Order Code RL32837
CRS Report for Congress
Received through the CRS Web
Science and Technology Policy:
Issues for the 109th Congress
Updated February 3, 2006
Frank Gottron, Coordinator
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

---

Science and Technology Policy: Issues for the 109th
Congress
Summary
Science and technology have a pervasive influence over a wide range of issues
confronting the nation. Decisions on how much federal funding to invest in research
and development (R&D), and determining what programs have the highest priority,
for example, may have implications for homeland security, new high technology
industries, government/private sector cooperation in R&D, and myriad other areas.
This report indicates the sweep of science and technology in many public policy
issues, although it cannot provide a comprehensive examination of every science or
technology issue which may be of interest to Congress. In some areas, such as global
climate change and stem cell research, the importance of science and technology is
explicit and in the forefront of the policy debate. In others, such as patent protection
and telecommunications reform, science and technology may not be as explicit, but
are important drivers affecting how policy makers may make decisions. This report
also addresses key issues that directly affect, or are affected by, science and
technology. Other mechanisms which may indirectly impact science and technology
— such as tax, antitrust, and trade policies — are outside the scope of this report.
The appropriate level of federal funding for research and development (R&D)
is among the issues facing Congress. One consequence of President Bush’s objective
of constraining the growth of discretionary spending is that funding for federal R&D
would increase only slightly in the FY2006 budget. If adjusted for inflation, it would
decline for the first time since FY1996. Federal R&D funding spurs technological
advancement, which contributes to economic growth, and plays a role in the
education of future scientists and engineers. Members of congressional committees
that oversee R&D have expressed concern about the possible repercussions of
restraining R&D funding.
Science and technology also are important components of homeland security
issues. Not only is Congress debating funding levels for R&D for counterterrorism,
but issues concerning public access to scientific information, and technological and
privacy aspects of “data mining” (a potential means to identity terrorist activities and
track individual terrorists themselves). Congress is addressing a wide range of other
science and technology policy issues, from tsunami forecasting and warning, to
“telecom reform” (revising the Telecommunications Act of 1996), to cloning and
stem cell research, to ocean policy and global climate change. Several energy issues
are being debated, including President Bush’s Hydrogen Fuel Initiative, and
reprocessing of spent nuclear fuel. The “transformation” of the National Aeronautics
and Space Administration (NASA) as it implements President Bush’s “Vision for
Space Exploration,” is receiving close attention as the agency announces related job
cuts and program changes, including sharp cutbacks in aeronautics R&D.
This report identifies other CRS reports that treat most of those issues in more
depth. It is updated occasionally. Many of the CRS reports cited herein are updated
more often, and should be consulted for timely information.

---

Key Policy Staff
Bioagent Lab Registration and Security
Sarah Lister
7-7320
Broadband Internet Access
Len Kruger
7-7070
Chem/Bio/Rad/Nuke Terrorism Countermeasures R&D
Frank Gottron
7-5854
Counterterrorism R&D
Genevieve Knezo & Dan Morgan
7-6610, 7-5849
Data Mining
Jeffrey Seifert
7-0781
Digital Television
Len Kruger
7-7070
E-Government
Jeffrey Seifert
7-0781
E-Health
Steve Redhead
7-2261
Foreign Science and Engineering Presence in U.S.
Christine Matthews
7-7055
Fusion Research: ITER
Dan Morgan
7-5849
Global Climate Change
John Justus
7-7078
Govt. Perf. and Results Act & President’s Management Agenda
Genevieve Knezo
7-6610
Human Cloning and Embryonic Stem Cell Research
Judy Johnson & Erin Williams
7-7077, 7-4897
Hydrogen Fuel and Fuel Cell Vehicles
Brent Yacobucci
7-9662
Information Quality Act Implementation and Peer Review
Curtis Copeland & Michael Simpson
7-0632, 7-7010
Information Tech. Mgmt for Dept. of Homeland Security
Jeffrey Seifert
7-0781
National Institutes of Health (NIH)
Pamela Smith
7-7048
Networking Information Technology R&D
Patty Figliola
7-2508
Ocean Science and Oceanic Affairs
John Justus
7-7078
Open Source Software
Jeffrey Seifert
7-0781
Public Access to Scientific Information
Genevieve Knezo & Dana Shea
7-6610, 7-6844
R&D Budgets and Budget Trends
Mike Davey
7-7074
Reprocessing of Spent Nuclear Fuel
Tony Andrews
7-6843
Science & Technology Education
Christine Matthews
7-7055
Space and Aeronautics Issues
Marcia Smith & Dan Morgan
7-7076, 7-5849
Spectrum Management and Wireless Technologies
Linda Moore
7-5853
Technological Innovation and the Economy
Wendy Schacht
7-7066
Technology Development
Wendy Schacht
7-7066
Technology for Warning Systems and Alerts
Linda Moore
7-5853
Telecommunications Act fo 1996 Revision
Angele Gilroy
7-7778
Tsunami Forecasting and Warning
Wayne Morrissey
7-7072
Water Supply Technology and Energy-Water Efficiency
Nicole Carter
7-0854
Wireless Privacy, Internet Privacy, and Spyware
Marcia Smith
7-7076

---

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Research and Development Budget, Management,
and Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Federal Government Investment in R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
FY2006 R&D Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Government Performance and Results Act (GPRA) and the
President’s Management Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Information Quality Act Implementation and Peer Review . . . . . . . . . . . . . . 4
Science and Technology Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Foreign Science and Engineering Presence in U.S.
Institutions and the Labor Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Homeland Security Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Counterterrorism R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chemical, Biological, Radiological, and Nuclear Terrorism
Countermeasures R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Bioagent Lab Registration and Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Public Access to Scientific Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Information Technology Management for the
Department of Homeland Security . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Data Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Technology Development Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Technological Innovation and the Economy:
Impact of Federal R&D Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
R&D Partnerships and Intellectual Property . . . . . . . . . . . . . . . . . . . . . . . . 18
Advanced Technology Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Prescription Drugs: Costs, Availability, and Federal R&D . . . . . . . . . . . . . 20
Telecommunications and Information Technology Issues . . . . . . . . . . . . . . . . . . 21
Telecommunications Act of 1996 Revision . . . . . . . . . . . . . . . . . . . . . . . . . 21
Broadband Internet Regulation and Access . . . . . . . . . . . . . . . . . . . . . . . . . 22
Transition to Digital Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Spectrum Management and Wireless Technologies . . . . . . . . . . . . . . . . . . 24
Networking Information Technology R&D . . . . . . . . . . . . . . . . . . . . . . . . . 25
E-Health: Health Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . 26
E-Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Open Source Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Wireless Privacy, Internet Privacy, and Spyware . . . . . . . . . . . . . . . . . . . . 29
Tsunamis and Other Emergencies: Forecasting and Warning Systems . . . . . . . . 30
Tsunami Forecasting and Warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Technology for Warning Systems and Alerts . . . . . . . . . . . . . . . . . . . . . . . 31
Geosciences Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Ocean Commissions: Ocean Science and Oceanic Affairs . . . . . . . . . . . . 32

---

Global Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Energy and Water Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Hydrogen Fuel and Fuel Cell Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Reprocessing of Spent Nuclear Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Fusion Research: ITER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Water Supply Technology and Energy-Water Efficiency . . . . . . . . . . . . . . 37
Biomedicine Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
National Institutes of Health (NIH) Organization
and Management Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Human Cloning and Embryonic Stem Cell Research . . . . . . . . . . . . . . . . . 40
Space and Aeronautics Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Impact of The “Vision for Space Exploration” on
NASA’s Aeronautics and Other Space Activities . . . . . . . . . . . . . . . . 41
The Future of the Hubble Space Telescope . . . . . . . . . . . . . . . . . . . . . . . . . 43
National Security Space Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Appendix: List of Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

---

Science and Technology Policy: Issues for
the 109th Congress
Introduction
Science and technology are an underpinning of, and have a pervasive influence
over, a wide range of issues confronting the nation. Decisions on how much federal
funding to invest in basic and applied research and in research and development
(R&D), and determining what programs have the highest priority, for example, could
have implications for homeland security, new high technology industries,
government/private sector cooperation in R&D, and myriad other areas.
Following are brief discussions of key science and technology issues being
debated in the 109th Congress. Where available, additional CRS reports and issue
briefs that discuss these topics in more detail are identified at the end of each section.
Many of those reports are regularly updated, and should be consulted for timely
information.
Research and Development Budget, Management,
and Workforce
Federal Government Investment in R&D
The constrained fiscal environment is putting pressure on the full range of
federal government spending, including funding for research and development
(R&D). Debate is ongoing in the 109th Congress over how much to spend on various
R&D activities (see next issue), but a more fundamental question is why the
government invests in R&D at all rather than relying on the private sector,
universities, and other non-profit groups.
Traditionally, the government’s role in R&D funding is to meet the mission
requirements of the federal departments and agencies. Included is support for basic
research — that work undertaken to gain knowledge and understanding of the
fundamental aspects of nature. The payoff for basic research is generally long in
coming, the results may be unmarketable, and the rewards often diffused among
many users, making private sector investment less likely. However, as stated in the
Analytical Perspectives accompanying President Bush’s FY2006 budget request,
“R&D is critically important for keeping our nation economically competitive, and
it will help solve the challenges we face in health, defense, energy, and the
environment” (p. 61).

---

CRS-2
In the United States, while the development of new products, processes and
services for the commercial marketplace is primarily a private sector activity, the
government may get involved for certain limited purposes. Federal support is often
provided for those efforts that typically have been determined to be necessary for the
“national good” but which cannot, or will not, be financed by industry. Government
also plays a role in structuring the environment in which business decisions are made
and thereby influences private sector behavior. Direct federal funding, tax policies,
and the existence of government markets for certain technologies, including defense,
public health, and information technology-related goods, have helped influence
resource allocations in the business community.
According to the National Science Foundation’s Science and Engineering
Indicators 2004 (p. 4-9), in 2002 (the latest year for which data are available)
industry funds accounted for 66% of U.S. R&D, while the government financed 28%
of the total spending, with the remaining 6% provided by universities, colleges, and
other non-profit institutions. Industrial support for R&D is concentrated on
development rather than on research activities. The government encourages private
investment in R&D through direct measures such as the research and
experimentation (R&E) tax credit (see CRS Report RL31181), and through indirect
measures including ownership of intellectual property and cooperative R&D
activities (discussed below under Technology Development Issues).
The myriad effects of federal R&D spending highlight the importance of
decisions regarding the amount and distribution of federal R&D funds. Choices
made by the 109th Congress related to the financing of research and development
may have immediate impacts on current programs as well as long term effects on the
nation’s technological progress.
For Further Information
CRS Issue Brief IB91132, Industrial Competitiveness and Technological
Advancement: Debate Over Government Policy
CRS Report RL32799, Federal Research and Development Funding: FY2006
CRS Issue Brief IB10088, Federal Research and Development: Budgeting and
Priority-Setting Issues, 109th Congress
CRS Report RL31181, Research Tax Credit: Current Status, Legislative Proposals,
and Policy Issues
FY2006 R&D Budget
The Bush Administration requested $132.4 billion in federal research and
development (R&D) funding for FY2006. This sum represented a $400 million
increase over the FY2005 estimated funding level of $132.0 billion. CRS estimates
that Congress has approved a record $135.7 billion for federal R&D in FY2006 (this
figure does not reflect the 1% across-the-board rescission passed in the Department
of Defense Appropriations Act, 2006, P.L. 109-148). This represents a 2.8% increase
over the FY2005 estimated funding level. Most of the increase can be attributed to
increases in defense weapons systems and the National Aeronautics and Space
Administration’s (NASA) human space exploration technology program.

---

CRS-3
Five agencies account for 90% of all federal basic research expenditures. For
FY2006, basic research funding declined to an estimated $26.7 billion before the 1%
rescission (0.5% below estimated FY2005 levels). Total federal research funding
(the sum of basic and applied research) is projected to increase $1 billion to $57
billion. However, the majority of that increase would go to NASA, while most of the
remaining federal agencies would receive increases below the inflation rate for
research funding.
While the President essentially requested flat funding for the Department of
Defense (DOD) R&D programs, Congress approved an estimated $ 72.1 billion DOD
R&D, a 4.2 % increase over FY2005 funding levels. Much of that increase is a result
of Congress increasing DOD’s proposed science and technology budget by $2.5
billion more than was requested by the Administration.
After the 1% rescission, funding for the National Institutes of Health (NIH)
declined, in current dollars, for the first time in 36 years. When accounting for
inflation, most R&D funding agencies now face budgets that are shrinking to levels
of years past. NIH, National Science Foundation, DOE’s Office of Science, NASA
(excluding human space exploration), and Agriculture all have less R&D funding in
FY2006 than in FY2003 in constant dollars.
For Further Information
CRS Report RL32799, Federal Research and Development Funding: FY2006
CRS Issue Brief IB10088, Federal Research and Development: Budgeting and
Priority-Setting Issues, 109th Congress
Government Performance and Results Act (GPRA) and the
President’s Management Agenda
The Government Performance and Results Act of 1993 (GPRA), P.L. 103-62,
is intended to produce greater efficiency, effectiveness, and accountability in federal
spending and to ensure that an agency’s programs and priorities meet its goals. It
also requires agencies to use performance measures for management and, ultimately,
for budgeting. Recent actions have required agencies to identify more precisely R&D
goals and measures of R&D outcomes. As underscored in The President’s
Management Agenda, beginning in FY2001 and in each year thereafter, the Bush
Administration has emphasized the importance of performance measurement,
including for R&D. In a memorandum dated June 5, 2003, signed jointly by the
Office of Science and Technology Policy (OSTP) Director and the Office of
Management and Budget (OMB) Director regarding planning for the FY2005 R&D
budget requests, the Administration announced that its effort to base budget decisions
on program performance would continue and be expanded (OMB M-03-15). OMB
referred to this memo again in the FY2006 and FY2007 R&D budget guidance,
which reiterated the importance of performance assessment for R&D programs
(respectively, OMB M-04-23 and OMB M-05-18.)
Section 5 of OMB’s Analytical Perspectives, Budget of the U.S. Government,
FY2006, discusses requirements for agencies to use OMB criteria to measure

---

CRS-4
research outcomes, focusing on relevance, quality, and performance. R&D
performed by industry is to meet additional criteria relating to the appropriateness of
public investment, demonstrate a capability to measure benefits, and identify decision
points to transition the activity to the private sector. The Administration assessed
some R&D programs by use of the Program Assessment Rating Tool (PART) which
uses the OMB R&D criteria and other measures. PART results for 84 R&D
programs were used when making FY2006 budget decisions. OMB’s Analytical
Perspectives volume reports that 25 programs were judged effective, 31 were
moderately effective, and at least 19 were ranked ineffective or results not
demonstrated. Commentators point out that it is difficult to define priorities for most
research and to measure the results quantitatively, since research outcomes cannot be
defined well in advance and often take a long time to demonstrate. As a result some
say they have little confidence that R&D performance measures can be used to
recommend budget levels. Congress may increase attention to using R&D
performance measures in authorizations and appropriations as discretionary spending
becomes constrained.
Interest continues in monitoring the PART process, as well as in the
Administration’s budget and performance integration initiative and in
implementation of GPRA. In the 109th Congress, the House Government Reform
Committee has approved H.R. 185, to provide a statutory mandate for PART-like
reviews; it is similar to H.R. 3826, which the committee reported favorably in the last
Congress. Also in the 109th Congress, the Administration has proposed to create a
sunset commission, which would require performance reviews and automatic
program termination unless programs were reauthorized. Bills reflecting the
Administration’s proposal have been introduced (S. 1399, H.R. 3276, H.R. 3277).
Hearings were held in September 2005 on the two House bills. There are also
proposals in the 109th Congress to create accountability commissions (H.R. 2470 and
S. 1155). Some in Congress are not yet comfortable with using performance
measurement data to make budget decisions and prefer to use traditionally formatted
budget information, which focuses on inputs, rather than outputs, or political
judgements to make budget decisions. (See Amelia Gruber, “Lawmakers Remain
Skeptical of Linking Budget, Performance,” GovExec.com, Jan. 13, 2004, and GAO,
Performance Budgeting: Observations on the Use of OMB’s Program Assessment
Rating Tool for the FY2004 Budget, GAO-04-174, Jan. 2004).
For Further Information
CRS Report RL32164, Performance Management and Budgeting in the Federal
Government: Brief History and Recent Developments
CRS Report RS22181, A Sunset Commission for the Federal Government: Recent
Developments
CRS Report RL32726, Proposals for a Commission on the Accountability and
Review of Federal Agencies (CARFA): Analysis and Issues for Congress
Information Quality Act Implementation and Peer Review
The Information Quality Act (IQA), sometimes referred to as the Data Quality
Act, was enacted in December 2000 as Section 515 of the Treasury and General
Government Appropriations Act for Fiscal Year 2001 (P.L. 106-554). The act

---

CRS-5
required OMB to issue guidance to federal agencies designed to ensure the “quality,
objectivity, utility, and integrity” of information disseminated to the public. It also
required agencies to issue their own information quality guidelines, and to establish
administrative mechanisms that allow affected persons to seek correction of
information maintained and disseminated by the agencies that they believe does not
comply with OMB guidance. OMB’s February 2002 final guidance notes that IQA
applies to virtually all federal agencies and defines “information” as “any
communication or representation of knowledge such as facts or data, in any medium
or form.” The guidelines define “dissemination” as any “agency initiated or
sponsored distribution of information to the public.” OMB indicated that “quality”
encompasses elements of utility, objectivity, and integrity, and said agencies can
generally presume that data are “objective” if they have been subject to an
independent peer review process.
In April 2004, OMB provided Congress with a report on the implementation of
IQA during FY2003. The report said the agencies received only about 35 substantive
correction requests during the year, and said the correction requests came from all
segments of society. However, OMB Watch (a public interest group) said OMB’s
report was “seriously flawed” in that it understated the number of correction requests
and did not disclose that nearly three-quarters of the requests were from industry.
OMB issued a second report on the IQA in December 2005, noting that agencies had
received a total of 85 substantive correction requests by the end of FY2004. Of
these, 45 were denied and 28 were appealed.
A major test of the IQA’s effectiveness is whether agencies’ denials of
correction requests are subject to judicial review. In June and November 2004, two
U.S. District Courts ruled that IQA does not permit judicial review regarding
agencies’ compliance with its provisions. One district court decision was appealed
by the U.S. Chamber of Commerce. In the Chamber’s view, if the district court’s
decision is reversed on appeal, parties will be able to seek judicial review of an
agency’s final disposition of IQA petitions.
In December 2004, OMB published a final bulletin on “Peer Review and
Information Quality” that sought to establish a peer review process for all “influential
scientific information,” which was defined as including any scientific information
that the agency “reasonably can determine will have or does have a clear and
substantial impact on important public policies or private sector decisions.” Other,
more specific requirements were placed on “highly influential scientific assessments”
(i.e., influential scientific information that involved an evaluation of a body of
knowledge that could have a $500 million impact on decision-making or was
precedent setting, novel, complex, or involved significant interagency interest). The
final bulletin requires agencies to disclose the names of peer reviewers and requires
agencies to report annually on their peer review activities. Both OMB and the
agencies have a significant amount of discretion in the administration of the peer
review bulletin (e.g., deciding when peer review is required, the selection of peer
reviewers, whether to use alternative procedures), so its impact on information
quality, consistency of peer review practices, and rulemaking will become clear only
through its administration. In December 2005, agencies were to file their first reports
with OMB on the implementation of their peer review programs.

---

CRS-6
Congressional interest in both OMB’s peer review bulletin and IQA during the
second session of the 109th Congress is expected to center on how the agencies and
OMB are carrying out their responsibilities, the effect of the bulletin and the act on
the pace of rulemaking, and whether Congress should amend the IQA and provide
for judicial review.
For Further Information
CRS Report RL32532, The Information Quality Act: OMB’s Guidance and Initial
Implementation
CRS Report RL32680, Peer Review: OMB’s Proposed and Revised Bulletins
Science and Technology Education
An important aspect of U.S. efforts to maintain and improve economic
competitiveness is the existence of a capable scientific and technological workforce.
A January 2004 report of the National Science Foundation (NSF), Science and
Engineering Indicators 2004, states that between the years 2000 and 2010,
employment in science and engineering fields will increase at more than three times
the rate for all other occupations. In addition, approximately 86% of the increase in
science and engineering will be in computer-related positions. Simultaneous with
predictions of the future scientific workforce are data reporting a decline in the
number of students seeking degrees in certain fields. While 33% of the
undergraduate degrees awarded are in science and engineering, the portion of degrees
earned in the physical sciences, mathematics, computer science, and engineering has
been static or declining. Disciplines that have witnessed an increase in degrees
earned have been primarily psychology and the biological sciences. There is growing
concern by many in the scientific community, industry, research-driven federal
agencies, and Congress about the production of the nation’s science, mathematics,
engineering, and technical personnel.
The demographics of the science and engineering workforce have been the
subject of debate. The demographics of the nation have been changing, with more
than 25% of the U.S. population composed of certain minorities — blacks,
Hispanics, and Native Americans. As a group, these minorities have traditionally
been underrepresented in the science and engineering disciplines compared to their
proportion of the total population. Another underrepresented group in the sciences
is women, a group that comprises 50.8% of the population. Together, these groups
comprise what some may call a “new majority.” While minorities have increased
their share of degrees awarded in the past 10 years, poor preparation in science and
mathematics is said to be a major factor limiting the appeal of science and
engineering to many in these groups. In addition, a large number of blacks,
Hispanics, and Native Americans lack access to many of the more rigorous college
preparatory course offerings. John Brooks Slaughter, president and chief executive
officer of the National Action Council for Minorities in Engineering, states that
“Improving minority participation at all levels of higher education, especially in
scientific and engineering disciplines, is critical for America.”
[http://www.aaas.org/news/releases/2004/1004diversity.shtml].

---

CRS-7
Congress has held a number of hearings in recent years to examine the decline
in the nation’s scientific and technical workforce, to seek further solutions for
improving aspects of undergraduate science and mathematics education, and the
aging of the science and engineering workforce, especially at the National
Aeronautics and Space Administration. The FY2005 DOD authorization act (P.L.
108-375) established a program of financial assistance for undergraduate degrees in
science and technology. The disciplines that would receive support are those that are
critical to national security.
On April 14, 2005, winners of the 2004 Presidential Awards for Excellence in
Mathematics and Science Teaching testified before the House Committee on Science
on the need to improve science and mathematics education at the precollege level.
All five of the winners discussed the importance of expanding federal efforts directed
at the professional development of teachers, including both pre-service and in-service
training. They discussed also the need to encourage more students to enter the
scientific disciplines and to make the teaching profession more attractive as a career.
Introduced in April 2005, H.R. 1547/S. 765, the Math and Science Incentive Act of
2005, is designed to respond to those needs. The bill, among other things, provides
loan forgiveness for undergraduates pursuing careers in science, mathematics,
engineering, and technology or teaching those subjects at the precollege level. It is
anticipated that the 109th Congress will continue to examine issues important to
science and mathematics education, including those of the preparation and
performance of U.S. students at the precollege level, the diversity of the scientific and
technical workforce, and the impact of visa regulations on foreign students in
graduate science and engineering programs (see next issue).
For Further Information
CRS Report 98-871 STM, Science, Engineering, and Mathematics Education: Status
and Issues
Foreign Science and Engineering Presence in U.S.
Institutions and the Labor Force
The increased presence of foreign students in U.S. graduate science and
engineering programs continues to be of concern. Enrollment of U.S. citizens in
graduate science and engineering programs has not kept pace with that of foreign
students in those programs. In many institutions, foreign graduate students on
temporary visas comprise 40% to 50% of some science and engineering programs.
In addition to the number of foreign students, a significant number of university
faculty in the scientific disciplines are foreign, and foreign-born doctorates are
employed in large numbers by industry.
Many in the scientific and engineering communities maintain that in order to
compete with countries that are rapidly expanding their scientific and technological
capabilities, the United States needs to bring in those whose skills will benefit society
and will enable us to compete in the new-technology-based global economy.
Individuals supporting this position believe instead of limiting the number of foreign
students, the conditions under which foreign talent enters U.S. colleges and

---

CRS-8
universities and the labor force should be more carefully scrutinized and controlled
to address any security concerns. Furthermore, there are those who contend that the
underlying concern of foreign students in graduate science and engineering programs
is not necessarily that there are too many foreign-born students, but that there are not
enough U.S. students entering the disciplines.
The debate on the presence of foreign students in graduate science and
engineering programs and the workforce has intensified as a result of the terrorist
attacks of September 11, 2001. Concerns have been expressed about certain foreign
students receiving education and training in sensitive areas. In addition, there has
been increased discussion about the access of foreign scientists and engineers to
R&D related to chemical and biological weapons. In May 2004, several higher
education organizations released a combined statement on the impact of the new visa
policies on higher education and the scientific enterprise. They maintain that the new
procedures have made the visa system inefficient and that the tighter visa restrictions
are a major deterrent to foreign students and scholars considering working and
studying in this country. During the 108th Congress, several hearings were held to
examine the visa system for foreign students. Discussions focused on the increased
scrutiny of foreign students from countries that sponsor terrorism, and the restrictions
placed on the participation of foreign students and scientists in military-sponsored
projects and other types of R&D.
On February 15, 2005, the State Department announced that progress has been
made in reducing the clearance time for the Visas Mantis process. Currently, the
process averages 15 days. Additionally, the State Department has revised the
clearance procedures by reducing the restrictions placed on students and scholars and
extending the validity of the clearances (lengthening the time for each clearance). In
February 2005, the Government Accountability Office released the report Border
Security: Streamlined Visas Mantis Program Has Lowered Burden on Foreign
Science Students and Scholars, but Further Refinements Needed which details the
efforts and the improvements that have been made in the visa processing.
A May 10, 2005 report of the National Academies, Policy Implications of
International Graduate Students and Postdoctoral Scholars in the United States,
notes the importance of international students to U.S. society not only academically
and economically, but in terms of global and cultural knowledge and understanding.
However, NSF data reveal that the number of non-U.S. citizens enrolling in U.S.
colleges and universities has slowed since the September 11, 2001 terrorist attacks
because of the tightening of U.S. visa policies, increased global competition for
graduates in scientific and technical disciplines, and reports that foreign students
may encounter an “inhospitable environment.”
On September 13, 2005, the House Subcommittee on National Security,
Emerging Threats, and International Relations held a hearing to examine the
procedures put in place to correct the gaps and vulnerabilities in the visa process.
Attention was directed at the mechanisms that are necessary to strengthen the visa
process as an antiterrorism tool while simultaneously facilitating legitimate travel by
foreign students, scientists, researchers, and others in the United States. Witnesses
testified that consular workloads have increased significantly, yet the visa-processing
offices continue to lack strategic direction, adequate resources, and training. In

---

CRS-9
addition, reliable data are not readily available, across and among departments and
agencies, to determine security and visa fraud related issues and overall increased
visa wait times. Witnesses stated that because visa policies and requirements are
ongoing and can change quickly, clear procedures on visa issuance and monitoring
operations worldwide are necessary to guarantee that visas are adjudicated in a
consistent manner at each visa-issuing post.
In the 109th Congress, legislation has been introduced to reform the visa
application process for foreign students — S. 455, the American Competitiveness
Through International Openness Act of 2005. It is anticipated that the 109th Congress
will continue to monitor the participation of foreign students in graduate science and
engineering programs and the processing of visas for foreign science students and
scholars. In addition, there may be further debate regarding the increased scrutiny
of foreign students from countries that sponsor terrorism, and the restrictions placed
on the participation of foreign students and scientists in certain types of R&D. There
are questions as to whether or not a continued reduction in the immigration of foreign
scientists may impact negatively on the competitiveness of U.S. industry.
For Further Information
CRS Report 97-746, Foreign Science and Engineering Presence in U.S. Institutions
and the Laborforce
Homeland Security Issues
Counterterrorism R&D
Since the terrorist attacks in 2001, additional federal funding has been devoted
to counterterrorism R&D, and new planning and coordination mechanisms have been
established both in individual agencies and in the White House. The Homeland
Security Act of 2002 (P.L. 107-296) consolidated some R&D activities and
coordination responsibilities in the new Department of Homeland Security (DHS),
especially in its Directorate of Science and Technology (S&T). During the 108th
Congress, oversight focused on the establishment of the S&T Directorate. In the
109th Congress, policy issues include the coordination of programs and priorities,
both between agencies and within DHS; the use of performance goals and metrics to
monitor S&T program accomplishments; DHS’s use of the Homeland Security S&T
Advisory Committee; the adequacy of R&D resources for topics of particular
congressional interest, such as cybersecurity; and the integration of threat assessment
information into R&D priority setting and coordination.
Coordination of federal counterterrorism R&D is a particular challenge because
relevant programs exist in many different agencies and accurate information about
their activities can be difficult to obtain. The R&D programs of DHS account for
only about one-third of total expenditures for homeland security R&D, which are
estimated at about $4.0 billion, or about $4.6 billion if facilities are included. This
excludes funding for R&D on combating terrorism overseas. Other agencies with
large counterterrorism R&D responsibilities include the National Institutes of Health

---

CRS-10
(focused on bioterrorism) and the defense and intelligence agencies. Also involved
are the Departments of Justice, Commerce, Energy, and Agriculture, the National
Science Foundation, the Environmental Protection Agency, and others. Under the
Homeland Security Act, DHS has some authority to coordinate and help set priorities
for other federal homeland security R&D, including human health-related R&D.
What that authority means in practice remains to be seen. The heads of other
agencies have no formal role in DHS’s R&D priority-setting and coordination, and
conversely, the role of the DHS Secretary in setting priorities for those agencies is
undetermined. DHS’s effectiveness in planning and coordinating R&D may depend
upon the Secretary’s ability to influence other agencies through his interactions with
existing counterterrorism coordination mechanisms in OSTP, NSTC, and interagency
committees.
Internal coordination and priority-setting within DHS are also of congressional
interest. The FY2004 homeland security appropriations conference report (H.Rept.
108-280) expressed concern about the potential for duplication, waste, and
inadequate management oversight, and directed DHS to “consolidate all
Departmental research and development funding within the science and technology
programs in the FY2005 budget request.” DHS did propose consolidating the Coast
Guard RDT&E program and some smaller programs into the Science and
Technology Directorate in FY2005, but Congress rejected the move of the Coast
Guard program. For FY2006, DHS again proposed consolidating the Coast Guard
program, along with the R&D activities of the Transportation Security
Administration and some smaller programs. Congress again rejected the Coast
Guard move. Consolidation remains an issue for congressional oversight in the 109th
Congress. Other issues include questions about how DHS sets priorities among its
various R&D programs, how it utilizes the R&D capabilities of the national
laboratories, and how it manages and oversees R&D procurement.
Federal funding for counterterrorism R&D has increased significantly since the
terrorist attacks in 2001, despite the constrained budget environment. In FY2004, the
government-wide total exceeded $3.5 billion, compared with less than $600 million
in FY2001. For FY2006, the Administration’s total request for homeland security
R&D, including facilities construction, was an estimated $4.6 billion (of which only
$1.4 billion of was in DHS). The Administration has made homeland security a
budget priority for interagency R&D planning, but further growth may pose
challenges as the 109th Congress continues to balance competing needs in a tight
budget.
For Further Information
CRS Report RS21270, Homeland Security and Counterterrorism Research and
Development: Funding, Organization, and Oversight
CRS Report RL31914, Research and Development in the Department of Homeland
Security
CRS Report RL32481, Homeland Security Research and Development Funding and
Activities in Federal Agencies: A Preliminary Inventory
CRS Report RL32482, Federal Homeland Security Research and Development
Funding: Issues of Data Quality

---

CRS-11
Chemical, Biological, Radiological, and Nuclear Terrorism
Countermeasures R&D
Federal chemical, biological, radiological, and nuclear (CBRN) terrorism
countermeasure research and development is concentrated in three departments: the
Department of Health and Human Services (HHS), the Department of Homeland
Security (DHS), and the Department of Defense (DOD). HHS, largely through the
National Institutes of Health (NIH), has traditionally focused on basic research to
support biomedical countermeasure development. Increasingly, HHS supports the
development of new countermeasures by grants to fund advanced development and
clinical trials. DHS CBRN research and development programs focus on threat
awareness and characterization (including material threat determinations for Project
BioShield), agent surveillance and detection, forensics, and post-event response and
restoration. DOD has a significant biomedical countermeasure research and
development program which focuses on protecting warfighters from CBRN weapons
and tends to emphasize prophylaxis.
The three departments’ programs have the potential for either synergy or
redundancy. Strong executive branch management and congressional oversight may
be crucial for maximizing synergy and avoiding redundancy. In the 109th Congress,
committees in both chambers have held hearings related to interagency coordination
of CBRN defense efforts. This attention appears likely to continue for the remainder
of the 109th Congress.
Enactment of the Project BioShield Act of 2002 (P.L. 108-276), a ten-year $5.6
billion biomedical countermeasures acquisition program, removed some of the
barriers that had discouraged pharmaceutical and biotechnology companies from
developing countermeasures. Both chambers have held hearings during the 109th
Congress on the implementation of this program. Congressional concerns include
the perceived slow rate that the program acquires countermeasures and the decision
process for choosing countermeasures. This scrutiny is likely to continue with
additional oversight hearings.
Congress is considering several bills which add to or modify the Project
BioShield Act of 2002. As part the Department of Defense Appropriations Act, 2006
(P.L. 109-148), Congress limited the tort liability of biomedical countermeasure
producers. Some of remaining issues likely to receive congressional consideration
are provisions removing additional barriers that discourage private-sector
countermeasures development, such as streamlining the Food and Drug
Administration drug approval process and helping transition products from basic
research into advanced development. Additional financial incentives for companies
developing countermeasures, including tax credits and patent extensions, are also
likely to receive congressional consideration.
For Further Information
CRS Report RS21507, Project BioShield
CRS Report RS21270, Homeland Security and Counterterrorism Research and
Development: Funding, Organization, and Oversight

---

CRS-12
CRS Report RS22327, Pandemic Flu and Medical Biodefense Countermeasure
Liability Legislation: P.L. 109-148, Division C (2005)
Bioagent Lab Registration and Security
A program to track organisms that could potentially be used for bioterrorism —
the Select Agent program — was first established in the Antiterrorism and Effective
Death Penalty Act of 1996 (P.L. 104-132). The law required the Secretary of HHS
to regulate the transfer (though not the possession) of so-called select agents, which
are viruses, bacteria, fungi, and toxins that may pose a severe threat to public health
and safety. The initial regulation, administered by the Centers for Disease Control
and Prevention (CDC), required the registration of any laboratory shipping or
receiving the agents, and documentation of these transfers. Information and
application materials for the CDC program are available at
[http://www.cdc.gov/od/sap].
The Public Health Security and Bioterrorism Preparedness and Response Act
of 2002 (P.L. 107-188) expanded the scope of the Select Agent program by requiring
all facilities possessing select agents, not just those shipping or receiving them, to
register with CDC. In addition, P.L. 107-188 instructed the HHS Secretary, in
consultation with the Attorney General, to establish safety and security requirements
for registered laboratories “commensurate with the level of risk to public health and
safety,” and to conduct background screening for all persons seeking access to select
agents. Congress authorized the program through 2007 with an indefinite
appropriation.
P.L. 107-188 gave the Department of Agriculture (USDA) similar authority to
develop a list of biological agents and toxins that may pose a severe threat to crops
and livestock and to regulate facilities that possess, use, or transfer those agents and
toxins. The law instructed HHS and USDA to coordinate their activities regarding
so-called overlap agents, those agents that affect both human and animal health and
that therefore appear on both agencies’ lists. Both P.L. 107-188 and the USA
PATRIOT Act (P.L. 107-56) barred access by certain groups of individuals, based
on criminal history, immigration status, and other factors.
In December 2002, HHS and USDA issued interim final regulations to
implement the expanded program. Both departments issued final rules, with only
minor changes, in March 2005. The HHS regulation is codified at 42 CFR 73.0, and
the USDA regulation at 7 CFR 331 and 9 CFR 121. In addition to the provisions
discussed above, all labs possessing select agents are required to submit detailed
security, training, and record-keeping plans in order to be registered. Individuals
given access to select agents must undergo background investigations conducted by
the Federal Bureau of Investigation.
In March 2005, a laboratory certification organization inadvertently sent a
sample of a highly pathogenic influenza strain to thousands of laboratories around
the world. While no one became ill as a result, policymakers asked why such an
error had occurred despite heightened controls. In fact, the Select Agent rule did not
apply in this situation because this strain of human influenza is not included on the
list of HHS select agents. However, highly pathogenic strains of avian influenza

---

CRS-13
(“bird flu”), including the H5N1 strain now causing concern in Asia and Europe, are
included on the USDA list. When scientists from the CDC and the Armed Forces
Institute of Pathology recently re-created the 1918 pandemic flu virus, since it was
a human influenza strain, it was not on the Select Agent list. It was subsequently
added by HHS Secretary Leavitt on October 20, 2005. Other flu strains that typically
affect humans — but not birds — remain unregulated at this time. Some have
questioned whether human influenza strains should be included.
Congress expanded the Select Agent program in response to concerns that the
anthrax used in the 2001 mail attacks may have been obtained from a U.S. research
facility. Lawmakers sought to improve lab security without unduly impeding vital
biomedical and biodefense research. While some academic and industry scientists
have praised the government for striking an appropriate balance between science and
security, others have been critical, saying that the regulations are burdensome and
costly, and would not substantially improve security. Some scientists have
discontinued research on select agents because of the security requirements and out
of fear that breaking the new law, even inadvertently, could result in stiff criminal
penalties. For example, as the anthrax attacks were unfolding in the fall of 2001,
officials at the Iowa State University destroyed their research collection of anthrax
strains, collected over decades, fearing they would not have the resources to properly
safeguard the collection in the new security climate.
Public Access to Scientific Information
Policies to provide access to scientific and technical information that protect the
nation against terrorist attacks require balancing issues of national security, scientific
communication, and constitutional and statutory protections that permit public access
to information used for accountability and oversight. Historically, the U.S.
government has used classification procedures to protect scientific and technical
information that might compromise national security. Fundamental scientific
information whose release does not compromise security is to remain unclassified
pursuant to Executive Order 12958 and National Security Decision Directive 189.
After the 2001 terrorist attacks, the government widened controls on access to
information and scientific components. Policies are being implemented to control
access to federally owned information labeled “sensitive but unclassified” (SBU) or
“sensitive homeland security information” (SHSI). This includes information that
agencies previously posted on websites or made available upon request.
Consideration is being given to preventing publication of some non-federally owned
scientific and technical information.
Some critics say that criteria for identifying SBU information have not been
defined clearly, causing inconsistency among agencies and complicating the design
and implementation of policies to access and safeguard such information. White
House directives and federal agencies have used the term SBU in various ways to
label and control information. Some agencies refer to definitions for controlled
information, such as for “sensitive,” found in the Computer Security Act, or to
information exempt from disclosure through the Freedom of Information Act (FOIA)
or the Privacy Act. Those laws gave agencies some discretion and permitted use of
risk analysis to identify information to be safeguarded. Pursuant to the Federal
Information Security Management Act of 2002 (FISMA), the National Institute of

---

CRS-14
Standards and Technology (NIST) has developed guidance for agencies to identify
and use risk-based criteria to control access to unclassified, including sensitive,
information and information systems. These were to become mandatory in
December 2005, but NIST’s release of all required documentation has been delayed
for a few months.
P.L. 107-296, the Homeland Security Act, requires the President to prescribe
and implement procedures for agencies to identify and safeguard sensitive but
unclassified homeland security information (Secs. 891 and 892). OMB had planned
to issue related guidance in 2003; on July 29, 2003, in Executive Order 13311, the
President delegated his responsibility for preparing such guidance to the DHS
Secretary; guidance has not been issued as of January 2006. On December 16, 2005
the President instructed federal agencies by memorandum to standardize procedures
to designate, mark, and handle SBU information, and to forward recommendations
for government-wide standards to the Director of National Intelligence (DNI). In
2004, DHS promulgated rules for safeguarding its own sensitive unclassified
information and that provided to it by other agencies and nongovernmental entities.
Issues of possible interest to Congress include whether agencies, which have some
discretion to identify SBU, are using uniform criteria to identify such information,
to control it, and to permit access to it while protecting information that should be
withheld; design of an appeals process since the information is not classified;
assessment of the pros and cons of wider SBU controls in relation to accountability;
and possible classification of federally-owned basic research information, since heads
of some agencies performing basic research were given original classification
authority. Legislation has been introduced on these issues and the Government
Accountability Office is inventorying federal agency use of SBU procedures.
The federal government has traditionally supported the open publication of
federally funded, extramural research results conducted by nongovernmental
scientists. In cases where release of fundamental research results might compromise
national security (e.g. atomic energy and cryptography research), federal policy
prescribes the use of classification to limit dissemination. A series of research
publications have increased concern whether publication of some federally funded
extramural research results could threaten national security. As a result, some have
suggested that such research results should be reviewed for security implications
before publication, while others say that such review would damage scientific
progress and productivity. Most scientists and publishers have begun to implement
voluntary self-regulatory measures regarding publication of potentially sensitive
manuscripts, but these efforts may not be considered stringent enough. The
Department of Health and Human Services, following select recommendations
presented by the National Academies report, Biotechnology Research in an Age of
Terrorism, established the National Science Advisory Board for Biosecurity to
provide guidance for the identification of research that may require special security
attention. The controls designed by professional groups undoubtedly will be guided
by federal policy as it develops.
For Further Information
CRS Report RL31695, Balancing Scientific Publication and National Security
Concerns: Issues for Congress

---

CRS-15
CRS Report RL31845, ‘Sensitive But Unclassified’ and Other Federal Security
Controls on Scientific and Technical Information: History and Current
Controversy
Information Technology Management for the
Department of Homeland Security
One of the biggest challenges facing the Department of Homeland Security
(DHS) is the ongoing effort to consolidate the computer and communications systems
of the 22 agencies that comprise the Department. In many respects, DHS functions
as a virtual department, connecting new and existing agencies into a network that
capitalizes on their knowledge assets to facilitate information sharing and enhanced
communication. Organizationally, this involves breaking down the “stovepipes” that
have previously separated the agencies and developing an encompassing
organizational culture that promotes cooperation and information sharing.
Technologically, this involves integrating existing systems and infrastructures while
simultaneously infusing new technologies as they become available. Rigorous
oversight of these activities is continuing in the 109th Congress.
A critical variable that will contribute to the success or failure of these
objectives is the development and implementation of an enterprise architecture for
the Department. An enterprise architecture serves as a blueprint of the business
operations of an organization, and the technologies needed to carry out these
functions. It is designed to be comprehensive and scalable, to account for future
growth needs.
As the Department moves forward with its enterprise architecture plans, it will
encounter several issues. Its enterprise architecture is being used to identify common
functions and eliminate redundancies among its component agencies. This requires
making choices between competing systems and reallocating resources and staff
accordingly. In doing so, DHS will need to improve the interoperability of its
systems as well, by selecting common data formats, equipment, and processes. This,
in turn, would enable DHS to carry out its information sharing responsibilities, as
described in the Homeland Security Act and the National Intelligence Reform Act of
2004. Since some of these information sharing initiatives involve agencies and
organizations at the federal, state, and local levels, as well as agencies within the
Department, additional coordination with these external partners is necessary to
ensure the smooth flow of information and compliance with security procedures.
Other oversight issues Congress is considering include the authority and influence
of the DHS chief information officer (CIO), IT funding, information security,
outsourcing, and technology development. In addition, in light of the
interrelationships between DHS and other departments, the impact of the DHS
enterprise architecture on related e-government initiatives currently underway has
also attracted interest.
Data Mining
Data mining has emerged as one of the key features of many homeland security
initiatives, and an issue that is attracting strong congressional oversight. Data mining

---

CRS-16
involves the use of data analysis tools to discover previously unknown, valid patterns
and relationships in large data sets. In the context of homeland security, data mining
is often viewed as a potential means to identify terrorist activities, such as money
transfers and communications, and to identify and track individual terrorists
themselves, such as through travel and immigration records.
Data mining is carried out in both the private and public sectors. Some common
uses include detecting fraud, assessing risk, and measuring and improving program
performance. While data mining represents a substantial advance in the type of
analytical tools currently available, some of the homeland security data mining
applications represent a significant expansion in the quantity and scope of data to be
analyzed, compared to earlier efforts. Since September 2001, there have been a
number of initiatives to use data mining to identify potential terrorists and/or
terrorist-related activities that have attracted a high level of congressional interest.
Some of these initiatives include DARPA’s Total Information Awareness (TIA)
program and the U.S. Army’s Able Danger project, both of which are reported to
have been discontinued; and the proposed Computer Assisted Passenger Prescreening
System II (CAPPS II) project, which is being replaced by the Secure Flight passenger
screening program, administered by the Transportation Security Administration.
Most recently, some Members of Congress have called for a broader congressional
review of domestic data mining activities following the public revelation of reported
ongoing data collection and sharing activities by the National Security Agency (NSA)
in an attempt to identify potential terrorists who may be in the United States.
While technological capabilities are important, there are other implementation
and oversight issues that can influence the success of a data mining project’s
outcome. One issue is data quality, which refers to the accuracy and completeness
of the data being analyzed. A second issue is the interoperability of the data mining
software and databases being used by different agencies. Interoperability is a critical
part of the larger efforts to improve interagency collaboration and information
sharing through e-government and homeland security initiatives. A third issue is
privacy. Questions being considered include the degree to which government
agencies should use and mix commercial data with government data, whether data
sources are being used for purposes other than those for which they were originally
designed, and applicability of the 1974 Privacy Act to these initiatives.
For Further Information
CRS Report RL31798, Data Mining: An Overview
Technology Development Issues
Technological Innovation and the Economy:
Impact of Federal R&D Funding
Technological advancement is an important factor in the nation’s economic
growth. Experts widely accept that technical progress is responsible for up to one-
half the growth of the U.S. economy and is one principal driving force for increases

---

CRS-17
in our standard of living. Historically, industrial expansion was based on the use of
technology to exploit natural resources. Today, such growth tends to be founded on
scientific discoveries and engineering knowledge and is even more dependent than
before on the development and use of technology. Technology can drive the
economy because it contributes to the creation of new goods and services, new
industries, new jobs, and new capital. It can expand the range of services offered and
extend the geographic distribution of those services. The application of technologies
also can contribute to the resolution of those national problems that are amenable to
technological solutions.
Technological progress is achieved through innovation, the process by which
industry provides new and improved products, manufacturing processes, and
services. Research and development are important to this technological advancement
in many ways. R&D contributes to economic growth by its impact on productivity.
Generally, productivity growth in an industry or a firm is related to the amount spent
previously on R&D in that industry or company. Analysts estimate that one-half of
productivity increases (output per person) are the result of investments in research
and development (see CRS Report RL32324). Others argue that innovations arising
from R&D are the most important ones. Profound changes in our society have been
brought about by advances in research, resulting in new products and processes in the
areas of medicine, semiconductors, computers, and materials, just to name a few.
Traditionally, the government funds R&D to meet the mission requirements of
the federal departments and agencies. The government also supports work in areas
where there is an identified need for research, primarily basic research, not being
performed in the private sector. Basic research, that work undertaken to gain
knowledge and understanding of the fundamental aspects of nature, is the foundation
of many important new innovations. However, the payoff for basic research is
generally long in coming, the results may be unmarketable, and the rewards often
diffused among many users. Yet, while basic research is usually performed with
little certainty that it will produce goods and services in the future, it appears that
there is a significant relationship between the conduct of basic research and increases
in productivity.
Federal funding reflects a consensus that while basic research is important for
innovation, the rate of return to society as a whole generated by investments in this
activity is significantly larger than the benefits that can be captured by any one firm
performing it. It is estimated that the social rate of return on R&D spending is over
twice that of the rate of return to the inventor. Ideas often can be easily imitated, the
knowledge associated with an innovation dispersed and adapted to other products and
processes. This, it is argued, often leads to underinvestment in research by the
private sector and thus the need for federal funding.
Expert analysis has shown the importance of federally funded R&D to
advancements in innovation (see CRS Report RL32076). Studies undertaken by
economists in the field demonstrate that collaboration with publicly funded research
organizations increased private sector productivity in many industries, findings that
parallel additional work showing the importance of public science to innovation and
technological advancement across industrial sectors. This federal R&D stimulates

---

CRS-18
the additional and often substantial private investment necessary to bring new and
improved technologies to the marketplace.
In the United States, the development of new products, processes and services
for the commercial marketplace is primarily a private sector activity. The
government generally becomes involved only for certain limited purposes, including
activities that typically have been determined to be necessary for the “national good”
but which cannot, or will not, be supported by industry. However, government plays
a role in structuring the environment in which business decisions are made and
thereby influences private sector behavior. Direct federal funding and the existence
of government markets for certain technologies, including defense and information
technology-related goods, have helped influence resource allocations in the business
community.
The myriad effects of federal research and development spending on innovation
and the economic growth generated by technological advancement highlight the
importance of decisions regarding the amount and distribution of federal R&D funds.
Choices made by the 109th Congress related to financing the research endeavor may
have immediate impacts on current programs as well as long term effects on the
nation’s technological progress.
For Further Information
CRS Issue Brief IB91132, Industrial Competitiveness and Technological
Advancement: Debate Over Government Policy
CRS Report RL32324, Federal R&D, Drug Discovery, and Pricing: Insights from
the NIH-University-Industry Relationship
CRS Report RL32076, The Bayh-Dole Act: Selected Issues in Patent Policy and the
Commercialization of Technology
R&D Partnerships and Intellectual Property
A major emphasis of R&D-related legislative activity has been to augment
research in the private sector through efforts to encourage firms to undertake
cooperative R&D arrangements. Various laws, including the Stevenson-Wydler
National Technology Innovation Act (P.L. 96-418) and the “Bayh-Dole” Act (P.L.
96-517), as amended, have created an environment conducive to joint ventures
between government and industry, or between industry and universities, as well as
among companies. To date, Congress has determined that providing title to
inventions made under federal funding to contractors and/or collaborating parties
should be used to support innovation. In return for patent ownership, Congress has
accepted as satisfactory the anticipated payback to the country through goods and
services to improve our health, welfare, and standard of living. These benefits have
been considered more important than the initial cost of the technology to the
government or any potential unfair advantage of one company over another in a
cooperative venture.
As such cooperative efforts become more widespread, new and additional issues
have emerged. Concerns have been expressed regarding the cost of drugs developed
in part with federal funding or in conjunction with federal agencies. Conflicts have

---

CRS-19
surfaced over federal laboratories patenting inventions that collaborating parties
believe to be their own. In some agencies, delays continue in negotiating cooperative
research and development agreements (CRADAs) because of disagreements over the
dispensation of intellectual property. Questions have been raised as to the effects of
patenting early stage discoveries (e.g. research tools) on additional innovation. The
National Institutes of Health has encountered difficulties obtaining for government-
sponsored research new experimental compounds developed and patented by drug
companies because of concerns over diminished effectiveness of the intellectual
property if additional applications are discovered. Given these issues, additional
decisions may need to be made during the 109th Congress regarding the way to
maintain a balance between the importance of bringing new products and processes
to the marketplace and protecting the public investment in R&D.
For Further Information
CRS Issue Brief IB89056, Cooperative R&D: Federal Efforts to Promote Industrial
Competitiveness
CRS Issue Brief IB85031, Technology Transfer: Use of Federally Funded Research
and Development
CRS Report RL32076, The Bayh-Dole Act: Selected Issues in Patent Policy and the
Commercialization of Technology
CRS Report RL30320, Patent Ownership and Federal Research and Development
(R&D): A Discussion of the Bayh-Dole Act and the Stevenson-Wydler Act
CRS Report RL32324, Federal R&D, Drug Discovery, and Pricing: Insights From
the NIH-University-Industry Relationship
CRS Report 98-862, R&D Partnerships and Intellectual Property: Implications for
U.S. Policy
Advanced Technology Program
The Advanced Technology Program (ATP) was created by P.L. 100-418, the
Omnibus Trade and Competitiveness Act of 1988, to encourage public-private
cooperation in the development of pre-competitive technologies with broad
application across industries. Administered by the National Institute of Standards
and Technology (NIST), a laboratory of the Department of Commerce, this activity
has been targeted for elimination as a means to cut federal spending. Critics argue
that R&D aimed at the commercial marketplace should be funded by the private
sector, not by the federal government. Others stress that ATP is market driven and
that investments in research are shared by industry and the public sector.
Beginning several years ago, the House of Representatives attempted to
terminate ATP but strong support provided by the Senate led to continued funding.
The Bush Administration also proposed eliminating the program in its FY2002,
FY2004, FY2005, and FY2006 budget requests. These actions have renewed the
debate over the role of the federal government in promoting commercial technology
development. In arguing for less direct federal involvement, opponents of the
Advanced Technology Program believe that the market is superior to government
in deciding which technologies are worthy of investment. They prefer mechanisms
that enhance the market’s opportunities and abilities to make such choices. It is also
suggested that agency discretion in selecting one technology over another can lead

---

CRS-20
to political intrusion and industry dependency. On the other hand, supporters of
direct methods maintain that reliance on indirect measures can be wasteful,
inefficient, and ineffective and can compromise other goals of public policy in the
hope of stimulating innovative performance. Proponents of ATP argue that it is
important to put the nation’s scarce resources to work on those technologies which
will have the greatest promise as determined by industry and supported by the private
sector’s willingness to match federal funding. They assert that the government serves
as a catalyst for companies to cooperate and undertake important new work, which
would not be possible without federal participation. As Congress proceeds with the
appropriations process in the 109th Congress, these issues are expected to be debated
once again.
For Further Information
CRS Issue Brief IB91132, Industrial Competitiveness and Technological
Advancement: Debate Over Government Policy
CRS Report 95-36, The Advanced Technology Program
CRS Report 95-50, The Federal Role in Technology Development
Prescription Drugs: Costs, Availability, and Federal R&D
Congressional interest in methods to provide prescription drugs at lower cost,
particularly for the elderly, has focused attention on achieving a balance between the
public’s interest in new and improved technologies and concern over providing
companies valuable benefits without adequate accountability or compensation. The
federal government has various programs and policies facilitating the development
of pharmaceuticals and their availability in the marketplace. Several laws, including
the Stevenson-Wydler Technology Innovation Act and the Bayh-Dole Act, encourage
commercialization of federally-funded R&D through technology transfer, cooperative
R&D, and intellectual property rights (particularly patent ownership). These laws are
intended to stimulate the private sector investment often necessary to develop
marketable products utilizing the results of the government’s research enterprise.
Congress also has acted to encourage the development of lower cost generic
drugs through the Hatch-Waxman Act. This 1984 law made several significant
changes to the patent laws as they apply to pharmaceutical products in an attempt to
stimulate the search for innovative new drugs while providing less expensive generic
products. As a result of this legislation, generics generally are rapidly available after
patent expiration and at lower prices than their brand name predecessors.
Concurrently, given the increasing investment in pharmaceutical R&D and the gains
in research intensity of the pharmaceutical industry, it appears that, on balance, the
act has not deterred the search for, or the development of new drugs. However, Title
XI of the Medicare Prescription Drug and Modernization Act of 2003 (P.L. 108-173)
modified the Hatch-Waxman Act as it pertained to the listing of pharmaceutical
patents in the Orange Book maintained by the Food and Drug Administration, patent
challenges by generic firms, and the award of market exclusivity, among other things.
It remains to be seen how these provisions affect the availability and cost of
prescription drugs.

---

CRS-21
Concerns have been expressed by Members of Congress over whether the
current legislative approach to encouraging innovation, particularly with respect to
drug discovery, is appropriate. In the debate, some argue that the government’s
financial, scientific, and/or clinical support of biomedical R&D entitles the public to
commensurate considerations in the prices charged for any resulting drugs. Others
view government intervention in price decisions based upon initial federal R&D
funding as contrary to a long-term trend of government promotion of innovation,
technological advancement, and the commercialization of technology by the business
community. Supporters of existing incentives for technology development argue that
they have given rise to robust pharmaceutical and biotechnology industries. Critics
maintain that the need for such incentives in the pharmaceutical and/or biotechnology
sectors is mitigated by industry access to government-supported work at no cost,
monopoly power through patent protection, and additional regulatory and tax
advantages such as those conveyed through the Hatch-Waxman Act. At issue, is
which legislative initiatives, if any, can actually reduce the cost of safe and effective
prescription drugs to individuals in the United States and what may be the long-term
effects of these efforts on innovation in the pharmaceutical industry.
For Further Information
CRS Report RL32377, The Hatch-Waxman Act: Legislative Changes Affecting
Pharmaceutical Patents
CRS Report RL30756, Patent Law and Its Application to the Pharmaceutical
Industry: An Examination of the Drug Price Competition and Patent Term
Restoration Act of 1984
CRS Report RL31379, The Hatch-Waxman Act: Selected Patent-Related Issues
CRS Report RL32076, The Bayh-Dole Act: Selected Issues in Patent Policy and the
Commercialization of Technology
CRS Report RL32324, Federal R&D, Drug Discovery, and Pricing: Insights From
the NIH-University-Industry Relationship
CRS Report RL30320, Patent Ownership and Federal Research and Development
(R&D): A Discussion of the Bayh-Dole Act and the Stevenson-Wydler Act
CRS Report RL32400, Patents and Drug Importation
Telecommunications and Information Technology
Issues
Telecommunications Act of 1996 Revision
The Telecommunications Act of 1996, signed into law on February 8, 1996
(P.L. 104-104), represented the first major rewrite of our nation’s
telecommunications policy. The 1996 Act redefined and recast the 1934
Communications Act to address the emergence of competition in what were
previously considered to be monopolistic markets. Despite its relatively recent
enactment, however, a consensus has been growing that the 1996 Act is inadequate
to address the convergence and technological changes now facing the
telecommunications and broadcasting sectors. Whether a further rewrite is required,
what form such a rewrite might take, and the timing of a rewrite, remains unclear;

---

CRS-22
however, both the House and Senate are expected to continue to take an active role
in examining and debating the issues related to a possible revision of existing
telecommunications law. Included among the policy issues likely to be examined are:
the universal availability of and access to broadband, the regulatory treatment of
incumbent cable and telecommunications providers and the impact of recent mergers,
the funding of and eligibility criteria for the universal service fund (USF), the impact
and regulatory treatment of newly emerging technologies such as voice over internet
protocol (VoIP) and broadband over power lines (BPL), municipal deployment of
broadband, and the relationship between the Federal Communications Commission
(FCC) and state regulatory bodies.
For Further Information
CRS Report RL32949, Communications Act Revisions: Selected Issues for
Consideration
CRS Report RL33034, Telecommunications Act: Competition, Innovation, and
Reform
CRS Issue Brief IB10045, Broadband Internet Access: Background and Issues
CRS Report RL32421, Broadband Over Powerlines: Regulatory and Policy Issues
Broadband Internet Regulation and Access
Broadband Internet access gives users the ability to send and receive data at
speeds far greater than conventional “dial up” Internet access over existing telephone
lines. Broadband technologies — cable modem, digital subscriber line (DSL),
satellite, and fixed wireless Internet — are currently being deployed nationwide
primarily by the private sector. While President Bush has set a goal of universal
broadband availability by 2007, some areas of the nation — particularly rural and
low-income communities — continue to lack full access to high-speed broadband
Internet service. In order to address this problem, the 109th Congress is considering
the scope and effect of federal broadband financial assistance programs (including
universal service), and the impact of telecommunications regulation and new
technologies on broadband deployment.
Some policymakers, believing that disparities in broadband access across
American society could have adverse economic and social consequences on those left
behind, assert that the federal government should play a more active role to avoid a
“digital divide” in broadband access. One approach is for the federal government to
provide financial assistance to support broadband deployment in underserved areas.
Others, however, question the reality of the “digital divide,” and argue that federal
intervention in the broadband marketplace would be premature and, in some cases,
counterproductive. Another issue under examination is whether present laws and
subsequent regulatory policies are needed to ensure the development of competition
and its subsequent consumer benefits, or conversely, whether such laws and
regulations are overly burdensome and discourage needed investment in and
deployment of broadband services.
Finally, emerging broadband technologies — such as wireless (including “3G”,
“wi-fi” and “Wimax”) and broadband over power lines (BPL) — continue to be
developed and/or deployed, and have the potential to affect the regulatory and market

---

CRS-23
landscape of broadband deployment. Congress and the FCC will likely consider
policies to address the emergence of these and other new broadband technologies.
For Further Information
CRS Issue Brief IB10045, Broadband Internet Access: Background and Issues
CRS Report RL30719, Broadband Internet Access and the Digital Divide: Federal
Assistance Programs
CRS Report RL32421, Broadband over Powerlines: Regulatory and Policy Issues
CRS Report RS20993, Wireless Technology and Spectrum Demand: Advanced
Wireless Services
CRS Report RL32985, Defining Cable Broadband Internet Access Service:
Background and Analysis of the Supreme Court’s Brand X Decision
Transition to Digital Television
Digital television (DTV) is a new service representing the most significant
development in television technology since the advent of color television in the
1950s. DTV can provide sharper pictures, a wider screen, CD-quality sound, better
color rendition, multiple video programming or a single program of high definition
television (HDTV), and other new services currently being developed. Congress and
the FCC set a target date of December 31, 2006 for broadcasters to transition to DTV,
cease broadcasting their analog signals, and return their existing analog television
spectrum licenses to be auctioned for commercial services (such as broadband) or
used for other purposes, such as public safety telecommunications. If and when
analog TV signals are turned off, consumers will not be able to receive over-the-air
television broadcast signals unless they have a digital television or connect their
existing analog televisions to converter boxes.
The Balanced Budget Act of 1997 (P.L. 105-33) required the FCC to grant
extensions for reclaiming the analog television licenses in the year 2006 from stations
in television markets where at least 15% of television households do not receive
digital signals. Given the slower-than-expected pace at which digital televisions have
been introduced into American homes, few observers believe that the goal of digital
televisions in 85% of American homes by 2006 will be reached, with the result that
television stations would continue to broadcast both analog and digital signals past
the 2006 deadline. The key issue for Congress and the FCC is: what steps should be
taken by the government to further facilitate a timely, efficient, and equitable
transition to digital television?
Paramount in this debate is setting a “hard” and “date-certain” deadline for the
digital transition and addressing the millions of American over-the-air households
whose existing analog televisions will require converter boxes in order to receive
television service after analog signals are turned off. The FY2005 budget
reconciliation conference agreement (Deficit Reduction Act of 2005, S. 1932,
H.Rept. 109-362) sets the digital transition deadline at February 17, 2009, and
allocates up to $1.5 billion for a digital-to-analog converter box subsidy program.

---

CRS-24
Other issues related to the digital transition could possibly be addressed during
the second session of the 109th Congress. The conference agreement did not contain
language addressing the multicast must-carry issue or the broadcast flag. Also, the
conference agreement did not retain provisions in the House bill on digital to analog
conversion and must carry (the “downconversion” issue, which addresses cable and
satellite provision of broadcast signals to analog televisions).
For Further Information
CRS Report RL31260, Digital Television: An Overview
CRS Report RL32622, Public Safety, Interoperability and the Transition to Digital
Television
CRS Report RS22218, Spectrum Use and the Transition to Digital TV
CRS Report RS22106, Copyright Protection of Digital Television: The ‘Broadcast
Flag’
Spectrum Management and Wireless Technologies
Spectrum policy issues are characterized by economic, technological and
regulatory complexity. Spectrum, a valuable resource governed by available
technology, is regulated by the federal government with the primary objectives of
maximizing its usefulness and efficiency, and preventing interference among
spectrum users. To minimize interference, users are assigned radio frequencies
within spectrum bands allocated for defined uses. Spectrum policy covers both
satellite and terrestrial (primarily antenna-broadcast) transmissions. Members of
Congress, through hearings and public statements, have expressed a willingness to
address spectrum management issues.
The Intelligence Reform and Terrorism Prevention Act (P.L. 108-458) required
the Chairman of the Federal Communications Commission, in consultation with the
Secretary of Homeland Security and others, to prepare a study for Congress by year
end 2005 on public safety uses of spectrum. In the study requested by Congress, the
FCC sought comment on whether additional spectrum should be made available for
public safety, possibly from the 700 MHz band. (Report to Congress; on the study
to assess short-term and long-term needs for allocations of additional portions of the
electromagnetic spectrum for federal, state and local emergency response providers,
Federal Communications Commission, December 19, 2005.) Comments received
from the public safety community overwhelmingly supported the need for additional
spectrum, although other bands besides 700 MHz were also mentioned. The FCC did
not make a specific recommendation for additional spectrum allocations in the short-
term although it stated that it agreed that public safety “could make use of such an
allocation in the long-term to provide broadband services.” It further announced
that it would move expeditiously to see whether the current band plan for the 24
MHz at 700 MHz currently designated for public safety could be modified to
accommodate broadband applications.
Spectrum is integral to wireless technology and so its management is connected
to many issues that may be of interest to Congress. These include new technologies
such as “third-generation” (3G) cell phone services, wireless Internet, mesh

---

CRS-25
networks, software-defined radio (SDR), Ultra-Wideband (UWB) and location-
finding technology. The latter includes applications for wireless enhanced 911.
CRS Report RL32594, Public Safety Communications Policy
CRS Report RL31764, Spectrum Management: Auctions
CRS Report RS21508, Spectrum Management and Special Funds
CRS Report RS22218, Spectrum and the Transition to Digital TV
CRS Report RL32408, Spectrum Policy: Public Safety and Wireless
Communications Interference
CRS Report RS20993, Wireless Technology and Spectrum Demand: Advanced
Wireless Services
Networking Information Technology R&D
At the federal level, almost all of the funding for information science and
technology and Internet development is part of a single government-wide initiative,
the Networking and Information Technology Research and Development program
(NITRD). This program was previously (1997-2000) called the Computing,
Information, and Communications program (CIC) and, prior to that (1992-1997), the
High Performance Computing and Communications program (HPCC). The NITRD
is an interagency effort to coordinate key advances in information technology (IT)
research and leverage funding into broader advances in computing and networking
technologies. Under the NITRD, participating agencies receive support for high-
performance computing science and technology, information technology software
and hardware, networks and Internet-driven applications, and education and training
for personnel.
The President’s FY2006 budget calls for $2.155 billion for the NITRD Program,
a 4.5% decrease from the FY2005 budget of $2.256 billion (See CRS Issue Brief
IB10130 for updated information). The majority of funding goes to the National
Science Foundation, National Institutes of Health, National Aeronautics and Space
Administration, Defense Advanced Research Projects Agency, and the Department
of Energy’s Office of Science.
Research emphases are focused on eight program component areas (also called
PCAs): High-End Computing (HEC) Infrastructure and Applications, HEC Research
and Development, Cyber Security and Information Assurance, Human Computer
Interaction and Information Management, Large Scale Networking, Software Design
and Productivity, High Confidence Software and Systems, and Social, Economic, and
Workforce Implications of IT and IT Workforce Development. Key issues facing
congressional policymakers include whether NITRD is accomplishing its goals and
objectives to enhance U.S. information technology research and development,
whether the funding level is appropriate or should be changed to reflect changing
U.S. priorities, and defining the private sector’s role in this initiative.
For Further Information
CRS Issue Brief IB10130, Federal Networking and Information Technology
Research and Development Program: Funding Issues and Activities

---

CRS-26
E-Health: Health Information Technology
The Institute of Medicine, the National Committee on Vital and Health
Statistics, and the Commission on Systemic Interoperability are among a growing
number of expert panels that have identified information technology (IT) as one of
the most powerful tools for reducing medical errors, lowering health costs, and
improving the quality of care. The U.S. health care industry lags well behind other
sectors of the economy in its investment in IT, despite growing evidence that the
electronic exchange of health information can play a critical role in addressing the
many challenges the industry faces. However, there are significant financial, legal,
and technical obstacles to the adoption of health IT systems. The issue for Congress,
in which there is broad bipartisan support for health IT, is how best to create
incentives for IT adoption throughout the health care industry.
On April 27, 2004, President Bush called for the widespread adoption of
interoperable electronic health records (EHRs) within 10 years so that health
information will follow patients throughout their care in a seamless and secure
manner. To help achieve that goal the President established the Office of the
National Coordinator for Health Information Technology (ONCHIT) within the
Department of Health and Human Services (HHS) to coordinate federal health IT
activities and work with the private sector on its health IT efforts. ONCHIT began
by developing a strategic framework for the nationwide implementation of
interoperable EHRs. That was followed by a request for public comment on how
best to develop a National Health Information Network (NHIN). There is broad
consensus among stakeholders that the NHIN should be a decentralized and Internet-
based architecture, built on a framework of open standards and policies.
ONCHIT recently awarded contracts to fund activities in four key areas: (1)
harmonizing health information standards, (2) certifying health IT products to ensure
consistency with standards, (3) addressing variation in privacy and security policies
that can pose challenges to interoperability, and (4) developing an architecture for
nationwide sharing of electronic health information. In another important
development, the HHS Secretary has established the American Health Information
Community, a 17-member public-private body that will provide input and
recommendations on the market-based transition to interoperable EHRs.
Congress has taken a number of important steps to promote health IT and is
poised to enact new legislation to boost federal investment and leadership in this
area. In November 2005, the Senate passed the bipartisan Wired for Health Care
Quality Act (S. 1418) which, among other things, would authorize grants to facilitate
widespread EHR adoption and the creation of regional health information networks.
Such networks are seen as a critical step towards the goal of interconnecting the
health care system nationwide. Competing health IT legislation has been introduced
in the House (H.R. 4157). Congress laid the groundwork for establishing an NHIN
when it enacted the 1996 Health Insurance Portability and Accountability Act
(HIPAA). HIPAA instructed the HHS Secretary to develop privacy standards to give
patients more control over the use of their medical information, and security
standards to safeguard electronic patient information against unauthorized access,
use, or disclosure.

---

CRS-27
Congress also may take up legislation (S. 1356, H.R. 3617) to introduce pay for
performance into Medicare’s payment systems. Basing a portion of the payment on
the quality of care would be a major shift in the way Medicare pays for many
products and services. Currently, Medicare pays health care providers the same
regardless of the quality of their services. Introducing pay for performance into
Medicare would have important implications for IT adoption. Many private sector
health plans and purchasers have incorporated IT use into their pay for performance
initiatives. Thus, adoption of IT in the clinical setting is included as one of the
measures used to financially reward providers on the basis of quality.
For Further Information
CRS Report RL32858, Health Information Technology: Promoting Electronic
Connectivity in Healthcare
CRS Report RS22310, Hurricane Katrina: HIPAA Privacy and Electronic Health
Records of Evacuees
E-Government
Electronic government (e-government) is an evolving concept, generally
referring to the integration of information technology, especially Internet-related
technology, into the delivery of government information and services. E-government
initiatives vary significantly in their breadth and depth from state to state and agency
to agency. A central issue is oversight of the coordination and implementation of the
disparate e-government initiatives across the federal government.
Pursuant to the July 18, 2001, OMB Memorandum M-01-28, an E-Government
Task Force created a strategy for achieving the Bush Administration’s e-government
goals [http://www.whitehouse.gov/omb/inforeg/egovstrategy.pdf]. In doing so, the
Task Force identified 23 interagency initiatives designed to better integrate agency
operations and information technology investments. These initiatives, sometimes
referred to as the Quicksilver projects, are grouped into five categories; government-
to-citizen (G2C), government-to-government (G2G), government-to-business (G2B),
internal effectiveness and efficiency, and addressing barriers to e-government
success. Examples of these initiatives include an e-authentication project led by the
General Services Administration (GSA) to increase the use of digital signatures, the
eligibility assistance online project (also referred to as GovBenefits.gov) led by the
Department of Labor to create a common access point for information regarding
government benefits available to citizens, and the Small Business Administration’s
One-Stop Business Compliance project, being designed to help businesses navigate
legal and regulatory requirements. A 24th initiative, a government wide payroll
process project, was subsequently added.
On December 17, 2002, President Bush signed the E-Government Act of 2002
(P.L. 107-347) into law. The law contains a variety of provisions related to federal
government information technology management, information security, and the
provision of services and information electronically. One of the most recognized
provisions involves the creation of an Office of Electronic Government within OMB.
The Office is headed by an Administrator, who is responsible for carrying out a

---

CRS-28
variety of information resources management (IRM) functions, as well as
administering the interagency E-Government Fund provided for by the law.
For the 109th Congress, some of the oversight issues attracting the most interest
include agency funding contributions for OMB-led e-government initiatives; the
development of a second generation of e-government initiatives based on the federal
government’s lines of business (LoB) - core business functions common to most
departments and agencies; efforts to develop a Federal Enterprise Architecture
(FEA); and the implementation of the E-Government Act, as well as efforts to
mediate the differences and capitalize on the similarities between e-government and
homeland security priorities. In addition, the movement to expand the presence of
government online raises as many issues as it provides new opportunities. Some of
these issues concern: security, privacy, management of governmental technology
resources, accessibility of government services (including “digital divide” concerns
as a result of a lack of skills or access to computers, or disabilities), and preservation
of public information (maintaining comparable freedom of information procedures
for digital documents as exist for paper documents). Although these issues are
neither new nor unique to e-government, they do present the challenge of performing
governance functions online without sacrificing the accountability of or public access
to government that citizens have grown to expect (see CRS Report RL31057). For
a discussion of evolving policies related to scientific and technical information
access, see the Public Access to Scientific Information section above.
For Further Information
CRS Report RS22194, Federal Enterprise Architecture and Information Technology
Management: A Brief Overview
CRS Report RL31057, A Primer on E-Government: Sectors, Stages, Opportunities,
and Challenges of Online Governance
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government
Open Source Software
Open source software refers to a computer program whose source code, or
programming instructions, is made available to the general public to be improved or
modified as the user wishes. In contrast, closed source, or proprietary, programs,
which comprise the majority of the software products most commonly used, are those
whose source code is not made available and can only be altered by the software
manufacturer. Some examples of open source software include the Linux operating
system and Apache Web server software.
The use of open source software by the federal government has been gaining
attention as organizations continue to search for opportunities to enhance their
information technology (IT) operations while containing costs. For the federal
government and Congress, discussion over the use of open source software intersects
several other issues, including, but not limited to, the development of homeland
security and e-government initiatives, improving government information technology
management practices, strengthening computer security, and protecting intellectual
property rights. In the 109th Congress, the discussion over open source software

---

CRS-29
revolves primarily around information security and intellectual property rights.
However, issues related to cost and quality are also of interest.

For proponents, open source software is often viewed as a means to reduce an
organization’s dependence on the software products of a few companies while
possibly improving the security and stability of one’s computing infrastructure. For
critics, open source software is often viewed as a threat to intellectual property rights
with unproven cost and quality benefits. So far, there appear to be no systematic
analyses available that have conclusively assessed security issues for closed source
versus open source software. In practice, computer security is highly dependent on
how an application is configured, maintained, and monitored. Similarly, the costs of
implementing an open source solution are dependent upon factors such as the cost
of acquiring the hardware/software, investments in training for IT personnel and end
users, maintenance and support costs, and the resources required to convert data and
applications to work in the new computing environment. Consequently, some
computer experts suggest that it is not possible to conclude that either open source
or closed source software is inherently more secure or more cost efficient.
The growing emphasis on improved information security and critical
infrastructure protection overall will likely be an influential factor in future decisions
on whether to implement open source solutions. The rapidly changing computer
environment may also foster the use of a combination of open source and closed
source applications, rather than creating a need to choose one option at the exclusion
of another.
For Further Information
CRS Report RL31627, Computer Software and Open Source Issues: A Primer
Wireless Privacy, Internet Privacy, and Spyware
Wireless telecommunications devices are ubiquitous. Some consumers, already
deluged with unwanted commercial messages ( “spam”) via computers that access
the Internet by traditional wireline connections, are concerned that such unsolicited
advertising is expanding to wireless communications, further eroding their privacy.
Another concern is that their cell phone numbers may soon become public because
some of the wireless service providers are creating a “wireless 411” phone directory.
Whether the service providers should be legally required to obtain customers’
consent before including their phone numbers in the directory, or if the service
providers should be allowed to charge customers a fee if they want an unlisted
number, is currently being debated. In addition, some cell phone records, including
phone numbers dialed and the caller’s location, are being sold on the Internet, raising
questions as to whether telephone companies are adequately safeguarding cell phone
records.
Internet privacy issues encompass a range of concerns. One is the monitoring
of electronic mail (e-mail) and Web usage by law enforcement officials or employers.
In the wake of the September 11, 2001 terrorist attacks, debate over the issue of
monitoring of e-mail and Web usage by law enforcement and government officials
has intensified, with some advocating increased tools for law enforcement to track

---

CRS-30
down terrorists, and others cautioning that fundamental tenets of democracy, such as
privacy, not be endangered in that pursuit. The USA PATRIOT Act (P.L. 107-56)
makes it easier for government and law enforcement officials to monitor Internet
activities, and for Internet Service Providers to voluntarily disclose the content of e-
mails under certain conditions. Congress is debating whether to extend the lifetime
of several provisions of the USA PATRIOT Act, including two that affect Internet
privacy (Sections 212 and 217), that otherwise will expire under sunset provisions
in the act.
Another Internet privacy issue, spyware, is also a focus of congressional
concern. There is no firm definition of spyware, but one example is software
products that include a method by which information is collected about the use of the
computer on which the software is installed, and the user. When the computer is
connected to the Internet, the software periodically relays the information back to the
software manufacturer or a marketing company. Some spyware traces a user’s Web
activity and causes advertisements to suddenly appear on the user’s monitor — called
“pop-up” ads — in response. Typically, users have no knowledge that the software
they obtained included spyware and that it is now resident on their computers.
Congress is debating what restrictions, if any, should be placed on spyware.
For Further Information
CRS Report RL31636, Wireless Privacy and Spam: Issues for Congress
CRS Report RL31408, Internet Privacy: Overview and Pending Legislation
CRS Report RL31289, The Internet and the USA PATRIOT Act: Potential
Implications for Electronic Privacy, Security, Commerce, and Government
CRS Report RL32706, Spyware: Background and Policy Issues for Congress
CRS Report RS22082, Identity Theft: the Internet Connection
Tsunamis and Other Emergencies: Forecasting and
Warning Systems
Tsunami Forecasting and Warning
Some U.S. lawmakers became concerned about the possible vulnerability of
U.S. coastal areas to tsunamis, and about the adequacy of early warning for coastal
areas of the far Pacific possessions and western Atlantic Ocean. These concerns stem
from the December 26, 2004, tsunami that devastated many coastal areas around the
northern Indian Ocean, where few tsunami early warning systems currently operate.
Others have questioned whether the risks for the United States justify such
expenditures, however.
On February 14, 2005, the Bush Administration committed $30 million over two
years to the National Weather Service to upgrade U.S. tsunami warning capabilities,
including expanded coverage for the Pacific Ocean and the U.S. Atlantic seaboard.
Passage of FY2005 emergency supplemental appropriations (P.L. 109-13) provided
$24.3 million toward that goal. Congress is considering how to deploy such systems,
including next generation tsunami detection buoys, additional coastal tidal-gages, and

---

CRS-31
telecommunications enhancements for the U.S. Geological Survey’s Global Seismic
Network, which detects underwater earthquakes that can generate tsunamis.
Many developed nations currently have the technological capacity to build
warning networks, and some have long established advanced emergency management
capabilities. Others, however, will have to rely on an international consolidation of
resources and expertise to develop local tsunami warning capacity; to educate
indigenous people and visitors about such disasters; and to learn to employ strategies
for adapting to such risks. Participation in the Global Environmental Observation
System of Systems (GEOSS) is one way the United States plans to meet global
tsunami warning challenges. The National Oceanic and Atmospheric Administration
(NOAA, part of the Department of Commerce) is the lead U.S. agency in the 61-
nation GEOSS program. In December of 2005 President Bush released a report
Tsunami Risk Reduction for the United States: A Framework for Action (July 2005)
prepared by the White House National Science and Technology Council outlining
necessary actions to reduce tsunami risk domestically and in U.S. territories in the far
Pacific Ocean and Carribean Sea.
For Further Information
CRS Report RL32739, Tsunamis: Monitoring, Detection, and Early Warning
Systems
CRS Report RS22109, The National Oceanic and Atmospheric Administration
(NOAA) Budget for FY2006: President’s Request, Congressional
Appropriations, and Related Issues
Technology for Warning Systems and Alerts
As was demonstrated on September 11, 2001, after the southeast Asian tsunami
on December 26, 2004, and again when Hurricane Katrina struck the Gulf Coast in
August 2005, the ability to provide effective communications before and after a
disaster is a critical factor in saving lives. Today, the two major alert systems in the
United Stares are the Emergency Alert System (EAS) and the NOAA Weather Radio
(NWR) All-Hazards Network (NOAA is the National Oceanic and Atmospheric
Administration, an agency of the Department of Commerce). The EAS is jointly
administered by the Federal Communications Commission and the Federal
Emergency Management Agency (FEMA). It depends on radio and television
broadcasters, as well as most cable operators, to provide information in times of
emergency. Widely used for local warnings about weather and other emergencies,
EAS has never been activated for a national emergency. The other mainstay for
emergency alerts is provided through the National Weather Service (NWS) of
NOAA. NWS sends alerts through the NWR All-Hazards Network. NOAA
continues to expand its weather alert system to include warnings for all hazards and
is working to expand the network to include all types of media. Several initiatives
are underway within the federal government to improve, expand, and integrate
existing warning systems. An important one — in terms of using, testing and
developing leading-edge technology — is the Integrated Public Alert and Warning
System (IPAWS), a public-private partnership in which the Department of Homeland
Security (DHS) has a leadership role.

---

CRS-32
Among the technologies proposed or being tested to expand broadcast
capabilities for emergency alerts are equipping cell phones with NOAA Weather
Radio receivers; developing data casting for digital broadcasting; and using cell
phone broadcasting technology. Data casting is a one-way broadcast transmission
using Internet Protocols. The broadcasts can carry voice and data, including videos,
graphics, and text messages. In an IPAWS pilot testing digital technologies, data
casting is being broadcast to digital televisions and antennae linked to computer
networks or directly to computers and laptops. Some advanced wireless phones and
other portable devices can receive digital TV broadcasts, as is being demonstrated in
several pilots. Some countries are advocating the use of cell broadcasting to send
alerts to cell phones based on location. The Netherlands, for example, requires cell
operators to transmit government warnings with cell broadcasts of text messages.
Satellite radio could also become part of the new era of digital signal alert systems.
XM Satellite Radio will broadcast emergency alerts to the D.C. region through a link
with the alert system of Arlington County, Virginia.
The convergence of communications technology, typified by the near-ubiquity
of the Internet and the wide availability of advanced wireless telephony, presages a
world of end-to-end communications for public safety communications, including
warning systems. The 9/11 Commission commented on the often inadequate
response of the 911 call centers serving New York City, and suggested that 911 call
centers be integrated into the emergency response team, in order to involve them in
providing up-to-date information and assistance to the public. In a bill enacted in
December 2004, Congress created an E-911 Implementation Coordination Office to
foster improvements in 911 call centers (P.L. 108-494, Title I).
CRS Report RL32527, Emergency Communications: The Emergency Alert System
and All-Hazard Warnings
CRS Report RL32939, An Emergency Communications Safety Net: Integrating 911
and Other Services
Geosciences Issues
Ocean Commissions: Ocean Science and Oceanic Affairs
In June 2003, the Pew Oceans Commission presented to Congress and the nation
26 recommendations in its final report, America’s Living Oceans: Charting a Course
for Sea Change. The report outlined a national agenda for protecting and restoring
our oceans. The final report of the U.S. Commission on Ocean Policy, An Ocean
Blueprint for the 21st Century, containing extensive recommendations on a
coordinated and comprehensive national ocean policy, was delivered to Congress and
the President on September 20, 2004.
Those reports cover an array of issues, such as law of the sea; national and
regional governance; federal organization, regulation, and enforcement; offshore
management regimes; funding for sound science, research and exploration and for
implementing commission recommendations; oceanic education; coastal and
watershed management; and ecosystem based management. Congress is in the

---

CRS-33
process of considering legislative responses to the findings and recommendations of
both commissions. Ancillary issues relate to questions about the timing and level of
the response and the fiscal implications and out-year budgetary impacts on current
and future ocean programs. While some argue that congressional action is more
pressing for major coastal and marine laws that are expiring or expired, others
counsel delay in reauthorization until Congress can draw from the reports. The same
law that created the U.S. Commission (P.L. 106-256) also required the President to
submit to Congress a statement responding to the commission’s recommendations
for a national policy on ocean and coastal resources. That statement, U.S. Ocean
Action Plan, was delivered to Capitol Hill on December 17, 2004. It was largely
limited to documenting current efforts. Many in the ocean community view the
Administration’s response as limited and are likely to seek more extensive action
through Congress, especially to address topics that are driving this interest. In the
current Congress, thus far, committees of relevant jurisdiction have adhered to their
own ocean action agendas, guided, in large part, by the Pew and U.S. Commission
reports, and have shown little interest in holding hearings to assess the
Administration’s statement.
Consideration has focused on organic legislation for the National Oceanic and
Atmospheric Administration (NOAA), a prominent recommendation in both
commission reports. Members have dealt with such organizational issues as
establishing NOAA as an independent agency, transferring NOAA to another
department, or maintaining the status quo in the Department of Commerce with
enhanced budget authority. The 109th Congress is also considering other ocean
matters, including ocean exploration; ocean and coastal observing systems; marine
debris research, prevention, and reduction; and ocean and coastal mapping
integration. Related issues have arisen, such as whether to: (1) provide additional
funds for ocean and coastal resource management, oceanic education, marine science,
and ocean research; (2) replace a fragmented administrative structure with a more
overall, coherent federal organization; or (3) adopt bold new approaches for
managing marine resources, such as setting aside large reserves from selected or all
uses. Omnibus legislation has been introduced in the House and Senate whose
contents encompass this broad array of crosscutting concerns. Hearings on that
legislation are anticipated in the second session of the 109th Congress.
For Further Information
CRS Issue Brief IB10132, Ocean Commissions: Ocean Policy Review and Outlook
Global Climate Change
Congress has maintained an active and continuing interest in the implications
of, and the issues associated with, possible global climate change for the United
States. Having received the required number of ratifications, the Kyoto Protocol to
the United Nations Framework Convention on Climate Change entered into force on
February 16, 2005, establishing binding commitments for reductions in greenhouse
gases. The United States “signed” the protocol, but then-President Clinton did not
submit it to the Senate for ratification. In March 2001, the Bush Administration
indicated its opposition to the Kyoto Protocol and essentially rejected it, citing
possible harm to the U.S. economy and lack of developing country participation.

---

CRS-34
On February 14, 2002, President Bush announced a U.S. policy framework for
global climate change, outlining a Climate Change Research Initiative (CCRI) and
a National Climate Change Technology Initiative (NCCTI), along with a new
Cabinet-level Committee on Climate Change Science and Technology Integration to
oversee their implementation. The CCRI focuses on short-term, policy-relevant
objectives of climate change science. A previously established U.S. Global Change
Research Program (USGCRP) supports long-term, fundamental, scientific research
objectives. Both the new CCRI and the existing USGCRP were combined for the
first time into the Climate Change Science Program (CCSP) in the FY2004 budget.
The FY2006 budget includes a total spending level of $1.891 billion for research
managed by the CCSP, which is $26 million (-1.4%) below the FY2005 funding
estimate of $1.917 billion. Included in the $1.891 billion CCSP funds are $180.6
million for the CCRI. While funding for the embedded CCRI experienced growth
over two fiscal years from FY2003 to FY2005, the FY2006 funding for CCRI at
$180.6 million is $36 million (-17%) less than the FY2005 funding estimate of
$216.7 million. That leaves FY2006 funding for the embedded USGCRP standing
at $1.710 billion, which is $10 million (+0.6%) above the FY2005 funding estimate
of $1.700 billion. There is some $3.069 billion in the FY2006 funding profile for
technology research and development in the NCCTI/Climate Change Technology
Program, an amount $79 million (+2.6%) above the FY2005 funding estimate of
$2.99 billion. Four reports currently serve as guidance documents for those
activities: Climate Change Science Program Strategic Plan (2003), Climate Change
Technology Program Strategic Plan Public Review Draft (2006), U.S. Climate
Change Technology Program: Technology Options for the Near and Long Term
(2005), and U.S. Climate Change Technology Program: Vision and Framework for
Strategy and Planning (2005). Release of the completed CCTP strategic plan is
expected sometime in 2006. Two issues of concern for Congress are the extent to
which spending for the CCRI and CCTP represent new money versus how much is
attributable to the reclassification of ongoing research and technology programs, and
whether the overall reduced level of funding may be deemed necessary or sufficient
to accomplish the work of the CCSP.
Discourse in Congress over the prospect of global warming and what the United
States could or should do about it has yielded, over the last several years, a range of
legislative proposals. Arguments have been presented that policy actions to reduce
emissions of carbon dioxide and other greenhouse gases should be taken now, in line
with the intent of the Kyoto Protocol. Alternative arguments have called for delay,
citing challenging issues that were regionally complex, politically delicate, and
scientifically uncertain; the need to expand technological options for mitigating or
adapting to the effects of any climate change; and the associated high cost of certain
mitigation schemes that would prematurely replace existing capital stock before the
end of its economic life. Issues before the 109th Congress include greenhouse gas
reduction and carbon dioxide emissions trading systems (see CRS Report RS22076
and CRS Report RL32721); energy issues relevant to climate change, especially
those associated with energy efficiency and alternative energy sources; carbon
sequestration technologies and methodologies; federal and national response
strategies vis-a-vis the prospect of abrupt climate change, climate change impacts,
and climate system surprises; performance and results of federal spending on climate
change science and technology programs, and, more broadly, on global change
research programs; long-term research and development programs to foster new

---

CRS-35
technologies to help stabilize greenhouse gas emissions; and efforts to promote
climate change technology deployment both here and abroad.
For Further Information
CRS Issue Brief IB89005, Global Climate Change
CRS Issue Brief IB10041, Renewable Energy: Tax Credit, Budget and Electricity
Production Issues
CRS Issue Brief IB10020, Energy Efficiency: Budget, Oil Conservation, and
Electricity Conservation Issues
CRS Report RL32997: Climate Change: Federal Expenditures for Science and
Technology
Energy and Water Issues
Hydrogen Fuel and Fuel Cell Vehicles
Hydrogen fuel and fuel cell vehicles have been the focus of increased attention,
especially with the announcement of the Hydrogen Fuel Initiative during the January
2003 State of the Union Address. Over five years, the Administration is seeking a
total funding increase of $720 million. This initiative would fund research on
hydrogen fuel and fuel cells for transportation and stationary applications, and would
complement the existing FreedomCAR initiative, which focuses research on the
development of advanced technologies for passenger vehicles. For FY2004,
Congress approved an increase of approximately $46 million for the initiatives. For
FY2005, Congress approved an additional $23 million above FY2004. In FY2006
Energy and Water Development Appropriations Act (P.L. 109-103), Congress
approved a slight increase ($3 million) above FY2005 — $73 million above FY2003.
In addition to appropriations legislation, on August 8, 2005, the President signed
the Energy Policy Act of 2005 (H.R. 6). Among other provisions, this bill includes
authorizations for hydrogen and fuel cell R&D. The energy bill authorizes a total of
$3.3 billion between FY2006 and FY2010. The bill also establishes tax credits for
the purchase of hydrogen-fueled and fuel cell vehicles, and for the installation of
hydrogen fueling infrastructure.
Issues facing Congress on hydrogen fuel and fuel cell vehicles include the proper
role of the government in the research and development of consumer products; the
ultimate viability of hydrogen and fuel cell technologies; the potential role for the
government in expanding hydrogen fueling infrastructure; safety standards, codes,
and liability concerns surrounding new technology and a new system for delivering
energy; and issues related to future market penetration of fuel cell vehicles.
For Further Information
CRS Report RS21442, Hydrogen and Fuel Cell Vehicle R&D: FreedomCAR and the
President’s Hydrogen Fuel Initiative

---

CRS-36
CRS Issue Brief IB10128, Alternative Fuels and Advanced Technology Vehicles:
Issues in Congress
Reprocessing of Spent Nuclear Fuel
Spent fuel from commercial nuclear reactors contains plutonium produced
during reactor operations and most of its original uranium. A fundamental issue in
nuclear policy is whether spent fuel should be “reprocessed” to extract plutonium and
uranium for new reactor fuel, or directly disposed of without reprocessing.
Proponents of nuclear power point out that spent fuel still contains substantial energy
that reprocessing could recover. However, reprocessed plutonium can also be used
in nuclear weapons, so federal support for reprocessing could undermine U.S. nuclear
nonproliferation policies, contend groups concerned about weapons proliferation.

In the 1950s and 1960s, the federal government expected that all commercial
spent fuel would be reprocessed, even though “light water reactors” — the type still
in use today — produced relatively little plutonium. The federal strategy called for
replacing light water reactors with “breeder reactors” that would convert uranium
into enough plutonium to fuel new commercial breeder reactors indefinitely.
Increased concern about weapons proliferation in the 1970s and the slower-
than-projected growth of nuclear power prompted President Carter to halt
commercial reprocessing efforts in 1977, along with a federal demonstration breeder
project. President Reagan restarted the breeder demonstration project, but Congress
halted project funding in 1983 while continuing to fund breeder-related research and
development in an “Advanced Liquid Metal Reactor” (or the Integral Fast Reactor).
To address proliferation concerns, this program would have used electrometallurgical
reprocessing to only partially separate plutonium and uranium. Congress stopped
funding breeder-reactor development in 1993, and reduced appropriations for
reprocessing research.
The Bush Administration’s 2001 National Energy Policy called for renewing
federal support for reprocessing, which the Department of Energy has implemented
through the Advanced Fuel Cycle Initiative (AFCI). The Energy Policy Act of 2005
(Sec. 953), calls for AFCI to evaluate proliferation-resistant fuel recycling and
transmutation technologies as an alternative to previously developed reprocessing
technologies. This program also supports the evaluation of alternative national
strategies for spent nuclear fuel and Generation IV advanced reactor concepts.
The President’s FY2006 budget request of $70.0 million in FY2006 was
increased an additional $10 million by Congress (P.L 109-103) to accelerate the
design activities associated with a proposed Engineering Scale Demonstration,
submit a spent nuclear fuel recycling technology plan by March 1, 2006, and select
a preferred technology no later than the end of FY2007.
The Bush Administration has yet to announce details an initiative tentatively
referred to as the Global Nuclear Energy Partnership, which is intended to give U.S.
vendors the opportunity to sell nuclear reactors to developing nations under the
condition that the Unites States would back the spent nuclear fuel for reprocessing.

---

CRS-37
For Further Information
CRS Issue Brief IB88090, Nuclear Energy Policy
CRS Report RL32163, Radioactive Waste Streams: An Overview of Waste
Classification for Disposal
Fusion Research: ITER
The ITER project is an international scientific collaboration to construct a
facility for fusion energy research. The international partners are China, the
European Union, India (joined December 2005), Japan, Russia, South Korea, and the
United States. Canada withdrew its participation in December 2003. A long-running
disagreement over where to build the facility was resolved in June 2005 with the
selection of a site in Cadarache, France, in preference to a site in Japan. (The United
States initially supported the Japanese site.) In 1998, the United States withdrew
from the design phase of ITER at congressional direction, largely because of
concerns about cost and scope. The project has since been restructured, and in
January 2003, the Administration announced its intention to reenter the project. The
U.S. share of the cost of building ITER (about 10%) is expected to be about $1.1
billion over eight years. Only a small portion of that would be required in FY2006
since the construction work site was only opened in December 2005. Once
construction is complete, the U.S. share of the cost of operating ITER is expected to
be about an additional $58 million per year. Key issues in the 109th Congress are the
cost of U.S. participation and the budget impact of ITER on the rest of the U.S.
fusion program.
Water Supply Technology and Energy-Water Efficiency
Water resources research represents 0.5% of the approximately $130 billion
annual federal R&D investment. This research is spread across almost twenty
agencies. A 2004 report by the National Research Council (NRC), Confronting the
Nation’s Water Problems: The Role of Research, called for a commitment to water
resources research to address the nation’s water problems, and suggested a central
role for federal research in informing water resources issues. In particular, the report
promoted both federally-funded research on water use and institutions, and a more
coordinated federal water research agenda.
Real levels of spending on water research have remained relatively constant, at
$700 million (in 2000 dollars) annually since the mid-1970s. Although the overall
level is constant, funding declined for some specific research categories, including
the water supply augmentation and conservation, water quality management and
protection, water resources planning and institutions, and water resource data. In
contrast, aquatic ecosystem research has increased substantially.
Growing demands on developed water supplies has increased interest in water
supply technologies, and desalination in particular. Desalination — the process of
removing dissolved solids (primarily dissolved salts and other minerals) from water
— has become an increasingly attractive water supply option as the cost of the
dominant technology in the nation — reverse osmosis — has fallen and the pressure

---

CRS-38
to develop new water supplies has grown. Opportunities for using desalination are
greatest for meeting water demands for coastal communities that can desalinate
seawater or estuarine water, interior communities above brackish groundwater
aquifers, and communities with contaminated water supplies. Desalination’s
attraction is that it can create a new source of freshwater from otherwise unusable
waters, and a more predictable source than freshwater supplies that rely more directly
on annual or multi-year precipitation, runoff, and recharge rates. The Bush
Administration has expressed support for current desalination research efforts aimed
at reducing costs, while criticizing bills seeking financial support for specific
desalination facilities.
Proposed legislation and enacted appropriations in the 109th Congress have
aimed to reverse the declining trend in federal research funds for desalination and
other water supply technologies. According to the 2004 NRC report, “water supply
augmentation and conservation” research by federal agencies totaled $14.5 million
in FY2000. In the past the federal government invested more in this area; in the late
1960s, federal research in desalination and other saline water conversion activities
exceeded $100 million (in 2000 dollars) annually. Increasing federal funding for
desalination research raises questions, such as: what should be the respective roles
of federal agencies, academic institutions, and the private sector in conducting
research and commercializing the results, and should federal research be focused on
basic research or promoting the use of technologies?
Biomedicine Issues
National Institutes of Health (NIH) Organization
and Management Issues
The National Institutes of Health (NIH), the primary medical research agency
of the federal government, is facing challenges in a number of areas that may interest
the Congress. In the budgetary arena, the past three years have been a time of rapid
transition from a period of marked growth in the NIH appropriation to the current
climate of restrained domestic discretionary spending. Over a five-year period,
Congress doubled the NIH budget, from $13.6 billion in FY1998 to $27.1 billion in
FY2003. After FY2003, growth slowed to below the rate of inflation, and the final
FY2006 level represents a drop in funding for the first time since FY1970. NIH’s
budget for FY2006 is $28.5 billion, a decrease of $81 million or 0.3% below the
FY2005 program level.
Since the doubling, the extramural research community has expressed its
concerns about the lack of growth in the NIH budget, asserting that sustained funding
is necessary to maintain support of research grants, keep young investigators in the
pipeline, and capitalize on the momentum of discoveries in both basic and applied
research. NIH has announced its FY2006 grant funding policies, which will involve
cutbacks in grant budgets and in numbers of grants, tight competition for new
awards, and possible postponement of some large projects previously anticipated,
including clinical trials. Advocates warn that research advances on the major chronic
conditions that burden our society, such as heart disease, cancer, stroke, and diabetes,

---

CRS-39
may be slowed. Other commentators advise that coping with the reality of budget
constraints will require NIH and the research community to rethink some of their
traditional approaches to planning and organizing research. The resources of the
doubling years have spurred development of unifying concepts of fundamental
biology and understanding of disease processes that formerly were thought to be
unrelated. Scientific leaders in and out of NIH urge critical examination of the best
ways to transform knowledge into medical applications and allocate resources into
the most critical priorities for return on the public’s investment.
A key factor in such rethinking is consideration of NIH’s organizational
structure, which has expanded markedly over time along with the growth in the
budget. The agency is comprised of 27 semi-autonomous institutes and centers,
loosely coordinated by the central Office of the Director. As new entities have been
created by Congress, each with its own mission, budget, staff, review office, and
other bureaucratic apparatus, the costs and complexities of administering the
enterprise have multiplied. Further, NIH wishes to emphasize a culture of inter-
disciplinary teamwork, but many observers fear that the present structure of multiple
independently operated institutes may undermine important initiatives in cross-
disciplinary research, especially in fields such as neurosciences. To address these
issues, NIH has been increasingly emphasizing an effort termed the “NIH Roadmap
for Medical Research” [http://nihroadmap.nih.gov]. Launched in September 2003,
the Roadmap has identified critical scientific gaps that may be constraining rapid
progress in biomedical research, and which no one institute can tackle alone. NIH-
wide priorities and initiatives have been developed in three broad areas, focusing on
new paths to biological discoveries, more interdisciplinary research, and improving
clinical research. Congress has already held a number of hearings on these issues,
and has been supportive of the goals of the Roadmap and of NIH’s efforts to improve
the management of its research portfolio.
The last major reauthorization of NIH was in 1993, although a number of laws
focusing on individual NIH-related topics have amended the Public Health Service
Act since then. Oversight hearings and discussions on a draft reauthorization bill
have considered questions such as NIH’s stewardship of its resources; the relative
roles of the NIH Director and the institutes; and the optimum alignment of budgetary
accounts, organizational structure, and statutory authority. Possible proposals for
change include giving the NIH Director’s Office more planning involvement and
budgetary control over cross-institute research initiatives, grouping the institutes and
centers differently for authorizations and/or appropriations, and, for the first time,
setting overall authorization levels for NIH. Some other areas of concern which
Congress might consider include improving public reporting of research results,
enhancing public access to scientific journal articles, and exploring ways to shorten
the process for young researchers to become independent investigators.
An ongoing oversight issue is NIH’s implementation of new conflict-of-interest
regulations. Depending on the level of their positions, NIH scientists and other
employees are subject to restrictions on their financial holdings and their ability to
consult with industry and outside interests and colleagues. Questions have been
raised about the impact of the ethics regulations on recruitment and retention of
employees.

---

CRS-40
For Further Information
CRS Report RL32799, Federal Research and Development Funding: FY2006
Human Cloning and Embryonic Stem Cell Research
Embryonic stem cells have the ability to develop into virtually any cell in the
body, and may have the potential to treat medical conditions such as diabetes and
Parkinson’s disease. Human embryonic stem cells are derived from very early
embryos (5-days-old) that were created by in vitro fertilization (IVF) either for
infertility treatment or for research purposes. Work on human embryonic stem cells
is controversial, as some oppose such research because the process of removing the
stem cells destroys the embryo.
Another potential source of embryonic stem cells involves cloning: the nucleus
of an egg is removed and replaced by the nucleus from a mature body cell, such as
a skin cell. The cell created via cloning is allowed to develop for five days and then
the stem cells are removed. Stem cells derived from cloned embryos may offer the
best hope for understanding and treating disease. Although South Korean scientists
had announced the creation of cloned human embryos and isolation of human stem
cells from cloned embryos, an investigation in December 2005 found that the results
had been fabricated — a major setback for the field. These developments and the
unsubstantiated announcement by Clonaid in December 2002 of the birth of a cloned
child have contributed to the controversy over research on human embryos.
One impediment to human stem cell research is the Dickey Amendment which
has been added to each Labor, HHS and Education appropriations act from FY1997
through FY2006. It prohibits HHS from using appropriated funds for the creation of
human embryos for research purposes or for research in which human embryos are
destroyed. As a result, federal funds cannot be used for most forms of human
embryo research including the isolation of new stem cell lines or the cloning of
human embryos for any purpose.
In August 2001 President Bush announced that, for the first time, federal funds
would be used to support research on human embryonic stem cells, but funding
would be limited to “existing stem cell lines.” The National Institutes of Health
(NIH) has established the Human Embryonic Stem Cell Registry which lists stem cell
lines eligible for use in federally funded research. Although 78 embryonic stem cell
lines are listed, only 22 are currently available. Subsequently the debate has centered
on whether the number of cell lines allowed under the Bush policy are sufficient to
permit U.S. research to remain internationally competitive in this very important new
technology. Scientists are concerned about the quality, longevity, and availability of
the 22 stem cell lines. For a variety of reasons, many believe research advancement
requires new embryonic stem cell lines. The Bush Administration established the
President’s Council on Bioethics in November 2001 to consider all of the medical
and ethical ramifications of biomedical innovation. In July 2002, the Council
released its report on human cloning, which unanimously recommended a ban on
reproductive cloning and, by a vote of 10 to 7, a four-year moratorium on cloning for
medical research purposes. The Council released a second report on the issue,
Monitoring Stem Cell Research, in January 2004.

---

CRS-41
In May 2005 the House passed H.R. 810 (Castle) that would allow federal
support of research using embryonic stem cells regardless of the date on which the
stem cells were derived from a human embryo, thus negating the current policy that
limits funding to stem cell lines in existence as of August 2001. Only excess IVF
embryos that the individuals seeking fertility treatments have determined will not be
implanted and will be discarded are eligible for stem cell derivation; written consent
is required. Action on H.R. 1357 (Weldon), a version of which passed the House in
the 108th Congress but not the Senate, is also likely. The bill bans the process of
cloning as well as the importation of any product derived from an embryo created via
cloning. It bans not only reproductive applications, but also research on therapeutic
uses, which has implications for stem cell research. Advocates of the legislative ban
say that allowing any form of human cloning research to proceed raises serious
ethical issues and will inevitably lead to the birth of a baby that is a human clone.
Critics argue that the measure would curtail medical research and prevent Americans
from receiving life-saving treatments created overseas. Legislation that bans only
human reproductive cloning has also been introduced, as well as bills focused on
alternative sources of stem cells. On December 20, 2005, the President signed
legislation which provides for the collection and maintenance of human cord blood
stem cells (a type of adult stem cell) for the treatment of patients and for research
(P.L. 109-129). For information on the status of 109th Congress legislation, see CRS
Report RL31015 and CRS Report RL31358.
For Further Information
CRS Report RL31358, Human Cloning
CRS Report RL31015, Stem Cell Research
CRS Report RL31422, Substantive Due Process and a Right to Clone
CRS Report RS21044, Background and Legal Issues Related to Stem Cell Research
CRS Report RL31142, Stem Cell Research and Patents: An Introduction to the
Issues
CRS Report RS21517, State Laws on Human Cloning
CRS Report RL31211, Cloning: A Select Chronology
Space and Aeronautics Issues
Impact of The “Vision for Space Exploration” on
NASA’s Aeronautics and Other Space Activities
On January 14, 2004, President George W. Bush announced a new Vision for
Space Exploration, directing NASA to focus its efforts on returning humans to the
Moon by 2020, and someday sending them to Mars and “worlds beyond.” (See CRS
Report RS21720.) The President’s plan calls for most of the funding for the Vision
to come from redirecting spending from other NASA activities. Advocates of
aeronautics, space science, and earth science research worry that funding for their
activities will suffer. In the FY2006 Science, State, Justice, Commerce
appropriations act (P.L.109-108), which includes NASA, and the 2005 NASA
authorization act (P.L. 109-155), Congress expressed its support for the Vision, but

---

CRS-42
stressed that NASA needs to maintain a balanced program that includes aeronautics
and science.
The amount of funding for various activities will affect workforce levels at the
nine NASA field centers around the country, and the Jet Propulsion Laboratory, a
Federally Funded Research and Development Center (FFRDC) operated for NASA
by the California Institute of Technology. NASA’s FY2006 budget request assumed
that the agency would cut about 2,500 civil service jobs by the end of FY2006.
NASA officials insist that there are no plans to close any NASA centers. The agency
is offering buy-outs and other incentives to encourage staff in certain disciplines to
leave, but to date these efforts have not achieved their targets. NASA officials
explain that everyone who currently is employed by NASA is funded through the end
of FY2006. How to “right size” NASA, its facilities, and its workforce, and ensure
NASA has the necessary skill mix for the Vision, are among the issues facing
Congress. The FY2006 appropriations act that includes NASA (P.L. 109-108)
restricts NASA’s use of buyouts and Reductions in Force (RIFs) prior to NASA
providing certain reports to Congress. The 2005 NASA authorization act (P.L. 109-
155) prohibits RIFs or other involuntary separations (except for cause) prior to March
16, 2007.
The Vision also calls for the space shuttle fleet to be retired in 2010. Placing a
fixed termination date on the shuttle system, however, may create schedule pressure
similar to what the Columbia Accident Investigation Board found to have contributed
to the February 2003 Columbia tragedy (see CRS Report RS21408). Also, retiring
the shuttle without another vehicle to replace it means that the United States would
be dependent on Russia to take American crews to and from ISS until a new “Crew
Exploration Vehicle” (CEV) is available. The President directed NASA to have the
CEV ready for Earth-orbital flights by 2014, although NASA Administrator Griffin
is taking action to accelerate the CEV’s development. Some argue that the shuttle
should be retained until the CEV is available, while others want to retire the shuttle
as soon as possible either so the funding can be redirected toward other aspects of the
Vision, or because of shuttle safety concerns. Meanwhile, the shuttle’s schedule
remains uncertain because of problems during the launch of the first Return to Flight
mission (STS-114) in July 2005. NASA indefinitely postponed the next shuttle
mission because of a foam-shedding event that occurred during STS-114’s launch
that is similar to what led to the loss of Columbia. The next launch is expected some
time in 2006.
NASA officials have indicated that NASA plans to complete its use of the ISS
by 2016. Under the Vision, the only U.S. research that will be conducted on ISS is
that needed to fulfill the Vision, i.e., to support human health and safety in exploring
the Moon and Mars. NASA spends about $2 billion a year on ISS, in addition to the
costs of the shuttle program (about $4-5 billion annually). Some question whether
ISS is worth that level of investment considering the modest research objectives that
remain. NASA is building ISS in partnership with Canada, Japan, Russia, and 10
European countries. Fulfilling U.S. commitments to those partners may be another
rationale for continued U.S. involvement.

---

CRS-43
For Further Information
CRS Report RS21720, Space Exploration: Overview of President Bush’s “Vision for
Space Exploration,” and Key Issues for Congress
CRS Report RS22063, The National Aeronautics and Space Administration:
Overview, FY2006 Budget in Brief, and Key Issues for Congress
CRS Issue Brief IB93026, Space Launch Vehicles: Government Activities,
Commercial Competition, and Satellite Exports
CRS Issue Brief IB93017, Space Stations
The Future of the Hubble Space Telescope
Two days after the President’s Vision speech (see above), NASA announced that
it would not use the space shuttle to conduct further servicing missions to the Hubble
Space Telescope (see CRS Report RS21767). Then-NASA Administrator Sean
O’Keefe cited shuttle safety concerns as the primary reason for his decision.
Widespread criticism led NASA to explore the possibility of a robotic servicing
mission, but a report from the National Research Council (NRC) in December 2004
concluded that a robotic servicing mission was unlikely to succeed in the time
available. The NRC recommended proceeding with a shuttle servicing mission
instead, but Mr. O’Keefe did not change his mind. Dr. Michael Griffin, who became
NASA Administrator in April 2005, has stated that he will reassess whether to use
the shuttle to service Hubble after the shuttle returns to flight status and flies two
successful missions. In the 2005 NASA authorization act (P.L.109-155), Congress
supported this plan “unless such a mission would compromise astronaut safety.” It
also required a status report on servicing plans within 60 days of the landing of the
second successful shuttle flight. Problems during the launch of the first RTF mission
in July 2005 led NASA to reground the shuttle fleet; a second mission is now
expected some time in 2006. It is not known what impact this delay will have on the
prospects for servicing Hubble. Meanwhile, cost estimates of $1 billion or more
have raised questions about the affordability of a servicing mission. Congress
provided $80 million in FY2006. Whether or not to service Hubble is a major issue
facing Congress.
For Further Information
CRS Report RS21767, Hubble Space Telescope: Should NASA Proceed with a
Servicing Mission?
National Security Space Programs
The Department of Defense (DOD) and the intelligence community conduct a
space program larger in terms of funding than NASA. It involves building and
launching satellites for communications, navigation, early warning of missile
launches, weather, intelligence collection, and other purposes. Tracking the overall
funding amount for the national security space program is difficult because it is not
consolidated into a single account. According to the DOD Comptroller’s office,
DOD requested $22.5 billion for space programs in FY2006. DOD has not released
a figure for how much was appropriated.

---

CRS-44
A number of DOD space programs are encountering cost growth and schedule
delays, including the Air Force’s Space Based Infrared System-High (SBIRS-High)
for early warning of missile launches, the Air Force’s Advanced Extremely High
Frequency (AEHF) communications satellite system, and the National
Reconnaissance Office’s (NRO’s) Future Imagery Architecture reconnaissance
satellite system. DOD requests to initiate new programs, including the
Transformational Satellite (T-SAT) communications satellite program, and a Space
Radar (formerly the “Space-Based Radar”) program, are controversial because of the
potentially large costs involved (and therefore their affordability), and concern as to
how to avoid the cost growth and schedule delays experienced in other DOD space
programs.
For Further Information
CRS Report RS21148, Issues Concerning DOD’s SBIRS and STSS Programs
CRS Issue Brief IB92011, U.S. Space Programs: Civil, Military, and Commercial
CRS Issue Brief IB93062, Space Launch Vehicles: Government Activities,
Commercial Competition, and Satellite Exports

---

CRS-45
Appendix: List of Acronyms
ATP
Advanced Technology Program
AFCI
Advanced Fuel Cycle Initiative
CBRN
Chemical, Biological, Radiological, and Nuclear (terrorism)
CCRI
Climate Change Research Initiative
CCSP
Climate Change Science Program
CDC
Centers for Disease Control and Prevention
DARPA
(Department of) Defense Advanced Research Projects Agency
DHHS
Department of Health and Human Services (alternatively,
HHS)
DHS
Department of Homeland Security
DOD
Department of Defense
DOE
Department of Energy
DTV
Digital Television
EHR
Electronic Health Records
FCC
Federal Communications Commission
FDA
Food and Drug Administration
FOIA
Freedom of Information Act
GAO
Government Accountability Office
GPRA
Government Performance and Results Act
GSA
General Services Administration
HHS
(Department of) Health and Human Services (alternatively,
DHHS)
IQA
Information Quality Act
IT
Information Technology
MEP
Manufacturing Extension Partnership
NAS
National Academy of Sciences (which together with the
National Academy of Engineering and the Institute of
Medicine form the “National Academies”)

---

CRS-46
NASA
National Aeronautics and Space Administration
NCCTI
National Climate Change Technology Initiative
NHIN
National Health Information Network
NIAID
National Institute of Allergy and Infectious Diseases (part of
NIH)
NIH
National Institutes of Health (part of the Department of Health
and Human Services)
NIST
National Institute of Science and Technology (part of the
Department of Commerce)
NITRD
Networking Information Technology R&D
NOAA
National Oceanic and Atmospheric Administration (part of the
Department of Commerce)
NSF
National Science Foundation
NSTC
National Science and Technology Council (part of OSTP)
OHS
Office of Homeland Security (in the White House)
OMB
Office of Management and Budget
ONCHIT
Office of the National Coordinator for Health Information
OSTP
Office of Science and Technology Policy
PART
Program Assessment Rating Tool
R&D
Research and Development
R&E
Research and Experimentation
RDT&E
Research, Development, Test and Evaluation
SBU
Sensitive But Unclassified
SHSI
Sensitive Homeland Security Information
USDA
U.S. Department of Agriculture
USGCRP
U.S. Global Change Research Program

---