[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4521 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4521

    To amend title 10, United States Code, to authorize cooperative 
    partnerships for mineral extraction activities at Army organic 
          industrial base facilities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2026

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

_______________________________________________________________________

                                 A BILL


 
    To amend title 10, United States Code, to authorize cooperative 
    partnerships for mineral extraction activities at Army organic 
          industrial base facilities, 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 ``Army Organic Industrial Base Mineral 
Partnerships Act of 2026''.

SEC. 2. COOPERATIVE PARTNERSHIPS BETWEEN THE ARMY AND INDUSTRY FOR 
              MINERAL EXTRACTION ACTIVITIES AT ARMY ORGANIC INDUSTRIAL 
              BASE FACILITIES.

    Section 7544 of title 10, United States Code, is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(7) Mineral extraction operations and related support 
        services carried out by a non-Army entity, including the 
        recovery, processing, or handling of strategic or critical 
        minerals, using land, facilities, infrastructure, waste 
        streams, or byproducts under the control of the Army industrial 
        facility.'';
            (2) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively;
            (3) by inserting after subsection (h) the following:
    ``(i) Special Rules for Mineral Extraction.--
            ``(1) Environmental and other responsibilities.--Mineral 
        extraction operations authorized under this section under a 
        contract or cooperative arrangement with a non-Army entity 
        shall be subject to--
                    ``(A) all applicable Federal, State, and local 
                environmental laws and regulations, including the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4331 et seq.) and the Clean Air Act (42 U.S.C. 7401 et 
                seq.); and
                    ``(B) a requirement that the contract or 
                cooperative arrangement--
                            ``(i) provide that the non-Army entity 
                        shall be responsible, to the maximum extent 
                        permitted by law, for compliance with all 
                        applicable environmental laws and for any 
                        environmental mitigation, remediation, cleanup, 
                        response, natural resource damages, or other 
                        liability arising from or relating to such 
                        mineral extraction operations, including 
                        contamination discovered after the termination 
                        of the contract or cooperative arrangement and 
                        contamination migrating beyond the boundaries 
                        of the facility involved;
                            ``(ii) require the non-Army entity to 
                        indemnify and hold harmless the United States 
                        for obligations described in clause (i) to the 
                        maximum extent permitted by law; and
                            ``(iii) require the provision of adequate 
                        financial assurance, performance bonding, 
                        insurance, or other financial security 
                        mechanisms sufficient to protect the interests 
                        of the United States in the event of default, 
                        insolvency, or bankruptcy of the non-Army 
                        entity.
            ``(2) Consideration and compensation.--
                    ``(A) In general.--A contract or cooperative 
                arrangement entered into under this section with a non-
                Army entity that includes mineral extraction operations 
                shall provide for the receipt by the Army of 
                consideration that the Secretary of the Army determines 
                to be reasonable in value, taking into account the 
                nature and quantity of minerals recovered, the use of 
                land, facilities, infrastructure, waste streams, or 
                byproducts of the Army, and the costs and risks assumed 
                by the non-Army entity.
                    ``(B) Forms of consideration.--Consideration under 
                subparagraph (A) may include, as determined appropriate 
                by the Secretary of the Army--
                            ``(i) cash payments;
                            ``(ii) in-kind consideration, including 
                        minerals, processed materials, equipment, 
                        infrastructure improvements, or services;
                            ``(iii) provision of equipment, tooling, 
                        production capability enhancements, or other 
                        industrial process improvements, or other 
                        tangible industrial support that directly 
                        support the mission, sustainment, or 
                        modernization of the organic industrial base of 
                        the Army; or
                            ``(iv) any combination of the consideration 
                        specified under clause (i) through (iii).
                    ``(C) Use of funds.--Except as provided in 
                subparagraph (E), and subject to applicable law, any 
                cash amounts received by the Army under subparagraph 
                (B)(i) may be retained and used, without further 
                appropriation, for the operation, maintenance, 
                modernization, environmental remediation, or mission 
                support of Army industrial facilities.
                    ``(D) Best interest determination.--The Secretary 
                of the Army shall determine whether any consideration 
                to be accepted under this paragraph is in the best 
                interest of the Department of the Army and does not 
                interfere with missions of the Army.
                    ``(E) Army working capital fund facilities.--
                            ``(i) In general.--In the case of an Army 
                        industrial facility for which operations are 
                        financed through the Army Working Capital Fund 
                        established under section 2208 of this title, 
                        any cash amounts received under subparagraph 
                        (B)(i) shall be credited to the Army Working 
                        Capital Fund, or to the appropriate working 
                        capital fund activity or subaccount, and shall 
                        be available for the purposes of such fund, 
                        consistent with such section 2208.
                            ``(ii) Use of funds.--Notwithstanding 
                        subsections (k) and (o)(2)(A) of section 2208 
                        of this title, amounts credited to the Army 
                        Working Capital Fund under clause (i) may be 
                        used for capital investments, including 
                        military construction projects, directly 
                        supporting facilities of the organic industrial 
                        base of the Army.
                    ``(F) No requirement for competitive sale.--The 
                provision or receipt of minerals or other consideration 
                under this paragraph shall not be subject to chapter 5 
                of title 40 (relating to surplus property) if the 
                Secretary determines that the contract or cooperative 
                arrangement under this section is in the best interest 
                of the Department of the Army.
            ``(3) Mineral leasing act for acquired lands.--The 
        requirements of the Mineral Leasing Act for Acquired Lands (30 
        U.S.C. 351 et seq.) shall not apply to mineral extraction 
        operations authorized under this section.
            ``(4) Rules of construction.--Nothing in this section shall 
        be construed--
                    ``(A) to authorize an Army industrial facility, or 
                any personnel of the Army, to directly engage in 
                mineral extraction, drilling, or mining operations; or
                    ``(B) to modify, supersede, or otherwise affect any 
                existing contractual or administrative agreements 
                between Federal agencies or between the United States 
                and any non-governmental entity regarding subsurface 
                rights.
            ``(5) Annual report.--Not later than one year after the 
        date of the enactment of the Army Organic Industrial Base 
        Mineral Partnerships Act of 2026, and annually thereafter, the 
        Secretary of the Army shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives a 
        report that--
                    ``(A) identifies the number of contracts or 
                cooperative arrangements entered into under this 
                section that include mineral extraction operations; and
                    ``(B) describes, in general terms, the types of 
                strategic or critical minerals covered by such 
                contracts or arrangements.''; and
            (4) in subsection (k), as redesignated by paragraph (2), by 
        adding at the end the following:
            ``(6) The term `mineral extraction operations' means the 
        removal, recovery, processing, or handling of minerals, and 
        related support activities necessary to produce minerals from 
        land, water, facilities, waste streams, or byproducts under the 
        control of an Army industrial facility, including solid 
        minerals, brines, and other naturally occurring mineral 
        resources, and including associated infrastructure and 
        environmental mitigation.
            ``(7) The term `strategic or critical mineral' has the 
        meaning given the term `strategic and critical materials' in 
        section 12 of the Strategic and Critical Materials Stock Piling 
        Act (50 U.S.C. 98h-3) and includes rare earth elements, 
        lithium, titanium, nickel, and other minerals determined by the 
        Secretary of the Army to be essential to national defense, 
        energy security, or advanced manufacturing.
            ``(8) The term `under the control of an Army industrial 
        facility' means real property, facilities, infrastructure, 
        waste streams, byproducts, or other resources that are under 
        the administrative jurisdiction of the Secretary of the Army, 
        including property assigned to a facility of the organic 
        industrial base of the Army, and includes property subject to 
        leases, licenses, permits, or other use agreements administered 
        by the Secretary of the Army.''.
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