[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1677 Enrolled Bill (ENR)]

        S.1677

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
             the sixth day of January, two thousand and nine


                                 An Act


 
    To reauthorize the Defense Production Act of 1950, 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; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Defense Production 
Act Reauthorization of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reauthorization of Defense Production Act of 1950.
Sec. 3. Declaration of policy.
Sec. 4. Priority in contracts and orders.
Sec. 5. Designation of energy as a strategic and critical material.
Sec. 6. Strengthening domestic capability.
Sec. 7. Expansion of productive capacity and supply.
Sec. 8. Definitions.
Sec. 9. Voluntary agreements and plans of action for national defense.
Sec. 10. Employment of personnel; appointment policies; nucleus 
          executive reserve; use of confidential information by 
          employees; printing and distribution of reports.
Sec. 11. Defense Production Act Committee.
Sec. 12. Annual report on impact of offsets.
SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.
    (a) Termination of Act.--
        (1) Termination.--Section 717 of the Defense Production Act of 
    1950 (50 U.S.C. App. 2166) is amended--
            (A) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Title I (except section 104), title III, and title VII 
(except sections 707, 708, and 721) shall terminate on September 30, 
2014, except that all authority extended under title III on or after 
the date of enactment of the Defense Production Act Reauthorization of 
2009 shall be effective for any fiscal year only to such extent or in 
such amounts as are provided in advance in appropriations Acts.
    ``(b) Notwithstanding subsection (a), any agency created under a 
provision of law that is terminated under subsection (a) may continue 
in existence, for purposes of liquidation, for a period not to exceed 6 
months, beginning on the date of termination of the provision 
authorizing the creation of such agency under subsection (a).''; and
            (B) in subsection (c), by striking the second undesignated 
        paragraph.
        (2) Repeals.--Titles II, IV, V, and VI of the Defense 
    Production Act of 1950 (50 U.S.C. App. 2151 et seq., 2101 et seq., 
    2121 et seq., and 2131 et seq.) are repealed.
    (b) Authorization of Appropriations.--Section 711 of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161) is amended--
        (1) in subsection (a)--
            (A) in the first sentence, by striking ``(including'' and 
        all that follows through ``) by'' and inserting ``by''; and
            (B) by striking ``(a) Authorization.--Except as provided in 
        subsection (b), there'' and inserting ``There''; and
        (2) by striking subsection (b).
SEC. 3. DECLARATION OF POLICY.
    (a) Findings.--Section 2 of the Defense Production Act of 1950 (50 
U.S.C. App. 2062) is amended to read as follows:
``SEC. 2. DECLARATION OF POLICY.
    ``(a) Findings.--Congress finds that--
        ``(1) the security of the United States is dependent on the 
    ability of the domestic industrial base to supply materials and 
    services for the national defense and to prepare for and respond to 
    military conflicts, natural or man-caused disasters, or acts of 
    terrorism within the United States;
        ``(2) to ensure the vitality of the domestic industrial base, 
    actions are needed--
            ``(A) to promote industrial resources preparedness in the 
        event of domestic or foreign threats to the security of the 
        United States;
            ``(B) to support continuing improvements in industrial 
        efficiency and responsiveness;
            ``(C) to provide for the protection and restoration of 
        domestic critical infrastructure operations under emergency 
        conditions; and
            ``(D) to respond to actions taken outside of the United 
        States that could result in reduced supplies of strategic and 
        critical materials, including energy, necessary for national 
        defense and the general economic well-being of the United 
        States;
        ``(3) in order to provide for the national security, the 
    national defense preparedness effort of the United States 
    Government requires--
            ``(A) preparedness programs to respond to both domestic 
        emergencies and international threats to national defense;
            ``(B) measures to improve the domestic industrial base for 
        national defense;
            ``(C) the development of domestic productive capacity to 
        meet--
                ``(i) essential national defense needs that can result 
            from emergency conditions; and
                ``(ii) unique technological requirements; and
            ``(D) the diversion of certain materials and facilities 
        from ordinary use to national defense purposes, when national 
        defense needs cannot otherwise be satisfied in a timely 
        fashion;
        ``(4) to meet the requirements referred to in this subsection, 
    this Act provides the President with an array of authorities to 
    shape national defense preparedness programs and to take 
    appropriate steps to maintain and enhance the domestic industrial 
    base;
        ``(5) in order to ensure national defense preparedness, it is 
    necessary and appropriate to assure the availability of domestic 
    energy supplies for national defense needs;
        ``(6) to further assure the adequate maintenance of the 
    domestic industrial base, to the maximum extent possible, domestic 
    energy supplies should be augmented through reliance on renewable 
    energy sources (including solar, geothermal, wind, and biomass 
    sources), more efficient energy storage and distribution 
    technologies, and energy conservation measures;
        ``(7) much of the industrial capacity that is relied upon by 
    the United States Government for military production and other 
    national defense purposes is deeply and directly influenced by--
            ``(A) the overall competitiveness of the industrial economy 
        of the United States; and
            ``(B) the ability of industries in the United States, in 
        general, to produce internationally competitive products and 
        operate profitably while maintaining adequate research and 
        development to preserve competitiveness with respect to 
        military and civilian production; and
        ``(8) the inability of industries in the United States, 
    especially smaller subcontractors and suppliers, to provide vital 
    parts and components and other materials would impair the ability 
    to sustain the Armed Forces of the United States in combat for 
    longer than a short period.
    ``(b) Statement of Policy.--It is the policy of the United States 
that--
        ``(1) to ensure the adequacy of productive capacity and supply, 
    Federal departments and agencies that are responsible for national 
    defense acquisition should continuously assess the capability of 
    the domestic industrial base to satisfy production requirements 
    under both peacetime and emergency conditions, specifically 
    evaluating the availability of adequate production sources, 
    including subcontractors and suppliers, materials, skilled labor, 
    and professional and technical personnel;
        ``(2) every effort should be made to foster cooperation between 
    the defense and commercial sectors for research and development and 
    for acquisition of materials, components, and equipment;
        ``(3) plans and programs to carry out the purposes of this Act 
    should be undertaken with due consideration for promoting 
    efficiency and competition;
        ``(4) in providing United States Government financial 
    assistance under this Act to correct a domestic industrial base 
    shortfall, the President should give consideration to the creation 
    or maintenance of production sources that will remain economically 
    viable after such assistance has ended;
        ``(5) authorities under this Act should be used to reduce the 
    vulnerability of the United States to terrorist attacks, and to 
    minimize the damage and assist in the recovery from terrorist 
    attacks that occur in the United States;
        ``(6) in order to ensure productive capacity in the event of an 
    attack on the United States, the United States Government should 
    encourage the geographic dispersal of industrial facilities in the 
    United States to discourage the concentration of such productive 
    facilities within limited geographic areas that are vulnerable to 
    attack by an enemy of the United States;
        ``(7) to ensure that essential national defense requirements 
    are met, consideration should be given to stockpiling strategic 
    materials, to the extent that such stockpiling is economical and 
    feasible; and
        ``(8) in the construction of any industrial facility owned by 
    the United States Government, in the rendition of any financial 
    assistance by the United States Government for the construction, 
    expansion, or improvement of any industrial facility, and in the 
    production of goods and services, under this Act or any other 
    provision of law, each department and agency of the United States 
    Government should apply, under the coordination of the Federal 
    Emergency Management Agency, when practicable and consistent with 
    existing law and the desirability for maintaining a sound economy, 
    the principle of geographic dispersal of such facilities in the 
    interest of national defense.''.
SEC. 4. PRIORITY IN CONTRACTS AND ORDERS.
    Section 101 of the Defense Production Act of 1950 (50 U.S.C. App. 
2071) is amended by adding at the end the following:
    ``(d) The head of each Federal agency to which the President 
delegates authority under this section shall--
        ``(1) not later than 270 days after the date of enactment of 
    the Defense Production Act Reauthorization of 2009, issue final 
    rules, in accordance with section 553 of title 5, United States 
    Code, that establish standards and procedures by which the 
    priorities and allocations authority under this section is used to 
    promote the national defense, under both emergency and nonemergency 
    conditions; and
        ``(2) as appropriate and to the extent practicable, consult 
    with the heads of other Federal agencies to develop a consistent 
    and unified Federal priorities and allocations system.''.
SEC. 5. DESIGNATION OF ENERGY AS A STRATEGIC AND CRITICAL MATERIAL.
    Section 106 of the Defense Production Act of 1950 (50 U.S.C. App. 
2076) is amended--
        (1) by striking ``such designation'' and all that follows 
    through ``(1)'' and inserting ``such designation'';
        (2) by striking ``; or'' and inserting a period; and
        (3) by striking paragraph (2).
SEC. 6. STRENGTHENING DOMESTIC CAPABILITY.
    Section 107 of the Defense Production Act of 1950 (50 U.S.C. App. 
2077) is amended--
        (1) in subsection (a)--
            (A) by inserting ``restore,'' after ``modernize,''; and
            (B) by inserting ``materials,'' after ``items,''; and
        (2) in subsection (b)--
            (A) by striking paragraph (1);
            (B) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively; and
            (C) in paragraph (1), as so redesignated, by striking ``or 
        critical technology items'' and inserting ``, critical 
        technology items, essential materials, and industrial 
        resources''.
SEC. 7. EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY.
    Title III of the Defense Production Act of 1950 (50 U.S.C. App. 
2091 et seq.) is amended to read as follows:

        ``TITLE III--EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY

    ``SEC. 301. PRESIDENTIAL AUTHORIZATION FOR THE NATIONAL DEFENSE.
    ``(a) Expediting Production and Deliveries or Services.--
        ``(1) Authorized activities.--To reduce current or projected 
    shortfalls of industrial resources, critical technology items, or 
    essential materials needed for national defense purposes, subject 
    to such regulations as the President may prescribe, the President 
    may authorize a guaranteeing agency to provide guarantees of loans 
    by private institutions for the purpose of financing any 
    contractor, subcontractor, provider of critical infrastructure, or 
    other person in support of production capabilities or supplies that 
    are deemed by the guaranteeing agency to be necessary to create, 
    maintain, expedite, expand, protect, or restore production and 
    deliveries or services essential to the national defense.
        ``(2) Presidential determinations required.--Except during a 
    period of national emergency declared by Congress or the President, 
    a loan guarantee may be entered into under this section only if the 
    President determines that--
            ``(A) the loan guarantee is for an activity that supports 
        the production or supply of an industrial resource, critical 
        technology item, or material that is essential for national 
        defense purposes;
            ``(B) without a loan guarantee, credit is not available to 
        the loan applicant under reasonable terms or conditions 
        sufficient to finance the activity;
            ``(C) the loan guarantee is the most cost effective, 
        expedient, and practical alternative for meeting the needs of 
        the Federal Government;
            ``(D) the prospective earning power of the loan applicant 
        and the character and value of the security pledged provide a 
        reasonable assurance of repayment of the loan to be guaranteed;
            ``(E) the loan to be guaranteed bears interest at a rate 
        determined by the Secretary of the Treasury to be reasonable, 
        taking into account the then-current average yield on 
        outstanding obligations of the United States with remaining 
        periods of maturity comparable to the maturity of the loan;
            ``(F) the loan agreement for the loan to be guaranteed 
        provides that no provision of the loan agreement may be amended 
        or waived without the consent of the fiscal agent of the United 
        States for the guarantee; and
            ``(G) the loan applicant has provided or will provide--
                ``(i) an assurance of repayment, as determined by the 
            President; and
                ``(ii) security--

                    ``(I) in the form of a performance bond, insurance, 
                collateral, or other means acceptable to the fiscal 
                agent of the United States; and
                    ``(II) in an amount equal to not less than 20 
                percent of the amount of the loan.

        ``(3) Limitations on loans.--Loans under this section may be--
            ``(A) made or guaranteed under the authority of this 
        section only to the extent that an appropriations Act--
                ``(i) provides, in advance, budget authority for the 
            cost of such guarantees, as defined in section 502 of the 
            Federal Credit Reform Act of 1990 (2 U.S.C. 661a); and
                ``(ii) establishes a limitation on the total loan 
            principal that may be guaranteed; and
            ``(B) made without regard to the limitations of existing 
        law, other than section 1341 of title 31, United States Code.
    ``(b) Fiscal Agents of the United States.--
        ``(1) In general.--Any Federal agency or any Federal reserve 
    bank, when designated by the President, is hereby authorized to 
    act, on behalf of any guaranteeing agency, as fiscal agent of the 
    United States in the making of such contracts of guarantee and in 
    otherwise carrying out the purposes of this section.
        ``(2) Funds.--All such funds as may be necessary to enable any 
    fiscal agent described in paragraph (1) to carry out any guarantee 
    made by it on behalf of any guaranteeing agency shall be supplied 
    and disbursed by or under authority from such guaranteeing agency.
        ``(3) Limit on liability.--No fiscal agent described in 
    paragraph (1) shall have any responsibility or accountability, 
    except as agent in taking any action pursuant to or under authority 
    of this section.
        ``(4) Reimbursements.--Each fiscal agent described in paragraph 
    (1) shall be reimbursed by each guaranteeing agency for all 
    expenses and losses incurred by such fiscal agent in acting as 
    agent on behalf of such guaranteeing agency, including, 
    notwithstanding any other provision of law, attorneys' fees and 
    expenses of litigation.
    ``(c) Oversight.--
        ``(1) In general.--All actions and operations of fiscal agents 
    under authority of or pursuant to this section shall be subject to 
    the supervision of the President, and to such regulations as the 
    President may prescribe.
        ``(2) Other authority.--The President is authorized to 
    prescribe--
            ``(A) 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 loans, 
        discounts, advances, or commitments guaranteed by the 
        guaranteeing agencies through fiscal agents under this section; 
        and
            ``(B) regulations governing the forms and procedures (which 
        shall be uniform to the extent practicable) to be utilized in 
        connection with such guarantees.
    ``(d) Aggregate Guarantee Amounts.--
        ``(1) Industrial resource and critical technology shortfalls.--
            ``(A) In general.--If the making of any guarantee or 
        obligation of the Federal Government under this title relating 
        to a domestic industrial base shortfall would cause the 
        aggregate outstanding amount of all guarantees for such 
        shortfall to exceed $50,000,000, any such guarantee may be made 
        only--
                ``(i) if the President has notified the Committee on 
            Banking, Housing, and Urban Affairs of the Senate and the 
            Committee on Financial Services of the House of 
            Representatives in writing of the proposed guarantee; and
                ``(ii) after the 30-day period following the date on 
            which notice under clause (i) is provided.
            ``(B) Waivers authorized.--The requirements of subparagraph 
        (A) may be waived--
                ``(i) during a period of national emergency declared by 
            Congress or the President; or
                ``(ii) upon a determination by the President, on a 
            nondelegable basis, that a specific guarantee is necessary 
            to avert an industrial resource or critical technology item 
            shortfall that would severely impair national defense 
            capability.
        ``(2) Other limitations.--The authority conferred by this 
    section shall not be used primarily to prevent the financial 
    insolvency or bankruptcy of any person, unless--
            ``(A) the President certifies that the insolvency or 
        bankruptcy would have a direct and substantially adverse effect 
        upon national defense production; and
            ``(B) a copy of the certification under subparagraph (A), 
        together with a detailed justification thereof, is transmitted 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives not later than 10 days prior to the exercise of 
        that authority for such use.
    ``SEC. 302. LOANS TO PRIVATE BUSINESS ENTERPRISES.
    ``(a) Loan Authority.--To reduce current or projected shortfalls of 
industrial resources, critical technology items, or materials essential 
for the national defense, the President may make provision for loans to 
private business enterprises (including nonprofit research corporations 
and providers of critical infrastructure) for the creation, 
maintenance, expansion, protection, or restoration of capacity, the 
development of technological processes, or the production of essential 
materials, including the exploration, development, and mining of 
strategic and critical metals and minerals.
    ``(b) Conditions of Loans.--Loans may be made under this section on 
such terms and conditions as the President deems necessary, except 
that--
        ``(1) financial assistance may be extended only to the extent 
    that it is not otherwise available from private sources on 
    reasonable terms; and
        ``(2) during periods of national emergency declared by the 
    Congress or the President, no such loan may be made unless the 
    President determines that--
            ``(A) the loan is for an activity that supports the 
        production or supply of an industrial resource, critical 
        technology item, or material that is essential to the national 
        defense;
            ``(B) without the loan, United States industry cannot 
        reasonably be expected to provide the needed capacity, 
        technological processes, or materials in a timely manner;
            ``(C) the loan is the most cost-effective, expedient, and 
        practical alternative method for meeting the need;
            ``(D) the prospective earning power of the loan applicant 
        and the character and value of the security pledged provide a 
        reasonable assurance of repayment of the loan in accordance 
        with the terms of the loan, as determined by the President; and
            ``(E) the loan bears interest at a rate determined by the 
        Secretary of the Treasury to be reasonable, taking into account 
        the then-current average yield on outstanding obligations of 
        the United States with remaining periods of maturity comparable 
        to the maturity of the loan.
    ``(c) Limitations on Loans.--Loans under this section may be--
        ``(1) made or guaranteed under the authority of this section 
    only to the extent that an appropriations Act--
            ``(A) provides, in advance, budget authority for the cost 
        of such guarantees, as defined in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a); and
            ``(B) establishes a limitation on the total loan principal 
        that may be guaranteed; and
        ``(2) made without regard to the limitations of existing law, 
    other than section 1341 of title 31, United States Code.
    ``(d) Aggregate Loan Amounts.--
        ``(1) In general.--If the making of any loan under this section 
    to correct a shortfall would cause the aggregate outstanding amount 
    of all obligations of the Federal Government under this title 
    relating to such shortfall to exceed $50,000,000, such loan may be 
    made only--
            ``(A) if the President has notified the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives, in writing, of the proposed loan; and
            ``(B) after the 30-day period following the date on which 
        notice under subparagraph (A) is provided.
        ``(2) Waivers authorized.--The requirements of paragraph (1) 
    may be waived--
            ``(A) during a period of national emergency declared by the 
        Congress or the President; and
            ``(B) upon a determination by the President, on a 
        nondelegable basis, that a specific loan is necessary to avert 
        an industrial resource or critical technology shortfall that 
        would severely impair national defense capability.
    ``SEC. 303. OTHER PRESIDENTIAL ACTION AUTHORIZED.
    ``(a) In General.--
        ``(1) In general.--To create, maintain, protect, expand, or 
    restore domestic industrial base capabilities essential for the 
    national defense, the President may make provision--
            ``(A) for purchases of or commitments to purchase an 
        industrial resource or a critical technology item, for 
        Government use or resale;
            ``(B) for the encouragement of exploration, development, 
        and mining of critical and strategic materials, and other 
        materials;
            ``(C) for the development of production capabilities; and
            ``(D) for the increased use of emerging technologies in 
        security program applications and the rapid transition of 
        emerging technologies--
                ``(i) from Government-sponsored research and 
            development to commercial applications; and
                ``(ii) from commercial research and development to 
            national defense applications.
        ``(2) Treatment of certain agricultural commodities.--A 
    purchase for resale under this subsection shall not include that 
    part of the supply of an agricultural commodity which is 
    domestically produced, except to the extent that such domestically 
    produced supply may be purchased for resale for industrial use or 
    stockpiling.
        ``(3) Terms of sales.--No commodity purchased under this 
    subsection shall be sold at less than--
            ``(A) the established ceiling price for such commodity, 
        except that minerals, metals, and materials shall not be sold 
        at less than the established ceiling price, or the current 
        domestic market price, whichever is lower; or
            ``(B) if no ceiling price has been established, the higher 
        of--
                ``(i) the current domestic market price for such 
            commodity; or
                ``(ii) the minimum sale price established for 
            agricultural commodities owned or controlled by the 
            Commodity Credit Corporation, as provided in section 407 of 
            the Agricultural Act of 1949 (7 U.S.C. 1427).
        ``(4) Delivery dates.--No purchase or commitment to purchase 
    any imported agricultural commodity shall specify a delivery date 
    which is more than 1 year after the date of termination of this 
    section.
        ``(5) Presidential determinations.--Except as provided in 
    paragraph (7), the President may not execute a contract under this 
    subsection unless the President determines that--
            ``(A) the industrial resource, material, or critical 
        technology item is essential to the national defense; and
            ``(B) without Presidential action under this section, 
        United States industry cannot reasonably be expected to provide 
        the capability for the needed industrial resource, material, or 
        critical technology item in a timely manner.
        ``(6) Notification to congress of shortfall.--
            ``(A) In general.--Except as provided in paragraph (7), the 
        President shall provide written notice to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        of a domestic industrial base shortfall prior to taking action 
        under this subsection to remedy the shortfall. The notice shall 
        include the determinations made by the President under 
        paragraph (5).
            ``(B) Aggregate amounts.--If the taking of any action under 
        this subsection to correct a domestic industrial base shortfall 
        would cause the aggregate outstanding amount of all such 
        actions for such shortfall to exceed $50,000,000, the action or 
        actions may be taken only after the 30-day period following the 
        date on which the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives have been notified in writing 
        of the proposed action.
        ``(7) Waivers authorized.--The requirements of paragraphs (1) 
    through (6) may be waived--
            ``(A) during a period of national emergency declared by the 
        Congress or the President; or
            ``(B) upon a determination by the President, on a 
        nondelegable basis, that action is necessary to avert an 
        industrial resource or critical technology item shortfall that 
        would severely impair national defense capability.
    ``(b) Exemption for Certain Limitations.--Subject to the 
limitations in subsection (a), purchases and commitments to purchase 
and sales under subsection (a) may be made without regard to the 
limitations of existing law (other than section 1341 of title 31, 
United States Code), for such quantities, and on such terms and 
conditions, including advance payments, and for such periods, but not 
extending beyond a date that is not more than 10 years from the date on 
which such purchase, purchase commitment, or sale was initially made, 
as the President deems necessary, except that purchases or commitments 
to purchase involving higher than established ceiling prices (or if no 
such established ceiling prices exist, currently prevailing market 
prices) or anticipated loss on resale shall not be made, unless it is 
determined that supply of the materials could not be effectively 
increased at lower prices or on terms more favorable to the Government, 
or that such purchases are necessary to assure the availability to the 
United States of overseas supplies.
    ``(c) Presidential Findings.--
        ``(1) In general.--The President may take the actions described 
    in paragraph (2), if the President finds that--
            ``(A) under generally fair and equitable ceiling prices, 
        for any raw or nonprocessed material, there will result a 
        decrease in supplies from high-cost sources of such material, 
        and that the continuation of such supplies is necessary to 
        carry out the objectives of this title; or
            ``(B) an increase in cost of transportation is temporary in 
        character and threatens to impair maximum production or supply 
        in any area at stable prices of any materials.
        ``(2) Subsidy payments authorized.--Upon a finding under 
    paragraph (1), the President may make provision for subsidy 
    payments on any such domestically produced material, other than an 
    agricultural commodity, in such amounts and in such manner 
    (including purchases of such material and its resale at a loss), 
    and on such terms and conditions, as the President determines to be 
    necessary to ensure that supplies from such high-cost sources are 
    continued, or that maximum production or supply in such area at 
    stable prices of such materials is maintained, as the case may be.
    ``(d) Incidental Authority.--The procurement power granted to the 
President by this section shall include the power to transport and 
store and have processed and refined any materials procured under this 
section.
    ``(e) Installation of Equipment in Industrial Facilities.--
        ``(1) Installation authorized.--If the President determines 
    that such action will aid the national defense, the President is 
    authorized--
            ``(A) to procure and install additional equipment, 
        facilities, processes or improvements to plants, factories, and 
        other industrial facilities owned by the Federal Government;
            ``(B) to procure and install equipment owned by the Federal 
        Government in plants, factories, and other industrial 
        facilities owned by private persons;
            ``(C) to provide for the modification or expansion of 
        privately owned facilities, including the modification or 
        improvement of production processes, when taking actions under 
        section 301, 302, or this section; and
            ``(D) to sell or otherwise transfer equipment owned by the 
        Federal Government and installed under this subsection to the 
        owners of such plants, factories, or other industrial 
        facilities.
        ``(2) Indemnification.--The owner of any plant, factory, or 
    other industrial facility that receives equipment owned by the 
    Federal Government under this section shall agree--
            ``(A) to waive any claim against the United States under 
        section 107 or 113 of the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 9607 and 
        9613); and
            ``(B) to indemnify the United States against any claim 
        described in paragraph (1) made by a third party that arises 
        out of the presence or use of equipment owned by the Federal 
        Government.
    ``(f) Excess Metals, Minerals, and Materials.--
        ``(1) In general.--Notwithstanding any other provision of law 
    to the contrary, metals, minerals, and materials acquired pursuant 
    to this section which, in the judgment of the President, are excess 
    to the needs of programs under this Act, shall be transferred to 
    the National Defense Stockpile established by the Strategic and 
    Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.), when 
    the President deems such action to be in the public interest.
        ``(2) Transfers at no charge.--Transfers made pursuant to this 
    subsection shall be made without charge against or reimbursement 
    from funds appropriated for the purposes of the Strategic and 
    Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.), except 
    that costs incident to such transfer, other than acquisition costs, 
    shall be paid or reimbursed from such funds.
    ``(g) Substitutes.--When, in the judgement of the President, it 
will aid the national defense, the President may make provision for the 
development of substitutes for strategic and critical materials, 
critical components, critical technology items, and other industrial 
resources.
    ``SEC. 304. DEFENSE PRODUCTION ACT FUND.
    ``(a) Establishment of Fund.--There is established in the Treasury 
of the United States a separate fund to be known as the `Defense 
Production Act Fund' (in this section referred to as the `Fund').
    ``(b) Moneys in Fund.--There shall be credited to the Fund--
        ``(1) all moneys appropriated for the Fund, as authorized by 
    section 711; and
        ``(2) all moneys received by the Fund on transactions entered 
    into pursuant to section 303.
    ``(c) Use of Fund.--The Fund shall be available to carry out the 
provisions and purposes of this title, subject to the limitations set 
forth in this Act and in appropriations Acts.
    ``(d) Duration of Fund.--Moneys in the Fund shall remain available 
until expended.
    ``(e) Fund Balance.--The Fund balance at the close of each fiscal 
year shall not exceed $750,000,000, excluding any moneys appropriated 
to the Fund during that fiscal year or obligated funds. If, at the 
close of any fiscal year, the Fund balance exceeds $750,000,000, the 
amount in excess of $750,000,000 shall be paid into the general fund of 
the Treasury.
    ``(f) Fund Manager.--The President shall designate a Fund manager. 
The duties of the Fund manager shall include--
        ``(1) determining the liability of the Fund in accordance with 
    subsection (g);
        ``(2) ensuring the visibility and accountability of 
    transactions engaged in through the Fund; and
        ``(3) reporting to the Congress each year regarding activities 
    of the Fund during the previous fiscal year.
    ``(g) Liabilities Against Fund.--When any agreement entered into 
pursuant to this title after December 31, 1991, imposes any contingent 
liability upon the United States, such liability shall be considered an 
obligation against the Fund.''.
SEC. 8. DEFINITIONS.
    Section 702 of the Defense Production Act of 1950 (50 U.S.C. App. 
2152) is amended--
        (1) in paragraph (1), by striking ``military equipment 
    identified by the Secretary of Defense'' and inserting ``equipment 
    identified by the President'';
        (2) by striking paragraphs (2), (4), (9), and (18);
        (3) by redesignating paragraph (3) as paragraph (2);
        (4) by inserting after paragraph (2), as so redesignated, the 
    following:
        ``(3) Critical technology.--The term `critical technology' 
    includes any technology designated by the President to be essential 
    to the national defense.'';
        (5) by redesignating paragraphs (5) through (8) as paragraphs 
    (4) through (7), respectively;
        (6) in paragraph (6), as so redesignated--
            (A) in the paragraph heading, by striking ``defense'';
            (B) by striking ``domestic defense'' and inserting 
        ``domestic''; and
            (C) by striking ``graduated mobilization,'';
        (7) by redesignating paragraphs (10) and (11) as paragraphs (8) 
    and (9), respectively;
        (8) by inserting after paragraph (9), as so redesignated, the 
    following:
        ``(10) Guaranteeing agency.--The term `guaranteeing agency' 
    means a department or agency of the United States engaged in 
    procurement for the national defense.
        ``(11) Homeland security.--The term `homeland security' 
    includes efforts--
            ``(A) to prevent terrorist attacks within the United 
        States;
            ``(B) to reduce the vulnerability of the United States to 
        terrorism;
            ``(C) to minimize damage from a terrorist attack in the 
        United States; and
            ``(D) to recover from a terrorist attack in the United 
        States.'';
        (9) in paragraph (12), by striking ``capacity'' and inserting 
    ``base'';
        (10) in paragraph (14), by striking ``military assistance to 
    any foreign nation'' and inserting ``military or critical 
    infrastructure assistance to any foreign nation, homeland 
    security''; and
        (11) in paragraph (16)--
            (A) in subparagraph (A), by striking ``or'' at the end;
            (B) in subparagraph (B), by striking the period and 
        inserting a semicolon; and
            (C) by adding at the end the following:
            ``(C) the movement of individuals and property by all modes 
        of civil transportation; or
            ``(D) other national defense programs and activities.''.
SEC. 9. VOLUNTARY AGREEMENTS AND PLANS OF ACTION FOR NATIONAL DEFENSE.
    Section 708 of the Defense Production Act of 1950 (50 U.S.C. App. 
2158) is amended--
        (1) in subsection (c)--
            (A) in paragraph (1), by striking ``defense of the United 
        States'' and all that follows through the period and inserting 
        ``national defense.''; and
            (B) by adding at the end the following:
    ``(3) Upon a determination by the President, on a nondelegable 
basis, that a specific voluntary agreement or plan of action is 
necessary to meet national defense requirements resulting from an event 
that degrades or destroys critical infrastructure--
        ``(A) an individual that has been delegated authority under 
    paragraph (1) with respect to such agreement or plan shall not be 
    required to consult with the Attorney General or the Federal Trade 
    Commission under paragraph (2)(B); and
        ``(B) the President shall publish a rule in accordance with 
    subsection (e)(2)(B) and publish notice in accordance with 
    subsection (e)(3)(B) with respect to such agreement or plan as soon 
    as is practicable under the circumstances.'';
        (2) in subsection (f)(2)--
            (A) by striking ``two years'' each place that term appears 
        and inserting ``5 years''; and
            (B) by striking ``two-year'' and inserting ``5-year''; and
        (3) by striking subsection (n) and inserting the following:
    ``(n) Exemption From Advisory Committee Act Provisions.--
Notwithstanding any other provision of law, the Federal Advisory 
Committee Act (5 U.S.C. App.) and any other provision of Federal law 
relating to advisory committees shall not apply to--
        ``(1) the consultations referred to in subsection (c)(1); or
        ``(2) any activity conducted under a voluntary agreement or 
    plan of action approved pursuant to this section that complies with 
    the requirements of this section.''.
  SEC. 10. EMPLOYMENT OF PERSONNEL; APPOINTMENT POLICIES; NUCLEUS 
      EXECUTIVE RESERVE; USE OF CONFIDENTIAL INFORMATION BY EMPLOYEES; 
      PRINTING AND DISTRIBUTION OF REPORTS.
    Section 710 of the Defense Production Act of 1950 (50 U.S.C. App. 
2160) is amended--
        (1) in subsection (b)--
            (A) in paragraph (2), by striking clause (iii);
            (B) by striking paragraph (4);
            (C) by redesignating paragraphs (5) through (8) as 
        paragraphs (4) through (7), respectively; and
            (D) in paragraph (6), as so redesignated, by striking ``At 
        least'' and all that follows through ``survey'' and inserting 
        ``The Director of the Office of Personnel Management shall 
        carry out a biennial survey of'';
        (2) in subsection (c), by striking the third sentence;
        (3) in subsection (d), by striking ``needed;'' and all that 
    follows through the period and inserting ``needed.''; and
        (4) in subsection (e)--
            (A) in the first sentence, by striking ``emergency'' and 
        inserting ``national defense emergency, as determined by the 
        President''; and
            (B) by striking the third sentence.
  SEC. 11. DEFENSE PRODUCTION ACT COMMITTEE.
    Section 722 of the Defense Production Act of 1950 (50 U.S.C. App. 
2171) is amended to read as follows:
    ``SEC. 722. DEFENSE PRODUCTION ACT COMMITTEE.
    ``(a) Committee Established.--There is established the Defense 
Production Act Committee (in this section referred to as the 
`Committee'), which shall advise the President on the effective use of 
the authority under this Act by the departments, agencies, and 
independent establishments of the Federal Government to which the 
President has delegated authority under this Act.
    ``(b) Membership.--
        ``(1) In general.--The members of the Committee shall be--
            ``(A) the head of each Federal agency to which the 
        President has delegated authority under this Act; and
            ``(B) the Chairperson of the Council of Economic Advisors.
        ``(2) Chairperson.--The President shall designate 1 member of 
    the Committee as the Chairperson of the Committee.
    ``(c) Executive Director.--
        ``(1) In general.--The President shall appoint an Executive 
    Director of the Defense Production Act Committee (in this section 
    referred to as the `Executive Director'), who shall--
            ``(A) be responsible to the Chairperson of the Committee; 
        and
            ``(B) carry out such activities relating to the Committee 
        as the Chairperson may determine.
        ``(2) Appointment.--The appointment by the President shall not 
    be subject to the advice and consent of the Senate.
        ``(3) Compensation.--For pay periods beginning on or after the 
    date on which each Chairperson is appointed, funds for the pay of 
    the Executive Director shall be paid from appropriations to the 
    salaries and expenses account of the department or agency of the 
    Chairperson of the Committee. The Executive Director shall be 
    compensated at a rate of pay equivalent to that of a Deputy 
    Assistant Secretary (or a comparable position) of the Federal 
    agency of the Chairperson of the Committee.
    ``(d) Report.--Not later than the end of the first quarter of each 
calendar year, the Committee shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report signed by each member 
of the Committee that contains--
        ``(1) a review of the authority under this Act of each 
    department, agency, or independent establishment of the Federal 
    Government to which the President has delegated authority under 
    this Act;
        ``(2) recommendations for the effective use of the authority 
    described in paragraph (1) in a manner consistent with the 
    statement of policy under section 2(b);
        ``(3) recommendations for legislation, regulations, executive 
    orders, or other action by the Federal Government necessary to 
    improve the use of the authority described in paragraph (1); and
        ``(4) recommendations for improving information sharing between 
    departments, agencies, and independent establishments of the 
    Federal Government relating to all aspects of the authority 
    described in paragraph (1).
    ``(e) Federal Advisory Committee Act.--The provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Committee.''.
  SEC. 12. ANNUAL REPORT ON IMPACT OF OFFSETS.
    (a) Annual Report.--Title VII of the Defense Production Act of 1950 
(50 U.S.C. App. 2151 et seq.) is amended by adding at the end the 
following:
    ``SEC. 723. ANNUAL REPORT ON IMPACT OF OFFSETS.
    ``(a) Report Required.--
        ``(1) In general.--The President shall submit to the Committee 
    on Banking, Housing, and Urban Affairs of the Senate and the 
    Committee on Financial Services of the House of Representatives, a 
    detailed annual report on the impact of offsets on the defense 
    preparedness, industrial competitiveness, employment, and trade of 
    the United States.
        ``(2) Duties of the secretary of commerce.--The Secretary of 
    Commerce (hereafter in this subsection referred to as the 
    `Secretary') shall--
            ``(A) prepare the report required by paragraph (1);
            ``(B) consult with the Secretary of Defense, the Secretary 
        of the Treasury, the Secretary of State, and the United States 
        Trade Representative in connection with the preparation of such 
        report; and
            ``(C) function as the President's Executive Agent for 
        carrying out this section.
    ``(b) Interagency Studies and Related Data.--
        ``(1) Purpose of report.--Each report required under subsection 
    (a) shall identify the cumulative effects of offset agreements on--
            ``(A) the full range of domestic defense productive 
        capability (with special attention paid to the firms serving as 
        lower-tier subcontractors or suppliers); and
            ``(B) the domestic defense technology base as a consequence 
        of the technology transfers associated with such offset 
        agreements.
        ``(2) Use of data.--Data developed or compiled by any agency 
    while conducting any interagency study or other independent study 
    or analysis shall be made available to the Secretary to facilitate 
    the execution of the Secretary's responsibilities with respect to 
    trade offset and countertrade policy development.
    ``(c) Notice of Offset Agreements.--
        ``(1) In general.--If a United States firm enters into a 
    contract for the sale of a weapon system or defense-related item to 
    a foreign country or foreign firm and such contract is subject to 
    an offset agreement exceeding $5,000,000 in value, such firm shall 
    furnish to the official designated in the regulations promulgated 
    pursuant to paragraph (2) information concerning such sale.
        ``(2) Regulations.--The information to be furnished under 
    paragraph (1) shall be prescribed in regulations promulgated by the 
    Secretary. Such regulations shall provide protection from public 
    disclosure for such information, unless public disclosure is 
    subsequently specifically authorized by the firm furnishing the 
    information.
    ``(d) Contents of Report.--
        ``(1) In general.--Each report under subsection (a) shall 
    include--
            ``(A) a net assessment of the elements of the industrial 
        base and technology base covered by the report;
            ``(B) recommendations for appropriate remedial action under 
        the authority of this Act, or other law or regulations;
            ``(C) a summary of the findings and recommendations of any 
        interagency studies conducted during the reporting period under 
        subsection (b);
            ``(D) a summary of offset arrangements concluded during the 
        reporting period for which information has been furnished 
        pursuant to subsection (c); and
            ``(E) a summary and analysis of any bilateral and 
        multilateral negotiations relating to the use of offsets 
        completed during the reporting period.
        ``(2) Alternative findings or recommendations.--Each report 
    required under this section shall include any alternative findings 
    or recommendations offered by any departmental Secretary, agency 
    head, or the United States Trade Representative to the Secretary.
    ``(e) Utilization of Annual Report in Negotiations.--The findings 
and recommendations of the reports required by subsection (a), and any 
interagency reports and analyses shall be considered by representatives 
of the United States during bilateral and multilateral negotiations to 
minimize the adverse effects of offsets.''.
    (b) Technical and Conforming Amendments.--
        (1) Defense production act amendments of 1992.--Section 
    123(c)(1)(C) of the Defense Production Act Amendments of 1992 (50 
    U.S.C. App. 2099 note) is amended by striking ``section 309(a) of 
    the Defense Production Act of 1950 (50 U.S.C. App. 2099(a))'' and 
    inserting ``section 723(a) of the Defense Production Act of 1950''.
        (2) American homeownership and economic opportunity act of 
    2000.--Section 1102(2) of the American Homeownership and Economic 
    Opportunity Act of 2000 (31 U.S.C. 1113 note) is amended by 
    striking ``309 of the Defense Production Act of 1950 (50 U.S.C. 
    App. 2099)'' and inserting ``723 of the Defense Production Act of 
    1950''.
        (3) Defense production act amendments of 2003.--Section 7(a) of 
    the Defense Production Act Amendments of 2003 (50 U.S.C. App. 2099 
    note) is amended by striking ``section 309(a) of the Defense 
    Production Act of 1950 (50 U.S.C. App. 2099(a))'' and inserting 
    ``section 723(a) of the Defense Production Act of 1950''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.