AIP FYI#128: Senate Appropriators Pass NIST Funding Bill, Restore ATP

Last month, Senate appropriators voted to restore funding for NIST’s
Advanced Technology Program in their version of the FY 2004
Commerce, Justice and State appropriations bill, S. 1585. The
Senate Appropriations Committee would provide more funding for NIST
than what was asked for in the Administration’s request and
recommended in the House-passed version of the bill, H.R. 2799.
Both the request and the House bill would have slashed funding for
NIST’s cooperative programs with industry (see FYI #98), cutting the
Manufacturing Extension Partnerships (MEP) by more than 50 percent
from FY 2003 funding and eliminating the Advanced Technology Program
(ATP). S. 1585, approved by the Senate Appropriations Committee on
September 4, would not only increase MEP and ATP funding over FY
2003 levels, but would create a new category of ATP competitions for
technologies relating to homeland security.

According to the bill and accompanying committee report (S. Rept.
108-144), the Senate Appropriations Committee recommends a total of
$835.2 million for NIST. This is $127.7 million, or 18.1 percent,
more than FY 2003 funding of $707.5 million. The FY 2004 request
was $496.8 million. The House recommended total NIST funding of
$460.1 million. The committee’s specific recommendations for NIST
programs are provided below, along with selected portions of the
committee report language pertaining to NIST programs. The full
report can be found at http://thomas.loc.gov/.

SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES (STRS):

Senate appropriators would provide $383.4 million for NIST’s
Scientific and Technical Research and Services, which includes the
in-house laboratories. This is $26.3 million, or 7.4 percent, over
FY 2003 funding of $357.1 million. The FY 2004 request was $387.6
million. The House recommended $357.9 million.

According to the report, the recommendation for STRS “assumes
$1,000,000 in prior year unobligated balances, bringing the total
amount available for this account to $384,375,000. The fiscal year
2003 enacted levels were not available at the time the fiscal year
2004 budget request was developed. Consequently, the fiscal year
2004 budget request, as presented, has no basis. The recommendation
provides the maximum funding deemed prudent for this account.”

INDUSTRIAL TECHNOLOGY SERVICES:

The Senate bill would provide $369.2 million for NIST’s Industrial
Technology Services. This amount, which includes $106.6 million for
MEP and $259.6 million for ATP, is $84.4 million, or 29.6 percent,
over FY 2003 funding of $284.8 million. The FY 2004 request was
$39.6 million. The House recommendation was $39.6 million, equal to
the request.

MANUFACTURING EXTENSION PARTNERSHIPS: The Administration proposed
phasing out federal funding to MEP centers after six years of
operation, as originally called for. However, the Senate committee
report states that “The Committee recommends an appropriation of
$106,623,000 to fully fund all of the MEP centers.”

ADVANCED TECHNOLOGY PROGRAM: Many unsuccessful attempts have been
made in the past to terminate this controversial program. The House
bill would zero out ATP funding for FY 2004, while the request would
provide only enough funding for expenses needed to terminate the
program. According to the Senate committee report, “The Committee
recommends an appropriation of $259,600,000…. This amount, when
combined with approximately $8,283,000 in carryover, will fully fund
ATP awards and provide $50,000,000 for the creation of focused
competitions for technologies relating to homeland security. Within
the amounts made available for ATP, $46,833,000 shall be used for
administrative costs, internal laboratory support, and for Small
Business Innovation Research Program requirements.”

“Homeland Security Competition- The Committee is aware of the
critical need to support research and development [R&D] into new
technologies to combat terrorism. The mission of ATP–to provide an
early-stage investment for the development of innovative
technologies that promise both commercial and security benefits for
the Nation–is ideally suited to help meet this need. There is a
precedent within the ATP program for funding R&D for homeland
security technologies. The `Gene Chip’, for example, has enabled the
creation of a less expensive and more portable means of detecting
chemical and biological weapons. The Committee is aware that there
are large government-wide funding increases in fiscal year 2004 for
R&D into new technologies to combat terrorism. However, it is not
clear yet how agencies responsible for homeland security will select
and vet projects. ATP has a proven record of tapping the most
promising technologies, and overseeing their rapid development and
eventual commercialization. ATP awards are made on the basis of
rigorous peer-reviewed competitions and include input from the
National Academy of Engineering. Grant proposals are evaluated by
one of several technology-specific boards staffed by experts. The
recommendation therefore includes $50,000,000 for dedicated,
thematic competitions for emerging homeland security technologies.
The Department of Commerce is directed to report to the Committee on
its plan for the initiation of these competitions within 60 days of
enactment of this Act.”

CONSTRUCTION OF RESEARCH FACILITIES:

The Senate bill would provide $84.6 million for Construction of
Research Facilities. This is $18.9 million, or 28.8 percent, over
FY 2003 funding of $65.7 million. The FY 2004 request was $69.9
million. The House recommended $62.6 million.

According to the report, “The recommendation is $15,040,000 above
the budget request and fully funds the highest priority safety,
capacity, maintenance, and repair projects at NIST…. The
Committee has been supportive of NIST’s requests for additional
resources to improve its aging infrastructure. With the AML
[Advanced Measurement Laboratory] nearing completion, NIST must now
address its remaining facility needs. In 1998, NIST published the
Facilities Improvement Plan. However, much has changed since this
document was prepared. The Committee therefore directs that NIST
update its Facilities Improvement Plan prior to the obligation of
any funds provided under this account…. The updated plan will
guide the replacement, renovation, and repair of the Institute’s
buildings so that NIST can continue to provide U.S. industry and
science with the best possible measurement system.”

Now that the 2004 fiscal year has begun, Congress has passed, and
the President has signed, a Continuing Resolution that would keep
the programs in this bill, as well as the other unfinished
appropriations bills, operating until October 31.

Audrey T. Leath

Media and Government Relations Division

The American Institute of Physics

fyi@aip.org www.aip.org/gov

(301) 209-3094