[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 429 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 429
To enhance the economic and national security of the United States by
securing a reliable supply of critical minerals and rare earth elements
through trade agreements and strategic partnerships.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 5, 2025
Mr. Young (for himself, Mr. Coons, Mr. Cornyn, and Mr. Hickenlooper)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To enhance the economic and national security of the United States by
securing a reliable supply of critical minerals and rare earth elements
through trade agreements and strategic partnerships.
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 ``Securing Trade and Resources for
Advanced Technology, Economic Growth, and International Commerce in
Minerals Act'' or ``STRATEGIC Minerals Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance of the Senate; and
(B) the Committee on Ways and Means of the House of
Representatives.
(2) Country.--The term ``country'' means--
(A) any foreign country or territory, including any
overseas dependent territory or possession of a foreign
country; and
(B) the Trust Territory of the Pacific Islands.
(3) Covered free trade agreement.--The term ``covered free
trade agreement'' means an agreement with one or more countries
that--
(A) exclusively focuses on the critical minerals
and rare earth elements sector;
(B) reduces barriers to trade among the parties to
the agreement;
(C) includes enforceable provisions to prevent any
foreign entity of concern from gaining any benefit from
the agreement; and
(D) is approved by Congress.
(4) 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)).
(5) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given that term in section 40207
of the Infrastructure Investment and Jobs Act (42 U.S.C.
18741).
(6) Rare earth element.--The term ``rare earth element''
means cerium, dysprosium, erbium, europium, gadolinium,
holmium, lanthanum, lutetium, neodymium, praseodymium,
promethium, samarium, scandium, terbium, thulium, ytterbium, or
yttrium.
(7) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
SEC. 3. BRIEFING ON COVERED FREE TRADE AGREEMENTS.
(a) In General.--Not later than 120 days after the date of the
enactment of this Act, the Trade Representative, in consultation with
the Secretary of State, the Secretary of Defense, the Secretary of
Energy, and the Secretary of the Interior, as appropriate, shall
provide to the appropriate congressional committees a classified
briefing on the feasibility and advisability of pursuing and adopting
covered free trade agreements.
(b) Elements.--The briefing required by subsection (a) shall
include--
(1) an analysis of the most appropriate types of agreements
(bilateral, plurilateral, or multilateral) for achieving the
negotiating objectives set forth in section 4(d), including
considerations of economic impact, strategic partnerships,
negotiation feasibility, and national security implications;
(2) recommendations for which type or types of agreements
are most needed to effectively secure critical minerals and
rare earth elements supply chains in alignment with the
national security and economic interests of the United States;
and
(3) an assessment of potential challenges and proposed
solutions in pursuing the recommended type or types of
agreement, including legal, regulatory, and geopolitical
considerations.
SEC. 4. NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR COVERED FREE
TRADE AGREEMENTS.
(a) Authority To Negotiate and Enter Into Agreements.--
(1) In general.--In order to enhance the economic well-
being, national security, and economic competitiveness of the
United States, the President, acting through the Trade
Representative, may negotiate, enter into, and enforce a
covered free trade agreement when the President determines that
it is in the national interest to do so.
(2) Limitation.--The President may not initiate
negotiations for a covered free trade agreement under paragraph
(1) until the date on which the Trade Representative provides
the briefing required by section 3(a) to the appropriate
congressional committees.
(b) Modifications Permitted.--The President may proclaim such
modification or continuance of any existing duty, or such continuance
of existing duty-free or excise treatment, as the President determines
to be required or appropriate to carry out a covered free trade
agreement entered into under subsection (a)(1).
(c) Negotiating Objectives.--
(1) Overall negotiating objectives.--The negotiating
objectives of the United States for a covered free trade
agreement are--
(A) to strengthen supply chains of critical
minerals and rare earth elements;
(B) to reduce or eliminate barriers and distortions
that inhibit to trade and investment in critical
minerals and rare earth elements;
(C) to strengthen international trade and
investment disciplines and procedures specific to
critical minerals and rare earth elements, including
effective dispute settlement mechanisms;
(D) to foster economic growth, raise living
standards, enhance the competitiveness of the United
States, promote full employment, and contribute to the
global economy through the development and trade of
critical minerals and rare earth elements;
(E) to promote policies that advance sustainable
practices and circularity in the production and
processing of critical minerals and rare earth
elements;
(F) to encourage the development and adoption of
innovative technologies and practices that optimize the
use of critical resources;
(G) to promote respect for worker rights and the
rights of children consistent with core labor standards
only as stated in the International Labour Organization
Declaration on Fundamental Principles and Rights at
Work and its Follow-Up (1998) and an understanding of
the relationship between trade and worker rights;
(H) to seek provisions in the agreement under which
parties ensure they do not weaken or reduce the
protections afforded in domestic environmental and
labor laws as an encouragement for trade;
(I) to afford small businesses equitable trade
benefits and to reduce or eliminate trade and
investment barriers that disproportionately impact
small businesses;
(J) to promote universal ratification and full
compliance with the International Labour Organization
Convention (ILO No. 182) concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms
of Child Labor, adopted at Geneva, June 17, 1999;
(K) to promote universal ratification and full
compliance with the International Labour Organization
Convention (ILO No. 176) concerning Safety and Health
in Mines, adopted at Geneva, June 22, 1995;
(L) to encourage ownership transparency throughout
the critical minerals and rare earth elements supply
chain to prevent undue influence from foreign entities
of concern;
(M) to protect legitimate health, safety, essential
security, and consumer interests, ensuring that the
agreement does not require changes to United States
laws relating to those interests unless expressly
agreed upon; and
(N) to ensure that the agreement does not require
changes to United States statutes or regulations.
(2) Consideration of existing negotiating objectives.--In
conducting negotiations under this section, the President shall
take into account the principal trade negotiating objectives
set forth in paragraphs (5), (7), and (10) of section 102(b) of
the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 (19 U.S.C. 4201(b)), to the extent
that those objectives are pertinent to the objectives described
in paragraph (1).
(d) Consultation With and Notification to Congress Before
Initiating Negotiations.--Before initiating negotiations under
subsection (a)(1), or issuing a proclamation under subsection (b), the
President shall--
(1) consult with the appropriate congressional committees
regarding the intention to enter into the negotiations or issue
the proclamation, as the case may be; and
(2) notify the appropriate congressional committees in
writing at least 30 days before the initiation of the
negotiations or the issuance of the proclamation, as the case
may be, that includes--
(A) a statement of the intention to initiate the
negotiations or issue the proclamation;
(B) in the case of negotiations--
(i) an identification of the country or
countries with which the President intends to
initiate negotiations; and
(ii) a description of the specific
objectives for the negotiations; and
(C) an assessment of the potential impact of the
negotiations or proclamation, as the case may be, on
the economic and strategic interests of the United
States.
(e) Participating Countries.--
(1) In general.--Subject to paragraph (2), the President
may--
(A) determine which countries to negotiate with
toward a covered free trade agreement; and
(B) after the implementation of any such agreement
and as conditions warrant, identify and engage in
negotiations with additional countries that wish to
accede to the agreement.
(2) Exclusive benefits.--
(A) In general.--Any covered free trade agreement
entered into under subsection (a)(1) shall provide
trade benefits, including tariff reductions,
preferential treatment, or other trade advantages
related to critical minerals and rare earth elements,
exclusively to countries that are parties to the
agreement.
(B) Status of non-participants.--Countries that are
not parties to a covered free trade agreement may not
receive the trade benefits provided under the
agreement, but nothing in this Act shall be construed
to impose additional restrictions or penalties on such
countries.
(3) Treatment of nonmarket economy countries.--
(A) In general.--The President may not negotiate a
covered free trade agreement with a country determined
to be a nonmarket economy country pursuant to section
771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).
(B) After entry into force.--A country described in
subparagraph (A) that is not designated as a foreign
country of concern (as defined in section 231.102 of
title 15, Code of Federal Regulations) may accede to a
covered free trade agreement after entry into force of
the agreement if a joint resolution is enacted into law
approving the accession of that country to the
agreement.
(f) Bills Qualifying for Trade Authorities Procedures.--
(1) In general.--The provisions of section 151 of the Trade
Act of 1974 (19 U.S.C. 2191) (in this section referred to as
``trade authorities procedures'') apply to a bill of either
House of Congress which contains provisions described in
paragraph (2) to the same extent as such section 151 applies to
implementing bills under that section. A bill to which this
subsection applies shall hereafter in this section be referred
to as an ``implementing bill''.
(2) Provisions specified.--The provisions described in this
paragraph are--
(A) a provision approving a covered free trade
agreement and approving the statement of administrative
action, if any, proposed to implement that agreement;
and
(B) if changes in existing laws or new statutory
authority are required to implement that agreement,
only such provisions as are strictly necessary or
appropriate to implement the agreement, either
repealing or amending existing laws or providing new
statutory authority.
(g) Relationship to Bipartisan Congressional Trade Priorities and
Accountability Act of 2015.--A covered free trade agreement, including
such an agreement that does not require changes to United States law,
shall not enter into force with respect to the United States and an
implementing bill that relates to such an agreement shall not qualify
for trade authorities procedures unless the following requirements of
the Bipartisan Congressional Trade Priorities and Accountability Act of
2015 (19 U.S.C. 4201 et seq.) are carried out with respect to that
agreement, to the same extent as would be required with respect to an
agreement entered into under section 103(b) of that Act (19 U.S.C.
4202(b)), notwithstanding the expiration of authority to enter into an
agreement under such section 103(b):
(1) The congressional oversight and consultation
requirements under section 104 of that Act (19 U.S.C. 4203).
(2) The notification, consultation, and reporting
requirements under section 105 of that Act (19 U.S.C. 4204).
(3) The implementation procedures under section 106 of that
Act (19 U.S.C. 4205).
(h) Termination of Authority.--
(1) Negotiation and agreements.--
(A) In general.--The authority of the President
under subsection (a)(1) to negotiate and enter into
covered free trade agreements terminates on July 1,
2035.
(B) Treatment of modifications.--Substantial
modifications to, or substantial additional provisions
of, a covered free trade agreement that are entered
into after July 1, 2035, are not covered by the
authority under subsection (a)(1).
(2) Trade authorities procedures.--The trade authorities
procedures apply to an implementing bill with respect to a
covered free trade agreement entered into under subsection
(a)(1) if--
(A) the agreement is entered into on or before July
1, 2035; and
(B) the implementing bill is submitted to Congress
not later than one year after the agreement is entered
into.
(3) Enforcement.--The authority under subsection (a)(1) to
enforce a covered free trade agreement remains in effect after
July 1, 2035, notwithstanding the termination under paragraph
(1) of the authority to negotiate and enter into such
agreements.
SEC. 5. INCLUSION OF BUSINESSES OF PARTIES TO COVERED FREE TRADE
AGREEMENTS IN DEFINITION OF DOMESTIC SOURCE FOR TITLE III
OF DEFENSE PRODUCTION ACT OF 1950.
Section 702(7)(B) of the Defense Production Act of 1950 (50 U.S.C.
4552(7)(B)) is amended--
(1) in clause (i)(I)--
(A) in item (aa), by striking ``; or'' and
inserting a semicolon;
(B) in item (bb), by striking ``; and'' and
inserting ``; or''; and
(C) by adding at the end the following:
``(cc) subject to clause
(iii), the territory of a party
to a covered free trade
agreement (as defined in
section 2 of the Securing Trade
and Resources for Advanced
Technology, Economic Growth,
and International Commerce in
Minerals Act); and''; and
(2) by adding at the end the following:
``(iii) Additional requirements for parties
to covered free trade agreements.--
``(I) In general.--A business
concern described in clause (i)(I)(cc)
may be treated as a domestic source--
``(aa) only for purposes of
the exercise of authorities
under section 303(a)(1)
relating to minerals activities
related to minerals the supply
of which in the United States
and Canada is deficient; and
``(bb) only if, for
minerals activities carried out
pursuant to such exercise of
authorities--
``(AA) the minerals
are processed,
beneficiated, or
recycled only by
entities owned by
entities organized
under the laws of the
United States and not
more than 10 percent or
more of the equity
interests of which are
owned or controlled,
directly or indirectly,
by any foreign entity
of concern, through any
contract, arrangement,
understanding,
relationship, or
otherwise;
``(BB) the business
concern does not sell
or transfer any of the
minerals extracted,
processed,
beneficiated, refined,
recycled, or otherwise
transformed, or any
revenues derived from
those minerals, to
entities located in the
People's Republic of
China or to entities
owned, directly or
indirectly, held, or
controlled by any
foreign entity of
concern; and
``(CC) no mine used
for the mining of such
minerals is owned,
directly or indirectly,
held, or controlled by
any foreign entity of
concern.
``(II) Determination of
deficiency.--For purposes of subclause
(I)(aa), in determining if the supply
in the United States and Canada of a
critical mineral or rare earth element
is deficient, the Secretary of Defense,
in consultation with the Secretary of
the Interior and the Secretary of
Energy, shall consider factors
including--
``(aa) current domestic
production levels;
``(bb) projected demand for
national defense and critical
infrastructure;
``(cc) dependence on
foreign sources, especially
from foreign entities of
concern; and
``(dd) potential for supply
chain disruptions.
``(III) Compliance and
verification.--
``(aa) Guidance.--The
Secretary of Defense shall
provide guidance to business
concerns on compliance with
this clause.
``(bb) Notice of and
penalties for noncompliance.--
If a business concern is found
to be in violation of this
clause--
``(AA) the
Secretary of Defense
shall provide written
notice to the business
concern detailing the
nature of the violation
and the penalties to be
imposed;
``(BB) the business
concern may be required
to repay any funds
received under section
303(a)(1);
``(CC) the business
concern may be
disqualified from
future contracts or
financial assistance
under this Act;
``(DD) the business
concern may be subject
to civil penalties
under section 705; and
``(EE) the matter
may be referred to the
Attorney General for
criminal prosecution
under applicable laws.
``(IV) Definitions.--In this
clause:
``(aa) Beneficiate;
beneficiation.--The terms
`beneficiate' and
`beneficiation' mean the
crushing and grinding of
hardrock mineral ore and such
processes as are employed to
free the mineral from other
constituents, including
physical and chemical
separation techniques.
``(bb) Control.--The term
`control' means having the
ability, directly or
indirectly, to determine
(without regard to whether
exercised through 1 or more
corporate structures) the
manner in which an entity
conducts mineral activities,
through any means, including--
``(AA) ownership
interest;
``(BB) authority to
commit the real or
financial assets of the
entity;
``(CC) position as
a director, officer, or
partner of the entity;
or
``(DD) contractual
arrangement.
``(cc) 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)).
``(dd) Deficient.--The term
`deficient', with respect to
the supply in the United States
and Canada of a critical
mineral or rare earth element,
means that supply is
insufficient to meet national
defense and essential civilian
industrial requirements, as
determined by the Secretary of
Defense, in consultation with
the Secretary of the Interior
and the Secretary of Energy.
``(ee) Foreign entity of
concern.--The term `foreign
entity of concern' has the
meaning given that term in
section 40207 of the
Infrastructure Investment and
Jobs Act (42 U.S.C. 18741).
``(ff) Mineral
activities.--The term `mineral
activities' means any activity
carried out on a mining claim,
millsite, or tunnel site, for,
related to, or incidental to,
mining, beneficiation,
processing, refining, alloying,
or recycling activities for any
critical mineral or rare earth
element.
``(gg) Processing.--The
term `processing' has the
meaning given that term in
Treasury Regulation section
1.30D-2(b)(37) (or a successor
regulation).
``(hh) Rare earth
element.--The term `rare earth
element' has the meaning given
that term in section 2 of the
Securing Trade and Resources
for Advanced Technology,
Economic Growth, and
International Commerce in
Minerals Act.
``(ii) Recycling.--The term
`recycling' has the meaning
given that term in Treasury
Regulation section 1.30D-
2(b)(43) (or a successor
regulation).
``(jj) Revenues.--The term
`revenues' includes any income,
profits, dividends, royalties,
or other financial benefits
obtained from the sale,
transfer, or other disposition
of the minerals produced.
``(kk) Sell or transfer.--
The term `sell or transfer'
includes any transaction that
conveys ownership, possession,
or control of minerals
produced, or any interest
therein, including sales,
leases, exchanges, or gifts.''.
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