Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB44 Compare Versions

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11 II
22 118THCONGRESS
33 1
44 STSESSION S. 44
55 To require the Secretary of Energy to establish a program to incentivize
66 investment in facilities that carry out the metallurgy of rare earth ele-
77 ments and the production of finished rare earth products, and for other
88 purposes.
99 IN THE SENATE OF THE UNITED STATES
1010 JANUARY24 (legislative day, JANUARY3), 2023
1111 Mr. R
1212 UBIOintroduced the following bill; which was read twice and referred
1313 to the Committee on Energy and Natural Resources
1414 A BILL
1515 To require the Secretary of Energy to establish a program
1616 to incentivize investment in facilities that carry out the
1717 metallurgy of rare earth elements and the production
1818 of finished rare earth products, and for other purposes.
1919 Be it enacted by the Senate and House of Representa-1
2020 tives of the United States of America in Congress assembled, 2
2121 SECTION 1. SHORT TITLE. 3
2222 This Act may be cited as the ‘‘Obtaining National 4
2323 and Secure Homeland Operations for Rare Earth Manu-5
2424 facturing Act of 2023’’ or the ‘‘ONSHORE Manufac-6
2525 turing Act of 2023’’. 7
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2929 SEC. 2. DEFINITIONS. 1
3030 In this Act: 2
3131 (1) A
3232 PPROPRIATE COMMITTEES OF CON -3
3333 GRESS.—The term ‘‘appropriate committees of Con-4
3434 gress’’ means— 5
3535 (A) the Select Committee on Intelligence, 6
3636 the Committee on Energy and Natural Re-7
3737 sources, the Committee on Commerce, Science, 8
3838 and Transportation, the Committee on Foreign 9
3939 Relations, the Committee on Armed Services, 10
4040 the Committee on Appropriations, the Com-11
4141 mittee on Banking, Housing, and Urban Af-12
4242 fairs, the Committee on Homeland Security and 13
4343 Governmental Affairs, and the Committee on 14
4444 Finance of the Senate; and 15
4545 (B) the Permanent Select Committee on 16
4646 Intelligence, the Committee on Energy and 17
4747 Commerce, the Committee on Foreign Affairs, 18
4848 the Committee on Armed Services, the Com-19
4949 mittee on Science, Space, and Technology, the 20
5050 Committee on Appropriations, the Committee 21
5151 on Financial Services, the Committee on Home-22
5252 land Security, and the Committee on Ways and 23
5353 Means of the House of Representatives. 24
5454 (2) C
5555 OVERED ENTITY.—The term ‘‘covered en-25
5656 tity’’ means a private entity, a consortium of private 26
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6060 entities, or a consortium of public and private enti-1
6161 ties with a demonstrated ability to substantially fi-2
6262 nance, construct, expand, or technologically upgrade 3
6363 a covered facility. 4
6464 (3) C
6565 OVERED FACILITY.—The term ‘‘covered 5
6666 facility’’ means a facility located in a State that car-6
6767 ries out the metallurgy of rare earth elements for 7
6868 the production of finished rare earth products. 8
6969 (4) C
7070 OVERED INCENTIVE.—The term ‘‘covered 9
7171 incentive’’ means— 10
7272 (A) an incentive offered by a Federal, 11
7373 State, local, or Tribal governmental entity to a 12
7474 covered entity for the purposes of— 13
7575 (i) constructing within the jurisdiction 14
7676 of the governmental entity a covered facil-15
7777 ity; or 16
7878 (ii) expanding or technologically up-17
7979 grading an existing facility within that ju-18
8080 risdiction to be a covered facility; and 19
8181 (B) a workforce-related incentive (includ-20
8282 ing a grant agreement relating to workforce 21
8383 training or vocational education), any conces-22
8484 sion with respect to real property, funding for 23
8585 research and development with respect to rare 24
8686 earth elements and finished rare earth prod-25
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9090 ucts, and any other incentive determined appro-1
9191 priate by the Secretary, in consultation with the 2
9292 Secretary of State. 3
9393 (5) F
9494 INISHED RARE EARTH PRODUCT .—The 4
9595 term ‘‘finished rare earth product’’ means a product 5
9696 composed of significant quantities of rare earth ele-6
9797 ments, including— 7
9898 (A) metals; 8
9999 (B) alloys; and 9
100100 (C) permanent magnets. 10
101101 (6) F
102102 OREIGN ENTITY.— 11
103103 (A) I
104104 N GENERAL.—The term ‘‘foreign enti-12
105105 ty’’ means— 13
106106 (i) a government of a foreign country 14
107107 and a foreign political party; 15
108108 (ii) a natural person who is not— 16
109109 (I) a lawful permanent resident 17
110110 of the United States; 18
111111 (II) a citizen or national of the 19
112112 United States; or 20
113113 (III) any other protected indi-21
114114 vidual (as defined in section 22
115115 274B(a)(3) of the Immigration and 23
116116 Nationality Act (8 U.S.C. 24
117117 1324b(a)(3))); and 25
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121121 (iii) a partnership, association, cor-1
122122 poration, organization, or other combina-2
123123 tion of persons organized under the laws of 3
124124 or having its principal place of business in 4
125125 a foreign country. 5
126126 (B) I
127127 NCLUSIONS.—The term ‘‘foreign enti-6
128128 ty’’ includes— 7
129129 (i) any person owned by, controlled 8
130130 by, or subject to the jurisdiction or direc-9
131131 tion of an entity described in subparagraph 10
132132 (A); 11
133133 (ii) any person, wherever located, who 12
134134 acts as an agent, representative, or em-13
135135 ployee of an entity described in subpara-14
136136 graph (A); 15
137137 (iii) any person who acts in any other 16
138138 capacity at the order, request, or under the 17
139139 influence, direction, or control, of— 18
140140 (I) an entity described in sub-19
141141 paragraph (A); or 20
142142 (II) a person the activities of 21
143143 which are directly or indirectly super-22
144144 vised, directed, controlled, financed, or 23
145145 subsidized in whole or in majority 24
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149149 part by an entity described in sub-1
150150 paragraph (A); 2
151151 (iv) any person who directly or indi-3
152152 rectly through any contract, arrangement, 4
153153 understanding, relationship, or otherwise, 5
154154 owns 25 percent or more of the equity in-6
155155 terests of an entity described in subpara-7
156156 graph (A); 8
157157 (v) any person with significant re-9
158158 sponsibility to control, manage, or direct 10
159159 an entity described in subparagraph (A); 11
160160 (vi) any person, wherever located, who 12
161161 is a citizen or resident of a country con-13
162162 trolled by an entity described in subpara-14
163163 graph (A); and 15
164164 (vii) any corporation, partnership, as-16
165165 sociation, or other organization organized 17
166166 under the laws of a country controlled by 18
167167 an entity described in subparagraph (A). 19
168168 (7) F
169169 OREIGN ENTITY OF CONCERN .— 20
170170 (A) I
171171 N GENERAL.—The term ‘‘foreign enti-21
172172 ty of concern’’ means any foreign entity that 22
173173 is— 23
174174 (i) designated as a foreign terrorist 24
175175 organization by the Secretary of State 25
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179179 under section 219 of the Immigration and 1
180180 Nationality Act (8 U.S.C. 1189); 2
181181 (ii) included on the list of specially 3
182182 designated nationals and blocked persons 4
183183 maintained by the Office of Foreign Assets 5
184184 Control of the Department of the Treas-6
185185 ury; 7
186186 (iii) owned by, controlled by, or sub-8
187187 ject to the jurisdiction, direction, or other-9
188188 wise under the undue influence of a gov-10
189189 ernment of a covered nation (as defined in 11
190190 section 4872(d) of title 10, United States 12
191191 Code); 13
192192 (iv) alleged by the Attorney General 14
193193 to have been involved in activities for 15
194194 which a conviction was obtained under— 16
195195 (I) chapter 37 of title 18, United 17
196196 States Code (commonly known as the 18
197197 ‘‘Espionage Act’’); 19
198198 (II) section 951 or 1030 of title 20
199199 18, United States Code; 21
200200 (III) chapter 90 of title 18, 22
201201 United States Code (commonly known 23
202202 as the ‘‘Economic Espionage Act of 24
203203 1996’’); 25
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207207 (IV) the Arms Export Control 1
208208 Act (22 U.S.C. 2751 et seq.); 2
209209 (V) section 224, 225, 226, 227, 3
210210 or 236 of the Atomic Energy Act of 4
211211 1954 (42 U.S.C. 2274–2278; 2284); 5
212212 (VI) the Export Control Reform 6
213213 Act of 2018 (50 U.S.C. 4801 et seq.); 7
214214 or 8
215215 (VII) the International Emer-9
216216 gency Economic Powers Act (50 10
217217 U.S.C. 1701 et seq.); or 11
218218 (v) determined by the Secretary, in 12
219219 consultation with the Secretary of Defense 13
220220 and the Director of National Intelligence, 14
221221 to be engaged in unauthorized conduct 15
222222 that is detrimental to the national security 16
223223 or foreign policy of the United States 17
224224 under this Act. 18
225225 (B) E
226226 XCLUSION.—The term ‘‘foreign enti-19
227227 ty of concern’’ does not include any entity with 20
228228 respect to which 1 or more foreign entities de-21
229229 scribed in subparagraph (A) owns less than 10 22
230230 percent of the equity interest. 23
231231 (8) G
232232 OVERNMENTAL ENTITY .—The term ‘‘gov-24
233233 ernmental entity’’ means— 25
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237237 (A) a State; and 1
238238 (B) a local government of a State. 2
239239 (9) I
240240 NTELLIGENCE COMMUNITY .—The term 3
241241 ‘‘intelligence community’’ has the meaning given the 4
242242 term in section 3 of the National Security Act of 5
243243 1947 (50 U.S.C. 3003). 6
244244 (10) M
245245 ETALLURGY.—The term ‘‘metallurgy’’ 7
246246 means the process of producing finished rare earth 8
247247 products from purified rare earth elements. 9
248248 (11) M
249249 INERALS SECURITY PARTNERSHIP .—The 10
250250 term ‘‘Minerals Security Partnership’’ means the 11
251251 Minerals Security Partnership established in June 12
252252 2022. 13
253253 (12) P
254254 ERSON.—The term ‘‘person’’ includes an 14
255255 individual, partnership, association, corporation, or-15
256256 ganization, or any other combination of individuals. 16
257257 (13) P
258258 RIVATE CAPITAL.—The term ‘‘private 17
259259 capital’’ has the meaning given the term in section 18
260260 103 of the Small Business Investment Act of 1958 19
261261 (15 U.S.C. 662). 20
262262 (14) R
263263 ARE EARTH ELEMENT .—The term ‘‘rare 21
264264 earth element’’ means a natural element associated 22
265265 with— 23
266266 (A) the metallic element scandium, with 24
267267 atomic number 21; 25
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271271 (B) the metallic element yttrium, with 1
272272 atomic number 39; or 2
273273 (C) any of the series of 15 metallic ele-3
274274 ments between lanthanum, with atomic number 4
275275 57, and lutetium, with atomic number 71, on 5
276276 the periodic table. 6
277277 (15) S
278278 ECRETARY.—The term ‘‘Secretary’’ 7
279279 means the Secretary of Energy. 8
280280 (16) S
281281 TATE.—The term ‘‘State’’ means— 9
282282 (A) each of the several States of the 10
283283 United States; 11
284284 (B) the District of Columbia; 12
285285 (C) the Commonwealth of Puerto Rico; 13
286286 (D) Guam; 14
287287 (E) American Samoa; 15
288288 (F) the Commonwealth of the Northern 16
289289 Mariana Islands; 17
290290 (G) the Federated States of Micronesia; 18
291291 (H) the Republic of the Marshall Islands; 19
292292 (I) the Republic of Palau; and 20
293293 (J) the United States Virgin Islands. 21
294294 SEC. 3. RARE EARTH METALLURGY FINANCING. 22
295295 (a) F
296296 INANCIALASSISTANCEPROGRAM.— 23
297297 (1) I
298298 N GENERAL.—The Secretary shall establish 24
299299 in the Department of Energy a program to provide 25
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303303 Federal financial assistance to covered entities to 1
304304 incentivize investment in covered facilities, subject to 2
305305 the availability of appropriations for that purpose. 3
306306 (2) P
307307 ROCEDURE.— 4
308308 (A) I
309309 N GENERAL.—A covered entity seek-5
310310 ing financial assistance under this subsection 6
311311 shall submit to the Secretary an application 7
312312 that describes the project for which the covered 8
313313 entity is seeking financial assistance. 9
314314 (B) E
315315 LIGIBILITY.—In order for a covered 10
316316 entity to qualify for financial assistance under 11
317317 this subsection, the covered entity shall dem-12
318318 onstrate to the Secretary, in the application 13
319319 submitted by the covered entity under subpara-14
320320 graph (A), that— 15
321321 (i) the covered entity has a docu-16
322322 mented interest in— 17
323323 (I) constructing a covered facil-18
324324 ity; or 19
325325 (II) expanding or technologically 20
326326 upgrading a facility owned by the cov-21
327327 ered entity to be a covered facility; 22
328328 and 23
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332332 (ii) with respect to the project for 1
333333 which the covered entity is seeking finan-2
334334 cial assistance, the covered entity has— 3
335335 (I) been offered a covered incen-4
336336 tive; 5
337337 (II) made commitments to work-6
338338 er and community investment, includ-7
339339 ing through— 8
340340 (aa) training and education 9
341341 benefits paid by the covered enti-10
342342 ty; and 11
343343 (bb) programs to expand 12
344344 employment opportunity for eco-13
345345 nomically disadvantaged individ-14
346346 uals; 15
347347 (III) secured commitments from 16
348348 regional educational and training enti-17
349349 ties and institutions of higher edu-18
350350 cation to provide workforce training, 19
351351 including programming for training 20
352352 and job placement of economically dis-21
353353 advantaged individuals; and 22
354354 (IV) an executable plan to sus-23
355355 tain a covered facility without addi-24
356356 tional Federal financial assistance 25
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360360 under this subsection for facility sup-1
361361 port. 2
362362 (C) A
363363 PPLICATION REVIEW.— 3
364364 (i) I
365365 N GENERAL.—The Secretary may 4
366366 not approve an application submitted by a 5
367367 covered entity under subparagraph (A)— 6
368368 (I) unless the Secretary— 7
369369 (aa) confirms that the cov-8
370370 ered entity has satisfied the eligi-9
371371 bility criteria under subpara-10
372372 graph (B); 11
373373 (bb) determines that the 12
374374 project for which the covered en-13
375375 tity is seeking financial assist-14
376376 ance is in the interest of the 15
377377 United States; and 16
378378 (cc) has notified the appro-17
379379 priate committees of Congress 18
380380 not later than 15 days before 19
381381 making any commitment to pro-20
382382 vide an award of financial assist-21
383383 ance to any covered entity in an 22
384384 amount that exceeds 23
385385 $10,000,000; or 24
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389389 (II) if the Secretary determines, 1
390390 in consultation with the Director of 2
391391 National Intelligence, that the covered 3
392392 entity is a foreign entity of concern. 4
393393 (ii) C
394394 ONSIDERATION.—In reviewing 5
395395 an application submitted by a covered enti-6
396396 ty under subparagraph (A), the Secretary 7
397397 may consider whether— 8
398398 (I) the covered entity has pre-9
399399 viously received financial assistance 10
400400 under this subsection; 11
401401 (II) the governmental entity of-12
402402 fering the applicable covered incentive 13
403403 has benefitted from financial assist-14
404404 ance previously provided under this 15
405405 subsection; 16
406406 (III) the covered entity has dem-17
407407 onstrated that the covered entity is re-18
408408 sponsive to the national security needs 19
409409 or requirements established by the in-20
410410 telligence community (or an agency 21
411411 thereof), the National Nuclear Secu-22
412412 rity Administration, or the Depart-23
413413 ment of Defense; 24
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417417 (IV) if practicable, a consortium 1
418418 that is considered a covered entity in-2
419419 cludes a small business concern (as 3
420420 defined under section 3 of the Small 4
421421 Business Act (15 U.S.C. 632)), not-5
422422 withstanding section 121.103 of title 6
423423 13, Code of Federal Regulations (or 7
424424 successor regulations); and 8
425425 (V) the covered entity intends to 9
426426 produce finished products for use by 10
427427 the Department of Defense, the de-11
428428 fense industry of the United States, 12
429429 or critical energy infrastructure. 13
430430 (iii) P
431431 RIORITIZATION.—To the max-14
432432 imum extent practicable, the Secretary 15
433433 shall prioritize awarding financial assist-16
434434 ance under this subsection to a covered en-17
435435 tity that intends to make finished products 18
436436 available for use by the Department of De-19
437437 fense, the defense industry of the United 20
438438 States, or critical energy infrastructure. 21
439439 (D) R
440440 ECORDS.— 22
441441 (i) I
442442 N GENERAL.—The Secretary may 23
443443 request records and information from a 24
444444 covered entity that submitted an applica-25
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447447 •S 44 IS
448448 tion under subparagraph (A) to review the 1
449449 status of a covered entity. 2
450450 (ii) R
451451 EQUIREMENT.—The covered en-3
452452 tity shall provide the records and informa-4
453453 tion requested by the Secretary under 5
454454 clause (i). 6
455455 (3) A
456456 MOUNT.— 7
457457 (A) I
458458 N GENERAL.—The Secretary shall de-8
459459 termine the appropriate amount and funding 9
460460 type for each financial assistance award pro-10
461461 vided to a covered entity under this subsection. 11
462462 (B) C
463463 OST-SHARING REQUIREMENT .—The 12
464464 total amount of financial assistance that may be 13
465465 guaranteed by the Secretary under this sub-14
466466 section shall be not more than 100 percent of 15
467467 the private capital investment available to a 16
468468 covered entity for any individual project. 17
469469 (C) M
470470 INIMUM INVESTMENT .—The total 18
471471 Federal investment in any individual project re-19
472472 ceiving a financial assistance award under this 20
473473 subsection shall be not less than $100,000,000. 21
474474 (D) L
475475 ARGER INVESTMENT .—The total 22
476476 Federal investment in any individual project re-23
477477 ceiving a financial assistance award under this 24
478478 subsection shall not exceed $500,000,000, un-25
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482482 less the Secretary, in consultation with the Sec-1
483483 retary of Defense and the Director of National 2
484484 Intelligence, recommends to the President, and 3
485485 the President certifies and reports to the appro-4
486486 priate committees of Congress, that a larger in-5
487487 vestment is necessary— 6
488488 (i) to significantly increase the pro-7
489489 portion of reliable domestic supply of fin-8
490490 ished rare earth products relevant for na-9
491491 tional security and economic competitive-10
492492 ness that can be met through domestic 11
493493 production; and 12
494494 (ii) to meet the needs of national se-13
495495 curity. 14
496496 (4) U
497497 SE OF FUNDS.—A covered entity that re-15
498498 ceives a financial assistance award under this sub-16
499499 section may only use the financial assistance award 17
500500 amounts— 18
501501 (A) to finance the construction of a cov-19
502502 ered facility (including equipment) or the ex-20
503503 pansion or technological upgrade of a facility 21
504504 (including equipment) of the covered entity to 22
505505 be a covered facility, as documented in the ap-23
506506 plication submitted by the covered entity under 24
507507 paragraph (2)(A), as determined necessary by 25
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511511 the Secretary for purposes relating to the na-1
512512 tional security and economic competitiveness of 2
513513 the United States; 3
514514 (B) to support workforce development for 4
515515 a covered facility; and 5
516516 (C) to support site development and tech-6
517517 nological upgrade for a covered facility. 7
518518 (5) C
519519 LAWBACK.— 8
520520 (A) M
521521 AJOR AWARDS.— 9
522522 (i) I
523523 N GENERAL.—For all financial as-10
524524 sistance awards provided to covered enti-11
525525 ties under this subsection, the Secretary 12
526526 shall, at the time of making the award, de-13
527527 termine the target dates by which a cov-14
528528 ered entity shall commence and complete 15
529529 the applicable project. 16
530530 (ii) P
531531 ROGRESSIVE RECOVERY FOR 17
532532 DELAYS.—If the covered entity receiving a 18
533533 financial assistance award under this sub-19
534534 section does not complete the applicable 20
535535 project by the applicable target date deter-21
536536 mined under clause (i), the Secretary shall 22
537537 progressively recover up to the full amount 23
538538 of the award. 24
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542542 (iii) WAIVER.—In the case of projects 1
543543 that do not meet the applicable target date 2
544544 determined under clause (i), the Secretary 3
545545 may waive the requirement to recover the 4
546546 financial award provided for the project 5
547547 under clause (ii) after making a formal de-6
548548 termination that circumstances beyond the 7
549549 ability of the covered entity to foresee or 8
550550 control are responsible for the delay. 9
551551 (iv) C
552552 ONGRESSIONAL NOTIFICA -10
553553 TION.— 11
554554 (I) I
555555 N GENERAL.—Not later than 12
556556 15 days after making a determination 13
557557 to recover an award under clause (ii), 14
558558 the Secretary shall notify the appro-15
559559 priate committees of Congress of the 16
560560 intent of the Secretary to recover the 17
561561 award. 18
562562 (II) W
563563 AIVERS.—Not later than 19
564564 15 days after the date on which the 20
565565 Secretary provides a waiver under 21
566566 clause (iii), the Secretary shall notify 22
567567 the appropriate committees of Con-23
568568 gress of the waiver. 24
569569 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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571571 •S 44 IS
572572 (B) JOINT RESEARCH, TECHNOLOGY LI-1
573573 CENSING, AND INTELLECTUAL PROPERTY RE -2
574574 PORTING.— 3
575575 (i) I
576576 N GENERAL.—Before entering 4
577577 into an agreement with a foreign entity to 5
578578 conduct joint research or technology licens-6
579579 ing, or to share intellectual property, a 7
580580 covered entity that has received a financial 8
581581 assistance award under this subsection— 9
582582 (I) shall notify the Secretary of 10
583583 the intent to enter into such an agree-11
584584 ment; and 12
585585 (II) may only enter into such an 13
586586 agreement if the Secretary determines 14
587587 the foreign entity is not a foreign en-15
588588 tity of concern. 16
589589 (ii) D
590590 ETERMINATION.—On receiving a 17
591591 notification under clause (i), the Secretary, 18
592592 in consultation with the Director of Na-19
593593 tional Intelligence, the Director of the Na-20
594594 tional Counterintelligence and Security 21
595595 Center, and the Director of the Federal 22
596596 Bureau of Investigation, shall make a de-23
597597 termination of whether the applicable for-24
598598 eign entity is a foreign entity of concern. 25
599599 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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601601 •S 44 IS
602602 (iii) TECHNOLOGY CLAWBACK .—The 1
603603 Secretary shall recover the full amount of 2
604604 a financial assistance award provided to a 3
605605 covered entity under this subsection if, 4
606606 during the applicable term of the award, 5
607607 the covered entity knowingly engages in 6
608608 any joint research, technology licensing, or 7
609609 intellectual property sharing effort with a 8
610610 foreign entity of concern that relates to a 9
611611 technology or product that raises national 10
612612 security concerns, as determined by the 11
613613 Secretary, in consultation with the Direc-12
614614 tor of National Intelligence, the Director of 13
615615 the National Counterintelligence and Secu-14
616616 rity Center, and the Director of the Fed-15
617617 eral Bureau of Investigation, on the condi-16
618618 tion that the determination of the Sec-17
619619 retary shall have been communicated to 18
620620 the covered entity before the covered entity 19
621621 engaged in the joint research, technology 20
622622 licensing, or intellectual property sharing. 21
623623 (6) C
624624 ONDITION OF RECEIPT.—A covered entity 22
625625 to which the Secretary awards Federal financial as-23
626626 sistance under this subsection shall enter into an 24
627627 agreement that specifies that, during the 5-year pe-25
628628 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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630630 •S 44 IS
631631 riod immediately following the award of the Federal 1
632632 financial assistance, the covered entity will not make 2
633633 shareholder distributions in excess of profits. 3
634634 (b) C
635635 OORDINATIONREQUIRED.—In carrying out the 4
636636 program established under subsection (a), the Secretary 5
637637 shall coordinate with the Secretary of State, the Secretary 6
638638 of Defense, the Secretary of Homeland Security, and the 7
639639 Director of National Intelligence. 8
640640 (c) GAO R
641641 EVIEWS.—The Comptroller General of the 9
642642 United States shall— 10
643643 (1) not later than 2 years after the date of dis-11
644644 bursement of the first financial award under the 12
645645 program established under subsection (a), and bien-13
646646 nially thereafter for 10 years, conduct a review of 14
647647 the program, which shall include, at a minimum— 15
648648 (A) a determination of the number of fi-16
649649 nancial assistance awards provided under the 17
650650 program during the period covered by the re-18
651651 view; 19
652652 (B) an evaluation of how— 20
653653 (i) the program is being carried out, 21
654654 including how recipients of financial assist-22
655655 ance awards are being selected under the 23
656656 program; and 24
657657 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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659659 •S 44 IS
660660 (ii) other Federal programs are lever-1
661661 aged for manufacturing, research, and 2
662662 training to complement the financial assist-3
663663 ance awards provided under the program; 4
664664 and 5
665665 (C) a description of the outcomes of 6
666666 projects supported by financial assistance 7
667667 awards provided under the program, including a 8
668668 description of— 9
669669 (i) covered facilities that were con-10
670670 structed or facilities that were expanded or 11
671671 technologically upgraded to be covered fa-12
672672 cilities as a result of financial assistance 13
673673 awards provided under the program; 14
674674 (ii) workforce training programs car-15
675675 ried out with financial assistance awards 16
676676 provided under the program, including ef-17
677677 forts to hire individuals from disadvan-18
678678 taged populations; and 19
679679 (iii) the impact of projects receiving 20
680680 financial assistance awards under the pro-21
681681 gram on the United States share of global 22
682682 finished rare earth product production; and 23
683683 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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685685 •S 44 IS
686686 (2) submit to the appropriate committees of 1
687687 Congress the results of each review conducted under 2
688688 paragraph (1). 3
689689 (d) A
690690 UTHORIZATION OF APPROPRIATIONS.—There 4
691691 are authorized to be appropriated to carry out this sec-5
692692 tion— 6
693693 (1) $1,500,000,000 for fiscal year 2024; and 7
694694 (2) $200,000,000 for each of fiscal years 2025 8
695695 through 2028. 9
696696 SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE 10
697697 EARTH SUPPLY CHAINS. 11
698698 (a) M
699699 INERALSSECURITYPARTNERSHIPFUND.— 12
700700 (1) E
701701 STABLISHMENT OF FUND .—The Secretary 13
702702 of the Treasury may establish a trust fund, to be 14
703703 known as the ‘‘Minerals Security Partnership Fund’’ 15
704704 (referred to in this section as the ‘‘Fund’’), con-16
705705 sisting of such amounts as are appropriated to the 17
706706 Fund or credited to the Fund under paragraph (3). 18
707707 (2) R
708708 EPORTING REQUIREMENT .—If the Fund is 19
709709 not established by not later than 180 days after the 20
710710 date of enactment of this Act, on that date, and an-21
711711 nually thereafter until the Fund is established, the 22
712712 Secretary of the Treasury, in coordination with the 23
713713 Secretary of State, shall provide, in writing, to the 24
714714 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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716716 •S 44 IS
717717 appropriate committees of Congress a rationale for 1
718718 not establishing the Fund. 2
719719 (3) I
720720 NVESTMENT OF AMOUNTS .— 3
721721 (A) I
722722 NVESTMENT OF AMOUNTS .—If the 4
723723 Fund is established, the Secretary of the Treas-5
724724 ury may invest such portion of the Fund as is 6
725725 not required to meet current withdrawals in in-7
726726 terest-bearing obligations of the United States 8
727727 or in obligations guaranteed as to both prin-9
728728 cipal and interest by the United States. 10
729729 (B) I
730730 NTEREST AND PROCEEDS .—The in-11
731731 terest on, and the proceeds from the sale or re-12
732732 demption of, any obligations held in the Fund 13
733733 shall be credited to and form a part of the 14
734734 Fund. 15
735735 (4) U
736736 SE OF FUND.— 16
737737 (A) I
738738 N GENERAL.—Subject to subpara-17
739739 graph (B), amounts in the Fund shall be avail-18
740740 able, as provided in advance in an appropria-19
741741 tions Act, to the Secretary of State— 20
742742 (i) to provide funding through the 21
743743 Minerals Security Partnership common 22
744744 funding mechanism described in subsection 23
745745 (b)(1) to support the development and 24
746746 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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748748 •S 44 IS
749749 adoption of secure rare earth supply 1
750750 chains; and 2
751751 (ii) to otherwise carry out this section. 3
752752 (B) A
753753 VAILABILITY CONTINGENT ON INTER -4
754754 NATIONAL ARRANGEMENT OR AGREEMENT .— 5
755755 (i) I
756756 N GENERAL.—Amounts in the 6
757757 Fund shall be available to the Secretary of 7
758758 State, as provided in advance in an appro-8
759759 priations Act, on and after the date on 9
760760 which the Secretary of State enters into an 10
761761 arrangement or agreement with the gov-11
762762 ernments of countries that are partners of 12
763763 the United States, as determined by the 13
764764 Secretary of State, to participate in the 14
765765 Minerals Security Partnership common 15
766766 funding mechanism under subsection 16
767767 (b)(1). 17
768768 (ii) C
769769 ONSULTATION.—Before entering 18
770770 into an arrangement or agreement as de-19
771771 scribed in clause (i), the Secretary of 20
772772 State, in consultation with the Secretary of 21
773773 Commerce, shall ensure that any govern-22
774774 ment that will participate in the arrange-23
775775 ment or agreement maintains export con-24
776776 trol licensing policies with respect to ex-25
777777 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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779779 •S 44 IS
780780 ports of finished rare earth products sub-1
781781 stantively equivalent to the United States 2
782782 with respect to restrictions on such exports 3
783783 to the People’s Republic of China. 4
784784 (b) M
785785 INERALSSECURITYPARTNERSHIPCOMMON 5
786786 F
787787 UNDINGMECHANISM FOR DEVELOPMENT OF SECURE 6
788788 R
789789 AREEARTHSUPPLYCHAINS.— 7
790790 (1) I
791791 N GENERAL.—The Secretary of State, in 8
792792 consultation with the Secretary of Commerce, the 9
793793 Secretary of Defense, the Secretary of Homeland Se-10
794794 curity, the Secretary of the Treasury, the Director 11
795795 of National Intelligence, and the Chief Executive Of-12
796796 ficer of the United States International Development 13
797797 Finance Corporation shall ensure that the Minerals 14
798798 Security Partnership is a mutually beneficial funding 15
799799 mechanism that, in coordination with the govern-16
800800 ments of countries that are partners of the United 17
801801 States, uses amounts from the Fund, or any other 18
802802 available Federal funds, to support the development 19
803803 and adoption of secure rare earth supply chains, in-20
804804 cluding for— 21
805805 (A) research and development collabora-22
806806 tions among countries participating in the 23
807807 mechanism; and 24
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810810 •S 44 IS
811811 (B) supplementing bids by foreign entities 1
812812 that are not foreign entities of concern to se-2
813813 cure offtake agreements with entities that mine 3
814814 rare earth elements. 4
815815 (2) C
816816 ONTRIBUTIONS FROM PARTICIPATING 5
817817 COUNTRIES.—In creating and sustaining the Min-6
818818 erals Security Partnership common funding mecha-7
819819 nism described in paragraph (1), the Secretary of 8
820820 State shall seek to leverage amounts from the Fund 9
821821 to secure contributions to the mechanism from the 10
822822 governments of countries participating in the mecha-11
823823 nism, including with respect to cost sharing and 12
824824 other cooperative measures leading to the develop-13
825825 ment and adoption of secure rare earth supply 14
826826 chains. 15
827827 (3) C
828828 OMMITMENTS.—In creating and sustaining 16
829829 the Minerals Security Partnership common funding 17
830830 mechanism described in paragraph (1), the Sec-18
831831 retary of State shall promote efforts among coun-19
832832 tries participating in the mechanism— 20
833833 (A) to establish transparency requirements 21
834834 for any subsidies or other financial benefits (in-22
835835 cluding revenue foregone) provided to rare 23
836836 earth firms located in or outside such countries; 24
837837 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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839839 •S 44 IS
840840 (B) to establish processes similar to the 1
841841 process of the Committee on Foreign Invest-2
842842 ment in the United States under section 721 of 3
843843 the Defense Production Act of 1950 (50 U.S.C. 4
844844 4565) for intervening to preempt foreign enti-5
845845 ties of concern from investing in, purchasing, or 6
846846 assuming control of entities, intellectual prop-7
847847 erty, and equipment that are created by or ben-8
848848 efit from investments by the mechanism; 9
849849 (C) to establish consistent policies with re-10
850850 spect to countries that— 11
851851 (i) are not participating in the mecha-12
852852 nism; and 13
853853 (ii) do not meet transparency require-14
854854 ments established under subparagraph (A); 15
855855 (D) to promote harmonized treatment of 16
856856 finished rare earth products and verification 17
857857 processes for raw materials or products being 18
858858 exported to a country considered a national se-19
859859 curity risk by the government of a country par-20
860860 ticipating in the mechanism; 21
861861 (E) to establish consistent policies among 22
862862 the governments of countries participating in 23
863863 the mechanism and common policies among 24
864864 countries that are not participating to address 25
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867867 •S 44 IS
868868 nonmarket economy countries as the behavior 1
869869 of such countries pertains to rare earth ele-2
870870 ments; 3
871871 (F) to align policies with respect to supply 4
872872 chain integrity and security, including with re-5
873873 spect to protection and enforcement of intellec-6
874874 tual property rights; and 7
875875 (G) to promote harmonized foreign direct 8
876876 investment screening measures and export con-9
877877 trol policies with respect to rare earth elements 10
878878 to align with national, multilateral, and 11
879879 plurilateral security priorities. 12
880880 (c) A
881881 NNUALREPORT TOCONGRESS.—Not later than 13
882882 1 year after the date on which the Fund is established, 14
883883 and annually thereafter for each fiscal year during which 15
884884 amounts in the Fund are available under subsection 16
885885 (a)(4), the Secretary of State shall submit to the appro-17
886886 priate committees of Congress a report on the status of 18
887887 the implementation of this section that includes a descrip-19
888888 tion of— 20
889889 (1) any commitments made by the governments 21
890890 of countries that have entered into an arrangement 22
891891 or agreement with the United States to provide 23
892892 funding for the Minerals Security Partnership com-24
893893 mon funding mechanism described in subsection 25
894894 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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896896 •S 44 IS
897897 (b)(1) and the specific amount so committed and 1
898898 other cooperative measures being taken by such 2
899899 countries as part of the mechanism; 3
900900 (2) the criteria established for expenditure of 4
901901 funds through the mechanism; 5
902902 (3) how, and to whom, amounts have been ex-6
903903 pended from the Fund and a description of progress 7
904904 made in utilizing the Fund to support the objectives 8
905905 described in subsection (b)(1); 9
906906 (4) amounts remaining in the Fund; 10
907907 (5) the progress of the Secretary of State to-11
908908 ward entering into an arrangement or agreement 12
909909 with the governments of countries that are partners 13
910910 of the United States to participate in the Minerals 14
911911 Security Partnership common funding mechanism 15
912912 and the commitments described in subsection (b)(3); 16
913913 and 17
914914 (6) any additional authorities needed to en-18
915915 hance the effectiveness of the Fund in achieving the 19
916916 security goals of the United States. 20
917917 (d) N
918918 OTIFICATIONSTOBEPROVIDED BY THE 21
919919 F
920920 UND.— 22
921921 (1) I
922922 N GENERAL.—Not later than 15 days prior 23
923923 to the Fund making a financial commitment associ-24
924924 ated with the provision of expenditures under sub-25
925925 VerDate Sep 11 2014 23:03 Jan 27, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S44.IS S44
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927927 •S 44 IS
928928 section (a)(4)(A) in an amount in excess of 1
929929 $1,000,000, the Secretary of State shall submit to 2
930930 the appropriate committees of Congress a report in 3
931931 writing that includes the information described in 4
932932 paragraph (2). 5
933933 (2) I
934934 NFORMATION REQUIRED .—The information 6
935935 described in this paragraph is— 7
936936 (A) the amount of each expenditure de-8
937937 scribed in paragraph (1); 9
938938 (B) an identification of the recipient or 10
939939 beneficiary of each such expenditure; and 11
940940 (C) a description of the project or activity 12
941941 to be carried out and the purpose to be 13
942942 achieved by each such expenditure. 14
943943 (3) A
944944 RRANGEMENTS OR AGREEMENTS .—The 15
945945 Secretary of State shall notify the appropriate com-16
946946 mittees of Congress not later than 30 days after en-17
947947 tering into a new bilateral or multilateral arrange-18
948948 ment or agreement described in subsection 19
949949 (a)(4)(B). 20
950950 (e) F
951951 OREIGNENTITIES OFCONCERN.—A foreign en-21
952952 tity of concern may not be a participant or beneficiary of 22
953953 the Minerals Security Partnership common funding mech-23
954954 anism described in subsection (b)(1). 24
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957957 •S 44 IS
958958 (f) APPLICABILITY TOEXISTINGFUND OF THEMIN-1
959959 ERALSSECURITYPARTNERSHIP.—This section shall 2
960960 apply to any fund in the Treasury that has been estab-3
961961 lished before the date of enactment of this Act for use 4
962962 of the Minerals Security Partnership. 5
963963 SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE. 6
964964 As soon as practicable after the date of enactment 7
965965 of this Act, the Secretary shall establish an initiative 8
966966 under which the Secretary shall work with the Secretary 9
967967 of Labor, the Director of the National Science Founda-10
968968 tion, the Critical Minerals Subcommittee of the National 11
969969 Science and Technology Council, the private sector, insti-12
970970 tutions of higher education, and workforce training enti-13
971971 ties to incentivize and expand participation in graduate 14
972972 and undergraduate programs, and to develop workforce 15
973973 training programs and apprenticeships, relating to ad-16
974974 vanced rare earth element mining, separation, processing, 17
975975 metallurgy, and advanced equipment maintenance capa-18
976976 bilities. 19
977977 SEC. 6. SUPPORT FOR FREELY ASSOCIATED STATES. 20
978978 Section 1412(c) of the Better Utilization of Invest-21
979979 ments Leading to Development Act of 2018 (22 U.S.C. 22
980980 9612(c)) is amended by adding at the end the following: 23
981981 ‘‘(3) S
982982 UPPORT FOR FREELY ASSOCIATED 24
983983 STATES.—Notwithstanding the income classification 25
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986986 •S 44 IS
987987 of the country with which the geopolitical entity is 1
988988 associated, the Corporation may provide support 2
989989 under title II to a geopolitical entity that is included, 3
990990 as of the date on which support is provided, on the 4
991991 list of dependencies and areas of special sovereignty 5
992992 prepared by the Department of State.’’. 6
993993 SEC. 7. PROHIBITION RELATING TO FOREIGN ENTITIES OF 7
994994 CONCERN. 8
995995 None of the funds authorized to be appropriated to 9
996996 carry out this Act may be provided to a foreign entity of 10
997997 concern. 11
998998 SEC. 8. DEFENSE PRODUCTION ACT OF 1950 EFFORTS. 12
999999 (a) I
10001000 NGENERAL.—Not later than 180 days after the 13
10011001 date of enactment of this Act, the President shall submit 14
10021002 to Congress a report on a plan of action for any use of 15
10031003 authorities available in title III of the Defense Production 16
10041004 Act of 1950 (50 U.S.C. 4531 et seq.) to establish or en-17
10051005 hance a domestic production capability for finished rare 18
10061006 earth products and related technologies, subject to— 19
10071007 (1) the availability of appropriations for that 20
10081008 purpose; and 21
10091009 (2) a determination made under the plan pursu-22
10101010 ant to that title that— 23
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10131013 •S 44 IS
10141014 (A) finished rare earth products and re-1
10151015 lated technologies are essential to the national 2
10161016 defense; and 3
10171017 (B) domestic industrial capabilities are in-4
10181018 sufficient to meet those needs. 5
10191019 (b) C
10201020 OORDINATION.—The President shall develop the 6
10211021 plan of action required by subsection (a) in consultation 7
10221022 with any relevant head of a Federal agency, an advisory 8
10231023 committee established under section 708(d) of the Defense 9
10241024 Production Act of 1950 (50 U.S.C. 4558(d)), and appro-10
10251025 priate stakeholders in the private sector. 11
10261026 Æ
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