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Obama Signs New Manufacturing Innovation Act Into Law
Practical Law Legal Update 6-595-7885 (Approx. 4 pages)
Obama Signs New Manufacturing Innovation Act Into Law
by Practical Law Commercial
| Published on 13 Jan 2015 • USA (National/Federal) |
President Obama recently signed the Revitalize American Manufacturing and Innovation Act of 2014 (RAMIA) into law. This new act was part of the Consolidated and Further Continuing Appropriations Act of 2015. Under this law, the US Department of Commerce must establish a program within the National Institute of Standards and Technology (NIST) to support the establishment of institutes across the country dedicated to improving US competitiveness in manufacturing, increasing domestic production and accelerating the development of an advanced manufacturing workforce.
On December 16, 2014, the White House announced that President Obama has signed the Revitalize American Manufacturing and Innovation Act of 2014 (RAMIA) into law. The RAMIA is included as Title VII of Division B of the Consolidated and Further Continuing Appropriations Act of 2015 (2013 CONG US HR 83 (Dec. 16, 2014)). Among other things, the RAMIA establishes:
- A program within the National Institute of Standards and Technology for improving the US manufacturing industry (see Network for Manufacturing Innovation Program).
- A network of centers whose goal is to innovate the US manufacturing industry (see Network for Manufacturing Innovation).
This act also amends sections of:
- The National Institute of Standards and Technology Act (15 U.S.C. §§ 271 - 286).
- The America COMPETES Reauthorization Act of 2010 (42 U.S.C. § 6622).
- The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. § 3722).
Network for Manufacturing Innovation Program
Under the RAMIA, the US Department of Commerce must establish a program known as the Network for Manufacturing Innovation Program ("Manufacturing Program"). The Manufacturing Program is intended to strengthen the US manufacturing industry by:
- Improving the competitiveness of US manufacturing.
- Increasing the production of goods manufactured predominantly within the US.
- Stimulating US leadership in advanced manufacturing research, innovation and technology.
- Facilitating:
- the transition of innovative technologies into scalable, cost-effective and high-performing manufacturing capabilities;
- manufacturing enterprises' access to capital-intensive infrastructures; and
- the peer exchange and documentation of best practices in addressing advanced manufacturing challenges.
- Accelerating the development of an advanced manufacturing workforce.
- Creating and preserving jobs.
The Manufacturing Program will consist of a network of centers for manufacturing innovation known as the Network for Manufacturing Innovation.
Network for Manufacturing Innovation
Under the RAMIA, the Network for Manufacturing Innovation will be comprised of centers for manufacturing innovation, which the act defines to mean a center that:
- A person or group of persons has established to address challenges in advanced manufacturing and assist manufacturers in retaining or expanding industrial production and jobs in the US.
- Has a predominant focus on a manufacturing process, novel material, enabling technology, supply chain integration methodology or another relevant aspect of advanced manufacturing.
- Has the potential either to:
- improve the competitiveness of US manufacturing, including key advanced manufacturing technologies;
- accelerate non-federal investment in advanced manufacturing production capacity in the US; or
- enable the commercial application of new technologies or industry-wide manufacturing processes.
- Includes active participation among representatives from multiple industrial entities, research universities, community colleges and other appropriate entities.
These centers are permitted to:
- Research, develop and demonstrate projects to reduce the cost, time and risk of commercializing new:
- technologies;
- improvements in existing technologies, processes and products; and
- research and development of materials to solve pre-competitive industrial problems with economic or national security implications.
- Develop and implement education, training and workforce recruitment courses, materials and programs.
- Develop innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains.
- Perform outreach with small and medium-sized manufacturing enterprises, including women and minority owned manufacturing enterprises, and with large manufacturing enterprises.
The Department of Commerce is required to provide financial assistance to groups interested in planning, establishing or supporting a center for manufacturing innovation. The RAMIA outlines the application and selection process for requesting these grants as well as additional rules for receiving grants.