 20 (2) will result in savings in electricity, natural gas, 21 transportation fuels, chemical feedstocks, and many 22 other fuels; 23 (4) the interconnection of the many components 24 of manufacturing within a manufacturing plant with 25 other business functions within a company and 26 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 3 •HR 1633 IH across companies within a supply chain will enable 1 new production efficiencies; 2 (5) the improvements in automation described 3 in paragraph (4) are estimated to produce between 4 $5,000,000,000 and $25,000,000,000 in energy sav- 5 ings per year across the manufacturing sector for 6 electricity alone by 2035; 7 (6) smart manufacturing technologies are esti- 8 mated to add between $10,000,000,000,000 and 9 $15,000,000,000,000 to the global gross domestic 10 product over 20 years following the date of enact- 11 ment of this Act; 12 (7) market barriers exist to the widespread 13 adoption of smart manufacturing practices by all 14 sizes of firms and to the investment in smart manu- 15 facturing technologies, including lack of— 16 (A) common communication protocols be- 17 tween smart manufacturing devices, which pre- 18 vents interoperability, reduces system effi- 19 ciencies, and stifles innovation; 20 (B) common standards for storing and 21 sharing information relating to energy con- 22 sumption and energy savings; 23 (C) an open-access smart manufacturing 24 platform that enables the networking of busi- 25 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 4 •HR 1633 IH ness and automation systems of multiple ven- 1 dors; and 2 (D) common cybersecurity protocols and 3 standards; 4 (8) addressing the barriers described in para- 5 graph (7) is in the interest of the United States; 6 (9) in response to the barriers described in 7 paragraph (7), the Secretary of Energy is working 8 with the private sector to reduce the market barriers 9 through the development of voluntary protocols and 10 standards; 11 (10) there exist many technologies of which 12 many domestic manufacturers are unaware that 13 could— 14 (A) improve the competitiveness of the do- 15 mestic manufacturers; and 16 (B) reduce the environmental impacts of 17 the domestic manufacturers; 18 (11) Federal agency action can facilitate great- 19 er economic growth through outreach and engage- 20 ment in the smart manufacturing technology area; 21 and 22 (12) the United States would benefit from a 23 concerted and focused effort to advance the adoption 24 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 5 •HR 1633 IH of smart manufacturing throughout the manufac- 1 turing sector of the United States. 2 SEC. 3. DEFINITIONS. 3 In this Act: 4 (1) ENERGY MANAGEMENT SYSTEM.—The term 5 ‘‘energy management system’’ means a business 6 management process based on standards of the 7 American National Standards Institute that enables 8 an organization to follow a systematic approach in 9 achieving continual improvement of energy perform- 10 ance, including energy efficiency, security, use, and 11 consumption. 12 (2) INDUSTRIAL ASSESSMENT CENTER.—The 13 term ‘‘industrial assessment center’’ means a center 14 located at an institution of higher education that— 15 (A) receives funding from the Department 16 of Energy; 17 (B) provides an in-depth assessment of 18 small- and medium-sized manufacturer plant 19 sites to evaluate the facilities, services, and 20 manufacturing operations of the plant site; and 21 (C) identifies opportunities for potential 22 savings for small- and medium-sized manufac- 23 turer plant sites from energy efficiency improve- 24 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 6 •HR 1633 IH ments, waste minimization, pollution preven- 1 tion, and productivity improvement. 2 (3) INFORMATION AND COMMUNICATION TECH- 3 NOLOGY.—The term ‘‘information and communica- 4 tion technology’’ means any electronic system or 5 equipment (including the content contained in the 6 system or equipment) used to create, convert, com- 7 municate, or duplicate data or information, including 8 computer hardware, firmware, software, communica- 9 tion protocols, networks, and data interfaces. 10 (4) INSTITUTION OF HIGHER EDUCATION.—The 11 term ‘‘institution of higher education’’ has the 12 meaning given the term in section 101(a) of the 13 Higher Education Act of 1965 (20 U.S.C. 1001(a)). 14 (5) NATIONAL LABORATORY.—The term ‘‘Na- 15 tional Laboratory’’ has the meaning given the term 16 in section 2 of the Energy Policy Act of 2005 (42 17 U.S.C. 15801). 18 (6) NORTH AMERICAN INDUSTRY CLASSIFICA- 19 TION SYSTEM.—The term ‘‘North American Indus- 20 try Classification System’’ means the standard used 21 by Federal statistical agencies in classifying business 22 establishments for the purpose of collecting, ana- 23 lyzing, and publishing statistical data relating to the 24 business economy of the United States. 25 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 7 •HR 1633 IH (7) SECRETARY.—The term ‘‘Secretary’’ means 1 the Secretary of Energy. 2 (8) SMALL AND MEDIUM MANUFACTURERS.— 3 The term ‘‘small and medium manufacturers’’ 4 means manufacturing firms— 5 (A) classified in the North American In- 6 dustry Classification System as any of sectors 7 31 through 33; 8 (B) with gross annual sales of less than 9 $100,000,000; 10 (C) with fewer than 500 employees at the 11 plant site; and 12 (D) with annual energy bills totaling more 13 than $100,000 and less than $2,500,000. 14 (9) SMART MANUFACTURING.—The term 15 ‘‘smart manufacturing’’ means advanced tech- 16 nologies in information, automation, monitoring, 17 computation, sensing, modeling, and networking 18 that— 19 (A) digitally— 20 (i) simulate manufacturing production 21 lines; 22 (ii) operate computer-controlled man- 23 ufacturing equipment; 24 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 8 •HR 1633 IH (iii) monitor and communicate pro- 1 duction line status; and 2 (iv) manage and optimize energy pro- 3 ductivity and cost throughout production; 4 (B) model, simulate, and optimize the en- 5 ergy efficiency of a factory building; 6 (C) monitor and optimize building energy 7 performance; 8 (D) model, simulate, and optimize the de- 9 sign of energy efficient and sustainable prod- 10 ucts, including the use of digital prototyping 11 and additive manufacturing to enhance product 12 design; 13 (E) connect manufactured products in net- 14 works to monitor and optimize the performance 15 of the networks, including automated network 16 operations; and 17 (F) digitally connect the supply chain net- 18 work. 19 SEC. 4. DEVELOPMENT OF NATIONAL SMART MANUFAC- 20 TURING PLAN. 21 (a) IN GENERAL.—Not later than 3 years after the 22 date of enactment of this Act, the Secretary, in consulta- 23 tion with the National Academies, shall develop and com- 24 plete a national plan for smart manufacturing technology 25 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 9 •HR 1633 IH development and deployment to improve the productivity 1 and energy efficiency of the manufacturing sector of the 2 United States. 3 (b) CONTENT.— 4 (1) IN GENERAL.—The plan developed under 5 subsection (a) shall identify areas in which agency 6 actions by the Secretary and other heads of relevant 7 Federal agencies would— 8 (A) facilitate quicker development, deploy- 9 ment, and adoption of smart manufacturing 10 technologies and processes; 11 (B) result in greater energy efficiency and 12 lower environmental impacts for all American 13 manufacturers; and 14 (C) enhance competitiveness and strength- 15 en the manufacturing sectors of the United 16 States. 17 (2) INCLUSIONS.—Agency actions identified 18 under paragraph (1) shall include— 19 (A) an assessment of previous and current 20 actions of the Department of Energy relating to 21 smart manufacturing; 22 (B) the establishment of voluntary inter- 23 connection protocols and performance stand- 24 ards; 25 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 10 •HR 1633 IH (C) use of smart manufacturing to improve 1 energy efficiency and reduce emissions in sup- 2 ply chains across multiple companies; 3 (D) actions to increase cybersecurity in 4 smart manufacturing infrastructure; 5 (E) deployment of existing research re- 6 sults; and 7 (F) the leveraging of existing high-per- 8 formance computing infrastructure. 9 (c) BIENNIAL REVISIONS.—Not later than 2 years 10 after the date on which the Secretary completes the plan 11 under subsection (a), and not less frequently than once 12 every 2 years thereafter, the Secretary shall revise the 13 plan to account for advancements in information and com- 14 munication technology and manufacturing needs. 15 (d) REPORT.—Annually until the completion of the 16 plan under subsection (a), the Secretary shall submit to 17 Congress a report on the progress made in developing the 18 plan. 19 SEC. 5. LEVERAGING EXISTING AGENCY PROGRAMS TO AS- 20 SIST SMALL AND MEDIUM MANUFACTURERS. 21 (a) FINDINGS.—Congress finds that— 22 (1) the Department of Energy has existing 23 technical assistance programs that facilitate greater 24 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 11 •HR 1633 IH economic growth through outreach to and engage- 1 ment with small and medium manufacturers; 2 (2) those technical assistance programs rep- 3 resent an important conduit for increasing the 4 awareness of and providing education to small and 5 medium manufacturers regarding the opportunities 6 for implementing smart manufacturing; and 7 (3) those technical assistance programs help fa- 8 cilitate the implementation of best practices. 9 (b) EXPANSION OF TECHNICAL ASSISTANCE PRO- 10 GRAMS.—The Secretary shall expand the scope of tech- 11 nologies covered by the Industrial Assessment Centers of 12 the Department of Energy— 13 (1) to include smart manufacturing technologies 14 and practices; and 15 (2) to equip the directors of the Industrial As- 16 sessment Centers with the training and tools nec- 17 essary to provide technical assistance in smart man- 18 ufacturing technologies and practices, including en- 19 ergy management systems, to manufacturers. 20 SEC. 6. LEVERAGING SMART MANUFACTURING INFRA- 21 STRUCTURE AT NATIONAL LABORATORIES. 22 (a) STUDY.— 23 (1) IN GENERAL.—Not later than 180 days 24 after the date of enactment of this Act, the Sec- 25 VerDate Sep 11 2014 22:17 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1633.IH H1633 pbinns on DSK79D2C42PROD with BILLS 12 •HR 1633 IH retary shall conduct a study on how the Department 1 of Energy can increase access to existing high-per- 2 formance computing resources in the National Lab- 3 oratories, particularly for small and medium manu- 4 facturers. 5 (2) INCLUSIONS.—In identifying ways to in- 6 crease access to National Laboratories under para- 7 graph (1), the Secretary shall— 8 (A) focus on increasing access to the com- 9 puting facilities of the National Laboratories; 10 and 11 (B) ensure that— 12 (i) the information from the manufac- 13 turer is protected; and 14 (ii) the security of the National Lab- 15 oratory facility is maintained. 16 (3) REPORT.—Not later than 1 year after the 17 date of enactment of this Act, the Secretary shall 18 submit to Congress a report describing the results of 19 the study. 20 (b) ACTIONS FOR INCREASED ACCESS.—The Sec- 21 retary shall facilitate access to the National Laboratories 22 studied under subsection (a) for small and medium manu- 23 facturers so that small and medium manufacturers can 24 fully use the high-performance computing resources of the 25 VerDate Sep 11 2014 22:17 Mar 26, 2 [Text truncated for display. 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