§ 3722a. Regional Technology and Innovation Hub Program

§ 3722a. Regional Technology and Innovation Hub Program

(a) Definitions In this section:

(1) Appropriate committees of Congress The term “appropriate committees of Congress” means—

(A) the Committee on Commerce, Science, and Transportation, the Committee on Environment and Public Works, and the Committee on Appropriations of the Senate; and

(B) the Committee on Science, Space, and Technology and the Committee on Appropriations of the House of Representatives.

(2) Cooperative extension services The term “cooperative extension services” has the meaning given the term in section 3103 of title 7.

(3) Site connectivity infrastructure 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.

(4) Venture development organization The term “venture development organization” has the meaning given such term in section 3722(a) of this title.11 See References in Text note below.

(5) Community development financial institution The term “community development financial institution” has the meaning given in section 4702 of title 12.

(6) Minority depository institution The term “minority depository institution” means an entity that is—

(A) 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

(B) considered to be a minority depository institution by—

(i) the appropriate Federal banking agency; or

(ii) the National Credit Union Administration, in the case of an insured credit union.

(7) Low population State The term “low population State” means a State without an urbanized area with a population greater than 250,000 as reported in the decennial census.

(8) Small and rural communities 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 250,000.

(b) Regional Technology and Innovation Hub Program

(1) In general Subject to the availability of appropriations, the Secretary shall carry out a program—

(A) to encourage new and constructive collaborations among local, State, Tribal, and Federal government entities, institutions of higher education, the private sector, economic development organizations, labor organizations, nonprofit organizations, and community organizations that promote broad-based regional innovation initiatives;

(B) to support eligible consortia in the development and implementation of regional innovation strategies;

(C) 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—

(i) to enable United States leadership in technology and innovation sectors critical to national and economic security;

(ii) 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;

(iii) to promote the benefits of technology development and innovation for all Americans, including underserved communities and vulnerable communities;

(iv) to support the modernization and expansion of United States manufacturing based on advances in technology and innovation;

(v) to support domestic job creation and broad-based economic growth; and

(vi) to improve the pace of market readiness, industry maturation, and overall commercialization and domestic production of innovative research;

(D) to ensure that the regional technology and innovation hubs address the intersection of emerging technologies and either regional challenges or national challenges; and

(E) to conduct ongoing research, evaluation, analysis, and dissemination of best practices for regional development and competitiveness in technology and innovation.

(2) Awards The Secretary shall carry out the program required by paragraph (1) through the award of the following:

(A) Strategy development grants or cooperative agreements to eligible consortia under subsection (e).

(B) Strategy implementation grants or cooperative agreements to regional technology and innovation hubs under subsection (f).

(3) Administration 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.

(c) Eligible consortia For purposes of this section, an eligible consortium is a consortium that—

(1) includes 1 or more of each of the following—

(A) institutions of higher education, which may include Historically Black Colleges and Universities, Tribal Colleges or Universities, and minority-serving institutions;

(B) State, territorial, local, or Tribal governments or other political subdivisions of a State, including State and local agencies, or a consortium thereof;

(C) industry or firms in relevant technology, innovation, or manufacturing sectors;

(D) economic development organizations or similar entities that are focused primarily on improving science, technology, innovation, entrepreneurship, or access to capital; and

(E) labor organizations or workforce training organizations, which may include State and local workforce development boards as established under sections 3111 and 3122 of title 29; ^1 and

(2) may include 1 or more—

(A) 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);

(B) organizations that contribute to increasing the participation of underserved populations in science, technology, innovation, and entrepreneurship;

(C) venture development organizations;

(D) organizations that promote local economic stability, high-wage domestic jobs, and broad-based economic opportunities, such as employee ownership membership associations and State or local employee ownerships and cooperative development centers, financial institutions and investment funds, including community development financial institutions and minority depository institutions;

(E) 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 22 So in original. Probably should be “20”. U.S.C. 2302);

(F) National Laboratories (as defined in section 15801 of title 42);

(G) Federal laboratories;

(H) Manufacturing extension centers;

(I) Manufacturing USA institutes;

(J) transportation planning organizations;

(K) a cooperative extension services;

(L) organizations that represent the perspectives of underserved communities in economic development initiatives; and

(M) institutions receiving an award under section 19108 of title 42.

(d) Designation of regional technology and innovation hubs

(1) In general In carrying out subsection (b)(1)(C), the Secretary shall use a competitive, merit-review process to designate eligible consortia as regional technology and innovation hubs.

(2) Distribution In conducting the competitive process under paragraph (1), the Secretary shall ensure geographic and demographic diversity in the designation of regional technology hubs by, subject to available appropriations, designating at least 20 technology hubs, and—

(A) seeking to designate at least three technology hubs in each region covered by a regional office of the Economic Development Administration, while—

(i) ensuring that not fewer than one-third of eligible consortia so designated as regional technology hubs significantly benefit a small and rural community, which may include a State or territory described in clauses (ii) and (iii);

(ii) ensuring that not fewer than one-third of eligible consortia so designated as regional technology hubs include as a member of the eligible consortia at least 1 member that is a State or territory that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation; and

(iii) ensuring that at least one eligible consortium so designated as a regional technology hub is headquartered in a low population State that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation;

(B) seeking to designate an additional two regional technology hubs based on selection factors which shall include likelihood of success and may include regional factors such as the extent to which the regional technology and innovation hub significantly engages and benefits underserved communities in and near metropolitan areas;

(C) encouraging eligible consortia to leverage institutions of higher education serving populations historically underrepresented in STEM, including historically Black Colleges and Universities, Tribal Colleges or Universities, and minority-serving institutions to significantly benefit an area or region; and

(D) encouraging proposals from eligible consortia that would significantly benefit an area or region whose economy significantly relies on or has recently relied on coal, oil, or natural gas production or development.

(3) Relation to certain grant awards 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.

(e) Strategy development grants and cooperative agreements

(1) In general 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.

(2) Number of recipients Subject to availability of appropriations, the Secretary shall seek to award a grant or cooperative agreement under paragraph (1) to not fewer than 60 eligible consortia.

(3) Geographic diversity and representation

(A) In general The Secretary shall carry out paragraph (1) in a manner that ensures geographic diversity and representation from communities of differing populations.

(B) Awards to small and rural communities In carrying out paragraph (1), the Secretary shall—

(i) award not fewer than one-third of the grants and cooperative agreements under such paragraph to eligible consortia that significantly benefit a small and rural community, which may include a State described in clause (ii); and

(ii) award not fewer than one-third of the grants and cooperative agreements under such paragraph to eligible consortia that include as a member of the eligible consortia at least 1 member that is a State or territory that is eligible to receive funding from the Established Program to Stimulate Competitive Research of the National Science Foundation.

(4) Use of funds

(A) Use of funds under this grant shall include—

(i) coordination of a locally defined planning processes, across jurisdictions and agencies, relating to developing a comprehensive regional technology strategy;

(ii) identification of regional partnerships for developing and implementing a comprehensive regional technology strategy;

(iii) implementation or updating of assessments to determine regional needs and capabilities;

(iv) development or updating of goals and strategies to implement an existing comprehensive regional plan;

(v) identification or implementation of planning and local zoning and other code changes necessary to implement a comprehensive regional technology strategy; and

(vi) development of plans for promoting broad-based economic growth in a region.

(B) Use of funds under this grant may include the formation of a workforce development strategy, according to the needs for a skilled and technical workforce at all skill and degree levels in the region proposed to be served by the eligible consortia. Any workforce development strategy submitted pursuant to paragraph (1) should include—

(i) how the eligible consortia will develop, offer, or improve educational or career training programs and curriculum for a skilled and technical workforce;

(ii) the extent to which such programs developed and offered by the eligible consortia will meet the educational or career training needs of a skilled and technical workforce in the region to be served;

(iii) how the eligible consortia will provide facilities for students to receive training under such programs developed and offered by the eligible consortia; and

(iv) how the eligible consortia will enhance outreach and recruitment for such programs developed and offered by the eligible consortia to populations underrepresented in STEM.

(5) Federal share 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—

(A) 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;

(B) except in the case of an eligible consortium that represents all or part of a small and rural or other underserved community, the Federal share may be up to 90 percent of the total cost, subject to subparagraph (A); and

(C) 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.

(f) Strategy implementation grants and cooperative agreements

(1) In general 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).

(2) Use of funds Grants or cooperative agreements 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, which may have been developed with or without financial assistance received under subsection (e) of this section:

(A) Workforce development activities Workforce development activities including activities relating to the following:

(i) The creation of partnerships between industry, workforce, nonprofit, and educational institutions, which may include community colleges, to create and align technical training and educational programs, including for a skilled technical workforce.

(ii) The design, development, and updating of educational and training curriculum and programs, including training of trainers, teachers, or instructors tied to demonstrated regional skilled and technical workforce needs.

(iii) The procurement of facilities and equipment, as required to train a skilled and technical workforce.

(iv) The development and execution of programs, including traineeships and apprenticeships, to rapidly provide training and award certificates or credentials recognized by regional industries or other organizations.

(v) The matching of regional employers with a potential new entrant, underemployed, underrepresented, reentering, or incumbent workforce, as well as the securing of commitments from employers to hire workers who successfully complete training programs, or who are awarded certificates or credentials.

(vi) 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.

(vii) 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.

(viii) The provision of support services for attendees of training programs developed, updated, or expanded pursuant to this subsection, including career counseling.

(ix) The implementation of outreach and recruitment for training programs developed, updated, or expanded pursuant to this subsection, particularly at local educational institutions, including high schools and community colleges.

(B) Business and entrepreneur development activities Business and entrepreneur development activities, including activities relating to the following:

(i) The development and growth of local and regional businesses and the training of entrepreneurs, which may include support for the expansion of employee owned businesses and cooperatives.

(ii) The support of technology commercialization, including funding for activities relevant to the protection of intellectual property and for advancing potential ventures such as acceleration, incubation, early-stage production and other relevant programming.

(iii) The development of local and regional capital networks and consortia to attract necessary private funding to businesses and entrepreneurs in the region.

(iv) The development of local and regional networks for business and entrepreneur mentorship.

(C) Technology development and maturation activities Technology maturation activities, including activities relating to the following:

(i) 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.

(ii) The development of programming to support the creation and transfer of intellectual property into private use, such as through startup creation.

(iii) 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.

(iv) Activities to provide or ensure access to capital for new business and business expansion, 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.

(D) Infrastructure-related activities 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: