[Congressional Record Volume 168, Number 158 (Thursday, September 29, 2022)]
[Senate]
[Pages S5834-S5842]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6339. Ms. HASSAN submitted an amendment intended to be proposed to
amendment SA 5499 submitted by Mr. Reed (for himself and Mr. Inhofe)
and intended to be proposed to the bill H.R. 7900, to authorize
appropriations for fiscal year 2023 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:
=========================== NOTE ===========================
On page S5834, September 29, 2022, in the second column, the
following appears: SA 6338. Mr. LUJAN (for himself and Mr. GRAHAM)
submitted an amendment intended to be proposed to amendment
The online Record has been corrected to read: SA 6339. Ms.
HASSAN submitted an amendment intended to be proposed to amendment
========================= END NOTE =========================
At the end of title X, add the following:
Subtitle H--Manufacturing Security and Resilience
SEC. 1081. SHORT TITLE.
This subtitle may be cited as the ``Improving American
Security through Manufacturing Resilience/Strengthening
American Manufacturing and Supply Chain Resiliency Act of
2022''.
SEC. 1082. DEFINITIONS.
In this subtitle:
(1) Ally or key international partner.--The term ``ally or
key international partner'' does not include--
(A) a country that poses a significant national security or
economic security risk to the United States; or
(B) a country of concern.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Manufacturing
and Resilience, who is appointed pursuant to section 1083(c).
(3) Country of concern.--The term ``country of concern''
means a country--
(A) in which a concentrated supply chain is located; and
(B)(i) that poses a significant national security or
economic security threat to the United States;
(ii) that is a covered nation, as that term is defined in
section 2533c(d) of title 10, United States Code; or
(iii) the government of which, or elements of such
government, has proven to have, or has been credibly alleged
to have, committed crimes against humanity or genocide.
(4) Covered supply chain.--The term ``covered supply
chain'' means a supply chain with respect to a critical good.
(5) Covered western hemisphere countries.--The term
``covered Western Hemisphere countries'' means the following
countries:
(A) Anguilla.
(B) Antigua and Barbuda.
(C) Argentina.
(D) Aruba.
(E) The Bahamas.
(F) Barbados.
(G) Belize.
(H) Bermuda.
(I) Bolivia.
(J) Brazil.
(K) The British Virgin Islands.
(L) Canada.
(M) Chile.
(N) Colombia.
(O) Costa Rica.
(P) Dominica.
(Q) The Dominican Republic.
(R) Ecuador.
(S) El Salvador.
(T) Grenada.
(U) Guatemala.
(V) Guyana.
(W) Haiti.
(X) Honduras.
(Y) Jamaica.
(Z) Mexico.
(AA) Montserrat.
(BB) Panama.
(CC) Paraguay.
(DD) Peru.
(EE) Saint Kitts and Nevis.
(FF) Saint Lucia.
(GG) Saint Vincent and the Grenadines.
(HH) Suriname.
(II) Trinidad and Tobago.
(JJ) Turks and Caicos Islands.
(KK) Uruguay.
(LL) The sovereign government recognized by the United
States in Venezuela.
(6) Critical good.--The term ``critical good'' means any
raw, in process, or manufactured material (including any
mineral, metal, or advanced processed material), article,
commodity, supply, product, or item of supply, the absence of
which would have a significant effect on--
(A) the national security or economic security of the
United States; and
(B) critical infrastructure.
(7) Critical industry.--The term ``critical industry''
means an industry that is critical for the national security
or economic security of the United States, taking into
consideration key technology focus areas and critical
infrastructure.
(8) Critical infrastructure.--The term ``critical
infrastructure'' has the meaning given the term in the
Critical Infrastructures Protection Act of 2001 (42 U.S.C.
5195c).
(9) Domestic enterprise.--The term ``domestic enterprise''
means an enterprise that conducts business in the United
States and procures a critical good.
(10) Domestic manufacturer.--The term ``domestic
manufacturer'' means a business that--
(A) conducts in the United States the research and
development, engineering, or production activities necessary
or incidental to manufacturing; or
(B) if provided a grant, loan, loan guarantee, or equity
investment under section 1086, will conduct in the United
States the research and development, engineering, or
production activities necessary or incidental to
manufacturing.
(11) Economically distressed area.--The term ``economically
distressed area'' means an area that meets 1 or more of the
criteria described in section 301(a) of the Public Works and
Economic Development Act of 1965 (42 U.S.C. 3161(a)).
(12) Eligible activity.--The term ``eligible activity''
means an activity described in section 1086(c).
(13) Eligible entity.--The term ``eligible entity'' means
an entity described in section 1086(d).
(14) Federal agency.--The term ``Federal agency'' has the
meaning given the term ``agency'' in section 551 of title 5,
United States Code.
(15) Industrial equipment.--The term ``industrial
equipment'' means any component, subsystem, system,
equipment, tooling, accessory, part, or assembly necessary
for the manufacturing of a critical good.
(16) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(17) Key technology focus area.--The term ``key technology
focus area'' means any of the following:
(A) Artificial intelligence, machine learning, autonomy,
and related advances.
(B) High performance computing, semiconductors, and
advanced computer hardware and software.
(C) Quantum information science and technology.
(D) Robotics, automation, and advanced manufacturing.
[[Page S5835]]
(E) Natural and anthropogenic disaster prevention or
mitigation.
(F) Advanced communications technology, including optical
transmission components and immersive technology.
(G) Biotechnology, medical technology, genomics, and
synthetic biology.
(H) Data storage, data management, distributed ledger
technologies, and cybersecurity, including biometrics.
(I) Advanced energy and industrial efficacy technologies,
such as batteries, advanced nuclear technologies, and
polysilicon for use in solar photovoltaics, including for the
purposes of electric generation (consistent with section 15
of the National Science Foundation Act of 1950 (42 U.S.C.
1874)).
(J) Advanced materials science, including composites and 2D
materials and equipment, aerospace grade metals, and
aerospace specific manufacturing enabling chemicals.
(18) Labor organization.--The term ``labor organization''
means--
(A) a labor organization, as defined in section 2(5) of the
National Labor Relations Act (29 U.S.C. 152(5));
(B) any organization that would be included under
subparagraph (A) but for the fact that the organization
represents--
(i) individuals employed by the United States, any wholly
owned Government corporation, any Federal Reserve Bank, or
any State (or political subdivision of a State);
(ii) individuals employed by persons subject to the Railway
Labor Act (45 U.S.C. 151 et seq.); or
(iii) individuals employed as agricultural laborers; and
(C) any organization composed of organizations described in
subparagraph (A) or (B), such as a labor federation or a
State or municipal labor body.
(19) Lender.--The term ``lender'' means any non-Federal
qualified institutional buyer, as that term is defined in
section 230.144A(a) of title 17, Code of Federal Regulations,
or any successor regulation.
(20) Loan.--The term ``loan''--
(A) means a direct loan or other debt obligation issued by
the Assistant Secretary to an eligible entity under section
1086; and
(B) includes the provision of equity capital by a
manufacturing investment company to an eligible entity under
subsection (k) of section 1086 using amounts made available
by the Assistant Secretary to the manufacturing investment
company under that section.
(21) Loan guarantee.--The term ``loan guarantee'' means any
guarantee or other pledge by the Assistant Secretary under
section 1086 to pay all or part of the principal of, and
interest on, a loan or other debt obligation entered into by
an eligible entity or a manufacturing investment company and
funded by a lender.
(22) Manufacture.--The term ``manufacture'' means to take
any activity that is necessary for, or incidental to, the
development, production, processing, distribution, or
delivery of any raw, in process, or manufactured material
(including any mineral, metal, and advanced processed
material), article, commodity, supply, product, critical
good, or item of supply.
(23) Manufacturing facility.--The term ``manufacturing
facility'' means any type of building, structure, or real
property necessary or incidental to the manufacturing of a
critical good.
(24) Manufacturing investment company.--The term
``manufacturing investment company'' means an incorporated
body, a limited liability company, or a limited partnership,
including a consortium of public and private entities,
organized and chartered or otherwise existing under State
law.
(25) Manufacturing technology.--The term ``manufacturing
technology'' means a technology that is necessary or
incidental to the manufacturing of a critical good.
(26) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of such Code.
(27) Office.--The term ``Office'' means the Office of
Manufacturing Security and Resilience established under
section 1083.
(28) Offshore.--The term ``offshore'' means to transfer or
relocate manufacturing capacity that is occurring, or
otherwise would occur, in the United States to another
country.
(29) Relevant committees of congress.--The term ``relevant
committees of Congress'' means the following:
(A) The Committee on Commerce, Science, and Transportation
of the Senate.
(B) The Committee on Appropriations of the Senate.
(C) The Committee on Finance of the Senate.
(D) The Committee on Homeland Security and Governmental
Affairs of the Senate.
(E) The Committee on Armed Services of the Senate.
(F) The Committee on Energy and Natural Resources of the
Senate.
(G) The Select Committee on Intelligence of the Senate.
(H) The Committee on Science, Space, and Technology of the
House of Representatives.
(I) The Committee on Energy and Commerce of the House of
Representatives.
(J) The Committee on Appropriations of the House of
Representatives.
(K) The Committee on Ways and Means of the House of
Representatives.
(L) The Committee on Homeland Security of the House of
Representatives.
(M) The Committee on Armed Services of the House of
Representatives.
(N) The Permanent Select Committee on Intelligence of the
House of Representatives.
(30) Resilient supply chain.--The term ``resilient supply
chain'' means a covered supply chain that--
(A) ensures that the United States can sustain critical
industry production, supply chains, services, and access to
critical goods, industrial equipment, and manufacturing
technology during a supply chain shock; and
(B) has key components of resilience that include--
(i) effective private sector risk management and mitigation
planning to sustain supply chains and supplier networks
during a supply chain shock;
(ii) minimized or managed exposure to a supply chain shock;
and
(iii) the financial and operational capacity to--
(I) sustain supply chains during a supply chain shock; and
(II) recover from a supply chain shock.
(31) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(32) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).
(33) State.--The term ``State'' means each State of the
United States, the District of Columbia, American Samoa,
Guam, the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, the United States Virgin
Islands, and any other territory or possession of the United
States.
(34) Supply chain.--The term ``supply chain''--
(A) means a domestic or international network that provides
the goods and services needed to deliver a finished product
to end users; and
(B) includes the exploration, mining, concentration,
alloying, recycling, and reprocessing of minerals in order to
carry out the activities described in subparagraph (A).
(35) Supply chain information.--The term ``supply chain
information'' means information that--
(A) is not customarily in the public domain; and
(B) relates to--
(i) sustaining and adapting covered supply chains during a
supply chain shock;
(ii) covered supply chain risk mitigation and recovery
planning with respect to a supply chain shock, including any
planned or past assessment, projection, or estimate of a
vulnerability within a covered supply chain, including
testing, supplier network assessments, production
flexibility, risk evaluations, risk management planning, or
risk audits; or
(iii) operational best practices, planning, and supplier
partnerships that enable enhanced resilience of supply chains
during a supply chain shock, including response, repair,
recovery, reconstruction, insurance, or continuity with
respect to those supply chains.
(36) Supply chain shock.--The term ``supply chain shock''
includes a disruption to a supply chain that is caused by any
of the following:
(A) A natural disaster or extreme weather event.
(B) An accidental or human-caused event.
(C) An economic disruption.
(D) A pandemic.
(E) A biological threat.
(F) A cyber attack.
(G) A great power conflict.
(H) A terrorist or geopolitical attack.
(I) A public health emergency declared by the Secretary of
Health and Human Services pursuant to section 319 of the
Public Health Service Act (42 U.S.C. 247d).
(J) An event for which the President declares a major
disaster or an emergency under section 401 or 501,
respectively, of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170, 5191).
(K) A national emergency declared by the President under
the National Emergencies Act (50 U.S.C. 1601 et seq.).
(L) Any other supply chain disruption or threat that
affects the national security or economic security of the
United States.
(37) Tribal government.--The term ``Tribal government''
means the governing body of a federally recognized Indian
Tribe, an Alaska Native Tribal entity, or a Native Hawaiian
community.
SEC. 1083. OFFICE OF MANUFACTURING SECURITY AND RESILIENCE.
(a) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall establish
within the Department of Commerce the Office of Manufacturing
Security and Resilience.
(b) Mission.--The mission of the Office shall be the
following:
(1) Help to promote the leadership of the United States
with respect to critical industries and covered supply chains
that--
(A) strengthen the national security of the United States;
and
(B) have a significant effect on the economic security of
the United States.
(2) Encourage a Governmentwide approach through
partnerships and collaboration with the private sector, labor
organizations, the governments of countries that are allies
or key international partners of the United States, States
(or political subdivisions of States), and Tribal governments
in order to--
[[Page S5836]]
(A) promote the resilience of covered supply chains; and
(B) identify, prepare for, and respond to supply chain
shocks to--
(i) critical industries; and
(ii) covered supply chains.
(3) Monitor the resilience, diversity, security, and
strength of covered supply chains and critical industries.
(4) Support the availability of critical goods from
domestic manufacturers, domestic enterprises, and
manufacturing operations in the United States and in
countries that are allies or key international partners.
(5) Assist the Federal Government in preparing for, and
responding to, supply chain shocks, including by improving
the flexible manufacturing capacities and capabilities in the
United States.
(6) Encourage and incentivize the reduced reliance of
domestic enterprises and domestic manufacturers on critical
goods from countries of concern.
(7) Encourage the relocation of manufacturing facilities
that manufacture critical goods from countries of concern to
the United States, and to countries that are allies and key
international partners, to strengthen the resilience,
diversity, security, and strength of covered supply chains.
(8) Support the creation of jobs with competitive wages in
the United States manufacturing sector.
(9) Encourage manufacturing growth and opportunities in
economically distressed areas and underserved communities in
the United States.
(10) Promote the health of the economy of the United States
and the competitiveness of manufacturing in the United
States.
(11) Coordinate executive branch actions necessary to carry
out the functions described in paragraphs (1) through (10).
(c) Assistant Secretary of the Office.--
(1) Appointment and term.--The head of the Office shall be
the Assistant Secretary of Commerce for Manufacturing and
Resilience, who--
(A) shall be appointed by the President, by and with the
advice and consent of the Senate, for a term of not more than
5 years; and
(B) may function, and be referred to, as the United States
Chief Manufacturing Officer.
(2) Pay.--The Assistant Secretary shall be compensated at
the annual rate of basic pay in effect for level II of the
Executive Schedule under section 5313 of title 5, United
States Code.
(3) Administrative authorities.--The Assistant Secretary
may appoint officers and employees in accordance with chapter
51 and subchapter III of chapter 53 of title 5, United States
Code.
SEC. 1084. UNITED STATES STRATEGY TO COUNTER THREATS TO
COVERED SUPPLY CHAINS.
(a) In General.--In accordance with Executive Order 14017
(86 Fed. Reg. 11849; relating to America's supply chains),
the Assistant Secretary shall, not later than 1 year after
the date of enactment of this Act, develop and implement a
strategy taking a Governmentwide approach to support the
resilience, diversity, security, and strength of supply
chains.
(b) Elements.--The strategy required under subsection (a)
shall include the following:
(1) A plan to do the following:
(A) Execute a unified national effort to reduce reliance on
concentrated supply chains and protect against threats from
countries of concern relating to covered supply chains.
(B) Support sufficient access to critical goods by
mitigating supply chain vulnerabilities, including covered
supply chains concentrated in countries of concern.
(C) Collaborate with other relevant Federal agencies to
assist allies or key international partners build capacity
for manufacturing critical goods.
(D) Incentivize (through grants, loans, loan guarantees,
and equity investment authorized under section 1086) and
identify tax incentives, trade preferences, or other means,
as appropriate--
(i) for domestic manufacturers that manufacture critical
goods to--
(I) relocate manufacturing facilities, industrial
equipment, or operations relating to the manufacturing of
critical goods from countries of concern to the United States
or to other allies or key international partners; and
(II) support manufacturing facilities, industrial
equipment, or operations to increase the manufacturing of
critical goods and meet demand for critical goods; and
(ii) for domestic manufacturers that do not manufacture
critical goods to make necessary or appropriate modifications
to existing manufacturing facilities, industrial equipment,
manufacturing technology, or operations in order to
manufacture 1 or more critical goods.
(E) Describe the manner and processes through which the
Assistant Secretary will implement the program under section
1086, including through consultation with, or requests for
information from, the heads of any relevant Federal agencies,
including those with jurisdiction over covered supply chains,
for the purposes of ensuring the program authorized under
section 1086--
(i) supports the resilience, diversity, security, and
strength of a covered supply chain; and
(ii) meets the national security and economic security
needs of the United States.
(F) Strengthen and increase trade through new and revised
trade agreements and other forms of engagement between the
United States, and allies or key international partners, in
order to mitigate--
(i) covered supply chain vulnerabilities; and
(ii) the effects of supply chain shocks.
(G) Recover from supply chain shocks.
(H) Identify, in coordination with other relevant Federal
agencies, actions relating to supply chains through which, by
taking, the United States might--
(i) raise living standards;
(ii) increase employment opportunities;
(iii) address the underlying causes of irregular migration;
and
(iv) improve critical industry supply chain response to
supply chain shocks.
(I) Protect against supply chain shocks from countries of
concern relating to covered supply chains.
(J) Provide recommendations to effectuate the strategy
under this section.
(2) An assessment of the following:
(A) The extent to which any office or bureau within the
Department of Commerce has duties, responsibilities,
resources, or expertise that support or duplicate the mission
of the Office.
(B) The purpose of each office and bureau identified under
subparagraph (A).
(C) Whether the Assistant Secretary will coordinate with
each office and bureau identified under subparagraph (A) in
implementing the requirements of this subtitle.
(D) If the Assistant Secretary makes a positive
determination under subparagraph (C), the effectiveness and
efficiency of the Assistant Secretary, and each office and
bureau described in that subparagraph, in implementing the
requirements of this subtitle.
(3) Recommendations, if applicable and consistent with the
objectives of this subtitle, on consolidating functions
amongst the Office and each such office and bureau identified
under paragraph (2)(A).
(c) Submission of Strategy.--
(1) In general.--Not later than 450 days after the date of
enactment of this Act, the Assistant Secretary shall submit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Energy and Commerce of the
House of Representatives, and publish on the website of the
Office, a report containing the strategy developed under this
section.
(2) Update.--Not less frequently than once every 4 years
after the date on which the strategy developed under this
section is submitted under paragraph (1), the Assistant
Secretary shall submit to the committees described in
paragraph (1) an update to that strategy.
(3) Form.--The report submitted under paragraph (1), and
any update submitted under paragraph (2), shall be submitted
in unclassified form and may include a classified annex.
SEC. 1085. CRITICAL SUPPLY CHAIN MONITORING PROGRAM.
(a) Activities.--The Assistant Secretary shall take the
following actions:
(1) In consultation with the unified coordination group
established under subsection (c)--
(A) map, monitor, and model covered supply chains,
including by--
(i) monitoring the financial and operational conditions of
domestic manufacturers and domestic enterprises;
(ii) performing stress tests for critical industries,
covered supply chains, domestic enterprises, and domestic
manufacturers;
(iii) monitoring the demand and supply of critical goods
and services, industrial equipment, and manufacturing
technology; and
(iv) monitoring manufacturing, warehousing, transportation,
and distribution; and
(B) identify high priority supply chain gaps and
vulnerabilities in critical industries and covered supply
chains that--
(i) exist, as of the date of the enactment of this Act; or
(ii) are anticipated to develop after the date of enactment
of this Act.
(2) Identify and evaluate the following:
(A) Supply chain shocks that may disrupt, strain,
compromise, or eliminate a covered supply chain.
(B) The manufacturing needs critical to the national
security and economic security of the United States.
(C) The diversity, security, reliability, and strength of--
(i) covered supply chains, including single point of
failure, single producer, or consolidated manufacturing; and
(ii) the sources of critical goods, industrial equipment,
or manufacturing technology, including those--
(I) obtained or purchased from a person outside of the
United States; or
(II) imported into the United States.
(D) The availability, capability, and capacity of domestic
manufacturers, or manufacturers located in countries that are
allies or key international partners, to serve as a source of
a critical good, industrial equipment, or manufacturing
technology.
(E) The effect on the economic security of the United
States, including jobs and wages, that may result from the
disruption, strain, compromise, or elimination of a supply
chain.
(F) The effect on the national security of the United
States that may result from the disruption, strain,
compromise, or elimination of a supply chain.
(G) The state of the manufacturing workforce, including--
[[Page S5837]]
(i) the needs of domestic manufacturers; and
(ii) opportunities to create high-quality manufacturing
jobs.
(H) Investments in critical goods, industrial equipment, or
manufacturing technology from non-Federal sources.
(3) In consultation with the unified coordination group
established under subsection (c), States (or political
subdivisions of States), and Tribal governments, and, as
appropriate, in cooperation with the governments of countries
that are allies or key international partners, the following:
(A) Identify opportunities to reduce supply chain gaps and
vulnerabilities in critical industries and covered supply
chains.
(B) Encourage partnerships between the Federal Government
and industry, labor organizations, States (and political
subdivisions of States), and Tribal governments to better
respond to supply chain shocks to critical industries and
covered supply chains and coordinate response efforts.
(C) Encourage partnerships between the Federal Government
and the governments of countries that are allies or key
international partners of the United States.
(D) Develop or identify opportunities to build the capacity
of the United States in critical industries and covered
supply chains.
(E) Develop or identify opportunities to build the capacity
of countries that are allies or key international partners in
critical industries and covered supply chains.
(4) In coordination with the Secretary of State and the
United States Trade Representative, work with governments of
countries that are allies or key international partners to
promote diversified and resilient covered supply chains that
ensure the supply of critical goods, industrial equipment,
and manufacturing technology to the United States and
companies that are headquartered in, or that have substantial
operations in, countries that are allies or key international
partners.
(5) Coordinate with other offices and divisions of the
Department of Commerce and other Federal agencies to use
authorities, whether in existence as of the day before the
date of the enactment of this Act or established on or after
the date of enactment of this Act, to encourage the
resilience of supply chains of critical industries.
(b) Continuous Monitoring.--The Assistant Secretary, in
consultation with the head of any other relevant Federal
agency, including such an agency with jurisdiction over
covered supply chains, shall continuously monitor the
resilience, diversity, security, and strength of covered
supply chains.
(c) Coordination Group.--
(1) In general.--In carrying out the applicable activities
under subsection (a), the Assistant Secretary shall establish
a unified coordination group led by the Assistant Secretary,
which shall include individuals representing private sector
partners, labor organizations, and, as appropriate, federally
funded research and development centers, to serve as a method
for consultation between and among the Federal agencies
described in subsection (g) to--
(A) plan for and respond to supply chain shocks; and
(B) support the resilience, diversity, security, and
strength of covered supply chains.
(2) Implementation.--In consultation with the unified
coordination group established under paragraph (1), the
Assistant Secretary shall do the following:
(A) Acquire on a voluntary basis technical, engineering,
and operational supply chain information from the private
sector in a manner that ensures any supply chain information
provided by the private sector is kept confidential and is
exempt from disclosure under section 552(b)(3) of title 5,
United States Code.
(B) Study the supply chain information acquired under
subparagraph (A) to--
(i) identify covered supply chains;
(ii) assess the resilience of covered supply chains;
(iii) identify covered supply chains that are vulnerable to
disruption, strain, compromise, or elimination; and
(iv) inform planning.
(C) Convene with relevant private sector entities to share
best practices, planning, and capabilities to respond to
potential supply chain shocks to covered supply chains.
(D) Develop contingency plans and coordination mechanisms
to ensure an effective and coordinated response to potential
supply chain shocks to covered supply chains.
(3) Subgroups.--In carrying out the activities described in
paragraph (2), the Assistant Secretary may establish
subgroups of the unified coordination group established under
paragraph (1) led by the head of an appropriate Federal
agency.
(4) International agreements.--The Secretary, in
consultation with the United States Trade Representative and
the head of any other relevant Federal agency, may enter into
agreements with governments of countries that are allies or
key international partners relating to enhancing the security
and resilience of covered supply chains in response to supply
chain shocks.
(d) Designations.--The Assistant Secretary shall--
(1) not later than 270 days after the date of enactment of
this Act, designate--
(A) critical industries;
(B) covered supply chains; and
(C) critical goods;
(2) provide for a period of public comment and review in
carrying out paragraph (1); and
(3) update the designations made under paragraph (1) not
less frequently than once every 4 years.
(e) Quadrennial Report on Supply Chain Resilience and
Domestic Manufacturing.--
(1) In general.--Not later than 4 years after the date on
which the final report required under section 4(a) of
Executive Order 14017 (86 Fed. Reg. 11849; relating to
America's supply chains) is submitted, and once every 4 years
thereafter, the Assistant Secretary, in coordination with the
head of each relevant Federal agency and relevant private
sector entities, labor organizations, States (and political
subdivisions of States), and Tribal governments, shall submit
to the relevant committees of Congress and post on the
website of the Assistant Secretary a report on covered supply
chain resilience and domestic manufacturing (referred to in
this subsection as the ``report'') to strengthen, improve,
and preserve the resilience, diversity, security, and
strength of covered supply chains.
(2) Contents of report.--The report shall include the
following:
(A) An identification of--
(i) the critical industries, covered supply chains, and
critical goods designated under subsection (d);
(ii) supplies that are critical to the crisis preparedness
of the United States;
(iii) substitutes for critical goods, industrial equipment,
and manufacturing technology;
(iv) the matters identified and evaluated under subsection
(a)(2); and
(v) countries that are critical to addressing international
and domestic supply chain weaknesses and vulnerabilities.
(B) A description of--
(i) the manufacturing base and supply chains in the United
States, including the manufacturing base and supply chains
for--
(I) industrial equipment;
(II) critical goods, including semiconductors, that are
essential to the production of technologies and supplies for
critical industries; and
(III) manufacturing technology; and
(ii) the ability of the United States to--
(I) maintain readiness with respect to preparing for and
responding to supply chain shocks; and
(II) in response to a supply chain shock--
(aa) surge production in critical industries;
(bb) surge production of critical goods and industrial
equipment; and
(cc) maintain access to critical goods, industrial
equipment, and manufacturing technology.
(C) An assessment and description of--
(i) demand and supply of critical goods, industrial
equipment, and manufacturing technology;
(ii) production of critical goods, industrial equipment,
and manufacturing technology by domestic manufacturers;
(iii) the capability and capacity of domestic manufacturers
and manufacturers in countries that are allies or key
international partners to manufacture critical goods,
industrial equipment, and manufacturing technology; and
(iv) how supply chain shocks could affect rural, Tribal,
and underserved communities.
(D) An identification of defense, intelligence, homeland,
economic, domestic labor supply, natural, geopolitical, or
other contingencies and other supply chain shocks that may
disrupt, strain, compromise, or eliminate a covered supply
chain.
(E) An assessment of--
(i)(I) the resilience of the manufacturing base, covered
supply chains, and workforce of the United States, and of
allies and key international partners; and
(II) the capacity of the manufacturing base, covered supply
chains, and workforce of the United States, and of allies and
key international partners, to sustain critical industries
through a supply chain shock to a covered supply chain;
(ii) the flexible manufacturing capacity and capabilities
available in the United States in the case of a supply chain
shock; and
(iii) the effect that innovation has on domestic
manufacturing.
(F) Specific recommendations to improve the security and
resilience of manufacturing capacity and supply chains
through the following:
(i) Developing long-term strategies.
(ii) Increasing visibility into the networks and
capabilities of suppliers and domestic manufacturers.
(iii) Identifying industry best practices.
(iv) Evaluating how diverse supplier networks, multi-
platform and multi-region production capabilities and
sources, and integrated global and regional supply chains
can--
(I) enhance the resilience of critical industries and
manufacturing capabilities in the United States;
(II) support and create jobs in the United States; and
(III) support access of the United States to critical goods
during a supply chain shock.
(v) Identifying and mitigating risks, including--
(I) the financial and operational risks of a covered supply
chain;
(II) significant vulnerabilities to supply chain shocks and
other emergencies; and
(III) exposure to gaps and vulnerabilities in--
(aa) domestic capacity or capabilities; and
(bb) sources of imports needed to sustain critical
industries and covered supply chains.
(vi) Identifying enterprise resource planning systems that
are--
[[Page S5838]]
(I) compatible across supply chain tiers; and
(II) affordable for small and medium-sized businesses.
(vii) Understanding the total cost of ownership, total
value contribution, and other best practices that encourage
strategic partnerships throughout covered supply chains.
(viii) Understanding Federal procurement opportunities to
increase resilience of covered supply chains and fill gaps in
domestic purchasing of critical goods.
(ix) Identifying policies that maximize job retention and
creation in the United States, including workforce
development programs.
(x) Identifying opportunities to work with allies or key
international partners to build more resilient covered supply
chains and mitigate risks.
(xi) Identifying areas requiring further investment in
research and development or workforce education.
(xii) Identifying opportunities to reuse and recycle
critical goods to increase the resiliency of covered supply
chains.
(xiii) Identifying such other services as the Assistant
Secretary determines necessary.
(G) Guidance to the National Science Foundation and other
relevant Federal agencies with respect to critical goods,
industrial equipment, and manufacturing technologies that
should be prioritized.
(H) With respect to countries that are allies or key
international partners--
(i) a review of, and, if appropriate, recommendations for
expanding, the sourcing of critical goods, industrial
equipment, and manufacturing technology associated with
critical industries from those countries; and
(ii) a recommendation to coordinate with those countries
on--
(I) sourcing critical goods, industrial equipment, and
manufacturing technology; and
(II) developing, sustaining, and expanding production and
availability of covered supply chains, critical goods,
industrial equipment, and manufacturing technology during a
supply chain shock.
(I) Recommendations for strengthening the financial and
operational health of small and medium-sized businesses in
covered supply chains of the United States and countries that
are allies or key international partners to mitigate risks
and ensure diverse and competitive supplier markets that are
less vulnerable to failure.
(J) An assessment of policies, rules, and regulations that
impact the operating costs of domestic manufacturers and
inhibit the ability for domestic manufacturers to compete
with global competitors.
(K) Recommendations regarding freight and logistics
necessary to support covered supply chains.
(3) Prohibition.--The report may not include--
(A) supply chain information that is not aggregated; or
(B) confidential business information of a private sector
entity.
(4) Collaboration.--The head of any Federal agency with
jurisdiction over any covered supply chain shall collaborate
with the Assistant Secretary and provide any information,
data, or assistance that the Assistant Secretary determines
to be necessary for developing the report.
(5) Form.--The report, and any update of the report, shall
be submitted in unclassified form and may include a
classified annex.
(6) Public comment.--The Assistant Secretary shall provide
for a period of public comment and review in developing the
report.
(f) Report to Congress.--
(1) In general.--Concurrently with the annual submission to
Congress of the budget justification materials in support of
the budget request of the Department of Commerce (as
submitted with the budget of the President under section
1105(a) of title 31, United States Code), the Secretary shall
submit to the relevant committees of Congress and post on the
website of the Assistant Secretary a report that contains a
summary of the activities required under subsection (a)
carried out under this section during the fiscal year covered
by the report.
(2) Classification.--Each report required under paragraph
(1) shall be submitted in unclassified form and may include a
classified annex.
(g) Coordination.--
(1) In general.--In implementing the requirements under
subsection (e), the Assistant Secretary shall, as
appropriate, coordinate with--
(A) the heads of appropriate Federal agencies, including--
(i) the Secretary of State; and
(ii) the United States Trade Representative; and
(B) the Attorney General and the Federal Trade Commission
with respect to--
(i) advice on the design and activities of the unified
coordination group described in subsection (c)(1); and
(ii) ensuring compliance with Federal antitrust law.
(2) Specific coordination.--In carrying out the
requirements under this section, with respect to covered
supply chains involving specific sectors, the Assistant
Secretary shall, as appropriate, coordinate with--
(A) the Secretary of Defense;
(B) the Secretary of Homeland Security;
(C) the Secretary of the Treasury;
(D) the Secretary of Energy;
(E) the Secretary of Transportation;
(F) the Secretary of Agriculture;
(G) the Director of National Intelligence;
(H) the Secretary of Health and Human Services;
(I) the Administrator of the Small Business Administration;
(J) the Secretary of Labor; and
(K) the head of any other relevant Federal agency, as
appropriate.
(h) Rule of Construction.--Nothing in this section shall be
construed to require any private entity--
(1) to share information with the Secretary or Assistant
Secretary;
(2) to request assistance from the Secretary or Assistant
Secretary; or
(3) that requests assistance from the Secretary or
Assistant Secretary to implement any measure or
recommendation suggested by the Secretary or Assistant
Secretary.
(i) Protections.--
(1) In general.--Supply chain information or records that
are voluntarily and lawfully submitted by a private entity
under this section and accompanied by an express statement
described in paragraph (2)--
(A) shall be exempt from disclosure under section 552(b)(3)
of title 5, United States Code;
(B) shall not be made available by any Federal, State,
local, or Tribal authority pursuant to any Federal, State,
local, or Tribal law requiring public disclosure of
information or records; and
(C) shall not, without the written consent of the person or
entity submitting such information, be used directly by the
Assistant Secretary, or any other Federal, State, or local
authority, in any civil enforcement action brought by a
Federal, State, or local authority.
(2) Express statement.--The express statement described in
this paragraph, with respect to information or records, is--
(A) in the case of written information or records, a
written marking on the information or records substantially
similar to the following: ``This information is voluntarily
submitted to the Federal Government in expectation of
protection from disclosure as provided by the provisions of
section 1085(i) of the Improving American Security through
Manufacturing Resilience/Strengthening American Manufacturing
and Supply Chain Resiliency Act of 2022.''; or
(B) in the case of oral information, a written statement
similar to the statement described in subparagraph (A)
submitted within a reasonable period following the oral
communication.
(3) Inapplicability to semiconductor incentive program.--
This subsection shall not apply to the voluntary submission
of supply chain information by a private entity in an
application for Federal financial assistance under section
9902 of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652).
(j) No Effect on Discovery.--Subject to subsection (i),
nothing in this section, nor in any rule or regulation issued
under this section, may be construed to create a defense to a
discovery request, or otherwise limit or affect the discovery
of supply chain information from a private entity, arising
from a cause of action authorized under any Federal, State,
local, or Tribal law.
(k) Consistency With International Agreements.--This
section shall be applied in a manner consistent with United
States obligations under international agreements.
(l) Authorization of Appropriations.--There is authorized
to be appropriated to the Assistant Secretary $500,000,000
for each of fiscal years 2022 through 2027, to remain
available until expended, to carry out this section, of which
not more than 2 percent per fiscal year may be used for
administrative costs.
SEC. 1086. MANUFACTURING SECURITY AND RESILIENCE PROGRAM.
(a) In General.--The Assistant Secretary shall support the
resilience, diversity, security, and strength of covered
supply chains by providing grants, loans, and loan guarantees
for eligible activities to eligible entities.
(b) Application.--The Assistant Secretary may not provide a
grant, loan, or loan guarantee under this section to an
eligible entity unless the eligible entity submits to the
Assistant Secretary an application at such time, in such
form, and containing such information as the Assistant
Secretary may require, including--
(1) a description of the eligible activity to be carried
out with the grant, loan, or loan guarantee;
(2) a description of the covered supply chain supported by
the eligible activity;
(3) an estimate of the total costs of the eligible
activity; and
(4) in the case of an application submitted for an eligible
activity described in subparagraph (B) or (C) of subsection
(c)(2), a description of domestic manufacturing operations
for the production of the applicable critical good.
(c) Eligible Activities.--
(1) Activities in the united states.--The following
activities may be carried out with a grant, loan, or loan
guarantee provided under this section :
(A) The development, diversification, preservation,
improvement, support, restoration, or expansion of covered
supply chains and the domestic manufacturing of critical
goods, industrial equipment, and manufacturing technology,
including activities that support any of the following:
(i) The manufacturing of a critical good or industrial
equipment in the United States.
[[Page S5839]]
(ii) The commercialization, adoption, deployment, or use of
manufacturing technology by domestic manufacturers in the
United States.
(iii) The design, engineering, construction, expansion,
improvement, repair, or maintenance of critical
infrastructure or a manufacturing facility in the United
States.
(iv) The purchase, lease, acquisition, enhancement, or
retooling of industrial equipment for use in the United
States.
(v) The purchase, lease, or other acquisition of critical
goods, industrial equipment, or manufacturing technology from
reliable sources.
(vi) The relocation of manufacturing facilities or
operations related to the production of a critical good out
of a country of concern and into the United States.
(vii) The modification of manufacturing facilities,
industrial equipment, or operations related to the
manufacture of critical goods to--
(I) create new capabilities for an eligible entity to
manufacture critical goods in the United States;
(II) expand existing operations to increase the manufacture
of critical goods in the United States; or
(III) accommodate any manufacturing operations related to
critical goods that are being relocated to the United States.
(viii) The development of tools or processes that relate to
procuring, transporting, or storing critical goods.
(B) The manufacture or acquisition of a substitute for a
critical good, industrial equipment, or manufacturing
technology.
(C) The establishment, improvement, development, expansion,
or preservation of surge capacity or stockpiling of a
critical good or industrial equipment, as appropriate and
necessary.
(D) The establishment, improvement, or preservation of
diverse, secure, reliable, and strong sources and locations
of a critical good in the United States.
(2) Activities relating to allies and key international
partners.--The following activities may be carried out with a
loan or loan guarantee provided under this section:
(A) The design, engineering, construction, expansion,
improvement, repair, or maintenance of critical
infrastructure or a manufacturing facility in an ally or key
international partner.
(B) The relocation of manufacturing facilities or
operations relating to the production of a critical good out
of a country of concern and into an ally or key international
partner, with a priority for a country--
(i) that is a covered Western Hemisphere country;
(ii) that is a member state of the North Atlantic Treaty
Organization (commonly referred to as ``NATO'');
(iii) that is designated as a major non-NATO ally pursuant
to section 517(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321k(a)); or
(iv) that is identified under section 1085(e)(2)(A)(v).
(C) The modification of manufacturing facilities,
industrial equipment, or operations relating to the
manufacture of critical goods to--
(i) create new capabilities for an eligible entity to
manufacture critical goods in an ally or key international
partner;
(ii) expand existing operations to increase the manufacture
of critical goods in an ally or key international partner; or
(iii) accommodate any manufacturing operations related to
critical goods that are being relocated to an ally or key
international partner.
(d) Eligible Entities.--Any of the following entities is
eligible to receive a grant, loan, or loan guarantee under
this section:
(1) A domestic manufacturer.
(2) A domestic enterprise.
(3) A State or a county, city, or other political
subdivision of a State.
(4) A Tribal government.
(5) A manufacturing extension center established as part of
the Hollings Manufacturing Extension Partnership carried out
under section 25 of the National Institute of Standards and
Technology Act (15 U.S.C. 278k).
(6) A Manufacturing USA institute described in section
34(d) of the National Institute of Standards and Technology
Act (15 U.S.C. 278s(d)).
(7) An institution of higher education acting as part of a
consortium, partnership, or joint venture with another
eligible entity described in any of paragraphs (1) through
(6).
(8) A public or private nonprofit organization or
association acting as part of a consortium, partnership, or
joint venture with another eligible entity described in any
of paragraphs (1) through (6).
(9) A consortium, partnership, or joint venture of 2 or
more eligible entities described in any of paragraphs (1)
through (8).
(e) Requirements.--The Assistant Secretary may only provide
a grant, loan, or loan guarantee to an eligible entity under
this section if the Assistant Secretary makes a determination
of the following:
(1) The grant, loan, or loan guarantee is for an eligible
activity.
(2) Without the grant, loan, or loan guarantee, the
eligible entity would not be able to fund or finance the
eligible activity under reasonable terms and conditions.
(3) The grant, loan, or loan guarantee is a cost effective,
expedient, and practical form of financial assistance for the
eligible activity.
(4) There is a reasonable assurance that--
(A) the eligible entity will implement the eligible
activity in accordance with the application submitted under
subsection (b); and
(B) the eligible activity will support--
(i) the resilience, diversity, security, or strength of a
covered supply chain; and
(ii) the national security or economic security of the
United States.
(5) The eligible entity agrees to provide the information
required under subsection (o)(3).
(6) For an eligible activity described in subparagraph (B)
or (C) of subsection (c)(2), relocation of a manufacturing
facility or operations into the United States is
uneconomical.
(7) The eligible activity does not support the production
of a critical good subject to an anti-dumping or
countervailing duty order imposed by the United States.
(f) Criteria.--The Assistant Secretary shall establish
criteria for the providing of grants, loans, and loan
guarantees under this section that meet the requirements of
subsection (e), including the following:
(1) The extent to which the applicable eligible activity
supports the resilience, diversity, security, and strength of
a covered supply chain.
(2) The extent to which the applicable eligible activity is
funded or financed by non-Federal sources.
(3) The extent to which the grant, loan, or loan guarantee
will assist small and medium-sized domestic manufacturers.
(4) The amount of appropriations that are required to fund
or finance the grant, loan, or loan guarantee.
(g) Relocation Consideration.--In making a determination to
provide a loan or loan guarantee to an eligible entity for an
eligible activity described in subparagraph (B) or (C) of
subsection (c)(2), the Assistant Secretary--
(1) shall--
(A) consult with the Secretary of State and the heads of
other relevant Federal agencies, as appropriate; and
(B) to the extent practicable, ensure that no single ally
or key international partner benefits from an outsized amount
of Federal funding provided under this section; and
(2) may take into considerations labor and environmental
standards of the applicable ally or key international partner
when considering the siting locations for the eligible
activity.
(h) Relocation Limitations.--As a condition of receiving a
loan or loan guarantee for an eligible activity described
under subparagraph (B) or (C) of subsection (c)(2), the
Assistant Secretary shall prohibit an eligible entity from
making capital or labor investments in the manufacturing
facility or operation in the country of concern for the
duration of the grant, loan, or loan guarantee.
(i) Grant Cost Share.--
(1) In general.--The amount of a grant provided under this
section may not exceed 80 percent of the reasonably
anticipated costs of the eligible activity for which the
grant is provided.
(2) Waiver.--Upon providing written justification to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House
of Representatives, which may be submitted with a classified
annex, the Assistant Secretary may waive the cost share
requirement of paragraph (1)--
(A) during a period of national emergency declared under a
duly enacted law of the United States or by the President; or
(B) upon making a determination that the applicable grant
is necessary to avert the disruption, strain, compromise, or
elimination of a covered supply chain that would severely
affect the national security or economic security of the
United States.
(3) Use of other federal assistance.--Federal assistance
other than a grant provided under this section may be used to
satisfy the non-Federal share of the cost of the eligible
activity.
(j) Loans and Loan Guarantees.--
(1) In general.--The Assistant Secretary may enter into an
agreement with an eligible entity to provide a loan under
this section, the proceeds of which shall be used to finance
an eligible activity.
(2) Maximum amount.--The amount of a loan provided under
this section may not exceed 80 percent of the reasonably
anticipated costs of the eligible activity for which the loan
is provided.
(3) Waiver.--Upon providing written justification to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House
of Representatives, which may be submitted with a classified
annex, the Assistant Secretary may waive the cost share
requirement of paragraph (2)--
(A) during a period of national emergency declared under a
duly enacted law of the United States or by the President; or
(B) upon making a determination that the applicable loan is
necessary to avert the disruption, strain, compromise, or
elimination of a covered supply chain that would severely
affect the national security or economic security of the
United States.
(4) Loan guarantees.--
(A) In general.--The Assistant Secretary may provide a loan
guarantee to a lender in lieu of providing a loan under this
section.
(B) Terms.--The terms of a loan guarantee provided under
this section shall be consistent with the terms established
in this subsection for a loan.
[[Page S5840]]
(k) Manufacturing Investment Companies.--
(1) In general.--The Assistant Secretary may provide a loan
or loan guarantee under this subsection to a manufacturing
investment company.
(2) Equity capital.--A manufacturing investment company
shall use the proceeds of a loan or loan guarantee provided
under this subsection to provide a source of equity capital
for eligible entities to carry out eligible activities.
(3) Application.--The Assistant Secretary may not provide a
loan or loan guarantee to a manufacturing investment company
under this subsection unless the manufacturing investment
company submits to the Assistant Secretary an application at
such time, in such form, and containing such information as
the Assistant Secretary may require, which shall include the
following:
(A) A plan describing how the manufacturing investment
company intends to provide equity capital to eligible
entities to support the resilience, diversity, security, and
strength of covered supply chains.
(B) Information regarding the relevant qualifications and
general reputation of the management of the manufacturing
investment company.
(C) A description of how the manufacturing investment
company intends to address the unmet capital needs of
eligible entities.
(D) A description of whether and to what extent the
manufacturing investment company meets the criteria
established under paragraph (4).
(E) For a manufacturing investment company seeking to
provide equity capital for an eligible activity described in
subparagraph (B) or (C) of subsection (c)(2), a description
of domestic manufacturing operations for the production of
the applicable critical good.
(4) Criteria.--The Secretary shall establish criteria for
the providing of a loan or loan guarantee under this
subsection to a manufacturing investment company, including
the following:
(A) The extent to which the equity capital to be provided
under paragraph (2) will support the resilience, diversity,
security, and strength of covered supply chains.
(B) The extent to which the activities described in the
plan submitted under paragraph (3)(A) will be funded or
financed by non-Federal sources.
(C) The extent to which the manufacturing investment
company will assist small and medium-sized domestic
manufacturers.
(D) The amount of appropriations that are required to fund
or finance the loan or loan guarantee.
(5) Requirements.--As a condition of providing a loan or
loan guarantee under this subsection, the Assistant Secretary
shall require a manufacturing investment company to certify
the following:
(A) The applicable equity capital is for an eligible
activity.
(B) Without the applicable equity capital, the eligible
entity would not be able to fund or finance the eligible
activity under reasonable terms and conditions.
(C) The applicable equity capital is a cost effective,
expedient, and practical form of financial assistance for the
eligible activity.
(D) There is a reasonable assurance that--
(i) the eligible entity will implement the eligible
activity; and
(ii) the eligible activity will support--
(I) the resilience, diversity, security, or strength of a
covered supply chain; and
(II) the national security or economic security of the
United States.
(E) The manufacturing investment company will provide the
information required under paragraph (6)(C).
(F) In the case of an eligible activity described in
subsection (c)(2) (B) or (C), relocation of a manufacturing
facility or operations into the United States is
uneconomical.
(G) The eligible activity does not support the production
of a critical good subject to an anti-dumping or
countervailing duty order imposed by the United States.
(6) Performance measures.--For loans and loan guarantees
provided under this subsection, the Assistant Secretary
shall--
(A) develop metrics to assess the extent to which
manufacturing investment companies meet the criteria
established under paragraph (4);
(B) assess the extent to which each manufacturing
investment company to which a loan or loan guarantee is
provided is meeting the criteria established under paragraph
(4); and
(C) require each manufacturing investment company to which
a loan or loan guarantee is provided to provide to the
Assistant Secretary any information relating to the loan or
loan guarantee that the Assistant Secretary determines to be
necessary to conduct the assessment under subparagraph (B).
(7) Equity caps.--The Assistant Secretary may, as a
condition of providing a loan or loan guarantee under this
subsection, establish limits on--
(A) the maximum amount of equity or quasi-equity
securities, shares, or financial interests a manufacturing
investment company may purchase, make and fund commitments to
purchase, invest in, make pledges in respect of, or otherwise
acquire from an eligible entity; and
(B) the maximum amount of assets a manufacturing investment
company may hold to be eligible for the loan or loan
guarantee.
(8) Conditions.--The Assistant Secretary may prescribe
specifically, or by maximum limits or otherwise, rates of
interest, guarantee and commitment fees, and other charges
that may be made in connection with equity capital made under
this subsection.
(9) Relocation consideration.--In making a determination to
provide a loan or loan guarantee to a manufacturing
investment company for an eligible activity described in
subparagraph (B) or (C) of subsection (c)(2), the Assistant
Secretary may take into consideration labor and environmental
standards of the applicable ally or key international partner
when considering the siting locations for the eligible
activity.
(10) Relocation limitations.--As a condition of receiving a
loan or loan guarantee from a manufacturing investment
company for an eligible activity described in subparagraph
(B) or (C) of subsection (c)(2), the manufacturing investment
company shall prohibit an eligible entity from making capital
or labor investments in the manufacturing facility or
operation in the country of concern for the duration of the
equity capital.
(l) Creditworthiness.--
(1) In general.--For a loan or loan guarantee provided
under this section, the applicable manufacturing investment
company, or eligible entity and eligible activity, receiving
such loan or loan guarantee shall be creditworthy, as
determined by the Assistant Secretary.
(2) Considerations.--In determining the creditworthiness of
a manufacturing investment company, or an eligible entity and
eligible activity, under paragraph (1), with respect to a
loan or loan guarantee provided under this section, the
Assistant Secretary shall take into consideration relevant
factors, including the following:
(A) The terms, conditions, financial structure, and
security features of the loan or loan guarantee.
(B) The revenue sources that will secure or fund any note,
bond, debenture, or other debt obligation issued in
connection with the loan or loan guarantee.
(C) The financial assumptions upon which the loan or loan
guarantee is based.
(D) The ability of, as applicable--
(i) the manufacturing investment company to provide a
source of equity capital for eligible entities; or
(ii) the eligible entity to successfully achieve the goal
of the eligible activity.
(E) The financial soundness and credit history of the
manufacturing investment company or eligible entity, as
applicable.
(m) Conditions.--The Assistant Secretary may prescribe--
(1) specifically, or by maximum limits or otherwise, rates
of interest, guarantee and commitment fees, and other charges
that may be made in connection with a loan or loan guarantee
made under this section; and
(2) regulations governing the forms and procedures (which
shall be uniform to the extent practicable) to be used in
connection with loans and loan guarantees described in
paragraph (1).
(n) Selection of Recipients.--
(1) Ability to meet criteria.--To the extent practicable,
in providing grants, loans, and loan guarantees under this
section, the Assistant Secretary shall--
(A) select--
(i) manufacturing investment companies that best meet the
criteria established under subsection (k)(4); and
(ii) eligible entities and eligible activities that best
meet the criteria established under subsection (f); and
(B) serve the greatest needs for a diverse array of
critical industries.
(2) Priority.--In providing grants, loans, and loan
guarantees under this section, the Assistant Secretary shall
prioritize--
(A) eligible activities that--
(i) are within the United States and employ citizens of the
United States; and
(ii) will result in the production of critical goods that
relate to the strategic needs of the Federal Government in
preparing for and responding to supply chain shocks;
(B) eligible entities that agree to coordinate with the
Assistant Secretary to assist the United States in preparing
for and responding to supply chain shocks, including through
the manufacture of critical goods, as necessary; and
(C) small and medium-sized manufacturers.
(o) Performance Measures.--For grants, loans, and loan
guarantees provided under this section to eligible entities,
the Assistant Secretary shall--
(1) develop metrics to assess the extent to which the
criteria established under subsection (f) are met;
(2) assess the extent to which the criteria established
under subsection (f) are met; and
(3) require the eligible entity to provide to the Assistant
Secretary any information that the Assistant Secretary
determines to be necessary to conduct the assessment under
paragraph (2).
(p) Construction Projects.--The requirements of section 602
of the Public Works and Economic Development Act of 1965 (42
U.S.C. 3212) shall apply to a construction project that
receives financial assistance from the Assistant Secretary
under this section in the same manner as such requirements
apply to a project assisted by the Secretary under such Act.
(q) Workforce Protections.--Any eligible entity and
manufacturing investment company applying for a grant, loan,
or loan guarantee under this section, in any case in which
the eligible entity has not fewer than 100 employees, shall
make a good-faith certification to the Assistant Secretary
that--
[[Page S5841]]
(1) the eligible entity will not abrogate existing
collective bargaining agreements, as applicable, for--
(A) the term of the grant; or
(B) the term of the loan or loan guarantee and 2 years
after completing repayment of the loan; and
(2) the eligible entity will remain neutral in any union
organizing effort for the term of the grant, loan, or loan
guarantee.
(r) Consistency With International Agreements.--This
section shall be applied in a manner that is consistent with
United States obligations under international agreements.
(s) Limitation.--To the extent practicable, none of the
funds made available to carry out this section may be used to
support manufacturing in a country of concern.
(t) Regulations.--The Assistant Secretary may promulgate
such regulations as the Assistant Secretary determines to be
appropriate to carry out this section.
(u) Supply Chains for Critical Manufacturing Industries
Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the ``Supply Chains
for Critical Manufacturing Industries Fund'' (referred to in
this section as the ``Fund''), which shall solely be used by
the Assistant Secretary to carry out this section.
(2) Revolving loan fund.--The proceeds of any rates of
interest, guarantee and commitment fees, and other charges
prescribed under subsection (m)(1) shall be deposited into
the Fund.
(v) Rule of Construction.--Nothing in this section may be
construed to permit the proceeds of a grant, loan, loan
guarantee, or equity investment to support activities that
offshore manufacturing capacity from the United States.
(w) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Fund $45,000,000,000 for fiscal years 2022 through 2027,
which shall remain available until expended.
(2) Purposes.--Of the amount appropriated pursuant to the
authorization under paragraph (1), not more than--
(A) $31,000,000,000 may be used to provide loans and loan
guarantees to eligible entities;
(B) $10,000,000,000 may be used to provide grants to
eligible entities;
(C) $4,000,000,000 may be used to provide loans and loan
guarantees to manufacturing investment companies; and
(D) 2 percent per fiscal year may be used for
administrative costs.
SEC. 1087. SUPPLY CHAIN INNOVATION AND BEST PRACTICES.
(a) In General.--The Assistant Secretary, in consultation
with the Director of the National Institute of Standards and
Technology, shall, on an ongoing basis, facilitate and
support the development of a voluntary set of standards,
guidelines, best practices, management strategies,
methodologies, procedures, and processes for domestic
manufacturers and entities manufacturing, purchasing, or
using a critical good to--
(1) measure the resilience, diversity, security, and
strength of covered supply chains;
(2) evaluate the value of the resilience, diversity,
security, and strength of covered supply chains; and
(3) design organizational processes and incentives to
reduce the risks of disruption, strain, compromise, or
elimination of a covered supply chain.
(b) Requirements.--In carrying out subsection (a), the
Assistant Secretary shall do the following:
(1) Coordinate closely and regularly with relevant private
sector personnel and entities, manufacturing extension
centers established as part of the Hollings Manufacturing
Extension Partnership carried out under section 25 of the
National Institute of Standards and Technology Act (15 U.S.C.
278k), Manufacturing USA institutes described in section
34(d) of that Act (15 U.S.C. 278s(d)), and other relevant
stakeholders and incorporate industry expertise.
(2) Consult with the head of any relevant Federal agency,
including those with jurisdiction over covered supply chains,
States, local governments, Tribal governments, the
governments of other nations, and international
organizations, as necessary.
(3) Collaborate with private sector stakeholders to
identify a prioritized, flexible, repeatable, performance-
based, and cost-effective approach that may be voluntarily
adopted by domestic manufacturers and entities purchasing or
using a critical good to help those domestic manufacturers
and entities--
(A) identify, assess, and manage risks to covered supply
chains; and
(B) value the resilience, diversity, security, and strength
of their covered supply chains.
(4) Facilitate the design of--
(A) voluntary processes for selecting suppliers that
support the resilience, diversity, security, and strength of
covered supply chains; and
(B) methodologies to identify and mitigate the effects of a
disruption, strain, compromise, or elimination of a covered
supply chain.
(5) Disseminate research and information to assist domestic
manufacturers redesign products, expand manufacturing
capacity, and improve capabilities to meet domestic needs for
critical goods and covered supply chains.
(6) Incorporate relevant voluntary standards and industry
best practices.
(7) Consider small business concerns.
(8) Any other elements the Assistant Secretary determines
to be necessary.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Office $500,000,000 for each of
fiscal years 2022 through 2027, to remain available until
expended, for the Assistant Secretary to carry out this
section, of which not more than 2 percent per fiscal year may
be used for administrative costs.
SEC. 1088. PROGRAM EVALUATION BY THE INSPECTOR GENERAL OF THE
DEPARTMENT OF COMMERCE.
(a) Program Evaluation.--Not later than 4 years after the
date of enactment of this Act, and once every 4 years
thereafter, the Inspector General of the Department of
Commerce shall conduct an audit of the Office to--
(1) evaluate the performance of the activities supported by
a grant, loan, or loan guarantee provided under section 1086;
(2) evaluate the extent to which the requirements and
criteria under this subtitle are met; and
(3) provide recommendations on any proposed changes to
improve the effectiveness of the Office on meeting the
mission described in section 1083(b).
(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Inspector General of the Department
of Commerce $5,000,000 for each of fiscal years 2022 through
2027, to remain available until expended, to carry out
subsection (a).
SEC. 1089. SUPPLY CHAIN DATABASE AND TOOLKIT.
(a) Establishment.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a
database and online toolkit under which--
(A) United States businesses may voluntarily submit to the
Secretary information on--
(i) the products produced by those businesses in the United
States, which may be finished goods or inputs for other
goods;
(ii) the inputs required for the products described in
clause (i), which may include, with respect to such an
input--
(I) the specific geographic location of the production of
the input, including if the input is sourced from the United
States or a foreign country;
(II) the business name of a supplier of the input;
(III) information relating to perceived or realized
challenges in securing the input;
(IV) information relating to the suspected vulnerabilities
or implications of a disruption in securing the input,
whether related to national security or the effect on the
United States business; or
(V) in the case of an input sourced from a foreign country,
information on--
(aa) why the input is sourced from a foreign country rather
than sourced from in the United States; and
(bb) if the United States business would be interested in
identifying an alternative produced in the United States;
(B) United States businesses may request and receive
contact information or general information about a United
States source or a foreign source for an input;
(C) United States businesses are able to specify--
(i) what information can be shared with other United States
businesses;
(ii) what information should be shared only with the
Department of Commerce; and
(iii) what information could be submitted to Congress or
made available to the public; and
(D) the Secretary shall make information provided under
this paragraph available, subject to subparagraph (C), to
enable other United States businesses to identify inputs for
their products produced in the United States.
(2) Format; public availability.--The Secretary shall--
(A) provide the database and online toolkit established
under paragraph (1) on a publicly available website of the
Department of Commerce; and
(B) ensure that the database and online toolkit are--
(i) searchable and filterable according to the type of
information; and
(ii) presented in a user-friendly format.
(3) Exemption from public disclosure.--Information
submitted to the Secretary in relation to the database and
online toolkit established under paragraph (1)--
(A) shall be exempt from disclosure under section 552(b)(3)
of title 5, United States Code; and
(B) shall not be made available by any Federal, State,
political subdivision, or Tribal authority pursuant to any
Federal, State, political subdivision, or Tribal law
requiring public disclosure of information or records.
(4) Reporting.--
(A) Report to congress.--Not later than 180 days after the
date of enactment of this Act, and once every 4 years
thereafter, the Secretary shall submit to Congress a report
that includes--
(i) an assessment of the effectiveness of the database and
online toolkit established under paragraph (1), including
statistics regarding the number of new entries, total
businesses involved, and any change in participation rate
during the preceding 180-day period;
(ii) recommendations for additional actions to improve the
database and online
[[Page S5842]]
toolkit and participation in the database and online toolkit;
and
(iii) such other information as the Secretary considers
appropriate.
(B) Public report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary
shall post on a publicly available website of the Department
of Commerce a report that sets forth--
(i) general statistics relating to foreign and domestic
sourcing of inputs used by United States businesses;
(ii) an estimate of the percentage of total inputs used by
United States businesses obtained from foreign countries;
(iii) data on the inputs described in clause (ii), which
shall be disaggregated by industry, geographical location,
and size of operation; and
(iv) a description of the methodology used to calculate the
statistics and estimates required under this paragraph.
(b) Public Outreach Campaign.--
(1) In general.--The Secretary shall carry out a national
public outreach campaign--
(A) to educate United States businesses about the existence
of the database and online toolkit established under
subsection (a); and
(B) to facilitate and encourage the participation of United
States businesses in the database and online toolkit
established under subsection (a).
(2) Outreach requirement.--In carrying out the campaign
under paragraph (1), the Secretary shall--
(A) establish an advertising and outreach program directed
to businesses, industries, State and local agencies, chambers
of commerce, and labor organizations--
(i) to facilitate understanding of the value of an
aggregated demand mapping system; and
(ii) to advertise that the database and online toolkit
established under subsection (a) are available for that
purpose;
(B) not later than 10 days after the date of enactment of
this Act, notify appropriate State agencies regarding the
development of the database and online toolkit established
under subsection (a); and
(C) post a notice on a publicly available website of the
Department of Commerce and establish a social media awareness
campaign to advertise the database and online toolkit.
(3) Coordination.--In carrying out the campaign under
paragraph (1), the Secretary may coordinate with other
Federal agencies and State or local agencies, as appropriate.
(4) Separate accounting.--The Secretary shall include in
the budget justification materials submitted to Congress in
support of the budget request of the Department of Commerce
for fiscal years 2023 and 2024 (as submitted with the budget
of the President under section 1105(a) of title 31, United
States Code) specific identification, as a budgetary line
item, of the amounts required to carry out the campaign under
paragraph (1).
(c) Use of Department of Commerce Resources.--
(1) In general.--The Secretary--
(A) shall, to the maximum extent practicable, construct the
database and online toolkit required under subsection (a),
and related analytical features, using expertise within the
Department of Commerce; and
(B) may, as appropriate, adopt new technologies and hire
additional employees to carry out this section.
(2) Minimization of contracting.--If the activities
described in subparagraphs (A) and (B) of paragraph (1)
cannot be completed without the employment of contractors,
the Secretary shall seek to minimize the number of
contractors and the scope of the contract.
(d) Termination.--This section shall terminate on September
30, 2025.
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