“Taken from Senate Report 103-309
FY 1995 Senate Report…”

TITLE II - DEPARTMENT OF COMMERCE

A total of $4,240,756,000 in appropriations is recommended for the Department of Commerce, $33,046,000 more than the budget request and $210,496,000 above the House allowance, both of which assumed the creation and application of NOAA fisheries fees.

The Committee recommendation gives priority to: (1) investing in manufacturing technology and the research programs of the National Institute of Standards and Technology; (2) rebuilding the National Oceanic and Atmospheric Administration's infrastructure and according priority to NOAA ocean, coastal, and fisheries programs; (3) modernizing NOAA's National Weather Service to protect public safety, including procurement and deployment of Nexrad torn ado-detecting doppler weather radars; (4) bolstering export promotion programs of the International Trade Administration; and (5) enhancing economic development programs and defense economic adjustment programs of the Economic Development Administration.

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

In total, the Committee recommends $878,686,000 for the National Institute of Standards and Technology. This level is $358,476,000 above the level appropriated in fiscal year 1994, $38,620,000 above the House allowance, and $56,280,000 below the President's budget request.

The National Institute of Standards and Technology [NIST] is the Federal research and development agency explicitly charged with conducting research in support of and technical assistance to improve the competitiveness of U.S. manufacturing industries. As stated in the 1988 Omnibus Trade and Competitiveness Act, NIST is charged with: (1) enhancing competitiveness by helping develop precompetitive generic technologies and helping industry adopt Government-developed technological advances; and (2) providing measurements, calibrations, and quality assurance techniques which support U.S. commerce, technological progress, improved product reliability, manufacturing processes, and public safety.

Because NIST’s mission is specifically tailored to assisting and revitalizing American industry and creating private sector jobs, the agency has become a centerpiece in the administration's technology policy.

SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

The Committee recommends an appropriation of $260,000,000 for the National Institute of Standards and Technology [NIST] scientific and technical research and services. This level is $56,006,000 below the budget request and $19,420,000 below the House allowance. The recommendation is $34,000,000 above the level provided in fiscal year 1994.

This appropriation account supports NIST's intramural laboratory research and development programs. The Committee recommendation fully funds the agency's adjustments to base and provides funding for internal research initiatives as follows:

NIST INTRAMURAL RESEARCH

(Budget authority in thousands of dollars)

The Committee recommendation includes $6,300,000, an increase of $5,000,000 above fiscal year 1994, for the International Trade and Standards Program. Through this program, NIST, in coordination with the United States and Foreign Commercial Service, is to ensure that U.S. standards are used for procurement of products overseas. This program, which is run as a cooperative effort with U.S. businesses, is intended to provide American exporters with a level playing field when competing with European and Asian manufacturers. The first such program is operating in the Persian Gulf, and, since 1989, 400 draft Saudi Arabian standards have been reviewed by the United States Government and the private sector. Due to this program, no standard incompatible with American products has been promulgated.

The Committee recommendation also includes: (1) $13,600,000 for environmental technologies, an increase of $9,900,000 above fiscal Year 1994; (2) $9,300,000 for biotechnology research, an increase of $4,300,000 above fiscal year 1994; and (3) $7,500,000 for math and science postdoctoral fellowships, an increase of $1,000,000 above fiscal year 1994. The Committee has not provided requested increases for high-performance computing initiatives. This program received over a 100-percent increase in fiscal year 1994, and the Committee will review the progress of this new initiative to determine if additional increases are warranted. Finally, the Committee concurs with the House report language regarding the need to continue support for the NIST Office of Weights and Measures.

INDUSTRIAL TECHNOLOGY SERVICES

The Committee recommends $554,000,000 for NIST's "Industrial technology services" appropriation account. This funding level is $35,040,000 above the budget request and $58,040,000 above the House allowance. The Committee has not recommended bill language included in the House bill and proposed in an administration budget amendment which would delay most of the obligations for programs funded by this appropriation until May 1, 1995. The Committee has recommended bill language that would enable NIST to continue support for existing manufacturing technology centers. Similar language was provided for in Senate bill 4 as passed the Senate.

This appropriation account provides for NIST's outreach and grant programs which are intended to help American industry to improve its performance in manufacturing and to develop and commercialize advanced technologies. Three principal programs are supported:

Advanced Technology Program -The Advanced Technology Program [ATP] is a shared-risk, industry-led program providing financing to U.S. businesses and joint R&D ventures to assist them in becoming more competitive by accelerating the development of pre-competitive generic technologies. The program's goal is to bridge the gap between more fundamental R&D and commercial applications. The types of technologies that have been supported by the ATP Program include the following: machine tools, medical imaging technology, lasers and electro-optics, ceramics, robotics, superconductors, high-performance computers, and plastic recycling. The Committee recommended funding level of $441,000,000 should enable NIST to run three competitions, providing at least an additional 200 ATP awards.

Manufacturing extension partnership.- The manufacturing extension partnership combines the Manufacturing Technology Center Program and the State Technology Extension Program [STEP], and provides for a new, smaller type of MTC, an MOC, or manufacturing outreach center. The MTC and MOC programs provide technical assistance to small- and medium-sized manufacturers. They accelerate adoption of advanced technologies and are tailored to the regions in which they are located. STEP provides grants to States to provide technical assistance to plan and implement State extension services to assist manufacturers. In fiscal year 1995, the budget adds an additional component called LINKS which will use communications and data systems to tie together Federal, State, and local agencies, the private sector and manufacturing outreach centers. The Committee recommended funding level will enable NIST to: (1) add six new manufacturing technology centers; (2) create at least an additional 35 new smaller manufacturing outreach centers; and (3) provide additional STEP grants. The recommendation also allows NIST to proceed with the LINKS Program.

The Committee is concerned about the needs of rural areas and other areas serviced by small dispersed manufacturers. The Committee encourages NIST to give careful consideration to applications from rural and smaller States which may not be able to support a large-scale center but, which nevertheless, have or could develop a program important to their economies. The Committee also encourages NIST to consider the use of innovative extension mechanisms, such as mobile technology transfer vans, and to encourage broad-based participation in efforts from these areas, including existing extension programs, small business development centers, community development organizations, State universities and land grant colleges, appropriate nonprofit organizations, and multistate or regional consortia of the above. The objective should be to support innovative use of the expertise which does exist in these areas, regardless of the institutions where such expertise resides.

Quality outreach -The Quality Outreach Program promotes industrial technology and innovation, productivity, and industrial quality. The best known component is the Baldrige Award named after former Secretary of Commerce Malcolm Baldrige. This award is provided to recognize excellence in manufacturing.

For fiscal year 1995, the budget requests an increase of $4,095,000 to provide new awards to recognize excellence in health care and education. The House allowance provided a $1,000,000 increase for this purpose. The Committee recommendation keeps the Outreach/Award Program to its current level of $2,800,000. The Committee believes that: (1) recognizing excellence in education and health care is a worthy goal, but one that should be carried out by the Department of Health and Human Services and the Department of Education-not by the National Institute of Standards and Technology; and (2) $6,895,000 is an excessive level of funding to operate an awards program. These funds are much better put to use in creating manufacturing extension centers or other Department of Commerce programs. The Committee's recommendation by program area is displayed in the following table:

NIST EXTRAMURAL RESEARCH
(Budget authority in thousands of dollars)

CONSTRUCTION OF RESEARCH FACILITIES

The Committee recommends an appropriation of $64,686,000 for construction of research facilities. This is the same as the House allowance and $35,314,000 below the budget request.

This appropriation finances new construction and renovation to rebuild and equip NIST laboratories and support facilities. It was first recommended by the Committee in fiscal year 1993 to give priority to rebuilding NIST's infrastructure and insuring that the agency maintains its leadership role in research and development to support industry. This appropriation is part of a multiyear effort.