S&T Figures Prominently In Federal Recovery Plans

Several years of virtually flat and occasionally declining federal funds for the nation's research and economic development communities could end abruptly with passage of an economic recovery plan resembling either proposal released by President-elect Obama or Congressional Democrats. Both call for unprecedented public investments to stimulate the economy out of its worst recession since the Great Depression, while at the same time moving the country dramatically toward a national innovation strategy mirroring the priorities of most state and regional technology-based economic development programs across the country.

President-elect Obama's plan:

• Double federal funding for basic research to foster home-grown innovation, help ensure the competitiveness of U.S. technology-based businesses, and ensure that 21st century jobs can and will grow in America.

House Response:  $10 billion for science facilities, research, and instrumentation, including:

• National Science Foundation: $3 billion, including $2 billion for expanding employment opportunities in fundamental science and engineering to meet environmental challenges and to improve global economic competitiveness, $400 million to build major research facilities that perform cutting edge science, $300 million for major research equipment shared by institutions of higher education and other scientists, $200 million to repair and modernize science and engineering research facilities at the nation's institutions of higher education and other science labs, and $100 million also is included to improve instruction in science, math and engineering.
• National Institutes of Health Biomedical Research: $2 billion, including $1.5 billion for expanding good jobs in biomedical research to study diseases such as Alzheimer's, Parkinson's, cancer, and heart disease - NIH currently is able to fund less than 20% of approved applications - and $500 million to implement the repair and improvement strategic plan developed by the NIH for its campuses.
• University Research Facilities: $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants. The National Science Foundation estimates a maintenance backlog of $3.9 billion in biological science research space. Funds are awarded competitively.
• Centers for Disease Control and Prevention: $462 million to enable CDC to complete its Buildings and Facilities Master Plan, as well as renovations and construction needs of the National Institute for Occupational Safety and Health.
• Department of Energy: $1.9 billion for basic research into the physical sciences including high-energy physics, nuclear physics, and fusion energy sciences and improvements to DOE laboratories and scientific facilities. $400 million would be for the Advanced Research Project Agency - Energy to support high-risk, high-payoff research into energy sources and energy efficiency.
• NASA: $600 million, including $400 million to put more scientists to work doing climate change research, including Earth science research recommended by the National Academies, satellite sensors that measure solar radiation critical to understanding climate change, and a thermal infrared sensor to the Landsat Continuing Mapper necessary for water management, particularly in the western states; $150 million for research, development, and demonstration to improve aviation safety and Next Generation air traffic control (NextGen); and $50 million to repair NASA centers damaged by hurricanes and floods last year.
• Biomedical Advanced Research and Development, Pandemic Flu, and Cyber Security: $900 million to prepare for a pandemic influenza, support advanced development of medical countermeasures for chemical, biological, radiological, and nuclear threats, and for cyber security protections at HHS.
• National Oceanic and Atmospheric Administration Satellites and Sensors: $600 million for satellite development and acquisitions, including climate sensors and climate modeling.
• National Institute of Standards and Technology: $300 million for competitive construction grants for research science buildings at colleges, universities, and other research organizations and $100 million to coordinate research efforts of laboratories and national research facilities by setting interoperability standards for manufacturing.
• Agricultural Research Service: $209 million for agricultural research facilities across the country. ARS has a list of deferred maintenance work at facilities of roughly $315 million.
• U.S. Geological Survey: $200 million to repair and modernize USGS science facilities and equipment, including improvements to laboratories, earthquake monitoring systems, and computing capacity.
• Technology Innovation Program: $70 million to accelerate research in potentially revolutionary technologies with high job growth potential.
• Healthcare Effectiveness Research: $1.1 billion for Healthcare Research and Quality programs to compare the effectiveness of different medical treatments funded by Medicare, Medicaid, and SCHIP. Finding out what works best and educating patients and doctors will improve treatment and save taxpayers money.

President-elect Obama:

• Invest $150 billion in clean energy over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial scale renewable energy, invest in low emissions coal plants, and begin transition to a new digital electricity grid. The plan also would invest in America's highly-skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the first wave of green technologies that will be in high demand throughout the world.

House Response:

• $11 billion for research and development, pilot projects, and federal matching funds for the Smart Grid Investment Program to modernize the electricity grid making it more efficient, secure, and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation.
• $8 billion in Renewable Energy Loan Guarantees for renewable energy power generation and transmission projects.
• $2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities to foster energy independence, reduce carbon emissions, and cut utility bills. Funds are awarded on a competitive basis to universities, companies, and national laboratories.
• $2 billion for the Advanced Battery Loan Guarantee and Grants Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America should lead the world in transforming the way automobiles are powered.
• $6.9 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions.
• $200 million for a new grant program to encourage electric vehicle technologies.
• $2.4 billion for carbon capture and sequestration technology demonstration projects. This funding would provide information necessary to reduce the amount of carbon dioxide emitted into the atmosphere from industrial facilities and fossil fuel power plants.
• $350 million for research into using renewable energy to power weapons systems and military bases.
• $500 million for energy efficient manufacturing demonstration projects.

President-elect Obama:

• Double funding for the Manufacturing Extension Partnership (MEP), which works with manufacturers across the country to improve efficiency, implement new technology and strengthen company growth. The new Administration would double funding for NIST MEP so its  centers can continue to bolster the competitiveness of U.S. manufacturers.

House Response:

• $30 million for the Manufacturing Extension Partnerships to help small and mid-size manufacturers compete globally by providing them with access to technology.

President-elect Obama:

• Create a national network of public-private business incubators to support entrepreneurship and spur job growth. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. The administration proposes to invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

House Response:  Not immediately discernible from the summary materials.

President-elect Obama:

• Create an Advanced Manufacturing Fund to identify and invest in the most compelling advanced manufacturing strategies. The Fund would have a peer-review selection and award process based on the Michigan 21st Century Jobs Fund, a state-level initiative that has awarded over $125 million to Michigan businesses with the most innovative proposals to create new products and new jobs in the state.   

House Response:  Not immediately discernible from the summary materials.

President-elect Obama:

• Make the R&D Tax Credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multi-year timeframes.

House Response:  Not immediately discernible from the summary materials.

Other House Proposals Supporting State & Local TBED Goals 
Economic Development Administration: $250 million to address long-term economic distress in urban industrial cores and rural areas distributed based on need and ability to create jobs and attract private investment.

Brownfields: $100 million for competitive grants for evaluation and cleanup of former industrial and commercial sites - turning them from problem properties to productive community use. Last year EPA was only able to fund 37% of Brownfields applications.
In addition to the Economic Recovery plan, the incoming Administration has two more opportunities pending to see some or all of these proposals addressed. Congress has yet to approve a final budget for the current fiscal year, which is now 4.5 months old and existing on a Continuing Resolution which expires in March. The Obama Administration will be in a position to influence the FY09 budget at the same time it is preparing to submit its first full budget request for FY10. 

More info on the House Appropriations Committee version of the America Recovery and Reinvestment Act is available at: http://appropriations.house.gov/.