[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 44 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
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 elements and the production of finished rare earth products,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 24 (legislative day, January 3), 2023
Mr. Rubio introduced 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Obtaining National and Secure
Homeland Operations for Rare Earth Manufacturing Act of 2023'' or the
``ONSHORE Manufacturing Act of 2023''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Select Committee on Intelligence, the
Committee on Energy and Natural Resources, the
Committee on Commerce, Science, and Transportation, the
Committee on Foreign Relations, the Committee on Armed
Services, the Committee on Appropriations, the
Committee on Banking, Housing, and Urban Affairs, the
Committee on Homeland Security and Governmental
Affairs, and the Committee on Finance of the Senate;
and
(B) the Permanent Select Committee on Intelligence,
the Committee on Energy and Commerce, the Committee on
Foreign Affairs, the Committee on Armed Services, the
Committee on Science, Space, and Technology, the
Committee on Appropriations, the Committee on Financial
Services, the Committee on Homeland Security, and the
Committee on Ways and Means of the House of
Representatives.
(2) Covered entity.--The term ``covered entity'' means a
private entity, a consortium of private entities, or a
consortium of public and private entities with a demonstrated
ability to substantially finance, construct, expand, or
technologically upgrade a covered facility.
(3) Covered facility.--The term ``covered facility'' means
a facility located in a State that carries out the metallurgy
of rare earth elements for the production of finished rare
earth products.
(4) Covered incentive.--The term ``covered incentive''
means--
(A) an incentive offered by a Federal, State,
local, or Tribal governmental entity to a covered
entity for the purposes of--
(i) constructing within the jurisdiction of
the governmental entity a covered facility; or
(ii) expanding or technologically upgrading
an existing facility within that jurisdiction
to be a covered facility; and
(B) a workforce-related incentive (including a
grant agreement relating to workforce training or
vocational education), any concession with respect to
real property, funding for research and development
with respect to rare earth elements and finished rare
earth products, and any other incentive determined
appropriate by the Secretary, in consultation with the
Secretary of State.
(5) Finished rare earth product.--The term ``finished rare
earth product'' means a product composed of significant
quantities of rare earth elements, including--
(A) metals;
(B) alloys; and
(C) permanent magnets.
(6) Foreign entity.--
(A) In general.--The term ``foreign entity''
means--
(i) a government of a foreign country and a
foreign political party;
(ii) a natural person who is not--
(I) a lawful permanent resident of
the United States;
(II) a citizen or national of the
United States; or
(III) any other protected
individual (as defined in section
274B(a)(3) of the Immigration and
Nationality Act (8 U.S.C.
1324b(a)(3))); and
(iii) a partnership, association,
corporation, organization, or other combination
of persons organized under the laws of or
having its principal place of business in a
foreign country.
(B) Inclusions.--The term ``foreign entity''
includes--
(i) any person owned by, controlled by, or
subject to the jurisdiction or direction of an
entity described in subparagraph (A);
(ii) any person, wherever located, who acts
as an agent, representative, or employee of an
entity described in subparagraph (A);
(iii) any person who acts in any other
capacity at the order, request, or under the
influence, direction, or control, of--
(I) an entity described in
subparagraph (A); or
(II) a person the activities of
which are directly or indirectly
supervised, directed, controlled,
financed, or subsidized in whole or in
majority part by an entity described in
subparagraph (A);
(iv) any person who directly or indirectly
through any contract, arrangement,
understanding, relationship, or otherwise, owns
25 percent or more of the equity interests of
an entity described in subparagraph (A);
(v) any person with significant
responsibility to control, manage, or direct an
entity described in subparagraph (A);
(vi) any person, wherever located, who is a
citizen or resident of a country controlled by
an entity described in subparagraph (A); and
(vii) any corporation, partnership,
association, or other organization organized
under the laws of a country controlled by an
entity described in subparagraph (A).
(7) Foreign entity of concern.--
(A) In general.--The term ``foreign entity of
concern'' means any foreign entity that is--
(i) designated as a foreign terrorist
organization by the Secretary of State under
section 219 of the Immigration and Nationality
Act (8 U.S.C. 1189);
(ii) included on the list of specially
designated nationals and blocked persons
maintained by the Office of Foreign Assets
Control of the Department of the Treasury;
(iii) owned by, controlled by, or subject
to the jurisdiction, direction, or otherwise
under the undue influence of a government of a
covered nation (as defined in section 4872(d)
of title 10, United States Code);
(iv) alleged by the Attorney General to
have been involved in activities for which a
conviction was obtained under--
(I) chapter 37 of title 18, United
States Code (commonly known as the
``Espionage Act'');
(II) section 951 or 1030 of title
18, United States Code;
(III) chapter 90 of title 18,
United States Code (commonly known as
the ``Economic Espionage Act of
1996'');
(IV) the Arms Export Control Act
(22 U.S.C. 2751 et seq.);
(V) section 224, 225, 226, 227, or
236 of the Atomic Energy Act of 1954
(42 U.S.C. 2274-2278; 2284);
(VI) the Export Control Reform Act
of 2018 (50 U.S.C. 4801 et seq.); or
(VII) the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.); or
(v) determined by the Secretary, in
consultation with the Secretary of Defense and
the Director of National Intelligence, to be
engaged in unauthorized conduct that is
detrimental to the national security or foreign
policy of the United States under this Act.
(B) Exclusion.--The term ``foreign entity of
concern'' does not include any entity with respect to
which 1 or more foreign entities described in
subparagraph (A) owns less than 10 percent of the
equity interest.
(8) Governmental entity.--The term ``governmental entity''
means--
(A) a State; and
(B) a local government of a State.
(9) Intelligence community.--The term ``intelligence
community'' has the meaning given the term in section 3 of the
National Security Act of 1947 (50 U.S.C. 3003).
(10) Metallurgy.--The term ``metallurgy'' means the process
of producing finished rare earth products from purified rare
earth elements.
(11) Minerals security partnership.--The term ``Minerals
Security Partnership'' means the Minerals Security Partnership
established in June 2022.
(12) Person.--The term ``person'' includes an individual,
partnership, association, corporation, organization, or any
other combination of individuals.
(13) Private capital.--The term ``private capital'' has the
meaning given the term in section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662).
(14) Rare earth element.--The term ``rare earth element''
means a natural element associated with--
(A) the metallic element scandium, with atomic
number 21;
(B) the metallic element yttrium, with atomic
number 39; or
(C) any of the series of 15 metallic elements
between lanthanum, with atomic number 57, and lutetium,
with atomic number 71, on the periodic table.
(15) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(16) State.--The term ``State'' means--
(A) each of the several States of the United
States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) Guam;
(E) American Samoa;
(F) the Commonwealth of the Northern Mariana
Islands;
(G) the Federated States of Micronesia;
(H) the Republic of the Marshall Islands;
(I) the Republic of Palau; and
(J) the United States Virgin Islands.
SEC. 3. RARE EARTH METALLURGY FINANCING.
(a) Financial Assistance Program.--
(1) In general.--The Secretary shall establish in the
Department of Energy a program to provide Federal financial
assistance to covered entities to incentivize investment in
covered facilities, subject to the availability of
appropriations for that purpose.
(2) Procedure.--
(A) In general.--A covered entity seeking financial
assistance under this subsection shall submit to the
Secretary an application that describes the project for
which the covered entity is seeking financial
assistance.
(B) Eligibility.--In order for a covered entity to
qualify for financial assistance under this subsection,
the covered entity shall demonstrate to the Secretary,
in the application submitted by the covered entity
under subparagraph (A), that--
(i) the covered entity has a documented
interest in--
(I) constructing a covered
facility; or
(II) expanding or technologically
upgrading a facility owned by the
covered entity to be a covered
facility; and
(ii) with respect to the project for which
the covered entity is seeking financial
assistance, the covered entity has--
(I) been offered a covered
incentive;
(II) made commitments to worker and
community investment, including
through--
(aa) training and education
benefits paid by the covered
entity; and
(bb) programs to expand
employment opportunity for
economically disadvantaged
individuals;
(III) secured commitments from
regional educational and training
entities and institutions of higher
education to provide workforce
training, including programming for
training and job placement of
economically disadvantaged individuals;
and
(IV) an executable plan to sustain
a covered facility without additional
Federal financial assistance under this
subsection for facility support.
(C) Application review.--
(i) In general.--The Secretary may not
approve an application submitted by a covered
entity under subparagraph (A)--
(I) unless the Secretary--
(aa) confirms that the
covered entity has satisfied
the eligibility criteria under
subparagraph (B);
(bb) determines that the
project for which the covered
entity is seeking financial
assistance is in the interest
of the United States; and
(cc) has notified the
appropriate committees of
Congress not later than 15 days
before making any commitment to
provide an award of financial
assistance to any covered
entity in an amount that
exceeds $10,000,000; or
(II) if the Secretary determines,
in consultation with the Director of
National Intelligence, that the covered
entity is a foreign entity of concern.
(ii) Consideration.--In reviewing an
application submitted by a covered entity under
subparagraph (A), the Secretary may consider
whether--
(I) the covered entity has
previously received financial
assistance under this subsection;
(II) the governmental entity
offering the applicable covered
incentive has benefitted from financial
assistance previously provided under
this subsection;
(III) the covered entity has
demonstrated that the covered entity is
responsive to the national security
needs or requirements established by
the intelligence community (or an
agency thereof), the National Nuclear
Security Administration, or the
Department of Defense;
(IV) if practicable, a consortium
that is considered a covered entity
includes a small business concern (as
defined under section 3 of the Small
Business Act (15 U.S.C. 632)),
notwithstanding section 121.103 of
title 13, Code of Federal Regulations
(or successor regulations); and
(V) the covered entity intends to
produce finished products for use by
the Department of Defense, the defense
industry of the United States, or
critical energy infrastructure.
(iii) Prioritization.--To the maximum
extent practicable, the Secretary shall
prioritize awarding financial assistance under
this subsection to a covered entity that
intends to make finished products available for
use by the Department of Defense, the defense
industry of the United States, or critical
energy infrastructure.
(D) Records.--
(i) In general.--The Secretary may request
records and information from a covered entity
that submitted an application under
subparagraph (A) to review the status of a
covered entity.
(ii) Requirement.--The covered entity shall
provide the records and information requested
by the Secretary under clause (i).
(3) Amount.--
(A) In general.--The Secretary shall determine the
appropriate amount and funding type for each financial
assistance award provided to a covered entity under
this subsection.
(B) Cost-sharing requirement.--The total amount of
financial assistance that may be guaranteed by the
Secretary under this subsection shall be not more than
100 percent of the private capital investment available
to a covered entity for any individual project.
(C) Minimum investment.--The total Federal
investment in any individual project receiving a
financial assistance award under this subsection shall
be not less than $100,000,000.
(D) Larger investment.--The total Federal
investment in any individual project receiving a
financial assistance award under this subsection shall
not exceed $500,000,000, unless the Secretary, in
consultation with the Secretary of Defense and the
Director of National Intelligence, recommends to the
President, and the President certifies and reports to
the appropriate committees of Congress, that a larger
investment is necessary--
(i) to significantly increase the
proportion of reliable domestic supply of
finished rare earth products relevant for
national security and economic competitiveness
that can be met through domestic production;
and
(ii) to meet the needs of national
security.
(4) Use of funds.--A covered entity that receives a
financial assistance award under this subsection may only use
the financial assistance award amounts--
(A) to finance the construction of a covered
facility (including equipment) or the expansion or
technological upgrade of a facility (including
equipment) of the covered entity to be a covered
facility, as documented in the application submitted by
the covered entity under paragraph (2)(A), as
determined necessary by the Secretary for purposes
relating to the national security and economic
competitiveness of the United States;
(B) to support workforce development for a covered
facility; and
(C) to support site development and technological
upgrade for a covered facility.
(5) Clawback.--
(A) Major awards.--
(i) In general.--For all financial
assistance awards provided to covered entities
under this subsection, the Secretary shall, at
the time of making the award, determine the
target dates by which a covered entity shall
commence and complete the applicable project.
(ii) Progressive recovery for delays.--If
the covered entity receiving a financial
assistance award under this subsection does not
complete the applicable project by the
applicable target date determined under clause
(i), the Secretary shall progressively recover
up to the full amount of the award.
(iii) Waiver.--In the case of projects that
do not meet the applicable target date
determined under clause (i), the Secretary may
waive the requirement to recover the financial
award provided for the project under clause
(ii) after making a formal determination that
circumstances beyond the ability of the covered
entity to foresee or control are responsible
for the delay.
(iv) Congressional notification.--
(I) In general.--Not later than 15
days after making a determination to
recover an award under clause (ii), the
Secretary shall notify the appropriate
committees of Congress of the intent of
the Secretary to recover the award.
(II) Waivers.--Not later than 15
days after the date on which the
Secretary provides a waiver under
clause (iii), the Secretary shall
notify the appropriate committees of
Congress of the waiver.
(B) Joint research, technology licensing, and
intellectual property reporting.--
(i) In general.--Before entering into an
agreement with a foreign entity to conduct
joint research or technology licensing, or to
share intellectual property, a covered entity
that has received a financial assistance award
under this subsection--
(I) shall notify the Secretary of
the intent to enter into such an
agreement; and
(II) may only enter into such an
agreement if the Secretary determines
the foreign entity is not a foreign
entity of concern.
(ii) Determination.--On receiving a
notification under clause (i), the Secretary,
in consultation with the Director of National
Intelligence, the Director of the National
Counterintelligence and Security Center, and
the Director of the Federal Bureau of
Investigation, shall make a determination of
whether the applicable foreign entity is a
foreign entity of concern.
(iii) Technology clawback.--The Secretary
shall recover the full amount of a financial
assistance award provided to a covered entity
under this subsection if, during the applicable
term of the award, the covered entity knowingly
engages in any joint research, technology
licensing, or intellectual property sharing
effort with a foreign entity of concern that
relates to a technology or product that raises
national security concerns, as determined by
the Secretary, in consultation with the
Director of National Intelligence, the Director
of the National Counterintelligence and
Security Center, and the Director of the
Federal Bureau of Investigation, on the
condition that the determination of the
Secretary shall have been communicated to the
covered entity before the covered entity
engaged in the joint research, technology
licensing, or intellectual property sharing.
(6) Condition of receipt.--A covered entity to which the
Secretary awards Federal financial assistance under this
subsection shall enter into an agreement that specifies that,
during the 5-year period immediately following the award of the
Federal financial assistance, the covered entity will not make
shareholder distributions in excess of profits.
(b) Coordination Required.--In carrying out the program established
under subsection (a), the Secretary shall coordinate with the Secretary
of State, the Secretary of Defense, the Secretary of Homeland Security,
and the Director of National Intelligence.
(c) GAO Reviews.--The Comptroller General of the United States
shall--
(1) not later than 2 years after the date of disbursement
of the first financial award under the program established
under subsection (a), and biennially thereafter for 10 years,
conduct a review of the program, which shall include, at a
minimum--
(A) a determination of the number of financial
assistance awards provided under the program during the
period covered by the review;
(B) an evaluation of how--
(i) the program is being carried out,
including how recipients of financial
assistance awards are being selected under the
program; and
(ii) other Federal programs are leveraged
for manufacturing, research, and training to
complement the financial assistance awards
provided under the program; and
(C) a description of the outcomes of projects
supported by financial assistance awards provided under
the program, including a description of--
(i) covered facilities that were
constructed or facilities that were expanded or
technologically upgraded to be covered
facilities as a result of financial assistance
awards provided under the program;
(ii) workforce training programs carried
out with financial assistance awards provided
under the program, including efforts to hire
individuals from disadvantaged populations; and
(iii) the impact of projects receiving
financial assistance awards under the program
on the United States share of global finished
rare earth product production; and
(2) submit to the appropriate committees of Congress the
results of each review conducted under paragraph (1).
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $1,500,000,000 for fiscal year 2024; and
(2) $200,000,000 for each of fiscal years 2025 through
2028.
SEC. 4. FUNDING FOR DEVELOPMENT OF SECURE RARE EARTH SUPPLY CHAINS.
(a) Minerals Security Partnership Fund.--
(1) Establishment of fund.--The Secretary of the Treasury
may establish a trust fund, to be known as the ``Minerals
Security Partnership Fund'' (referred to in this section as the
``Fund''), consisting of such amounts as are appropriated to
the Fund or credited to the Fund under paragraph (3).
(2) Reporting requirement.--If the Fund is not established
by not later than 180 days after the date of enactment of this
Act, on that date, and annually thereafter until the Fund is
established, the Secretary of the Treasury, in coordination
with the Secretary of State, shall provide, in writing, to the
appropriate committees of Congress a rationale for not
establishing the Fund.
(3) Investment of amounts.--
(A) Investment of amounts.--If the Fund is
established, the Secretary of the Treasury may invest
such portion of the Fund as is not required to meet
current withdrawals in interest-bearing obligations of
the United States or in obligations guaranteed as to
both principal and interest by the United States.
(B) Interest and proceeds.--The interest on, and
the proceeds from the sale or redemption of, any
obligations held in the Fund shall be credited to and
form a part of the Fund.
(4) Use of fund.--
(A) In general.--Subject to subparagraph (B),
amounts in the Fund shall be available, as provided in
advance in an appropriations Act, to the Secretary of
State--
(i) to provide funding through the Minerals
Security Partnership common funding mechanism
described in subsection (b)(1) to support the
development and adoption of secure rare earth
supply chains; and
(ii) to otherwise carry out this section.
(B) Availability contingent on international
arrangement or agreement.--
(i) In general.--Amounts in the Fund shall
be available to the Secretary of State, as
provided in advance in an appropriations Act,
on and after the date on which the Secretary of
State enters into an arrangement or agreement
with the governments of countries that are
partners of the United States, as determined by
the Secretary of State, to participate in the
Minerals Security Partnership common funding
mechanism under subsection (b)(1).
(ii) Consultation.--Before entering into an
arrangement or agreement as described in clause
(i), the Secretary of State, in consultation
with the Secretary of Commerce, shall ensure
that any government that will participate in
the arrangement or agreement maintains export
control licensing policies with respect to
exports of finished rare earth products
substantively equivalent to the United States
with respect to restrictions on such exports to
the People's Republic of China.
(b) Minerals Security Partnership Common Funding Mechanism for
Development of Secure Rare Earth Supply Chains.--
(1) In general.--The Secretary of State, in consultation
with the Secretary of Commerce, the Secretary of Defense, the
Secretary of Homeland Security, the Secretary of the Treasury,
the Director of National Intelligence, and the Chief Executive
Officer of the United States International Development Finance
Corporation shall ensure that the Minerals Security Partnership
is a mutually beneficial funding mechanism that, in
coordination with the governments of countries that are
partners of the United States, uses amounts from the Fund, or
any other available Federal funds, to support the development
and adoption of secure rare earth supply chains, including
for--
(A) research and development collaborations among
countries participating in the mechanism; and
(B) supplementing bids by foreign entities that are
not foreign entities of concern to secure offtake
agreements with entities that mine rare earth elements.
(2) Contributions from participating countries.--In
creating and sustaining the Minerals Security Partnership
common funding mechanism described in paragraph (1), the
Secretary of State shall seek to leverage amounts from the Fund
to secure contributions to the mechanism from the governments
of countries participating in the mechanism, including with
respect to cost sharing and other cooperative measures leading
to the development and adoption of secure rare earth supply
chains.
(3) Commitments.--In creating and sustaining the Minerals
Security Partnership common funding mechanism described in
paragraph (1), the Secretary of State shall promote efforts
among countries participating in the mechanism--
(A) to establish transparency requirements for any
subsidies or other financial benefits (including
revenue foregone) provided to rare earth firms located
in or outside such countries;
(B) to establish processes similar to the process
of the Committee on Foreign Investment in the United
States under section 721 of the Defense Production Act
of 1950 (50 U.S.C. 4565) for intervening to preempt
foreign entities of concern from investing in,
purchasing, or assuming control of entities,
intellectual property, and equipment that are created
by or benefit from investments by the mechanism;
(C) to establish consistent policies with respect
to countries that--
(i) are not participating in the mechanism;
and
(ii) do not meet transparency requirements
established under subparagraph (A);
(D) to promote harmonized treatment of finished
rare earth products and verification processes for raw
materials or products being exported to a country
considered a national security risk by the government
of a country participating in the mechanism;
(E) to establish consistent policies among the
governments of countries participating in the mechanism
and common policies among countries that are not
participating to address nonmarket economy countries as
the behavior of such countries pertains to rare earth
elements;
(F) to align policies with respect to supply chain
integrity and security, including with respect to
protection and enforcement of intellectual property
rights; and
(G) to promote harmonized foreign direct investment
screening measures and export control policies with
respect to rare earth elements to align with national,
multilateral, and plurilateral security priorities.
(c) Annual Report to Congress.--Not later than 1 year after the
date on which the Fund is established, and annually thereafter for each
fiscal year during which amounts in the Fund are available under
subsection (a)(4), the Secretary of State shall submit to the
appropriate committees of Congress a report on the status of the
implementation of this section that includes a description of--
(1) any commitments made by the governments of countries
that have entered into an arrangement or agreement with the
United States to provide funding for the Minerals Security
Partnership common funding mechanism described in subsection
(b)(1) and the specific amount so committed and other
cooperative measures being taken by such countries as part of
the mechanism;
(2) the criteria established for expenditure of funds
through the mechanism;
(3) how, and to whom, amounts have been expended from the
Fund and a description of progress made in utilizing the Fund
to support the objectives described in subsection (b)(1);
(4) amounts remaining in the Fund;
(5) the progress of the Secretary of State toward entering
into an arrangement or agreement with the governments of
countries that are partners of the United States to participate
in the Minerals Security Partnership common funding mechanism
and the commitments described in subsection (b)(3); and
(6) any additional authorities needed to enhance the
effectiveness of the Fund in achieving the security goals of
the United States.
(d) Notifications To Be Provided by the Fund.--
(1) In general.--Not later than 15 days prior to the Fund
making a financial commitment associated with the provision of
expenditures under subsection (a)(4)(A) in an amount in excess
of $1,000,000, the Secretary of State shall submit to the
appropriate committees of Congress a report in writing that
includes the information described in paragraph (2).
(2) Information required.--The information described in
this paragraph is--
(A) the amount of each expenditure described in
paragraph (1);
(B) an identification of the recipient or
beneficiary of each such expenditure; and
(C) a description of the project or activity to be
carried out and the purpose to be achieved by each such
expenditure.
(3) Arrangements or agreements.--The Secretary of State
shall notify the appropriate committees of Congress not later
than 30 days after entering into a new bilateral or
multilateral arrangement or agreement described in subsection
(a)(4)(B).
(e) Foreign Entities of Concern.--A foreign entity of concern may
not be a participant or beneficiary of the Minerals Security
Partnership common funding mechanism described in subsection (b)(1).
(f) Applicability to Existing Fund of the Minerals Security
Partnership.--This section shall apply to any fund in the Treasury that
has been established before the date of enactment of this Act for use
of the Minerals Security Partnership.
SEC. 5. WORKFORCE DEVELOPMENT INITIATIVE.
As soon as practicable after the date of enactment of this Act, the
Secretary shall establish an initiative under which the Secretary shall
work with the Secretary of Labor, the Director of the National Science
Foundation, the Critical Minerals Subcommittee of the National Science
and Technology Council, the private sector, institutions of higher
education, and workforce training entities to incentivize and expand
participation in graduate and undergraduate programs, and to develop
workforce training programs and apprenticeships, relating to advanced
rare earth element mining, separation, processing, metallurgy, and
advanced equipment maintenance capabilities.
SEC. 6. SUPPORT FOR FREELY ASSOCIATED STATES.
Section 1412(c) of the Better Utilization of Investments Leading
to Development Act of 2018 (22 U.S.C. 9612(c)) is amended by adding at
the end the following:
``(3) Support for freely associated states.--
Notwithstanding the income classification of the country with
which the geopolitical entity is associated, the Corporation
may provide support under title II to a geopolitical entity
that is included, as of the date on which support is provided,
on the list of dependencies and areas of special sovereignty
prepared by the Department of State.''.
SEC. 7. PROHIBITION RELATING TO FOREIGN ENTITIES OF CONCERN.
None of the funds authorized to be appropriated to carry out this
Act may be provided to a foreign entity of concern.
SEC. 8. DEFENSE PRODUCTION ACT OF 1950 EFFORTS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the President shall submit to Congress a report
on a plan of action for any use of authorities available in title III
of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) to
establish or enhance a domestic production capability for finished rare
earth products and related technologies, subject to--
(1) the availability of appropriations for that purpose;
and
(2) a determination made under the plan pursuant to that
title that--
(A) finished rare earth products and related
technologies are essential to the national defense; and
(B) domestic industrial capabilities are
insufficient to meet those needs.
(b) Coordination.--The President shall develop the plan of action
required by subsection (a) in consultation with any relevant head of a
Federal agency, an advisory committee established under section 708(d)
of the Defense Production Act of 1950 (50 U.S.C. 4558(d)), and
appropriate stakeholders in the private sector.
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