[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5195 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 5195
To strengthen the national security of the United States by decreasing
the reliance of the Department of Defense on critical minerals from the
People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 7, 2022
Mr. Romney (for himself and Mr. Sullivan) introduced the following
bill; which was read twice and referred to the Committee on Armed
Services
_______________________________________________________________________
A BILL
To strengthen the national security of the United States by decreasing
the reliance of the Department of Defense on critical minerals from the
People's Republic of China, 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 ``Critical Mineral Independence Act of
2022''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Allied country.--The term ``allied country'' means--
(A) a country of the national technology and
industrial base, as defined in section 4801 of title
10, United States Code; or
(B) another country that is an ally of the United
States and is identified by the Secretary of Defense
for purposes of this Act.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Energy and Natural Resources,
the Committee on Armed Services, the Committee on
Foreign Relations, and the Committee on Banking,
Housing, and Urban Affairs of the Senate; and
(B) the Committee on Natural Resources, the
Committee on Armed Services, the Committee on Foreign
Affairs, and the Committee on Financial Services of the
House of Representatives.
(3) Critical mineral.--The term ``critical mineral'' has
the meaning given that term in section 7002(a) of the Energy
Act of 2020 (30 U.S.C. 1606(a)).
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to expand mining and processing of critical minerals,
including rare earth elements, in the United States and in
allied countries to meet the needs of the United States defense
sector so that the Department of Defense will achieve critical
mineral supply chain independence by 2027;
(2) that the Department of Defense will procure critical
minerals processed by the United States and allied countries to
replenish and expand the National Defense Stockpile to meet
growing geopolitical threats by 2027; and
(3) to develop critical mineral supply chains for the
Department of Defense that are not dependent on mining or
processing of critical minerals in countries that are
geostrategic competitors or adversaries of the United States.
SEC. 4. REPORT ON UNITED STATES AND ALLIED PROCESSING OF CRITICAL
MINERALS REQUIRED TO ACHIEVE DEFENSE SUPPLY CHAIN
INDEPENDENCE.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Under Secretary of Defense for Acquisition
and Sustainment shall submit to the appropriate committees of Congress
a report on the processing by the United States and allied countries of
critical minerals, including rare earth elements, required to achieve
supply chain independence for the United States Armed Forces and allied
countries by 2027.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) An estimate of the annual demand for processed critical
minerals for the United States Armed Forces and allied
countries.
(2) An outline of the necessary processed critical minerals
value chain required to support the needs of the Department of
Defense.
(3) An assessment of any gaps in the outline described in
paragraph (2), indicating where sufficient United States
processing capacity exists and where such capacity does not
exist.
(4) An identification of any Federal funds, including any
funds made available under title III of the Defense Production
Act of 1950 (50 U.S.C. 4531 et seq.), being deployed, as of the
date of the report, to support development of United States
capacity to address those gaps.
(5) An estimate of the additional capital investment
required to grow and operate sufficient United States capacity
to address those gaps.
(6) An estimate of the annual funding necessary for the
Department of Defense to procure critical minerals processed in
the United States sufficient to meet the annual needs of the
Department, including consideration of increased investments
from private sector capital.
(7) An estimate of the cost difference between the
Department of Defense--
(A) sourcing critical minerals processed by the
United States;
(B) sourcing critical minerals processed by allied
countries; and
(C) sourcing critical minerals on the open market.
(8) An assessment of what changes, if any, are necessary to
the acquisition policies of the Department of Defense to ensure
weapon suppliers use critical minerals processed by the United
States or allied countries.
(9) An assessment of what changes, if any, to authorities
under title III of the Defense Production Act of 1950 are
necessary to enter into a long-term offtake agreement with
respect to critical minerals processed by the United States or
allied countries.
(10) An assessment of the duration of potential contracts
necessary to prevent the collapse of United States processing
of critical minerals in the event of price fluctuations
resulting from increases in the export quota of the People's
Republic of China.
(11) Recommendations for international cooperation with
allied countries to jointly reduce dependence on critical
minerals processed in or by the People's Republic of China.
SEC. 5. STRATEGY TO TRANSITION THE SUPPLY CHAIN FOR THE NATIONAL
DEFENSE STOCKPILE TO UNITED STATES AND ALLIED-PROCESSED
CRITICAL MINERALS BY 2027.
(a) In General.--Not later than 90 days after the report required
by section 4 is submitted, the Director of the Defense Logistics
Agency, in coordination with the Under Secretary of Defense for
Acquisition and Sustainment, shall develop, and submit to the
appropriate committees of Congress, a strategy to transition the supply
chain for critical minerals, including rare earths elements, in the
National Defense Stockpile away from reliance on geostrategic
competitors and adversaries of the United States by 2027, through
acquisition of critical minerals processed by--
(1) the United States, with a preference given to critical
minerals processed in the United States; or
(2) allied countries (excluding critical minerals processed
in a country that is a geostrategic competitor or adversary of
the United States), with preference given to critical minerals
processed in such countries.
(b) Forecasted Need of Critical Minerals.--The strategy required by
subsection (a) shall be designed to meet the forecasted need for
critical minerals of the Department of Defense through calendar year
2027 for--
(1) planned procurements;
(2) anticipated adoption of emerging technology; and
(3) potential increases in the National Defense Stockpile
that would be needed if the Department implements the guidance
included in the Climate Adaptation Action Plan of the
Department of Defense, dated September 2021.
(c) Elements.--The strategy required by subsection (a) shall
include the following:
(1) A list of critical minerals in the National Defense
Stockpile.
(2) A priority ranking for transitioning the critical
minerals on the list required by paragraph (1), developed
using, for each such mineral--
(A) the percentage of the mineral processed by
foreign sources (excluding allied countries);
(B) the percentage of operational processing
facilities for the mineral located in the United States
and in allied countries, compared to foreign sources of
the mineral (excluding allied countries);
(C) the quantity of the mineral required to fulfill
the purposes set forth in section 2 of the Strategic
and Critical Materials Stock Piling Act (50 U.S.C.
98a); and
(D) any other metric, as determined by the Director
and the Under Secretary, that may be an indicator of
reliance on foreign sources (excluding allied
countries) for the mineral.
(3) A process to replenish 50 percent of each mineral on
the list required by paragraph (1) with the mineral processed
by United States or allied country processors during the 1-year
period after implementation of the strategy.
(4) A process to replenish 95 percent of each mineral on
the list required by paragraph (1) with the mineral processed
by United States or allied country processors during the 3-year
period after implementation of the strategy.
(5) Recommendations to Congress with respect to any
authorities needed to implement the strategy.
(6) Any other matters related to implementing the strategy
as the Director and the Under Secretary consider appropriate.
(d) Implementation.--The Director and the Under Secretary shall--
(1) coordinate the implementation of the processes required
by paragraphs (3) and (4) of subsection (c) with the Department
of Defense and activities carried out by the Department under
title III of the Defense Production Act of 1950 (50 U.S.C. 4531
et seq.); and
(2) to the greatest extent practicable, implement the
strategy required by subsection (a) with respect to acquisition
of critical minerals for the National Defense Stockpile with
funds authorized to be appropriated under section 7.
(e) Briefings Required.--Not later than 180 days after the
submission of the strategy required by subsection (a), and every 180
days thereafter, the Director and the Under Secretary shall brief the
appropriate committees of Congress on implementation of the strategy.
SEC. 6. FORM OF REPORT AND STRATEGY.
The report required by section 4 and the strategy required by
section 5 shall be submitted in classified form but shall include an
unclassified summary.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the National Defense
Stockpile Transaction Fund $1,003,500 for the acquisition of strategic
and critical minerals under section 6(a) of the Strategic and Critical
Minerals Stock Piling Act (50 U.S.C. 98e(a)).
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