II
118THCONGRESS
1
STSESSION S. 44
To require the Secretary of Energy to establish a program to incentivize
investment in facilities that carry out the metallurgy of rare earth ele-
ments and the production of finished rare earth products, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY24 (legislative day, JANUARY3), 2023
Mr. R
UBIOintroduced the following bill; which was read twice and referred
to the Committee on Energy and Natural Resources
A BILL
To require the Secretary of Energy to establish a program
to incentivize investment in facilities that carry out the
metallurgy of rare earth elements and the production
of finished rare earth products, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Obtaining National 4
and Secure Homeland Operations for Rare Earth Manu-5
facturing Act of 2023’’ or the ‘‘ONSHORE Manufac-6
turing Act of 2023’’. 7
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SEC. 2. DEFINITIONS. 1
In this Act: 2
(1) A
PPROPRIATE COMMITTEES OF CON -3
GRESS.—The term ‘‘appropriate committees of Con-4
gress’’ means— 5
(A) the Select Committee on Intelligence, 6
the Committee on Energy and Natural Re-7
sources, the Committee on Commerce, Science, 8
and Transportation, the Committee on Foreign 9
Relations, the Committee on Armed Services, 10
the Committee on Appropriations, the Com-11
mittee on Banking, Housing, and Urban Af-12
fairs, the Committee on Homeland Security and 13
Governmental Affairs, and the Committee on 14
Finance of the Senate; and 15
(B) the Permanent Select Committee on 16
Intelligence, the Committee on Energy and 17
Commerce, the Committee on Foreign Affairs, 18
the Committee on Armed Services, the Com-19
mittee on Science, Space, and Technology, the 20
Committee on Appropriations, the Committee 21
on Financial Services, the Committee on Home-22
land Security, and the Committee on Ways and 23
Means of the House of Representatives. 24
(2) C
OVERED ENTITY.—The term ‘‘covered en-25
tity’’ means a private entity, a consortium of private 26
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entities, or a consortium of public and private enti-1
ties with a demonstrated ability to substantially fi-2
nance, construct, expand, or technologically upgrade 3
a covered facility. 4
(3) C
OVERED FACILITY.—The term ‘‘covered 5
facility’’ means a facility located in a State that car-6
ries out the metallurgy of rare earth elements for 7
the production of finished rare earth products. 8
(4) C
OVERED INCENTIVE.—The term ‘‘covered 9
incentive’’ means— 10
(A) an incentive offered by a Federal, 11
State, local, or Tribal governmental entity to a 12
covered entity for the purposes of— 13
(i) constructing within the jurisdiction 14
of the governmental entity a covered facil-15
ity; or 16
(ii) expanding or technologically up-17
grading an existing facility within that ju-18
risdiction to be a covered facility; and 19
(B) a workforce-related incentive (includ-20
ing a grant agreement relating to workforce 21
training or vocational education), any conces-22
sion with respect to real property, funding for 23
research and development with respect to rare 24
earth elements and finished rare earth prod-25
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ucts, and any other incentive determined appro-1
priate by the Secretary, in consultation with the 2
Secretary of State. 3
(5) F
INISHED RARE EARTH PRODUCT .—The 4
term ‘‘finished rare earth product’’ means a product 5
composed of significant quantities of rare earth ele-6
ments, including— 7
(A) metals; 8
(B) alloys; and 9
(C) permanent magnets. 10
(6) F
OREIGN ENTITY.— 11
(A) I
N GENERAL.—The term ‘‘foreign enti-12
ty’’ means— 13
(i) a government of a foreign country 14
and a foreign political party; 15
(ii) a natural person who is not— 16
(I) a lawful permanent resident 17
of the United States; 18
(II) a citizen or national of the 19
United States; or 20
(III) any other protected indi-21
vidual (as defined in section 22
274B(a)(3) of the Immigration and 23
Nationality Act (8 U.S.C. 24
1324b(a)(3))); and 25
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(iii) a partnership, association, cor-1
poration, organization, or other combina-2
tion of persons organized under the laws of 3
or having its principal place of business in 4
a foreign country. 5
(B) I
NCLUSIONS.—The term ‘‘foreign enti-6
ty’’ includes— 7
(i) any person owned by, controlled 8
by, or subject to the jurisdiction or direc-9
tion of an entity described in subparagraph 10
(A); 11
(ii) any person, wherever located, who 12
acts as an agent, representative, or em-13
ployee of an entity described in subpara-14
graph (A); 15
(iii) any person who acts in any other 16
capacity at the order, request, or under the 17
influence, direction, or control, of— 18
(I) an entity described in sub-19
paragraph (A); or 20
(II) a person the activities of 21
which are directly or indirectly super-22
vised, directed, controlled, financed, or 23
subsidized in whole or in majority 24
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part by an entity described in sub-1
paragraph (A); 2
(iv) any person who directly or indi-3
rectly through any contract, arrangement, 4
understanding, relationship, or otherwise, 5
owns 25 percent or more of the equity in-6
terests of an entity described in subpara-7
graph (A); 8
(v) any person with significant re-9
sponsibility to control, manage, or direct 10
an entity described in subparagraph (A); 11
(vi) any person, wherever located, who 12
is a citizen or resident of a country con-13
trolled by an entity described in subpara-14
graph (A); and 15
(vii) any corporation, partnership, as-16
sociation, or other organization organized 17
under the laws of a country controlled by 18
an entity described in subparagraph (A). 19
(7) F
OREIGN ENTITY OF CONCERN .— 20
(A) I
N GENERAL.—The term ‘‘foreign enti-21
ty of concern’’ means any foreign entity that 22
is— 23
(i) designated as a foreign terrorist 24
organization by the Secretary of State 25
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under section 219 of the Immigration and 1
Nationality Act (8 U.S.C. 1189); 2
(ii) included on the list of specially 3
designated nationals and blocked persons 4
maintained by the Office of Foreign Assets 5
Control of the Department of the Treas-6
ury; 7
(iii) owned by, controlled by, or sub-8
ject to the jurisdiction, direction, or other-9
wise under the undue influence of a gov-10
ernment of a covered nation (as defined in 11
section 4872(d) of title 10, United States 12
Code); 13
(iv) alleged by the Attorney General 14
to have been involved in activities for 15
which a conviction was obtained under— 16
(I) chapter 37 of title 18, United 17
States Code (commonly known as the 18
‘‘Espionage Act’’); 19
(II) section 951 or 1030 of title 20
18, United States Code; 21
(III) chapter 90 of title 18, 22
United States Code (commonly known 23
as the ‘‘Economic Espionage Act of 24
1996’’); 25
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(IV) the Arms Export Control 1
Act (22 U.S.C. 2751 et seq.); 2
(V) section 224, 225, 226, 227, 3
or 236 of the Atomic Energy Act of 4
1954 (42 U.S.C. 2274–2278; 2284); 5
(VI) the Export Control Reform 6
Act of 2018 (50 U.S.C. 4801 et seq.); 7
or 8
(VII) the International Emer-9
gency Economic Powers Act (50 10
U.S.C. 1701 et seq.); or 11
(v) determined by the Secretary, in 12
consultation with the Secretary of Defense 13
and the Director of National Intelligence, 14
to be engaged in unauthorized conduct 15
that is detrimental to the national security 16
or foreign policy of the United States 17
under this Act. 18
(B) E
XCLUSION.—The term ‘‘foreign enti-19
ty of concern’’ does not include any entity with 20
respect to which 1 or more foreign entities de-21
scribed in subparagraph (A) owns less than 10 22
percent of the equity interest. 23
(8) G
OVERNMENTAL ENTITY .—The term ‘‘gov-24
ernmental entity’’ means— 25
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(A) a State; and 1
(B) a local government of a State. 2
(9) I
NTELLIGENCE COMMUNITY .—The term 3
‘‘intelligence community’’ has the meaning given the 4
term in section 3 of the National Security Act of 5
1947 (50 U.S.C. 3003). 6
(10) M
ETALLURGY.—The term ‘‘metallurgy’’ 7
means the process of producing finished rare earth 8
products from purified rare earth elements. 9
(11) M
INERALS SECURITY PARTNERSHIP .—The 10
term ‘‘Minerals Security Partnership’’ means the 11
Minerals Security Partnership established in June 12
2022. 13
(12) P
ERSON.—The term ‘‘person’’ includes an 14
individual, partnership, association, corporation, or-15
ganization, or any other combination of individuals. 16
(13) P
RIVATE CAPITAL.—The term ‘‘private 17
capital’’ has the meaning given the term in section 18
103 of the Small Business Investment Act of 1958 19
(15 U.S.C. 662). 20
(14) R
ARE EARTH ELEMENT .—The term ‘‘rare 21
earth element’’ means a natural element associated 22
with— 23
(A) the metallic element scandium, with 24
atomic number 21; 25
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(B) the metallic element yttrium, with 1
atomic number 39; or 2
(C) any of the series of 15 metallic ele-3
ments between lanthanum, with atomic number 4
57, and lutetium, with atomic number 71, on 5
the periodic table. 6
(15) S
ECRETARY.—The term ‘‘Secretary’’ 7
means the Secretary of Energy. 8
(16) S
TATE.—The term ‘‘State’’ means— 9
(A) each of the several States of the 10
United States; 11
(B) the District of Columbia; 12
(C) the Commonwealth of Puerto Rico; 13
(D) Guam; 14
(E) American Samoa; 15
(F) the Commonwealth of the Northern 16
Mariana Islands; 17
(G) the Federated States of Micronesia; 18
(H) the Republic of the Marshall Islands; 19
(I) the Republic of Palau; and 20
(J) the United States Virgin Islands. 21
SEC. 3. RARE EARTH METALLURGY FINANCING. 22
(a) F
INANCIALASSISTANCEPROGRAM.— 23
(1) I
N GENERAL.—The Secretary shall establish 24
in the Department of Energy a program to provide 25
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Federal financial assistance to covered entities to 1
incentivize investment in covered facilities, subject to 2
the availability of appropriations for that purpose. 3
(2) P
ROCEDURE.— 4
(A) I
N GENERAL.—A covered entity seek-5
ing financial assistance under this subsection 6
shall submit to the Secretary an application 7
that describes the project for which the covered 8
entity is seeking financial assistance. 9
(B) E
LIGIBILITY.—In order for a covered 10
entity to qualify for financial assistance under 11
this subsection, the covered entity shall dem-12
onstrate to the Secretary, in the application 13
submitted by the covered entity under subpara-14
graph (A), that— 15
(i) the covered entity has a docu-16
mented interest in— 17
(I) constructing a covered facil-18
ity; or 19
(II) expanding or technologically 20
upgrading a facility owned by the cov-21
ered entity to be a covered facility; 22
and 23
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(ii) with respect to the project for 1
which the covered entity is seeking finan-2
cial assistance, the covered entity has— 3
(I) been offered a covered incen-4
tive; 5
(II) made commitments to work-6
er and community investment, includ-7
ing through— 8
(aa) training and education 9
benefits paid by the covered enti-10
ty; and 11
(bb) programs to expand 12
employment opportunity for eco-13
nomically disadvantaged individ-14
uals; 15
(III) secured commitments from 16
regional educational and training enti-17
ties and institutions of higher edu-18
cation to provide workforce training, 19
including programming for training 20
and job placement of economically dis-21
advantaged individuals; and 22
(IV) an executable plan to sus-23
tain a covered facility without addi-24
tional Federal financial assistance 25
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under this subsection for facility sup-1
port. 2
(C) A
PPLICATION REVIEW.— 3
(i) I
N GENERAL.—The Secretary may 4
not approve an application submitted by a 5
covered entity under subparagraph (A)— 6
(I) unless the Secretary— 7
(aa) confirms that the cov-8
ered entity has satisfied the eligi-9
bility criteria under subpara-10
graph (B); 11
(bb) determines that the 12
project for which the covered en-13
tity is seeking financial assist-14
ance is in the interest of the 15
United States; and 16
(cc) has notified the appro-17
priate committees of Congress 18
not later than 15 days before 19
making any commitment to pro-20
vide an award of financial assist-21
ance to any covered entity in an 22
amount that exceeds 23
$10,000,000; or 24
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(II) if the Secretary determines, 1
in consultation with the Director of 2
National Intelligence, that the covered 3
entity is a foreign entity of concern. 4
(ii) C
ONSIDERATION.—In reviewing 5
an application submitted by a covered enti-6
ty under subparagraph (A), the Secretary 7
may consider whether— 8
(I) the covered entity has pre-9
viously received financial assistance 10
under this subsection; 11
(II) the governmental entity of-12
fering the applicable covered incentive 13
has benefitted from financial assist-14
ance previously provided under this 15
subsection; 16
(III) the covered entity has dem-17
onstrated that the covered entity is re-18
sponsive to the national security needs 19
or requirements established by the in-20
telligence community (or an agency 21
thereof), the National Nuclear Secu-22
rity Administration, or the Depart-23
ment of Defense; 24
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(IV) if practicable, a consortium 1
that is considered a covered entity in-2
cludes a small business concern (as 3
defined under section 3 of the Small 4
Business Act (15 U.S.C. 632)), not-5
withstanding section 121.103 of title 6
13, Code of Federal Regulations (or 7
successor regulations); and 8
(V) the covered entity intends to 9
produce finished products for use by 10
the Department of Defense, the de-11
fense industry of the United States, 12
or critical energy infrastructure. 13
(iii) P
RIORITIZATION.—To the max-14
imum extent practicable, the Secretary 15
shall prioritize awarding financial assist-16
ance under this subsection to a covered en-17
tity that intends to make finished products 18
available for use by the Department of De-19
fense, the defense industry of the United 20
States, or critical energy infrastructure. 21
(D) R
ECORDS.— 22
(i) I
N GENERAL.—The Secretary may 23
request records and information from a 24
covered entity that submitted an applica-25
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tion under subparagraph (A) to review the 1
status of a covered entity. 2
(ii) R
EQUIREMENT.—The covered en-3
tity shall provide the records and informa-4
tion requested by the Secretary under 5
clause (i). 6
(3) A
MOUNT.— 7
(A) I
N GENERAL.—The Secretary shall de-8
termine the appropriate amount and funding 9
type for each financial assistance award pro-10
vided to a covered entity under this subsection. 11
(B) C
OST-SHARING REQUIREMENT .—The 12
total amount of financial assistance that may be 13
guaranteed by the Secretary under this sub-14
section shall be not more than 100 percent of 15
the private capital investment available to a 16
covered entity for any individual project. 17
(C) M
INIMUM INVESTMENT .—The total 18
Federal investment in any individual project re-19
ceiving a financial assistance award under this 20
subsection shall be not less than $100,000,000. 21
(D) L
ARGER INVESTMENT .—The total 22
Federal investment in any individual project re-23
ceiving a financial assistance award under this 24
subsection shall not exceed $500,000,000, un-25
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less the Secretary, in consultation with the Sec-1
retary of Defense and the Director of National 2
Intelligence, recommends to the President, and 3
the President certifies and reports to the appro-4
priate committees of Congress, that a larger in-5
vestment is necessary— 6
(i) to significantly increase the pro-7
portion of reliable domestic supply of fin-8
ished rare earth products relevant for na-9
tional security and economic competitive-10
ness that can be met through domestic 11
production; and 12
(ii) to meet the needs of national se-13
curity. 14
(4) U
SE OF FUNDS.—A covered entity that re-15
ceives a financial assistance award under this sub-16
section may only use the financial assistance award 17
amounts— 18
(A) to finance the construction of a cov-19
ered facility (including equipment) or the ex-20
pansion or technological upgrade of a facility 21
(including equipment) of the covered entity to 22
be a covered facility, as documented in the ap-23
plication submitted by the covered entity under 24
paragraph (2)(A), as determined necessary by 25
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the Secretary for purposes relating to the na-1
tional security and economic competitiveness of 2
the United States; 3
(B) to support workforce development for 4
a covered facility; and 5
(C) to support site development and tech-6
nological upgrade for a covered facility. 7
(5) C
LAWBACK.— 8
(A) M
AJOR AWARDS.— 9
(i) I
N GENERAL.—For all financial as-10
sistance awards provided to covered enti-11
ties under this subsection, the Secretary 12
shall, at the time of making the award, de-13
termine the target dates by which a cov-14
ered entity shall commence and complete 15
the applicable project. 16
(ii) P
ROGRESSIVE RECOVERY FOR 17
DELAYS.—If the covered entity receiving a 18
financial assistance award under this sub-19
section does not complete the applicable 20
project by the applicable target date deter-21
mined under clause (i), the Secretary shall 22
progressively recover up to the full amount 23
of the award. 24
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(iii) WAIVER.—In the case of projects 1
that do not meet the applicable target date 2
determined under clause (i), the Secretary 3
may waive the requirement to recover the 4
financial award provided for the project 5
under clause (ii) after making a formal de-6
termination that circumstances beyond the 7
ability of the covered entity to foresee or 8
control are responsible for the delay. 9
(iv) C
ONGRESSIONAL NOTIFICA -10
TION.— 11
(I) I
N GENERAL.—Not later than 12
15 days after making a determination 13
to recover an award under clause (ii), 14
the Secretary shall notify the appro-15
priate committees of Congress of the 16
intent of the Secretary to recover the 17
award. 18
(II) W
AIVERS.—Not later than 19
15 days after the date on which the 20
Secretary provides a waiver under 21
clause (iii), the Secretary shall notify 22
the appropriate committees of Con-23
gress of the waiver. 24
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(B) JOINT RESEARCH, TECHNOLOGY LI-1
CENSING, AND INTELLECTUAL PROPERTY RE -2
PORTING.— 3
(i) I
N GENERAL.—Before entering 4
into an agreement with a foreign entity to 5
conduct joint research or technology licens-6
ing, or to share intellectual property, a 7
covered entity that has received a financial 8
assistance award under this subsection— 9
(I) shall notify the Secretary of 10
the intent to enter into such an agree-11
ment; and 12
(II) may only enter into such an 13
agreement if the Secretary determines 14
the foreign entity is not a foreign en-15
tity of concern. 16
(ii) D
ETERMINATION.—On receiving a 17
notification under clause (i), the Secretary, 18
in consultation with the Director of Na-19
tional Intelligence, the Director of the Na-20
tional Counterintelligence and Security 21
Center, and the Director of the Federal 22
Bureau of Investigation, shall make a de-23
termination of whether the applicable for-24
eign entity is a foreign entity of concern. 25
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(iii) TECHNOLOGY CLAWBACK .—The 1
Secretary shall recover the full amount of 2
a financial assistance award provided to a 3
covered entity under this subsection if, 4
during the applicable term of the award, 5
the covered entity knowingly engages in 6
any joint research, technology licensing, or 7
intellectual property sharing effort with a 8
foreign entity of concern that relates to a 9
technology or product that raises national 10
security concerns, as determined by the 11
Secretary, in consultation with the Direc-12
tor of National Intelligence, the Director of 13
the National Counterintelligence and Secu-14
rity Center, and the Director of the Fed-15
eral Bureau of Investigation, on the condi-16
tion that the determination of the Sec-17
retary shall have been communicated to 18
the covered entity before the covered entity 19
engaged in the joint research, technology 20
licensing, or intellectual property sharing. 21
(6) C
ONDITION OF RECEIPT.—A covered entity 22
to which the Secretary awards Federal financial as-23
sistance under this subsection shall enter into an 24
agreement that specifies that, during the 5-year pe-25
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riod immediately following the award of the Federal 1
financial assistance, the covered entity will not make 2
shareholder distributions in excess of profits. 3
(b) C
OORDINATIONREQUIRED.—In carrying out the 4
program established under subsection (a), the Secretary 5
shall coordinate with the Secretary of State, the Secretary 6
of Defense, the Secretary of Homeland Security, and the 7
Director of National Intelligence. 8
(c) GAO R
EVIEWS.—The Comptroller General of the 9
United States shall— 10
(1) not later than 2 years after the date of dis-11
bursement of the first financial award under the 12
program established under subsection (a), and bien-13
nially thereafter for 10 years, conduct a review of 14
the program, which shall include, at a minimum— 15
(A) a determination of the number of fi-16
nancial assistance awards provided under the 17
program during the period covered by the re-18
view; 19
(B) an evaluation of how— 20
(i) the program is being carried out, 21
including how recipients of financial assist-22
ance awards are being selected under the 23
program; and 24
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(ii) other Federal programs are lever-1
aged for manufacturing, research, and 2
training to complement the financial assist-3
ance awards provided under the program; 4
and 5
(C) a description of the outcomes of 6
projects supported by financial assistance 7
awards provided under the program, including a 8
description of— 9
(i) covered facilities that were con-10
structed or facilities that were expanded or 11
technologically upgraded to be covered fa-12
cilities as a result of financial assistance 13
awards provided under the program; 14
(ii) workforce training programs car-15
ried out with financial assistance awards 16
provided under the program, including ef-17
forts to hire individuals from disadvan-18
taged populations; and 19
(iii) the impact of projects receiving 20
financial assistance awards under the pro-21
gram on the United States share of global 22
finished rare earth product production; and 23
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(2) submit to the appropriate committees of 1
Congress the results of each review conducted under 2
paragraph (1). 3
(d) A
UTHORIZATION OF APPROPRIATIONS.—There 4
are authorized to be appropriated to carry out this sec-5
tion— 6
(1) $1,500,000,000 for fiscal year 2024; and 7
(2) $200,000,000 for each of fiscal years 2025 8
through 2028. 9
SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE 10
EARTH SUPPLY CHAINS. 11
(a) M
INERALSSECURITYPARTNERSHIPFUND.— 12
(1) E
STABLISHMENT OF FUND .—The Secretary 13
of the Treasury may establish a trust fund, to be 14
known as the ‘‘Minerals Security Partnership Fund’’ 15
(referred to in this section as the ‘‘Fund’’), con-16
sisting of such amounts as are appropriated to the 17
Fund or credited to the Fund under paragraph (3). 18
(2) R
EPORTING REQUIREMENT .—If the Fund is 19
not established by not later than 180 days after the 20
date of enactment of this Act, on that date, and an-21
nually thereafter until the Fund is established, the 22
Secretary of the Treasury, in coordination with the 23
Secretary of State, shall provide, in writing, to the 24
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appropriate committees of Congress a rationale for 1
not establishing the Fund. 2
(3) I
NVESTMENT OF AMOUNTS .— 3
(A) I
NVESTMENT OF AMOUNTS .—If the 4
Fund is established, the Secretary of the Treas-5
ury may invest such portion of the Fund as is 6
not required to meet current withdrawals in in-7
terest-bearing obligations of the United States 8
or in obligations guaranteed as to both prin-9
cipal and interest by the United States. 10
(B) I
NTEREST AND PROCEEDS .—The in-11
terest on, and the proceeds from the sale or re-12
demption of, any obligations held in the Fund 13
shall be credited to and form a part of the 14
Fund. 15
(4) U
SE OF FUND.— 16
(A) I
N GENERAL.—Subject to subpara-17
graph (B), amounts in the Fund shall be avail-18
able, as provided in advance in an appropria-19
tions Act, to the Secretary of State— 20
(i) to provide funding through the 21
Minerals Security Partnership common 22
funding mechanism described in subsection 23
(b)(1) to support the development and 24
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adoption of secure rare earth supply 1
chains; and 2
(ii) to otherwise carry out this section. 3
(B) A
VAILABILITY CONTINGENT ON INTER -4
NATIONAL ARRANGEMENT OR AGREEMENT .— 5
(i) I
N GENERAL.—Amounts in the 6
Fund shall be available to the Secretary of 7
State, as provided in advance in an appro-8
priations Act, on and after the date on 9
which the Secretary of State enters into an 10
arrangement or agreement with the gov-11
ernments of countries that are partners of 12
the United States, as determined by the 13
Secretary of State, to participate in the 14
Minerals Security Partnership common 15
funding mechanism under subsection 16
(b)(1). 17
(ii) C
ONSULTATION.—Before entering 18
into an arrangement or agreement as de-19
scribed in clause (i), the Secretary of 20
State, in consultation with the Secretary of 21
Commerce, shall ensure that any govern-22
ment that will participate in the arrange-23
ment or agreement maintains export con-24
trol licensing policies with respect to ex-25
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ports of finished rare earth products sub-1
stantively equivalent to the United States 2
with respect to restrictions on such exports 3
to the People’s Republic of China. 4
(b) M
INERALSSECURITYPARTNERSHIPCOMMON 5
F
UNDINGMECHANISM FOR DEVELOPMENT OF SECURE 6
R
AREEARTHSUPPLYCHAINS.— 7
(1) I
N GENERAL.—The Secretary of State, in 8
consultation with the Secretary of Commerce, the 9
Secretary of Defense, the Secretary of Homeland Se-10
curity, the Secretary of the Treasury, the Director 11
of National Intelligence, and the Chief Executive Of-12
ficer of the United States International Development 13
Finance Corporation shall ensure that the Minerals 14
Security Partnership is a mutually beneficial funding 15
mechanism that, in coordination with the govern-16
ments of countries that are partners of the United 17
States, uses amounts from the Fund, or any other 18
available Federal funds, to support the development 19
and adoption of secure rare earth supply chains, in-20
cluding for— 21
(A) research and development collabora-22
tions among countries participating in the 23
mechanism; and 24
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(B) supplementing bids by foreign entities 1
that are not foreign entities of concern to se-2
cure offtake agreements with entities that mine 3
rare earth elements. 4
(2) C
ONTRIBUTIONS FROM PARTICIPATING 5
COUNTRIES.—In creating and sustaining the Min-6
erals Security Partnership common funding mecha-7
nism described in paragraph (1), the Secretary of 8
State shall seek to leverage amounts from the Fund 9
to secure contributions to the mechanism from the 10
governments of countries participating in the mecha-11
nism, including with respect to cost sharing and 12
other cooperative measures leading to the develop-13
ment and adoption of secure rare earth supply 14
chains. 15
(3) C
OMMITMENTS.—In creating and sustaining 16
the Minerals Security Partnership common funding 17
mechanism described in paragraph (1), the Sec-18
retary of State shall promote efforts among coun-19
tries participating in the mechanism— 20
(A) to establish transparency requirements 21
for any subsidies or other financial benefits (in-22
cluding revenue foregone) provided to rare 23
earth firms located in or outside such countries; 24
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(B) to establish processes similar to the 1
process of the Committee on Foreign Invest-2
ment in the United States under section 721 of 3
the Defense Production Act of 1950 (50 U.S.C. 4
4565) for intervening to preempt foreign enti-5
ties of concern from investing in, purchasing, or 6
assuming control of entities, intellectual prop-7
erty, and equipment that are created by or ben-8
efit from investments by the mechanism; 9
(C) to establish consistent policies with re-10
spect to countries that— 11
(i) are not participating in the mecha-12
nism; and 13
(ii) do not meet transparency require-14
ments established under subparagraph (A); 15
(D) to promote harmonized treatment of 16
finished rare earth products and verification 17
processes for raw materials or products being 18
exported to a country considered a national se-19
curity risk by the government of a country par-20
ticipating in the mechanism; 21
(E) to establish consistent policies among 22
the governments of countries participating in 23
the mechanism and common policies among 24
countries that are not participating to address 25
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nonmarket economy countries as the behavior 1
of such countries pertains to rare earth ele-2
ments; 3
(F) to align policies with respect to supply 4
chain integrity and security, including with re-5
spect to protection and enforcement of intellec-6
tual property rights; and 7
(G) to promote harmonized foreign direct 8
investment screening measures and export con-9
trol policies with respect to rare earth elements 10
to align with national, multilateral, and 11
plurilateral security priorities. 12
(c) A
NNUALREPORT TOCONGRESS.—Not later than 13
1 year after the date on which the Fund is established, 14
and annually thereafter for each fiscal year during which 15
amounts in the Fund are available under subsection 16
(a)(4), the Secretary of State shall submit to the appro-17
priate committees of Congress a report on the status of 18
the implementation of this section that includes a descrip-19
tion of— 20
(1) any commitments made by the governments 21
of countries that have entered into an arrangement 22
or agreement with the United States to provide 23
funding for the Minerals Security Partnership com-24
mon funding mechanism described in subsection 25
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(b)(1) and the specific amount so committed and 1
other cooperative measures being taken by such 2
countries as part of the mechanism; 3
(2) the criteria established for expenditure of 4
funds through the mechanism; 5
(3) how, and to whom, amounts have been ex-6
pended from the Fund and a description of progress 7
made in utilizing the Fund to support the objectives 8
described in subsection (b)(1); 9
(4) amounts remaining in the Fund; 10
(5) the progress of the Secretary of State to-11
ward entering into an arrangement or agreement 12
with the governments of countries that are partners 13
of the United States to participate in the Minerals 14
Security Partnership common funding mechanism 15
and the commitments described in subsection (b)(3); 16
and 17
(6) any additional authorities needed to en-18
hance the effectiveness of the Fund in achieving the 19
security goals of the United States. 20
(d) N
OTIFICATIONSTOBEPROVIDED BY THE 21
F
UND.— 22
(1) I
N GENERAL.—Not later than 15 days prior 23
to the Fund making a financial commitment associ-24
ated with the provision of expenditures under sub-25
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section (a)(4)(A) in an amount in excess of 1
$1,000,000, the Secretary of State shall submit to 2
the appropriate committees of Congress a report in 3
writing that includes the information described in 4
paragraph (2). 5
(2) I
NFORMATION REQUIRED .—The information 6
described in this paragraph is— 7
(A) the amount of each expenditure de-8
scribed in paragraph (1); 9
(B) an identification of the recipient or 10
beneficiary of each such expenditure; and 11
(C) a description of the project or activity 12
to be carried out and the purpose to be 13
achieved by each such expenditure. 14
(3) A
RRANGEMENTS OR AGREEMENTS .—The 15
Secretary of State shall notify the appropriate com-16
mittees of Congress not later than 30 days after en-17
tering into a new bilateral or multilateral arrange-18
ment or agreement described in subsection 19
(a)(4)(B). 20
(e) F
OREIGNENTITIES OFCONCERN.—A foreign en-21
tity of concern may not be a participant or beneficiary of 22
the Minerals Security Partnership common funding mech-23
anism described in subsection (b)(1). 24
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(f) APPLICABILITY TOEXISTINGFUND OF THEMIN-1
ERALSSECURITYPARTNERSHIP.—This section shall 2
apply to any fund in the Treasury that has been estab-3
lished before the date of enactment of this Act for use 4
of the Minerals Security Partnership. 5
SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE. 6
As soon as practicable after the date of enactment 7
of this Act, the Secretary shall establish an initiative 8
under which the Secretary shall work with the Secretary 9
of Labor, the Director of the National Science Founda-10
tion, the Critical Minerals Subcommittee of the National 11
Science and Technology Council, the private sector, insti-12
tutions of higher education, and workforce training enti-13
ties to incentivize and expand participation in graduate 14
and undergraduate programs, and to develop workforce 15
training programs and apprenticeships, relating to ad-16
vanced rare earth element mining, separation, processing, 17
metallurgy, and advanced equipment maintenance capa-18
bilities. 19
SEC. 6. SUPPORT FOR FREELY ASSOCIATED STATES. 20
Section 1412(c) of the Better Utilization of Invest-21
ments Leading to Development Act of 2018 (22 U.S.C. 22
9612(c)) is amended by adding at the end the following: 23
‘‘(3) S
UPPORT FOR FREELY ASSOCIATED 24
STATES.—Notwithstanding the income classification 25
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of the country with which the geopolitical entity is 1
associated, the Corporation may provide support 2
under title II to a geopolitical entity that is included, 3
as of the date on which support is provided, on the 4
list of dependencies and areas of special sovereignty 5
prepared by the Department of State.’’. 6
SEC. 7. PROHIBITION RELATING TO FOREIGN ENTITIES OF 7
CONCERN. 8
None of the funds authorized to be appropriated to 9
carry out this Act may be provided to a foreign entity of 10
concern. 11
SEC. 8. DEFENSE PRODUCTION ACT OF 1950 EFFORTS. 12
(a) I
NGENERAL.—Not later than 180 days after the 13
date of enactment of this Act, the President shall submit 14
to Congress a report on a plan of action for any use of 15
authorities available in title III of the Defense Production 16
Act of 1950 (50 U.S.C. 4531 et seq.) to establish or en-17
hance a domestic production capability for finished rare 18
earth products and related technologies, subject to— 19
(1) the availability of appropriations for that 20
purpose; and 21
(2) a determination made under the plan pursu-22
ant to that title that— 23
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(A) finished rare earth products and re-1
lated technologies are essential to the national 2
defense; and 3
(B) domestic industrial capabilities are in-4
sufficient to meet those needs. 5
(b) C
OORDINATION.—The President shall develop the 6
plan of action required by subsection (a) in consultation 7
with any relevant head of a Federal agency, an advisory 8
committee established under section 708(d) of the Defense 9
Production Act of 1950 (50 U.S.C. 4558(d)), and appro-10
priate stakeholders in the private sector. 11
Æ
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