[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5495 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5495
To establish the Supply Chain Resiliency and Crisis Response Office in
the Department of Commerce, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 5, 2021
Mr. Malinowski (for himself, Mr. Kinzinger, and Ms. Blunt Rochester)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To establish the Supply Chain Resiliency and Crisis Response Office in
the Department of Commerce, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Building Resilient Supply Chains
Act''.
SEC. 2. CRITICAL SUPPLY CHAIN RESILIENCE PROGRAM.
(a) Establishment.--There is established in the Office of the
Secretary of Commerce a Supply Chain Resiliency and Crisis Response
Office to carry out the Critical Supply Chain Resilience Program
described in subsection (d).
(b) Mission.--The mission of the Office shall be the following:
(1) Help to promote the leadership of the United States
with respect to critical industries and supply chains that--
(A) strengthen the national security of the United
States; and
(B) have a significant effect on the economic
security of the United States.
(2) Encourage partnerships and collaboration with the
Federal Government and the private sector, labor organizations,
the governments of countries that are allies or key
international partners of the United States, State governments
and other political subdivisions of a State, and Tribal
governments in order to--
(A) promote the resilience of supply chains; and
(B) respond to supply chain shocks to--
(i) critical industries; and
(ii) supply chains.
(3) Support the development, maintenance, improvement,
competitiveness, restoration, and expansion of the productive
capacities, efficiency, and workforce of critical industries
and domestic manufacturers of critical goods and services,
industrial equipment, and manufacturing technology.
(4) Prepare for and take appropriate steps to minimize the
effects of supply chain shocks on critical industries and
supply chains.
(5) Support the creation of jobs with competitive wages in
the manufacturing sector.
(6) Encourage manufacturing growth and opportunities in
economically distressed areas and communities of color.
(7) Promote the health of the economy of the United States
and the competitiveness of manufacturing in the United States.
(8) Coordinate executive branch actions necessary to carry
out the functions described in paragraphs (1) through (7).
(c) Under Secretary of the Office.--
(1) Appointment and term.--The head of the Office shall be
the Under Secretary of the Office of Supply Chain Resiliency
and Crisis Response, appointed by the President, by and with
the advice and consent of the Senate, for a term of not more
than 5 years.
(2) Pay.--The Under Secretary shall be compensated at the
rate in effect for level II of the Executive Schedule under
section 5313 of title 5, United States Code.
(3) Administrative authorities.--The Under Secretary may
appoint officers and employees in accordance with chapter 51
and subchapter III of chapter 53 of title 5, United States
Code.
(d) Critical Supply Chain Resilience Program.--
(1) In general.--The Under Secretary shall support the
resilience, diversity, security, and strength of supply chains
by providing grants, loans, and loan guarantees for eligible
activities described under subsection (e) to eligible entities
described under subsection (f).
(2) Application.--To be eligible for a grant, loan, or loan
guarantee under this section, an eligible entity described in
subsection (f) shall submit to the Under Secretary an
application at such time, in such form, and containing such
information as the Under Secretary may require, including--
(A) a description of the proposed activity to be
carried out with such a grant, loan, or loan guarantee;
(B) a description of the supply chain supported by
the proposed activity; and
(C) an estimate of the total costs for such
activity.
(e) Eligible Activities.--The following activities may be carried
out with amounts made available under this section:
(1) The development, diversification, preservation,
improvement, support, restoration, or expansion of supply
chains and the domestic manufacturing of critical goods and
services, industrial equipment, and manufacturing technology,
including activities that support any of the following:
(A) The domestic manufacturing of a critical good
or service or industrial equipment.
(B) The commercialization, adoption, deployment, or
use of manufacturing technology by domestic
manufacturers.
(C) The design, engineering, construction,
expansion, improvement, repair, or maintenance of
critical infrastructure or a manufacturing facility in
the United States.
(D) The purchase, lease, enhancement, or retooling
of industrial equipment for use in the United States.
(E) The purchase, lease, or acquisition of critical
goods and services, industrial equipment, or
manufacturing technology from reliable sources.
(2) The manufacture or acquisition of a substitute for a
critical good or service, industrial equipment, or
manufacturing technology.
(3) The establishment, improvement, development, expansion,
or preservation of surge capacity or stockpiling of a critical
good or service or industrial equipment, as appropriate and
necessary.
(4) The establishment, improvement, or preservation of
diverse, secure, reliable, and strong sources and locations of
a critical good or service in the United States.
(f) Eligible Entities.--The following entities are eligible to
receive grants, loans, and loan guarantees under this section:
(1) A domestic manufacturer.
(2) A domestic enterprise.
(3) A State, county, city, or other political subdivision
of a State.
(4) A Tribal government.
(5) A manufacturing extension center established as part of
the Hollings Manufacturing Extension Partnership.
(6) A Manufacturing USA institute as described in section
34(d) of the National Institute of Standards and Technology Act
(15 U.S.C. 278s(d)).
(7) An institution of higher education acting as part of a
consortium, partnership, or joint venture with another eligible
entity described in paragraphs (1) through (6).
(8) A public or private nonprofit organization or
association acting as part of a consortium, partnership, or
joint venture with another eligible entity described in
paragraphs (1) through (6).
(9) A consortium, partnership, or joint venture of two or
more eligible entities described under paragraphs (1) through
(8).
(g) Requirements.--The Under Secretary may only make a grant, loan,
or loan guarantee available to an eligible entity if the Under
Secretary makes a determination of the following:
(1) The grant, loan, or loan guarantee is for an activity
described under subsection (e).
(2) Without a grant, loan, or loan guarantee the eligible
entity would not be able to fund or finance the activity under
reasonable terms and conditions.
(3) A grant, loan, or loan guarantee is a cost effective,
expedient, and practical financial assistance for the activity.
(4) There is a reasonable assurance that--
(A) the eligible entity will implement the activity
in accordance with the application submitted pursuant
to paragraph (2) of subsection (d); and
(B) the activity will support--
(i) the resilience, diversity, security, or
strength of a supply chain; or
(ii) the national security or economic
security of the United States.
(5) The eligible entity agrees to provide the information
required under paragraph (3) of subsection (m).
(h) Criteria.--The Under Secretary shall establish criteria for the
awarding of grants, loans, and loan guarantees that meet the
requirements under subsection (g), including the following:
(1) The extent to which the activity supports the
resilience, diversity, security, and strength of supply chains.
(2) The extent to which the activity is funded or financed
by non-Federal sources.
(3) The extent to which the grant, loan, or loan guarantee
will assist small and medium-sized domestic manufacturers.
(4) The amount of appropriations that are required to fund
or finance the grant, loan, or loan guarantee made available
under this section.
(i) Grant Cost Share.--
(1) In general.--The Federal share of the cost of a grant
awarded to an eligible entity under this section may not exceed
80 percent of the total cost of the activity.
(2) Waiver.--Upon providing written justification for a
determination made pursuant to this paragraph, which may be
submitted with a classified annex to the Committee on Energy
and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate, the
Under Secretary may waive the cost share requirement under
paragraph (1)--
(A) during a period of national emergency declared
by an Act of Congress or the President; or
(B) upon making a determination that a grant is
necessary to avert the disruption, strain, compromise,
or elimination of a supply chain that would severely
affect the national security or economic security of
the United States.
(3) Maximum federal involvement.--Federal assistance other
than a grant under this section may be used to satisfy the non-
Federal share of the cost of the activity.
(j) Loans and Loan Guarantees.--
(1) In general.--The Under Secretary may enter into
agreements with one or more eligible entities to make a loan,
the proceeds of which shall be used to finance eligible
activities.
(2) Maximum amount.--The amount of a loan under this
section shall not exceed 80 percent of the reasonably
anticipated costs of an activity.
(3) Waiver.--Upon providing written justification for a
determination made pursuant to this paragraph, which may be
submitted with a classified annex to the Committee on Energy
and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate, the
Under Secretary may waive the requirement under paragraph (2)--
(A) during a period of national emergency declared
by an Act of Congress or the President; or
(B) upon making a determination that a loan or loan
guarantee is necessary to avert the disruption, strain,
compromise, or elimination of a supply chain that would
severely affect the economic security of the United
States.
(4) Maximum federal involvement.--The proceeds of a loan
under this section may be used to pay any non-Federal share of
activity costs required if the loan is repayable from non-
Federal funds.
(5) Loan guarantees.--The Under Secretary may provide a
loan guarantee to a lender in lieu of making a loan under this
subsection.
(6) Loan guarantee terms.--The terms of a loan guarantee
provided under this subsection shall be consistent with the
terms established in this subsection for a loan.
(k) Creditworthiness.--
(1) In general.--For a loan or loan guarantee issued under
subsection (j), the eligible activity and eligible entity
receiving such loan or loan guarantee shall be creditworthy,
which shall be determined by the Under Secretary.
(2) Considerations.--In determining the creditworthiness of
an eligible activity and eligible entity, the Under Secretary
shall take into consideration relevant factors, including the
following:
(A) The terms, conditions, financial structure, and
security features of the proposed financing.
(B) The revenue sources that will secure or fund
any note, bond, debenture, or other debt obligation
issued in connection with the Federal financing.
(C) The financial assumptions upon which the loan
or loan guarantee is based.
(D) The ability of the eligible entity to
successfully achieve the goal of the activity.
(E) The financial soundness and credit history of
the eligible entity.
(l) Conditions.--The Under Secretary is authorized to prescribe--
(1) either specifically or by maximum limits or otherwise,
rates of interest, guarantee and commitment fees, and other
charges which may be made in connection with a loan or loan
guarantee made under this section; and
(2) regulations governing the forms and procedures (which
shall be uniform to the extent practicable) to be used in
connection with such loans and loan guarantees.
(m) Performance Measures.--For grants, loans, and loan guarantees
awarded under this section, the Under Secretary shall--
(1) develop metrics to assess the extent to which the
activities meet the criteria under subsection (h);
(2) evaluate the extent to which each eligible entity
awarded a grant, loan, or loan guarantee is meeting the
criteria under subsection (h); and
(3) require that any information the Under Secretary
determines to be necessary for the evaluation described under
paragraph (2) be provided by eligible entities awarded a grant,
including subawardees.
(n) Revocation.--The Under Secretary may revoke a grant, loan, or
loan guarantee if the eligible entity fails to meet any requirement
under this section.
(o) Construction Projects.--Section 602 of the Public Works and
Economic Development Act of 1965 (42 U.S.C. 3212) shall apply to a
construction project that receives financial assistance from the Under
Secretary under this section.
(p) Critical Supply Chain Resilience Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the ``Supply Chains for
Critical Manufacturing Industries Fund'' (referred to in this
section as the ``Fund'') which shall solely be used by the
Under Secretary to carry out this section.
(2) Revolving loan fund.--The proceeds of any conditions
prescribed under subsection (l)(1) shall be deposited into the
Fund.
(q) Program Evaluation.--Not later than 4 years after the date of
enactment of this Act, and every 4 years thereafter, the Inspector
General of the Department of Commerce shall conduct an audit of the
Office to--
(1) evaluate the performance of the activities supported by
a grant, loan, or loan guarantee under this section;
(2) evaluate the extent to which the requirements and
criteria under this section are met; and
(3) provide recommendations on any proposed changes to
improve the effectiveness of the Office on meeting the mission
under subsection (b).
(r) Regulations.--The Under Secretary may promulgate such
regulations as the Under Secretary determines to be appropriate to
carry out this section.
(s) Authorization of Appropriations.--There is authorized to be
appropriated--
(1) to the Fund $41,000,000,000 for fiscal years 2022
through 2027, to remain available until expended, of which not
more than--
(A) $31,000,000,000 may be used for loans and loan
guarantees to eligible entities;
(B) $10,000,000,000 may be used for grants; and
(C) 2 percent per fiscal year may be used for
administrative costs; and
(2) to the Inspector General of the Department of Commerce
$5,000,000 for fiscal years 2022 through 2027, to remain
available until expended, to carry out subsection (q).
(t) Consistency With International Agreements.--This Act shall be
applied in a manner consistent with United States obligations under
international agreements.
(u) Workforce Protections.--Any eligible entity applying for a
grant, loan, or loan guarantee under this section and with 100 or more
employees shall make a good-faith certification that--
(1) the eligible entity will not abrogate existing
collective bargaining agreements for--
(A) the term of the grant; or
(B) the term of the loan or loan guarantee and 2
years after completing repayment of the loan; and
(2) the eligible entity will remain neutral in any union
organizing effort for the term of the grant, loan, or loan
guarantee.
(v) Definitions.--In this section:
(1) Ally or key international partner.--The term ``ally or
key international partner'' does not include countries that
pose a significant national security or economic security risk
to the United States.
(2) Critical good or service.--The term ``critical good or
service'' means any raw, in process, or manufactured material
(including any mineral, metal, or advanced processed material),
article, commodity, supply, product, or item of supply the
absence of which would have a significant effect on--
(A) the national security or economic security of
the United States; and
(B) critical infrastructure.
(3) Critical industry.--The term ``critical industry''
means an industry that is critical for the national security or
economic security of the United States, considering key
technology focus areas under this section and critical
infrastructure.
(4) Critical infrastructure.--The term ``critical
infrastructure'' has the meaning given to that term in the
Critical Infrastructures Protection Act of 2001 (42 U.S.C.
5195c).
(5) Domestic enterprise.--The term ``domestic enterprise''
means an enterprise that conducts business in the United States
and procures a critical good or service.
(6) Domestic manufacturer.--The term ``domestic
manufacturer'' means a business that--
(A) conducts in the United States the research and
development, engineering, or production activities
necessary or incidental to manufacturing; or
(B) if provided a grant, loan, loan guarantee, or
equity investment pursuant to this section, will
conduct in the United States the research and
development, engineering, or production activities
necessary or incidental to manufacturing.
(7) Industrial equipment.--The term ``industrial
equipment'' means any component, subsystem, system, equipment,
tooling, accessory, part, or assembly necessary for the
manufacturing of a critical good or service.
(8) Institution of higher education.--The term
``institution of higher education'' has the meaning given that
term under section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(9) Key technology focus areas.--The term ``key technology
focus areas'' means the following:
(A) Artificial intelligence, machine learning,
autonomy, and related advances.
(B) High performance computing, semiconductors, and
advanced computer hardware and software.
(C) Quantum information science and technology.
(D) Robotics, automation, and advanced
manufacturing.
(E) Natural and anthropogenic disaster prevention
or mitigation.
(F) Advanced communications technology, including
optical transmission components.
(G) Biotechnology, medical technology, genomics,
and synthetic biology.
(H) Data storage, data management, distributed
ledger technologies, and cybersecurity, including
biometrics.
(I) Advanced energy and industrial efficacy
technologies, such as batteries, advanced nuclear
technologies, and polysilicon for use in solar
photovoltaics, including for the purposes of electric
generation (consistent with section 15 of the National
Science Foundation Act of 1950 (42 U.S.C. 1874)).
(J) Advanced materials science, including
composites and 2D materials and equipment, aerospace
grade metals, and aerospace specific manufacturing
enabling chemicals.
(10) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer (as defined in section
230.144A(a) of title 17, Code of Federal Regulations or a
successor regulation).
(11) Loan.--The term ``loan'' means a direct loan or other
debt obligation issued by an eligible entity and funded by the
Under Secretary in connection with the financing of an activity
under this section.
(12) Loan guarantee.--The term ``loan guarantee'' means any
guarantee or other pledge by the Under Secretary to pay all or
part of the principal of, and interest on, a loan or other debt
obligation entered into by an eligible entity and funded by a
lender.
(13) Manufacture.--The term ``manufacture'' means any
activity that is necessary for or incidental to the
development, production, processing, distribution, or delivery
of any raw, in process, or manufactured material (including
minerals, metals, and advanced processed materials), article,
commodity, supply, product, critical good or service, or item
of supply.
(14) Manufacturing facility.--The term ``manufacturing
facility'' means any type of building, structure, or real
property necessary or incidental to the manufacturing of a
critical good or service.
(15) Manufacturing technology.--The term ``manufacturing
technology'' means technologies that are necessary or
incidental to the manufacturing of a critical good or service.
(16) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of such Code.
(17) Office.--The term ``Office'' means the Supply Chain
Resiliency and Crisis Response Office established under
subsection (a).
(18) State.--The term ``State'' means each State of the
United States, the District of Columbia, American Samoa, Guam,
the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, the Virgin Islands of the United
States, and any other territory or possession of the United
States.
(19) Supply chain.--The term ``supply chain'' means a
supply chain for a critical good or service.
(20) Tribal government.--The term ``Tribal government''
means Indian Tribes, Alaska Native Tribal entities, and Native
Hawaiian communities.
(21) Under secretary.--The term ``Under Secretary'' means
the Under Secretary of the Office of Supply Chain Resiliency
and Crisis Response appointed pursuant to subsection (c).
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