[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5195 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5195

To strengthen the national security of the United States by decreasing 
the reliance of the Department of Defense on critical minerals from the 
          People's Republic of China, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 7, 2022

  Mr. Romney (for himself and Mr. Sullivan) introduced the following 
   bill; which was read twice and referred to the Committee on Armed 
                                Services

_______________________________________________________________________

                                 A BILL


 
To strengthen the national security of the United States by decreasing 
the reliance of the Department of Defense on critical minerals from the 
          People's Republic of China, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Critical Mineral Independence Act of 
2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Allied country.--The term ``allied country'' means--
                    (A) a country of the national technology and 
                industrial base, as defined in section 4801 of title 
                10, United States Code; or
                    (B) another country that is an ally of the United 
                States and is identified by the Secretary of Defense 
                for purposes of this Act.
            (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Energy and Natural Resources, 
                the Committee on Armed Services, the Committee on 
                Foreign Relations, and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate; and
                    (B) the Committee on Natural Resources, the 
                Committee on Armed Services, the Committee on Foreign 
                Affairs, and the Committee on Financial Services of the 
                House of Representatives.
            (3) Critical mineral.--The term ``critical mineral'' has 
        the meaning given that term in section 7002(a) of the Energy 
        Act of 2020 (30 U.S.C. 1606(a)).

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to expand mining and processing of critical minerals, 
        including rare earth elements, in the United States and in 
        allied countries to meet the needs of the United States defense 
        sector so that the Department of Defense will achieve critical 
        mineral supply chain independence by 2027;
            (2) that the Department of Defense will procure critical 
        minerals processed by the United States and allied countries to 
        replenish and expand the National Defense Stockpile to meet 
        growing geopolitical threats by 2027; and
            (3) to develop critical mineral supply chains for the 
        Department of Defense that are not dependent on mining or 
        processing of critical minerals in countries that are 
        geostrategic competitors or adversaries of the United States.

SEC. 4. REPORT ON UNITED STATES AND ALLIED PROCESSING OF CRITICAL 
              MINERALS REQUIRED TO ACHIEVE DEFENSE SUPPLY CHAIN 
              INDEPENDENCE.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Under Secretary of Defense for Acquisition 
and Sustainment shall submit to the appropriate committees of Congress 
a report on the processing by the United States and allied countries of 
critical minerals, including rare earth elements, required to achieve 
supply chain independence for the United States Armed Forces and allied 
countries by 2027.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An estimate of the annual demand for processed critical 
        minerals for the United States Armed Forces and allied 
        countries.
            (2) An outline of the necessary processed critical minerals 
        value chain required to support the needs of the Department of 
        Defense.
            (3) An assessment of any gaps in the outline described in 
        paragraph (2), indicating where sufficient United States 
        processing capacity exists and where such capacity does not 
        exist.
            (4) An identification of any Federal funds, including any 
        funds made available under title III of the Defense Production 
        Act of 1950 (50 U.S.C. 4531 et seq.), being deployed, as of the 
        date of the report, to support development of United States 
        capacity to address those gaps.
            (5) An estimate of the additional capital investment 
        required to grow and operate sufficient United States capacity 
        to address those gaps.
            (6) An estimate of the annual funding necessary for the 
        Department of Defense to procure critical minerals processed in 
        the United States sufficient to meet the annual needs of the 
        Department, including consideration of increased investments 
        from private sector capital.
            (7) An estimate of the cost difference between the 
        Department of Defense--
                    (A) sourcing critical minerals processed by the 
                United States;
                    (B) sourcing critical minerals processed by allied 
                countries; and
                    (C) sourcing critical minerals on the open market.
            (8) An assessment of what changes, if any, are necessary to 
        the acquisition policies of the Department of Defense to ensure 
        weapon suppliers use critical minerals processed by the United 
        States or allied countries.
            (9) An assessment of what changes, if any, to authorities 
        under title III of the Defense Production Act of 1950 are 
        necessary to enter into a long-term offtake agreement with 
        respect to critical minerals processed by the United States or 
        allied countries.
            (10) An assessment of the duration of potential contracts 
        necessary to prevent the collapse of United States processing 
        of critical minerals in the event of price fluctuations 
        resulting from increases in the export quota of the People's 
        Republic of China.
            (11) Recommendations for international cooperation with 
        allied countries to jointly reduce dependence on critical 
        minerals processed in or by the People's Republic of China.

SEC. 5. STRATEGY TO TRANSITION THE SUPPLY CHAIN FOR THE NATIONAL 
              DEFENSE STOCKPILE TO UNITED STATES AND ALLIED-PROCESSED 
              CRITICAL MINERALS BY 2027.

    (a) In General.--Not later than 90 days after the report required 
by section 4 is submitted, the Director of the Defense Logistics 
Agency, in coordination with the Under Secretary of Defense for 
Acquisition and Sustainment, shall develop, and submit to the 
appropriate committees of Congress, a strategy to transition the supply 
chain for critical minerals, including rare earths elements, in the 
National Defense Stockpile away from reliance on geostrategic 
competitors and adversaries of the United States by 2027, through 
acquisition of critical minerals processed by--
            (1) the United States, with a preference given to critical 
        minerals processed in the United States; or
            (2) allied countries (excluding critical minerals processed 
        in a country that is a geostrategic competitor or adversary of 
        the United States), with preference given to critical minerals 
        processed in such countries.
    (b) Forecasted Need of Critical Minerals.--The strategy required by 
subsection (a) shall be designed to meet the forecasted need for 
critical minerals of the Department of Defense through calendar year 
2027 for--
            (1) planned procurements;
            (2) anticipated adoption of emerging technology; and
            (3) potential increases in the National Defense Stockpile 
        that would be needed if the Department implements the guidance 
        included in the Climate Adaptation Action Plan of the 
        Department of Defense, dated September 2021.
    (c) Elements.--The strategy required by subsection (a) shall 
include the following:
            (1) A list of critical minerals in the National Defense 
        Stockpile.
            (2) A priority ranking for transitioning the critical 
        minerals on the list required by paragraph (1), developed 
        using, for each such mineral--
                    (A) the percentage of the mineral processed by 
                foreign sources (excluding allied countries);
                    (B) the percentage of operational processing 
                facilities for the mineral located in the United States 
                and in allied countries, compared to foreign sources of 
                the mineral (excluding allied countries);
                    (C) the quantity of the mineral required to fulfill 
                the purposes set forth in section 2 of the Strategic 
                and Critical Materials Stock Piling Act (50 U.S.C. 
                98a); and
                    (D) any other metric, as determined by the Director 
                and the Under Secretary, that may be an indicator of 
                reliance on foreign sources (excluding allied 
                countries) for the mineral.
            (3) A process to replenish 50 percent of each mineral on 
        the list required by paragraph (1) with the mineral processed 
        by United States or allied country processors during the 1-year 
        period after implementation of the strategy.
            (4) A process to replenish 95 percent of each mineral on 
        the list required by paragraph (1) with the mineral processed 
        by United States or allied country processors during the 3-year 
        period after implementation of the strategy.
            (5) Recommendations to Congress with respect to any 
        authorities needed to implement the strategy.
            (6) Any other matters related to implementing the strategy 
        as the Director and the Under Secretary consider appropriate.
    (d) Implementation.--The Director and the Under Secretary shall--
            (1) coordinate the implementation of the processes required 
        by paragraphs (3) and (4) of subsection (c) with the Department 
        of Defense and activities carried out by the Department under 
        title III of the Defense Production Act of 1950 (50 U.S.C. 4531 
        et seq.); and
            (2) to the greatest extent practicable, implement the 
        strategy required by subsection (a) with respect to acquisition 
        of critical minerals for the National Defense Stockpile with 
        funds authorized to be appropriated under section 7.
    (e) Briefings Required.--Not later than 180 days after the 
submission of the strategy required by subsection (a), and every 180 
days thereafter, the Director and the Under Secretary shall brief the 
appropriate committees of Congress on implementation of the strategy.

SEC. 6. FORM OF REPORT AND STRATEGY.

    The report required by section 4 and the strategy required by 
section 5 shall be submitted in classified form but shall include an 
unclassified summary.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the National Defense 
Stockpile Transaction Fund $1,003,500 for the acquisition of strategic 
and critical minerals under section 6(a) of the Strategic and Critical 
Minerals Stock Piling Act (50 U.S.C. 98e(a)).
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