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.